Latvians in Ireland insist that Latvian government should revise income tax laws

Several Latvian organizations in Ireland have sent an open letter to Finance Minister Atis Slakteris (People’s Party), demanding that the income tax laws in Latvia be revised.
The government, at a meeting on June 10, heard a report by the Society Integration Affairs Minister’s Secretariat regarding measures that have to be taken to prompt residents who have found jobs abroad to return home, informs LETA.

One of the recommended measures was to consider differences between income tax in Latvia and income tax in other countries where Latvia’s residents work. In Latvia, resident income tax rate is 25%, whereas in Ireland it is 20%. If a private individual declares income in Latvia, he/she has to pay the 5% difference.
The government assigned ministries to submit their proposals regarding the matter by December. At this time, views differ whether the difference in taxes has to be tackled the way the Latvians in Ireland want it.
“We would like to finally receive a clear answer: who and for what do Latvians in Ireland owe money to? According to Latvian legislation: income that Latvia’s residents earn abroad is taxed in Latvia, except when a different procedure is used in accordance with international agreements that Latvia has signed,” says the letter.
The Latvians in Ireland point out in the letter that they cannot, according to the law “On Taxes and Duties”, be deemed residents of Latvia, because the law says that a non-resident of Latvia is a person who does not live in Latvia or is not in Latvia for more than 183 days a year. Besides, according to the Latvian-Irish intergovernmental convention, a person is deemed a resident of a country where the person resides and has closer personal and economic relations with.
The open letter also points out that the convention, which came into force in 1997, states that income is taxed in just one country.
The letter has been signed by several Latvian organizations in Ireland, including the Latvian portal in Ireland “www.baltic-ireland.ie”, Latvian Society in Ireland, Latvian Association for Latvians in Ireland, ice hockey club “Latvian Hawks”, ice hockey club “Drogheda Icebreakers”, Cork Ladies Club, Cork Youth Association, Young Moms Club in Ireland, Cork Children Arts School “BabyArt”, Limerick Latvian Society, Support Group for Latvian Catholics in Ireland, and others.

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