OREANDA-NEWS. January 8, 2010. AS LTB Bank informs that according to 1 December 2009 “Amendments to the law “On personal income tax”” passed by the Latvian Parliament, that were published in newspaper “Latvijas Vзstnesis” Nr.200 (4186) and came into force on 1 January 2010:

-         The list of taxable income has been supplemented by capital income. Interest income on deposits qualifies as capital income;

-         10% tax rate to be applied to capital income;

-         The income tax to be withheld from interest on all types of deposits;

-         The income tax to be withheld from interest only on private persons’ deposits, both residents and non-residents of the Republic of Latvia, placed in Latvia registered credit institution. 

AS LTB Bank from 1 January 2010 guarantees automatic withholding of tax from interest on deposits.

In practice for AS LTB Bank customers it means that upon expiry of the term of the term deposit the interest on the deposit will be disbursed to the customer with already automatically deducted income tax of 10%. AS LTB Bank customers will see in their account statements the total interest income and the tax amount transferred to the state budget in lats.