OREANDA-NEWS. January 08, 2010. As of 1 January 2010, amendments to the Personal Income Tax Law come into force.
 
The Law applies only to individuals who are the residents, non-residents, or individual entrepreneurs of RL who have gained income that is exempt from corporate income tax.
According to the Law, bank customers' income from deposits and savings accounts, account balances, security deposits etc. is taxed at 10%. It is noteworthy that the tax will only be charged on interest income rather than on the total deposit amount.

The Law provides that as of 1 March 2010, the bank will be obliged to collect the tax on interest income paid to the customers.
Taking care of its customers' comfort, AS "PrivatBank" will start collecting this tax already in January. The Bank is working hard on software implementation.
The bank specialists will offer individual solutions to the customers who will receive interest income before the bank software is implemented, which will facilitate their income declarations.

We hereby inform you that if the Bank does not deduct the tax from interest income (such income should be summed up) and if the tax payable to the budget (rather than interest income) exceeds 5 (five) lats, the customer should fill out a capital gains tax declaration form and submit it to any branch of the SRS by 31.03.2010, and pay this amount to the state budget, to the Treasury account LV91TREL1060000110000 by 15.04.2010.