Latvia Levies 10% Personal Income Tax on Capital Earnings
OREANDA-NEWS. January 11, 2010. Latvijas Krajbanka would like to remind its clients that from 1 January 2010, 10% personal income tax on capital earnings will be levied, reported the press-centre of Latvijas Krajbanka.
The scope of capital earnings covers income from dividends, interest, income from payments into private pension funds and income from funds accruing from life insurance policies. The tax on interest from deposits in bank accounts and comparable income is calculated and deducted at the moment the income is received i.e. when the income becomes available to the client.
Interest for various types of deposits is calculated with differing regularity. For example, for Latvijas Krajbanka term deposits and savings accounts it is calculated monthly, for capital deposits and children’s private funds it is calculated annually while for savings deposits it is calculated quarterly. The income tax is also calculated from interest earned for current accounts.
Latvijas Krajbanka would like to inform its clients that the new rules relating to the personal income tax on interest from deposits placed in accounts of Latvijas Krajbanka will not lead to additional obligations or inconvenience because the tax will be automatically calculated and deducted already from 1 January.
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