OREANDA-NEWS. January 20, 2010. We would like to inform you that Parex banka is ensuring the automatic withholding of the individual income tax from interest income on deposits, also providing for the transfer of the tax to the national budget, reported the press-centre of Parex Banka.

Amendments to the law on the individual income tax approved by Parliament on 1 December 2009 provide, inter alia, that individuals are subject to capital gains tax:

Income from capital that is not capital gains

As of 1 January 2010, a 10% tax rate is being applied to the following types of income from capital:

Dividends;

Interest income on deposits and alike, a well as income related to interest income;

Income from deposits in private pension funds;

Income from the concluded accumulation life insurance contracts.

Income from capital gains

As of 1 January 2010, a 15% tax rate is being applied to the following types of income from capital gains or income from capital assets:

Stock, capital shares, debentures, and investments in general partnerships;

Investment fund participation certificates;

Debt instruments and other money market instruments;

Other financial market instruments;

Real estate (including the right to use real estate);

Objects of intellectual property.