Latvia has create a black list of jurisdiction

[dotbloup]

Latvia has created a black list of jurisdiction.

If a Latvian company sends money to one of the jurisdiction through dividends, royalties, interest, a 15% withholding tax should be levied:

Countries in the Black list that will be important for people of this forum: Anguilla, Antigua, Bahrain, Barbardos, Belize, BVI, Cayman, Hong Kong, Seychelles, Panama

Gibraltar, Jersey are not in the list.

Tax-free jurisdictions/jurisdictions with lоw taxes - BBP

Now i wonder what are the reactions of Latvian tax authority when they find invoices from one blacklisted country in the accounting of a Lativan company.

 

[negon]

Thanks for this great share. Thankfully Cyprus is also not on this list! Do you know of any reliable Latvian bank?

 

[JohnSeed]

What will define if a transaction is dividends or for instant royalties? Can't the transaction be send as something different?

 

[dotbloup]

What will define if a transaction is dividends or for instant royalties? Can't the transaction be send as something different?

Sure it can by classic billing of services and products. Nevertheless, if there is an investigation of local tax authority i wonder what will be their reaction if they see that for instance 30% of your expense go to the same company in Seychelles or something else.
I have seen the case with the French tax authority. French business owners used a lot Delaware companies. So their Delaware company used to bill their french company. Once someone i know had a tax audit.

They started to ask many questions about the delaware company. They asked why he had to get a service from a company that is so far from France and why he didn't buy the same service from a French company because he could benefit the VAT return.
After talking to tax men about this issue, i know that for instance in France you can't pay more than 15% of your turnover to a company in a tax haven. Otherwise it triggers an alert. Then, they will see if the work is justified.

For instance, nobody can bill you a website design 350,000 euros if there are only 5 pages on the website

 

[dotbloup]

Thanks for this great share. Thankfully Cyprus is also not on this list! Do you know of any reliable Latvian bank?

Baltikums is now very interesting. They just lowered their fees. In order to open a bank company there, they ask you 3-6 month bank statement rather than a bank reference letter (which is definitely way more clever)
They all speak & understand well english. There is no hidden fees.

BUT they stopped opening bank accounts for Seychelles, Belize, Panama, BVI, Barbados, Antigua, Nevis.

 

[dotbloup]

I strongly discourage to open a bank account in Estonia or Latvia at Swedbank or SEB. They are very soviet minded and perform additional useless check against foreign person which slow down the ban account opening for nothing.

 

[negon]

Baltikums is now very interesting. They just lowered their fees. In order to open a bank company there, they ask you 3-6 month bank statement rather than a bank reference letter (which is definitely way more clever)
They all speak & understand well english. There is no hidden fees.

BUT they stopped opening bank accounts for Seychelles, Belize, Panama, BVI, Barbados, Antigua, Nevis.

That's perfect for me and my operations, thanks.. last question do you know if I can contact them directly or do they require an introducer?

 

[dotbloup]

That's perfect for me and my operations, thanks.. last question do you know if I can contact them directly or do they require an introducer?

That's why i advise this bank. They don't need an introducer. Also during Latvia office hours, you can chat with them on the website, they answer.
You can find their bank opening form so that you can see what type of information they are looking for. It is all pretty transparent. It was not like that 1 or 2 years ago. They have just improved.

Documents | Baltikums Bank - accounts and investments for corporate and private banking clients. Fast, convenient and safe online services.

 

[negon]

Documents | Baltikums Bank - accounts and investments for corporate and private banking clients. Fast, convenient and safe online services.

These guys I already approached for some time ago, they require a personal visit. First they tell you it is not required but later in the application process they will require you to come to one of their branch. They claimed to have someone locally in my country they worked together and that I could visit rather than the bank but then again later in the dicussion they changed that I have to visit their bank!! strange behaviour so it's a no go for me.

However, Swedbank or SEB sounds good I will try, do you know if it's possible to get it done remote with them?

 

[dotbloup]

These guys I already approached for some time ago, they require a personal visit. First they tell you it is not required but later in the application process they will require you to come to one of their branch. They claimed to have someone locally in my country they worked together and that I could visit rather than the bank but then again later in the dicussion they changed that I have to visit their bank!! strange behaviour so it's a no go for me.

However, Swedbank or SEB sounds good I will try, do you know if it's possible to get it done remote with them?

@ auric, i am sorry but there are more and more banks (including Cyprus) who ask you to go there.

What i can say about Baltikums, they have several offices in Europe:
Contacts | Baltikums Bank - accounts and investments for corporate and private banking clients. Fast, convenient and safe online services.
It is funny they have a branch office in Limassol Cyprus too.

In fact, about Swedbank, i am sure they don't accept remote bank account opening.

I am sorry it is not easy now. I talked to an agent in Cyprus who told me all those due diligence are new (for both Latvia & Cyprus).

 

[adoffshore]

They should put them self on the list of country with most SCAMS

 

[wtf]

Latvia has created a black list of jurisdiction.

If a Latvian company sends money to one of the jurisdiction through dividends, royalties, interest, a 15% withholding tax should be levied:

Countries in the Black list that will be important for people of this forum: Anguilla, Antigua, Bahrain, Barbardos, Belize, BVI, Cayman, Hong Kong, Seychelles, Panama

Gibraltar, Jersey are not in the list.

Tax-free jurisdictions/jurisdictions with lоw taxes - BBP

Now i wonder what are the reactions of Latvian tax authority when they find invoices from one blacklisted country in the accounting of a Lativan company.

They can put them self on this list. It is the most corrupt country in Europe together with the rest of the Baltic countries