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3. Apportionment of Net Profit of Branch to Deficitary Parent or of Parent to Deficitary Branch

Given the general principle for allocating gross profits, it follows that the results of the parent enterprise do not affect the sum taxable in Latvia, either when the parent is working at a loss and the Latvian establishment at a profit, or when the position is reversed. In the latter case, the accounts of the taxable establishment will, of course, be examined especially closely.

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