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1. Selling Establishments

As regards selling establishments of foreign enterprises in Latvia, there is no distinction between those which sell in the national market and those which sell abroad.

In order that sales profits may be taxable in Latvia, it is only necessary that the sale shall have been effected by an enterprise established there. The taxable profit will be the profit on which a Latvian enterprise working under the same conditions would itself be liable.

Consequently, a foreign enterprise may invoice its goods at the price at which it would sell them to third parties and, if allocation by separate accounting is employed, the accounts of the taxable establishment will be examined in the light of this principle.

If profits are calculated empirically as a percentage of turnover (see pages 296 and 297, concerning the choice of methods), use will be made of the coefficients applying to commercial enterprises selling the same goods.

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