(a) INDIVIDUALS
An individual’s fiscal domicile is the place where he permanently resides.
Liability to tax in Latvia depends not so much upon a taxpayer’s domicile as upon the source of his income. We shall see under the heading “Taxable Income” the exceptions to and qualifications of this rule. The taxes to which individuals, like all other taxpayers, are liable are the graduated income-tax, the taxes on urban and rural properties, tax on trade and industry and the tax on income from capital.
If a person not domiciled in Latvia resides there for more than six months in the tax year and is not in receipt of income taxable in Latvia by reason of its source, such person will none the less be liable to pay tax on a certain income figure, computed for the whole year on the basis of certain external evidence and his standard of living. When a person spends less than six months in Latvia, his taxable income is determined, not empirically, but from the income he has actually received during his stay in the country.