Property declaration law passes

RIGA - The Saeima on Dec. 1 passed in the final reading the law on initial property declarations for private individuals, the so-called ‘zero declarations’ law, reports LETA. It is planned that the new declarations will be accepted from March 1 until June 1 next year.

According to Saeima Budget and Finance Committee Chairman Janis Reirs, residents will not have to declare properties already registered with state registers, for instance automobiles, land plots or apartments, but they will have to declare properties they own abroad, company shares and other assets worth more than 10,000 lats (14,200 euros), as well as cash savings of over 10,000 lats.

Declarations will also have to be submitted by residents who have taken out loans or have other liabilities of 10,000 lats or more, as well as persons who have issued loans of 10,000 lats or more.

The bill also provides that private individuals that had taxable income for which they have not paid taxes will be able to declare this income and pay a 15 percent personal income tax, thereby legalizing this income. This provision, though, does not concern officials, neither current nor former ones.
Additionally, only such income that the personal income tax law applies to may be legalized - not, for instance, “income from illegal drug or arms trade,” added Reirs.

The property declarations will have to be submitted by citizens and non-citizens of Latvia, as well as temporary residents.