Russia added to list of low-tax or tax-free countries

RIGA - The government on Tuesday approved the new list of low-tax or tax-free countries and territories, adding to it the British Virgin Islands, Costa Rica, Marshall Islands and Russia. 

The approved list will come into force on Saturday, July 1. The Finance Ministry therefore urges taxpayers to pay special attention also to transactions with persons based, incorporated or established in the British Virgin Islands, Costa Rica, Marshall Islands and Russia.

From now on, the Finance Ministry will be obliged to announce the updated list of low-tax or tax-free countries and territories by sending it for publication in the official gazette Latvijas Vestnesis and publishing it on the ministry's website, the government decided on Tuesday.

The Finance Ministry will announce the updated list after the European Union's (EU) updated list is published in the Official Journal of the European Union.

To date, the government regulations on low-tax or tax-free countries and territories include 12 jurisdictions in accordance with the EU list updated on October 4, 2022 - Anguilla, Guam, Samoa, Virgin Islands, Bahamas, Fiji, Palau, Panama, Samoa, Turks and Caicos Islands, Trinidad and Tobago, and Vanuatu.

Although the last amendment to the government regulations was made on December 22, 2022, they have to be amended once again to aligh them with the EU list updated on February 14, 2023, which includes, in addition to the existing jurisdictions, the British Virgin Islands, Costa Rica, Marshall Islands and Russia.