Those taxes are for government of Latvia and are regulated by Latvian laws and they have nothing to do with your country of residence rules or your rights in your country of residence.Ĥ. I do not pay taxes or I do not pay taxes for interest income in my country, should I pay the Latvian withholding tax? Ask your local tax advisor or administration.ģ. You have to look for deductions for the avoidance of double taxation or tax credits in your country of residence. In that case, you might be able to claim the difference to the Valsts ieņēmumu dienests, but it will be costly and require a Latvian tax advisor). tax treaty says 10% tax maximum for Latvia, and withholding tax has been a 20%. Probably, if the amount to deduct is not higher than the one established by the double taxation treaty that Latvia has with your country of tax residence (e.g. Can I deduct the Latvian withholding tax from the taxes that I am going to pay in my country of residence? To avoid having to reclaim the taxes withheld in excess back, provide Mintos with the proper certificate of tax residence.Ģ. Those taxes are for the government of Latvia and are regulated by Latvian laws and they have nothing to do with your country of residence rules or your rights in your country of residence if you are non-resident in Latvia. If that is the case, get info at or ask your Latvian tax advisor. No, unless you are or become a tax resident in Latvia during the year and have tax reductions or exemptions or pay less tax than non-residents, the tax withheld is higher than the one established by the double taxation treaty that Latvia has with your country of tax residence, or a Latvian law that I do not know exempts you from taxation in Latvia (not very likely). Can I reclaim the withholding tax paid in Latvia (see also the next question)? Now with Notes, the foreign country is Latvia where Mintos operates, and it takes care of paying Latvian taxes for you.ġ. The foreign country for claims was the loan originator country (in theory you should have been taking care of filling tax returns in those countries, as stated in the terms and conditions of the agreements, unless you were exempt by a double taxation treaty or the loan originator or Mintos was withholding or paying the tax for you). In those treaties, two countries split their taxes between them by giving exemptions on taxation in one of the two countries or by reducing the amount of tax (reductions in withholding tax of the foreign country + tax credit, deductions in the tax return in the country of residence).Įach country has its rules to determine whether an individual is a tax resident in that country or not, and double taxation treaties usually (but not always) contain rules to avoid individuals being considered tax residents in both countries at the same time.
But, if you are a non-tax-resident in a country, usually tax law says that you only pay taxes for income coming from that country (limited taxation).Īs double taxation is bad for investors, countries have reached to agreements to avoid such double taxations (double taxation treaties). In most countries, tax law says that you have to pay taxes from all income from all sources and from all countries in the world (global income) in your country of tax residence (unlimited taxation). When laws of each country state that you have to pay taxes in both countries for the same income we use the term double taxation, as the same income is taxed twice. When you invest in a foreign country, you pay taxes in your country of residence for most of or all your income, and taxes for some of your income or none in the foreign country according to the local laws of each country.
Many people have questions to which I could provide some unofficial answers as they seem to be related to how international taxation works more than with Mintos. The following applies only to individuals, company taxation is different. WARNING: I have no relation with Mintos and I am not a tax advisor nor offer tax advice.