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Key tax changes in the Baltic states

The international community has expressed concern about international companies that take advantage of the possibilities afforded by different tax jurisdictions for tax planning purposes. Such companies aim to move profits into low-tax-rate territories, without actually being engaged in economic activity there. In response to this concern, the G20/OECD published the BEPS (Base Erosion and Profit Shifting) action plan in July 2013. BEPS covers 15 different areas of activity, which are planned to be completed in three stages: September 2014, September 2015 and December 2015.

Many companies in the process of preparing annual reports for the last year find themselves facing the need to recognize transactions between related parties.

Starting on 10 February 2015, all circumstances that enable a company to make income tax-exempt disbursements to shareholders or partners in the future must be declared.