The true beneficiaries must be disclosed to branches and representative offices of foreign merchants
As of 1 July 2020, branches and representative offices of foreign entities registered in Latvia are obliged to register information on their beneficial owners. This obligation follows from the amendments to the Law on the Prevention of Money Laundering and Terrorist and Proliferation Financing.
Both foreign branches and representative offices that have already registered in Latvia have to disclose the true beneficiaries in the Register of Enterprise of the Republic of Latvia or the State Revenue Service.
The changes foresee that foreign merchants will have time until 1 January 2021, to inform the in the Register of Enterprise of the Republic of Latvia or the State Revenue Service about their true beneficiaries.
In case the information on the true beneficiaries is not revealed within the term specified by law, the Register of Enterprises of the Republic of Latvia or the State Revenue Service will exclude the specific branch or representative office from the register maintained by them (Register of Representative Offices or Register of Taxpayers).
Deloitte offer to help:
- Determine the extent to which it is necessary to notify the beneficiary
- Prepare and submit the necessary documents within the time limits
- Communicate with RE or SRS