News

According to the Estonian income tax legislation, the fringe benefit taxation applies to loans granted below the fair market value interest rate to the employee or member of the board or council, except if the interest at the moment of the payment of interest is at least twofold of the interest rate of the European Central Bank applicable to the main refinancing operations. From 1 July 2025, the referred twofold amount of interest rate has decreased from 6,3% to 4,3%.

As of 10 June, Latvia has implemented significant amendments to its legal framework governing international and national sanctions. These changes establish clearer administrative and criminal liability for violations and aim to strengthen enforcement mechanisms.

In a move aimed at giving businesses more time to adapt, the Latvian government has decided to postpone the mandatory use of structured electronic invoices (e-invoices) for private businesses. Originally slated for 2026, the requirement will now take effect on 1 January 2028, following the Saeima’s recent approval of amendments to the Accounting Law.

On 14 April, the Council of the European Union approved the so-called "Stop-the-Clock" directive, which aims to postpone the implementation deadlines for sustainability reporting requirements. These changes are part of the broader "Omnibus I" initiative, which aims to simplify the EU sustainability framework and reduce the administrative burden on companies. This postponement of deadlines is good news for businesses, providing an opportunity to prepare in a quality way for sustainability reporting, which will become the norm for all companies in the future.