Audit of a Latvian company, financial statements, accounting, consulting in Latvia

According to legislation of Latvia, all Latvian companies must keep accounting records and file annual accounts and a tax return with state authorities every year by 30 April (large companies by 31 July).

The following must file full financial statements in Latvia:

• commercial companies;
• cooperative societies;
• European commercial interest groups registered in Latvia;
• European cooperative societies registered in Latvia;
• European commercial companies registered in Latvia;
• sole traders with income of over 300 000 EUR;
• farms and fisheries with income of over 300 000 EUR.

Sole traders, farms and fisheries with income of up to 300 000 EUR report in a simplified form.

The full annual financial report includes:

• Balance sheet;
• Profit and loss statement;
• Cash flow statement;
• Statement of changes in equity;
• Statement of facts;
• Annex.

In addition, large enterprises must provide:

• (net) turnover divided into business areas;
• report on amounts paid to sworn auditors.

Large companies are companies that meet 2 of the following 3 criteria:

• balance sheet total is 20 000 000 EUR;
• sales revenue is 40 000 000 EUR;
• average number of employees is 250.

The form and rules of filing of annual reports for credit institutions, insurance companies, private pensions funds, investment broker companies, investment management companies, religious organizations and political parties are regulated by special regulations of the Government of Latvia and differ significantly from the form and rules of filing of annual reports of business entities.

Traditionally, reporting period in Latvia is a calendar year. Recently incorporated entities that have been operating for less than 1 year can, as may be agreed, either report on an incomplete year or include the first incomplete year in the next report. And the first reporting period must not last more than 18 months.

In the case of late filing of accounts, sanctions shall be imposed in accordance with administrative legislation.

According to legislation of Latvia, all Latvian companies must file tax returns (along with an annual report) every year by 30 April.

Tax must be paid within 15 days after the tax return is filed.