Latvia's crypto-asset market is small but active, with a handful of domestic CASPs serving the Baltic region. DAC8 transposition will align Latvia's crypto reporting requirements with the broader EU framework.
Regulatory and Tax Context
The Financial and Capital Market Commission (Finanšu un kapitāla tirgus komisija — FKTK), now merged into the Bank of Latvia (Latvijas Banka), supervises CASPs under the AML framework. Latvia taxes crypto-asset gains as capital gains at a flat rate of 20% for individuals.
Transposition and TIN System
The Ministry of Finance (Finanšu ministrija) leads transposition. The State Revenue Service (Valsts ieņēmumu dienests — VID) will serve as the competent authority. Latvia uses the personas kods (personal code) as the individual TIN — an 11-digit number. Entities use the reģistrācijas numurs (registration number).
Penalties and Impact
Latvia's penalty framework includes administrative fines under the Law on Taxes and Fees for reporting violations. Latvian CASPs, given their small scale, may benefit from leveraging regional compliance solutions shared with Estonian and Lithuanian counterparts.
Conclusion
Latvia's small but active crypto market will benefit from DAC8's standardized reporting framework, which may reduce the compliance complexity of serving clients across multiple Baltic and EU jurisdictions.
Preparing for DAC8?
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