Taxes
In line with the amendments to the Law "On Personal Income Tax" effective from 1 January 2010, the interest income earned by private persons (residents and non-residents) is the subject to tax. Danske Banka’s customers can receive interest income by using several bank’s products, e.g. deposit and savings account.
The tax administration
- Starting from 1 January 2010 the bank withholds the personal income tax on earned interest income. It means, that our customers will not need to pay the tax by themselves.
- The personal income tax rate is 10 % of earned interest income.
- The tax must be withheld on the day of gaining the interest income, i.e. when the interest income is paid out, the bank withholds the tax automatically.
- Danske Banka transfers the tax to the government budget till 5th date of the next month.
For example, if you have a term deposit with an interest disbursement once a month, Danske Banka will automatically deduct income tax at the moment of interest disbursement. You will receive in the service account an income where tax is withheld already.
View the Law "On Personal Income Tax" in www.likumi.lv with amendments effective from 1 January 2010 (in Latvian only).
* The explanation mentioned above is only informative. For more information about personal income tax, please consult with the State Revenue Service or your tax consultant.