On 5 June 2008, the European Commission sent Latvia a letter of formal notice (the first stage of the infringement procedure under Art. 226 of the EC Treaty) regarding its discriminatory rules on the deductibility of interest paid to non-residents (case No. 2007/2459). The Latvian government had acknowledged that the Latvian corporate income tax (CIT) rules were incompatible with EC law.
On 15 October 2009, the parliament adopted the amendments to the Corporate…