-
ESG newsletter, March-April 2025
In this issue, we bring you the most significant updates on ESG developments across the Baltic region – from amendments to consumer protection laws in Lithuania to Latvia’s national AI Centre and Estonia’s debate on sustainability reporting. At the EU level, key updates include a proposal to delay corporate sustainability reporting, a new voluntary ESG framework for SMEs, and the EU’s plan to decarbonise the steel and metals industry. As always, our team is ready to support your ESG journey with insights, guidance and solutions tailored to your goals. Legislative news and ESG initiatives in Estonia, Latvia and Lithuania Lithuania […]
-
European Legal update: 20.03. – 31.03.2025.
Assistant lawyer Liis Pormeister compiled the material. Competition The Commission finds that an arbitration award ordering Spain to pay compensation in favour of Antin is illegal and incompatible with state aid Decided: 24 March 2025 The European Commission has concluded that an arbitration award, in which Spain is ordered to compensate Antin for modifying a renewable electricity support measure, constitutes illegal State aid. The Commission considered that the arbitration award, and in any event, its implementation, payment, or execution, constitutes State aid within the meaning of Article 107(1) of TFEU, which is prohibited unless it is approved by the Commission […]
-
Client alert: Lithuanian Competition Council intensifies scrutiny of defence sector
With Lithuania’s defence budget increasing, the Lithuanian Competition Council (LCC) has identified the defence sector as one of the key enforcement priorities for 2025. As a result, the LCC will closely monitor procurement processes to prevent anti-competitive agreements, and is working with the Ministry of National Defence to ensure compliance with competition laws. This follows a broader trend of heightened regulatory attention to the defence sector, highlighted in 2023 by the first-ever prosecution of a defence industry cartel by the European Commission (EC). Risks and Sanctions for Competition Law Violations Companies operating in the Lithuanian defence sector must carefully assess […]
-
European Legal update: 04.03. – 17.03.2025.
Assistant lawyer Liis Pormeister compiled the material. Data and technology Regulation (EU) 2025/327 on the European Health Data Space published in OJ Published: 5 March 2025 Official publication has been made of Regulation (EU) 2025/327 of the European Parliament and of the Council of 11 February 2025 on the European Health Data Space. The regulation aims to establish the European Health Data Space, which will enhance access to and control over personal health data for individuals. It will promote the use of this data, amongst other sectors, in healthcare, research and policymaking. The Commission launches the process to allow free […]
-
Piracy, patents & design law: the latest legal developments in the Baltics
Welcome to our latest newsletter, where we explore key legal developments shaping the Baltic region and beyond. This edition covers significant changes in EU design law, offering businesses stronger protection for digital and industrial designs. In Latvia, intellectual property challenges arise as the success of the Oscar-winning animated film Straume fuels piracy concerns, while a new copyright debate surfaces over the use of a famous literary title in cinema. Lithuania sees landmark court rulings on TV format copyrights and patent disputes in the pharmaceutical sector. Meanwhile, Estonia hosts major discussions on intellectual property for startups, copyright protection in music, and […]
-
European Legal update: 17.02. – 04.03.2025.
Assistant lawyer Liis Pormeister compiled the material. Energy Commission presents the Clean Industrial Deal for competitiveness and decarbonisation in the EU Published: 26 February 2025 The Commission presented the Clean Industrial Deal, which is a business plan to support the competitiveness and resilience of Europe’s industry. The Deal will accelerate decarbonisation while securing the future of manufacturing in Europe. This framework can drive competitiveness as it gives certainty and predictability to companies and investors that Europe remains committed to becoming a decarbonised economy by 2050. See also: press release. Tax The Council adopts new legislation on electronic VAT exemption certificate […]
-
Employee Share Option Card 2025
“Employee Share Option Card” provides an overview of the tax implications associated with employee share options across the Baltic States — Estonia, Latvia, and Lithuania. It outlines the tax incentives and potential risks related to these options, serving as a guide for employers and employees considering or managing share option schemes in these countries. Available here: Employee Share Option Card 2025 Check out our Taxes in a Nutshell 2025 and Transfer Pricing Card 2025. Subscribe here if you would like to receive tax-related newsletters and updates directly in your email. Read more about our Tax practice. Contact the experts: Dr […]
-
EU Sustainability Omnibus proposals
On 26 February 2026, the European Commission announced a package of proposals intended to simplify EU rules related to sustainability reporting (CSRD) and due diligence (CS3D). According to the announcement, this initiative aims to reduce the regulatory burden on businesses and enhance the EU’s global competitiveness. In this article we will discuss the main points relevant to business, as well as the expected next steps. What changes has the Commission proposed as part of the Sustainability Omnibus legislation package? The package contains the so-called Omnibus I (COM/2025/80 final) and Omnibus II (COM/2025/ 81 final) proposals. Omnibus I includes the following […]
-
ESG newsletter, covering Baltic States’ energy independence and other EU news
In this issue, we cover the Baltic States’ energy independence, as well as EU legal news in regard to sustainability and innovation. As always, our team is here to support you with expertise, advice and tailored solutions to meet your ESG ambitions. Let’s continue working together towards a more sustainable and equitable future. Legislative news and ESG initiatives in Estonia, Latvia and Lithuania Lithuania Last year, the parliament adopted a regulation requiring all large companies to include statistical information on gender representation in their corporate governance reports. This regulation mandates companies to detail measures taken or planned to ensure that in […]
-
Taxes in a Nutshell 2025
“Taxes in a Nutshell 2025” offers a concise overview of the main corporate tax principles across Estonia, Latvia, and Lithuania. This annual publication serves as a valuable resource for businesses, tax professionals, and investors operating or considering ventures in the Baltic region, providing them with up-to-date tax information essential for informed decision-making. Available here: Taxes in a Nutshell 2025 Check out our Transfer Pricing Card 2025 and Employee Share Option Card 2025. Subscribe here if you would like to receive Tax-related newsletters and updates directly to your email. Read more about our Tax practice. Contact the experts: Dr Kaido Künnapas […]
-
Tax Stories Podcast – Episode 70 – Rita de la Feria On Movies And Fairness
In this episode of Tax Stories, we welcome Rita de la Feria, a globally recognized tax expert. Rita is a Professor of Tax Law at the University of Leeds, International Research Fellow at Oxford University’s Centre for Business Taxation, and an advisor to multiple governments. She has authored five books and numerous articles, with her latest book, “Taxation and Inequalities,” set for release this summer by IBFD. She was also named among the Top 50 most influential tax professionals by International Tax Review. For more on Rita, check out Episode 2 of the Tax Stories podcast. Watch the episode here. Key Topics Discussed in This Episode: 📽️ Movies & Taxation Themes: Everything Everywhere […]
-
Legal news that affects innovations in the Life Sciences & Healthcare sector
In this newsletter, we hope to draw your attention to legal news that, in one way or another, affects innovations in the life sciences and healthcare sector. Whether this relates to the early stages of product development (the Biotech and Biomanufacturing Hub) or questions related to the use of innovative products (the AI Act), innovation must still adhere to the legal frameworks that ensure safety. We, as lawyers, of course, do our best not to hinder innovation but to promote and incentivise it in a legal way. Worth noting: As of 12 January 2025 Regulation (EU) 2021/2282 on health technology […]
-
European Legal update: 04.02. – 17.02.2025.
Assistant lawyer Liis Pormeister compiled the material. Technology Commission endorses the integration of the voluntary Code of Practice on Disinformation into the Digital Services Act Endorsed: 13 February 2025 The Commission and the European Board for Digital Services have endorsed the integration of the voluntary Code of Practice on Disinformation into the Digital Services Act (DSA) framework. This integration will make the Code an important benchmark for determining platforms’ compliance with the DSA. The commitments have been built on existing best industry practices. It contains areas of demonetisation, transparency of political advertising, ensuring the integrity of the services and empowering […]
-
Transfer Pricing Card 2025
The Transfer Pricing Card 2025 provides a comparison of the main transfer pricing regulations across the Baltic States—Estonia, Latvia, and Lithuania. It covers key aspects such as related party definitions, documentation requirements and thresholds, accepted transfer pricing methods, and applicable penalties for non-compliance. This resource is essential for businesses operating in the region to ensure compliance with local transfer pricing laws and mitigate potential tax risks. Available here: Transfer Pricing Card 2025 Check out our Taxes in a Nutshell 2025 and Employee Share Option Card 2025. Subscribe here if you would like to receive tax-related newsletters and updates directly in […]
-
European Legal update: 21.01. – 03.02.2025.
Assistant lawyer Liis Pormeister compiled the material. Biotechnology and health Commission launches a new Biotech and Biomanufacturing Hub to support innovative companies Launched: 30 January 2025 The Commission has launched a new Biotech and Biomanufacturing Hub to support companies in bringing innovative products to the EU market and increase their competitiveness. The Hub will also help companies identify the support available to them at EU level and how to access this support to help them to expand and grow. It explains in an easy and accessible way different crucial information regarding, among others, the sources of EU funding available and […]
-
New description of measures to prevent violence and harassment at work: what every employer must do?
The Order of the Chief State Labour Inspector of the Republic of Lithuania Approving the Description of Measures to Prevent Violence and Harassment at Work (Description) came into force on 1 January 2025. The Description details the requirements of the Labour Code for the prevention of violence and harassment. The Description lays down specific binding rules for all employers to prevent and reduce the risk and consequences of violence and harassment at work. In this newsletter, we will discuss the main new requirements introduced by the Description and the steps that every employer must take to avoid potential disputes. Prevention […]
-
ESG-focused newsletter with updates related to the EU and the Baltics
In this edition, we cover key EU policy shifts, groundbreaking sustainability strategies, and innovative projects shaping the future of Estonia, Latvia and Lithuania. As always, our team is here to support you with expertise, advice and tailored solutions to meet your ESG ambitions. Let’s continue working together towards a more sustainable and equitable future. Legislative news and ESG initiatives in Estonia, Latvia and Lithuania Lithuania Vilnius was chosen as European Green Capital 2025 for its strong commitment to sustainability and signed the Green City Accord. This European initiative encourages cities to work towards cleaner air, better water quality, more efficient […]
-
Baltic M&A market overview 2024: the year of revival
Last year marked a revival for the Baltic M&A market, and we anticipate that 2025 will bring even stronger growth. The end of 2024 and the start of this year have been particularly intense for our M&A team, leaving us with an optimistic outlook! According to Mergermarket data, the total number of announced deals in 2024 grew by 39% compared to 2023, with disclosed deal values increasing even more, nearing the record levels of 2021–2022. Deal-making rose across all Baltic States, and the number of transactions with nine-digit values increased significantly: in 2023, there were only three deals at or […]
-
Dr. iur Violeta Zeppa-Priedīte attended the first meeting of the European Commission Expert Group on EU Criminal Policy
On January 21, the first meeting of this year’s European Commission Expert Group on EU Criminal Policy took place in Brussels, which was also attended by our Head of Corporate Crime Investigations and Compliance Practice, sworn attorney Dr. iur. Violeta Zeppa-Priedīte. “I am impressed by the strength of the know-how and competencies of the experts in this expert group. Discussions on such non-routine issues as the ‘Future of EU Criminal Law’ and others open up space for ‘out of the box’ thoughts and ideas, which is fascinating. At the same time, it is a pleasure to have space in the […]
-
European Legal update: 07.01. – 20.01.2025.
Assistant lawyer Liis Pormeister compiled the material. Technology Commission welcomes the integration of the revised Code of conduct on countering illegal hate speech online into the Digital Services Act Published: 20 January 2025 The Code of conduct+ was signed by Dailymotion, Facebook, Instagram, Jeuxvideo.com, LinkedIn, Microsoft hosted consumer services, Snapchat, Rakuten Viber, TikTok, Twitch, X and YouTube. It will strengthen the way online platforms deal with content that EU and national laws define as illegal hate speech. Following the integration, online platforms who are designated under the DSA can adhere to the Code of conduct+ to demonstrate their compliance with […]
-
The Baltic Times: Reflections on news from the USA on the criminal conviction of Mr Donald Trump
Last week, in the world news, one of the “hottest” news was the announcement of Donald Trump, who has become the first former and newly elected U.S. president to be found guilty of criminal charges. Authors: Sorainen Law Firm, Corporate Crime Investigations and Compliance attorneys: Dr. iur. Violeta Zeppa-Priedīte, Jānis Dobelnieks, Darius Raulušaitis, Ugnė Nasvytė As explained, Donald Trump sentencing in his New York criminal case means he’ll be the first U.S. president to take office with a felony criminal conviction. Judge Juan Merchan‘s sentencing of Trump to an “unconditional discharge” places a judgment of guilt on his record just days before he […]
-
Year in review: Space Law in Lithuania
Year in review Lithuania’s space law and industry have seen significant development in 2023 and 2024, building on the country’s status as a hub for small satellite manufacturing and advancing other space-related sectors, such as software solutions for the space industry. Commercial developments Since launching the first Lithuanian small satellite in 2014, Kongsberg NanoAvionics has continued manufacturing and distributing satellites for governments, space agencies and private companies in various jurisdictions, including the United States, the United Kingdom, the United Arab Emirates and France.13 In 2023 and 2024, Kongsberg NanoAvionics has manufactured and launched more than 40 satellites. In 2025, it expects […]
-
Tax Stories: What better tax regimes does Europe offer to those who want to move?
The so-called non-dom regime is being abolished in Great Britain. Capital and people often migrate to Switzerland, Spain, Italy, Portugal, Cyprus for this and other reasons. What is appealing there? Which ones could be the best tax regimes in Europe? Switzerland PIT Some cantons offer a flat PIT rate for people who do not work in Switzerland and are not Swiss citizens, without applying PIT on capital gains. PIT in this regime is applied as a % of shared expenses. For example, if the canton estimates that a person’s lifestyle in Switzerland involves spending EUR 1m per year and the […]
-
Tax Stories: On amendments in Latvia as of 1.1.2025.
The main changes are related to PIT and there was already a blog about it. But everything else concerning tax amendments iz Latvia as of 2025 was not yet collected in one place. I will try to correct this omission (sorry, but it will be long). There was a separate blog about the draft personal income tax changes – as predicted, it has all materialized in the law. Pensions The dogs barked, but the caravan moved on. From January 1, 2025 to December 31, 2028, 1% of pension contribution rates has been transferred from the 2nd pension pillar to the state unfunded […]
-
Tax Stories: How did art in Sweden overthrow the government in 1976?
The tax turbulence was caused by the world-famous director Ingmar Bergman and the writer Astrid Lindgren. As a result, the Social Democrats, who had been in power for 44 years, lost the elections. Art Saves the World Tax Administration Humiliates Ingmar Bergman These two cases seemed important in the context that in Bergman’s case, the tax administration effectively drove a national treasure out of the country. This story coincided with a message sent to me yesterday by a large client that after a long fight with the SRS they have decided to move their business. Others say this for speculative […]
-
Tax Stories: Taxes in Estonia as of 1.1.2025.
Unlike Lithuania, where the CIT rate increased from 5% to 6% (for small businesses) and from 15% to 16% for others, there are many more changes in Taxes in Estonia. What exactly has changed there? Income tax CIT and PIT rates increased from 20% to 22%; The 14% CIT rate (+7% PIT if the recipient is a natural person) for regularly paid profits has been abolished; The CIT payable in advance by credit institutions has been increased from 14% to 18%. In the automatic account mode (similar principle to our economic activity income account system), the 2nd pillar pension fund rate […]
-
Tax Stories: We can ask the SRS a lot more
I wrote about the info obtained by the ‘Financial Times’ in the UK about the increasing number of cases of voluntary income declaration. We also have a similar law, which allows you to obtain info. Freedom of Information Act FT was based on the UK Freedom of Information Act. Could a similar Latvian law be applied to the SRS? Individuals can request information held by the SRS, and the SRS is obliged to respond within the specified time limit, except in cases where the information is restricted or classified. Certainly, many, especially journalists, could be more interested in removing the […]
-
Tax Stories: Forced To Report Voluntary
The FT reports that the number of people reporting their undeclared foreign assets to the UK tax authorities has increased by 22%. Why are people reporting more often? People are not reporting voluntarily What has forced them to do this in the last year? The Financial Times article says that: The UK budget has allocated funds for the tax administration to hire an additional 5,000 people to check taxpayers; the administration has sent out many more and more precisely targeted letters (a la, we see you now); more and more information is coming from the CRS system, as more and more offshore jurisdictions […]
-
Tax Stories: Rule Or An Exception?
Recently, there have been several interesting stories from various sources on the topic of art galleries. As usual, in this case, too, one cannot do without dealing with taxes. Cash transactions? Shortly before Christmas, I purchased this wonderful work by artist Krista Dzidzulo, made with charcoal, at an auction organized by the Kim? gallery. When I shared this happy moment with a friend, he winked and said that you should be careful, because this industry does not have a good reputation, because works are often paid for in cash. Thus, there are even conflicts between parties to transactions that can […]
-
European Legal update: 10.12. – 06.01.2025.
Assistant lawyer Liis Pormeister compiled the material. Technology Measures from the Common Charger Directive (2022/2380) now apply to all electronic devices sold in the EU Published: 28 December 2024 The Council of the EU approved the EU’s Common Charger Directive in October 2022, and manufacturers were given a transition period to adjust their designs and ensure compliance. The rules apply to mobile phones, tablets, digital cameras, headphones, headsets, videogame consoles, portable speakers, e-readers, keyboards, mice, portable navigation systems and earbuds sold in the EU from 28 December 2024. Now, all new devices sold must support USB-‑C charging. The measures will […]
-
2025 to bring economic growth to Estonia
Estonia’s economy has faced challenges over the past three years. However, a turning point is within reach, with signs of growth becoming evident, as highlighted on the podcast Sorainen Frequency by our Country Managing Partner, Kaupo Lepasepp, and the Prime Minister of the Republic of Estonia, Kristen Michal. The Prime Minister aims to return to the roots of Estonia’s success – emphasising freedoms and rights, balanced with civic responsibilities, minimal but necessary red tape and regulations, and a focus on security. According to the Prime Minister, an ideal country is characterised by a low tax burden, straightforward administration, and greater […]
-
Tax Stories: One Hundred Years Of Solitude
A new TV series “One Hundred Years of Solitude” based on the famous book by Gabriel García Márquez has appeared on Netflix. Definitely recommended for your Christmas holidays. What does this have to do with taxes? A Treadmill I certainly don’t want to hurt the feelings of Márquez fans, but I still remember the moments when I would spent hours on MyFitness club treadmill roll while listening to this seemingly endless audiobook, and I never quite understood why I was doing it (I mean – going through the entire book). The biggest problem was remembering and not mixing up the […]
-
NIS 2 Directive – the EU’s update to the cybersecurity framework
To address the expanding cyber-threat landscape and the emergence of new challenges, the European Union has adopted new legislation to ensure a uniform high level of cybersecurity across the union. The NIS 2 Directive (Directive 2022/2555) replaces the previous NIS 1 Directive (Directive (EU) 2016/1148). The NIS 2 Directive introduces significant changes compared to its predecessor NIS 1. What you need to know: management board members can be held liable for non-compliance with cybersecurity requirements the scope of the directive has been expanded to include more sectors and entities requirements for cybersecurity governance and risk management measures have been enhanced […]
-
Tax Stories Podcast – Episode 67 – Anna Gunn On Tax Ethics
Anna Gunn is teaching, consulting and blogging on the topic of tax ethics – an increasingly hot topic among tax professionals and businesses alike. There is a video option of this conversation, too, on the Tax Stories YouTube channel. Anna Anna Gunn is a consultant specialised on tax ethics and tax communication (trainings, advising board meetings), a lecturer of tax ethics at Maastricht University & University of Curacao, a blogger on these topics, has been for 8.5 years with a Big4, studied at the Universities of Cambridge and Leiden. On many occasions I thought that we are a bit alike in our searches of creative expressions […]
-
Sorainen ESG-focused newsletter, December
In the newest issue of the Sorainen ESG newsletter we explore pivotal EU decisions, forward-thinking green policies, and inspiring projects driving sustainability in Estonia, Latvia and Lithuania. Legislative news and ESG initiatives in Estonia, Latvia and Lithuania Lithuania The Lithuanian Parliament recently adopted amendments to the Code of Administrative Offences. Under the amended legislation, entities that submit incorrect financial, management or sustainability reports, or fail to submit these reports on time to the Legal Entity Registry will face administrative penalties. The maximum fine for such offences has been set at up to EUR 1,450. In October, the Lithuanian Parliament adopted […]
-
Life Sciences & Healthcare newsletter on preparations for 2025
The year has passed in the blink of an eye. We’ll skip the recap and instead start looking forward to 2025 already. Next year will bring us many interesting but also challenging legal developments in the life sciences and healthcare sector. We will hereby give you a short overview of the upcoming changes. The Health Technology Assessment Regulation (HTAR) will apply from January 2025 The new EU Health Technology Assessment Regulation (HTAR) aims to streamline access to innovative health technologies for patients across the EU. To do so, the HTAR foresees that certain health technologies will be subject to joint clinical […]
-
Understanding criminal background checks in the Baltics
Criminal background checks are an important but sensitive aspect of employment processes. Article 10 of the EU 2016/679 General Data Protection Regulation (GDPR) sets out a special regime for processing personal data related to criminal convictions and offences, ensuring that such information is handled responsibly and lawfully. Under Article 10 of the GDPR, each EU member state can decide on their own particular set of rules for processing the criminal data of candidates and employees. Employers must navigate these regulations, balancing their operational needs with the fundamental rights of individuals. This article explores the regulatory frameworks in Estonia, Latvia and […]
-
Stricter procedures established for attracting foreign labour in Latvia
According to the currently applicable procedure, an employer who plans to employ third-country nationals has to publish a vacancy with the State Employment Agency (“Employment Agency”) and, if the vacancy remains free for at least 10 business days, the employer is entitled to apply to the Office of Citizenship and Migration Affairs (“OCMA”) for approval of an invitation to request a visa or a temporary residence permit for a foreigner. However, on 10 December 2024, the Cabinet of Ministers adopted amendments (“Amendments”) to Cabinet of Ministers Regulation No. 55 of 28 January 2014 “Regulations on the Employment of Foreigners”, establishing […]
-
Tax Stories Podcast – Episode 65 – James Parker
James Parker is a former McKinsey consultant focusing on strategy of companies. I also wanted to learn more about his book on strategy of professional firms, and his experience of working in Zaire. Listen to the podcast here. James Parker: a partner at Parma Consulting Group (strategy consulting partnership, focused on financial institutions, professional services, information intensive businesses and not-for-profit); an author of Changing the Leopard’s Spots. Renewal of the Professional Firm – a summary of the strategic positioning choices for professional firms; Lecturer at Rotterdam School of Management, Erasmus University; was a consultant at McKinsey & Company for 7 years; was a manager […]
-
Lexology: The Media and Entertainment Law Review
In-Depth (formerly The Law Reviews): Media and Entertainment Law offers a practical overview of the legal and regulatory frameworks governing the media and entertainment industry, including print, broadcasting and online publication. Focusing on prominent recent trends and developments, it examines issues including free speech and media freedom, IP rights, competition and consumer rights, common contractual disputes, and much more. In the most recent issue our offices in Estonia, Latvia and Lithuania offer insight into the challenges, changes, and legal developments the Baltic region’s entertainment industry has experienced in the last year. Estonia Significant changes are happening in the media and […]
-
European Legal update: 12.11. – 25.11.2024.
Assistant lawyer Natālija Ķīse compiled the material. Environmental, Social & Governance (ESG) Environmental, social and governance (ESG) ratings: Council greenlights new regulation Adopted: 19 November 2024 The Council adopted a regulation on environmental, social and governance (ESG) rating activities. To increase investors’ trust in sustainable financial products, the new regulation seeks to make grading practices in the EU more uniform, transparent, and comparable. ESG ratings evaluate a company’s or financial instrument’s sustainability profile by evaluating its exposure to sustainability-related risks as well as its effects on society and the environment. See also press release. Trade & Consumer goods Council passes a prohibition […]
-
Sorainen ESG-focused newsletter, November
In the newest issue of the Sorainen ESG newsletter we bring you the latest updates on environmental, social and governance trends across the European Union and the Baltic States. This month’s issue features crucial insights into recent EU-level developments and sustainability initiatives, along with some interesting news from Estonia, Latvia and Lithuania. Legislative news and ESG initiatives in Estonia, Latvia and Lithuania Lithuania The Minister of the Environment has approved Construction Technical Regulation STR 2.01.12:2024 “Construction climatology”. This determines the statistical characteristics of climate parameters, necessary for territory planning, design and construction. Climatic information includes solar radiation, air temperature, absolute […]
-
European Legal update: 29.10. – 12.11.2024.
Assistant lawyer Natālija Ķīse compiled the material. Consumer protection Commission warns the online market Temu of possible violations of EU consumer protection law Published: 8 November 2024 Consumer Protection Cooperation (CPC) Network of national consumer authorities and the European Commission informed the online market Temu about some actions on the platform that break EU consumer law after a joint investigation at the European level. The joint study by the CPC Network looks into plenty of various activities that people do when they shop on Temu, including things that might trick people or unfairly affect their decisions about what to buy. […]
-
The impact of the defence tax on individuals
Taxation of individual income in Estonia is generally straightforward and there are few exceptions. Since the new defence tax essentially creates a parallel system to the current income tax, it would be wise to take note of what the coming years may bring. The provisions governing the defence tax largely refer to the Income Tax Act (ITA), which covers the tax base and withholding rules. Income of resident individuals According to the draft legislation, the income of resident individuals will be subject to the defence tax, defined in accordance with sections 12–22 of the ITA. This means that the defence […]
-
Is it better somewhere else?
Is it better elsewhere? That’s a question that must be answered today by a number of British residents, most of whom have been able to benefit from a tax regime that does not apply to permanent residents (by being beneficiaries of the so-called non-domiciled regime). The United Kingdom has announced that its hitherto favourable tax regime for wealthy businesses and individuals will change, and that, as a matter of priority, it will abolish the existing tax exemption on non-territorial income and will increase taxation on capital gains to the level of ordinary income tax. The moment of truth will come […]
-
Defence tax to impact Estonia’s tax system’s treatment under Pillar Two?
The defence tax bill currently under discussion in the Estonian Parliament may impact Estonia’s approach to adopting Pillar Two rules, thus affecting all Estonian entities belonging to a Pillar Two group. Whether your group has reached the 750 million EUR revenue threshold already or will cross that bridge by FY 2030, this change is likely to impact how you decide to make future distributions. Estonia is set to adopt legislation imposing a defence tax that includes a 2% CIT on accounting profits for Estonian resident companies, permanent establishments of non-resident companies and non-residents to the extent their income is taxable […]
-
The main changes to the Estonian tax system from 2025
Estonia is in the midst of tax reforms. Hence, it is good to know what will change from 2025 and how it might affect your actions in Estonia. Changes that have already been passed into law but are yet to come into force A) Income tax The income tax rate will increase from 20% to 22%. This increase will apply both to legal and natural persons. Corporate income tax (CIT) will apply upon distribution of profits. The lower 20% rate of CIT will apply to payments made up to December 2024 at the latest. Payments made from January 2025 will […]
-
Defence tax – the plan to introduce a new 2% profit tax
The Estonian Government is planning to introduce a 2% annual income tax for natural persons and companies, payable in quarterly payments and all wrapped in a nice package as the “defence tax”. Besides the cost of the tax, it might cause cash flow and solvency issues for many people and companies. Therefore, as the first tax base year is 2025, it makes sense to keep a close eye on the progress of the bill and to make sure you are ready. Current Estonian corporate income tax system – 0% tax until profit distribution Currently, Estonian companies enjoy a deferred corporate […]
-
Key changes to the Labour Code – October 2024
We invite you to review the latest amendments to labour laws adopted in October, which are relevant to businesses. Most changes will take effect on 1 January 2025, although some are already in force. New rates of overtime pay and other changes From 1 January 2025, overtime on public holidays during the night must be paid at a rate of at least 2.5 times an employee’s regular salary. Previously, the Labour Code did not specify an overtime rate for work on public holidays during the night. Employers will now also require written consent from employees for overtime work, whereas previously […]
-
European Legal update: 16.10. – 29.10.2024
Assistant lawyer Nikola Cīparsone compiled the material. ESG Council gives final green light to strengthen standards in the EU – air quality Adopted: 14 October 2024 The Council has formally adopted a directive setting updated air quality standards across the EU. These new rules are expected to contribute to the EU’s objective on zero pollution by 2050 and are meant to help prevent premature deaths due to air pollution. EU citizens will be able to seek compensation for damage to their health in cases where EU air quality rules are not respected. See also: Press release Start-up & TMT Commission joins forces […]
-
Requirements applicable for foreigners who are third-country nationals, for changing employer or a job function with the same employer
It is commonly known that in order to live and work in Lithuania a foreigner who is a third-country national must first obtain the corresponding residence permit in Lithuania. In certain cases, a decision from the Employment Service confirming that the foreigner corresponds to the Lithuanian labour market needs is also required. It is often assumed that as soon as a foreigner has a suitable residence permit in Lithuania, then an employment contract can be concluded with him/her, and that is definitely possible to change a job function at the same employer. But this is a mistake – and a […]
-
Sorainen ESG-focused newsletter, October
This month, we bring you an overview of significant updates, including adopting crucial EU regulations and new initiatives to enhance sustainability efforts. We are also pleased to highlight important news from Estonia, Latvia and Lithuania. Legislative news and ESG initiatives in Estonia, Latvia and Lithuania Status of the transposition of the Corporate Sustainability Reporting Directive (CSRD) into local law At the end of September, the European Commission decided to open infringement procedures by sending a letter of formal notice to 17 member states calling on them to fully transpose the CSRD. The Commission called on 17 Member States to fully […]
-
Tax Stories: Let’s have some AI fun
This is a nice example of how quickly the AI progresses. AI created a conversation about the ‘Tax Stories’ podcast and blogs on Substack. Can you tell the difference if it’s run by real people? Listen the AI created tax podcest episode here!
-
Life Sciences & Healthcare newsletter on hot topics in the Baltics
In this month’s newsletter we bring you a short overview of hot topics in the Life Sciences and Healthcare sector in the Baltics. Some of these topics were also discussed during our regional webinar on 12 September. Video of the webinar is available here. Compulsory liability insurance for healthcare providers in Estonia The new Compulsory Liability Insurance of Health Care Providers Act will enter into force on 1 November 2024. The aim of the act is to simplify the process of claiming for damages for patients if by the provision of healthcare services bodily injury, harm to health, or death […]
-
European Legal update: 02.10. – 15.10.2024
Assistant lawyer Nikola Cīparsone compiled the material. Competition and regulatory Council adopts regulation on classification, labelling and packaging of chemicals Adopted: 14 October 2024 The Council has adopted a regulation on the classification, labelling and packaging of chemical substances (CLP). The CLP regulation updates the existing 2008 EU legislation, clarifies the rules on labelling chemical substances, and adapts them to different forms of trade (like, online trade or bulk sales at refill stations). The regulation also promotes the circularity of chemical products, makes labelling (as well as digital labelling) clearer and easier to read, and ensures a higher level of […]
-
Amendments to the Law on Prevention of Money Laundering and Terrorism and Proliferation Financing
On 19 September 2024, amendments to the Latvian Law on the Prevention of Money Laundering and the Financing of Terrorism and Proliferation (AML Law) were adopted. Here is a look at the main changes introduced by the amendments. Exemptions for services provided to group companies The amendments clarify that outsourced accountants will not be considered obliged entities under the AML Law when they carry out their professional activities within the same group. The amendments to the Accounting Law adopted on 26 September also provide that such companies will no longer be required to obtain an outsourced accountant’s licence from the […]
-
Intellectual property highlights in the Baltics
In this issue, we bring you the most significant developments in intellectual property law. First, we’ll explain how the newly enforced AI Act establishes a comprehensive legal framework for AI in the EU, including stringent copyright compliance measures. What’s more, you will learn practical strategies from our experts on how to opt out of AI training so as to protect your content. Lastly, we keep you updated on landmark rulings in Lithuania and the EUIPO’s refusal of X. Corp’s trademark application for “X.” We also provide insights from our recent webinars on the surge in pharmaceutical patent litigation in the […]
-
-
European Legal update: 18.09. – 01.10.2024
Assistant lawyer Natālija Ķīse compiled the material. Competition The General Court’s judgement on the recovery of State aid awarded to JCDecaux by Belgium is upheld by the Court of Justice Delivered: 26 September 2024 In the appeal case JCDecaux Street Furniture Belgium v. Commission (C-710/22 P), the Court of Justice rendered its decision regarding the annulment of Decision C (2019) 4466 of the European Commission of June 24, 2019, insofar as it directs the recovery of State aid awarded to JCDecaux by the Belgian State. The lawsuit centres on an agreement between JCDecaux and the public of Brussels for the […]
-
Baltic Private M&A Deal Points Study 2024: Energy & utilities sector most active in the M&A market
Despite turbulent times in macroeconomic and geopolitical situations over the past few years, the Baltic M&A market has been reasonably active, especially in Lithuania, according to the recent “Baltic Private M&A Deal Points Study 2024”. The study analysed 179 private M&A transactions with a deal value of over EUR 1 million completed in the Baltics between April 2022 and March 2024. It was conducted for the 8th time since 2009 in cooperation with Sorainen, Cobalt, Ellex, TGS Baltic, Eversheds Sutherland, Walless, and Triniti under the auspices of the Estonian, Latvian, and Lithuanian Private Equity and Venture Capital Associations. Energy and […]
-
Tax Stories: Tax changes as of 1 January 2025
On 6 September a version of tax changes was made public by the MoF, which has been agreed with the social partners and will go to the parliament. The rumour says that this will become the law. The expected tax changes are as follows Minimum monthly wage: 2024: EUR 700 2025: EUR 740 2026: EUR 780 2027: EUR 820 2028: EUR 860 Fixed monthly tax-free minimum – for all from 1.1.2025: 2025: EUR 510 (pensioners: EUR 650) 2026: EUR 550 2027: EUR 570 Personal income tax rates: 25.5% – for all income up to EUR 105,300 p.a.; 33% – above […]
-
Sorainen ESG-focused newsletter, September
Status of the Corporate Sustainability Reporting Directive (CSRD) transposition into local law Lithuania The provisions of the CSRD were transposed into local law on 25 June 2024 and came into force on 1 July 2024 (with the transitional periods for reporting for certain types of entities remaining the same as envisaged in the CSRD). The main local laws establishing the requirements for sustainability reporting are the Law on the Accountability of Enterprises and Enterprise Groups, and the Law on the Audit and Other Assurance Services of Financial Statements. Fines for non-compliance with the requirements are provided in the Code of […]
-
European Legal update: 04.08. – 17.09.2024
Assistant lawyer Natālija Ķīse compiled the material. Tax Court of Justice rules on government support and VAT disparities in the online gaming industry in Belgium Delivered: 12 September 2024 The Court of Justice rendered a decision in which 27 Belgian gambling enterprises contested the Belgian State’s assessment of VAT on online gambling from July 2016 to May 2018. These levies came into effect after the Belgian government decided to remove the VAT exemption for online gambling, excluding lotteries. The VAT Directive provides Member States the option to treat comparable services as immovable property, as defined by the Court of Justice […]
-
The special regulation regarding citizens of Ukraine has been abolished
On 1 September 2024, Order of the Lithuanian Minister of Internal Affairs No. 1V-145 “On the requirements, conditions, and provision of services for foreigners who left Ukraine due to the military actions of the Russian Federation in Ukraine or who are unable to return to Ukraine” (the Order), together with all amendments and additions, were abolished. End of special employment rules for Ukrainian nationals Accordingly, with the end of the validity of the Order, some special rules applicable for Ukrainian nationals, their family members, and stateless persons living in Ukraine who do not have the right to receive temporary protection […]
-
Clients: Sorainen’s legal competence is the best in the market
According to the 2024 Baltic Kantar Prospera client survey of top-tier Baltic law firms, Sorainen ranks first in the “Best legal competence” category, as it has done for the past three years. Sorainen Estonia ranked as #1 law firm in Estonia according to overall rankings. Strongest legal fields according to clients Sorainen placed first in five out of 14 legal competence categories, including: Banking & Finance Competition & EU Employment Tax Real Estate We positioned second in the following fields: Mergers & Acquisitions Dispute Resolution Public Procurement Intellectual Property IT & Telecom, Media and Entertainment Private Equity Energy Corporate Advisory […]
-
European Legal update: 21.08. – 03.09.2024
Assistant lawyer Natālija Ķīse compiled the material. Dispute resolution Amendments to the Statute and the Rules of Procedure of the Court of Justice and the General Court of the European Union enter into force Entry into force: 1 September 2024 Significant changes to the Statute and Rules of Procedure of the European Union’s General Court and Court of Justice have taken effect as of September 1, 2024. One of the main adjustments is that, as of October 1, 2024, the General Court will have certain authority over preliminary findings previously held by the Court of Justice. ESG EU’s first Sustainable Investment Facilitation […]
-
How to restrict AI companies from using your content as training data?
Generative AI systems, which rely on vast amounts of data to generate new content, are evolving rapidly. These systems rely on self-training methods, using machine learning algorithms that analyse extensive databases, including images and text available on the web. However, this practice raises significant copyright concerns, particularly regarding the reproduction of data, even if only temporarily. So, how under EU copyright law can you restrict AI companies from mining your website for training data? Why is mining copyrighted data allowed in the EU? Generally, copying and use of copyrighted material online without authorisation constitutes an infringement. This means that when […]
-
Discomfort payments for wind turbines in Latvia finally approved
Two years after announcing there would be discomfort compensation payments for wind turbines located in the vicinity of residential properties, the relevant amounts and payment mechanisms have been finally approved, and come into force on 30 August 2024. Below are the main points you need to know if you are a developer or a prospective operator of a wind farm, or a resident whose property is located near a wind farm under development. If you are a developer or a prospective operator of a wind farm, you need to know that: the payments will apply to wind turbines with capacities starting […]
-
European Legal update: 06.08. – 20.08.2024
Assistant lawyer Nikola Cīparsone compiled the material. Technology TikTok commits to permanently withdraw TikTok Lite Rewards programme from the EU to comply with the Digital Services Act Committed: 5 August 2024 The Commission has made TikTok’s commitments to permanently withdraw TikTok Lite Rewards programme from the EU binding. The platform has made a commitment to permanently withdraw the TikTok Lite Rewards programme from the EU, and a commitment not to launch any other programme which would circumvent the withdrawal. Commission sends request for information to Meta under the Digital Services Act Sent: 16 August 2024 The Commission has sent Meta a request […]
-
Booking Group and Chemispec acquire a sizeable office building in Latvia
We are happy to have assisted our clients Booking Group and Chemispec in a transaction for the acquisition of a 10,500 m² office building, located on Meistaru iela, Valdlauči, Ķekavas novads, Latvia, from Laurus Gene UAB. The office building is well-known as the current headquarters of SEB banka in Latvia. Our assistance We assisted our clients with legal and tax due diligence on the target, as well as drafting and negotiating the transaction documents. We also worked on receiving of merger approval from the Latvian Competition Council for the transaction. Our team Our core team for the transaction consists of […]
-
Practical application of AI in legal services: our vision
Irina Seniut, Head of Knowledge Management and Innovation at Sorainen, shared our AI journey with the Lexpo’24 audience and spoke about the AI@Sorainen workgroup. Lexpo is an annual conference in Amsterdam dedicated to reshaping the legal industry through innovation and technology. It is designed for forward-thinking law firms and in-house corporate legal departments. AI@Sorainen The innovative approach of the AI@Sorainen workgroup, comprised of 20 seasoned professionals with diverse backgrounds in legal, IT, finance, business analytics, marketing, knowledge management, and innovation, has garnered international attention from other law professionals. Established a year ago, the workgroup has achieved significant milestones, including releasing […]
-
European Legal update: 23.07. – 05.08.2024.
Data protection European Artificial Intelligence Act comes into force Entered into force: 1 August 2024 On August 1 the European Artificial Intelligence Act (AI Act), the world’s first comprehensive regulation on artificial intelligence, entered into force. The AI Act ensures that AI developed and used in the EU is trustworthy, with safeguards to protect people’s fundamental rights. The regulation aims to establish a harmonised internal market for AI in the EU, encouraging the uptake of this technology and creating a supportive environment for innovation and investment. See also: Press release The Lithuanian Supervisory Authority (SA) fined Vinted, UAB €2,385,276 for […]
-
Enhancing sanctions effectiveness: key changes in EU best practices
On 3 July 2024 the Council of the European Union published an update to the EU Best Practices for the effective implementation of restrictive measures (Best Practices), which introduced several changes. The Best Practices are to be considered non-exhaustive recommendations of a general nature for the effective implementation of EU restrictive measures (sanctions). They play a significant role in the application and interpretation of EU sanctions regulations. In this article, the authors Senior Associate Edvīns Draba and Associate Kristers Pētersons provide a short description of the main changes to the EU Best Practices. Ownership test The EU has revised its approach […]
-
European Legal update: 09.07. – 22.07.2024.
Assistant lawyer Natājlija Ķīse compiled the material. Human Rights ECtHR: no discrimination in Latvian pre-school language reform Delivered: 18 July 2024 A unanimous ruling was reached by the European Court of Human Rights in the case of Djeri and Others v. Latvia, concluding that the European Convention on Human Rights’ Article 14 (prohibition of discrimination) and Article 2 of Protocol No. 1 (right to education) had not been violated. The 2018 Latvian education reform that decreased the use of Russian and raised the use of Latvian in preschools was the subject of this case. Data Protection EDPB adopts key […]
-
Biomethane export and Guarantee of Origin: navigating Latvian law
What is a Guarantee of Origin? A Guarantee of Origin (GoO) for gas certifies that a portion of the energy has been sourced from renewable energy resources. According to Section 117.1, Subsection 1 of the Energy Law, GoOs serve this specific purpose. Section 117.3, Subsection 1 further specifies that the transmission system operator (TSO) issues and manages these GoOs, under the European Energy Certificate System or another European documentation scheme. This scheme governs the issuance and cancellation of GoOs for gas, and the TSO also provides the necessary requirements and documentation for obtaining a GoO on its website. Additionally, the […]
-
The “Data Transfers – Estonia” article has been updated
Our partner Mihkel Miidla, senior associate Liisa Maria Kuuskmaa, and associate Stella Victoria Ojala updated the article “Data Transfers – Estonia” published in OneTrust DataGuidance in June. According to Liisa Maria Kuuskmaa, the article is updated annually to reflect changes in legislation, new court and administrative practices, and other news in this field. Kuuskmaa believes the article benefits all businesses and institutions involved in processing personal data in any way. “Primarily, it is relevant for those who transfer personal data outside of Europe as part of their operations, for instance, using service providers located outside of Europe,” she adds. “The […]
-
Ober-Haus: Baltic real estate market still challenging, but opportunities open up
Ober-Haus presents its annual real estate market report for 2024 on the capital cities of the Baltic countries. The report covers the office, retail, warehousing, residential and land markets in each of the capital cities: Riga, Tallinn and Vilnius. Our Baltic-wide team of real estate legal experts prepared legal notes for the report. Baltic real estate market in 2023: slowdown continues The year 2023 was full of challenges for the Baltic real estate markets: an economic slowdown, declining activity in the residential and commercial real estate market, a rising number of unsold apartments, higher office vacancy rates and slowing construction […]
-
The Baltic Times: What is white-collar crime?
The article was prepared by Sorainen heads of Corporate Crime Investigations and Compliance Dr. iur Violeta Zeppa-Priedīte (Latvia) Norman Aas (Estonia) Darius Raulušaitis (Lithuania) With the association of the White Collar Crime team Agneta Rumpa; Krista Niklase; Jānis Dobelnieks; Hannelora Voiciša; Paula Šūtava; Kristers Pētersons Introduction One of the areas in which Sorainen assists clients is criminal law. Historically, as Sorainen was established as a law firm for corporate clients, assistance in this area has been focused on “white-collar crime”, which is basically crime in the fields of economic crime, financial crime, tax, customs, corporate governance or corruption. The English-language term “white-collar […]
-
European Legal update: 25.06. – 08.07.
Assistant lawyer Natājlija Ķīse compiled the material. Banking and finance EBA issues new guidelines to combat money laundering and terrorism financing in fund and crypto transfers Published: 4 July 2024 New guidelines on the “travel rule” have been announced by the European Banking Authority (EBA) to address the issue of money laundering and terrorism financing through the transfer of funds and cryptocurrency assets. The information that must be included with such transfers is outlined in these Guidelines, along with the procedures that payment service providers (PSPs), intermediate PSPs (IPSPs), crypto-asset service providers (CASPs), and intermediary CASPs (ICASPs) must follow to identify […]
-
Sorainen ESG-focused newsletter, Summer edition
CSRD transposition status in Lithuania, Latvia and Estonia On 5 January 2023, the Corporate Sustainability Reporting Directive (the CSRD) entered into force. The CSRD requires large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability. Some non-EU companies will also have to report if they generate over EUR 150 million in the […]
-
Changes to the law on protecting personal data – what to expect and how to prepare?
From 1 July 2024, amendments to the Law on Personal Data Protection of the Republic of Lithuania (the Law) came into force. These amendments not only give the employer the right to ask a candidate or an employee to provide information on criminal records, but also introduce new rules on the public disclosure of decisions of the supervisory authority, the handling of complaints, and other procedural issues. Do we need to prepare for these changes and, if so, how? Employers can ask candidates or employees to provide a criminal record certificate What has changed? Until 1 July 2024, the law […]
-
Investment card 2024
Welcome to our comprehensive guide on doing business in Estonia, Latvia, and Lithuania. This document is designed to provide potential investors with an insightful overview of the most relevant commercial conditions in these dynamic Baltic countries. Whether you are considering expanding your business operations, setting up a new venture, or simply exploring opportunities in this region, this guide will equip you with the essential information you need to make informed decisions. Importance of the Baltic Region for Investors Estonia, Latvia, and Lithuania, collectively known as the Baltic States, have emerged as attractive destinations for international investors. Their strategic location, skilled […]
-
Assessment of the Court of Justice of the European Union on the limitation period for criminal liability
The limitation period is among the institutions of criminal law for which correct understanding and application is crucial to the final outcome of a case. On the one hand, errors can lead to significant prejudice to the rights of persons entitled to a defence. On the other hand, errors may also create conditions enabling criminal liability to be avoided, which of course prejudices the interests of society as a whole, including the right to general security. Like any other issue of importance for the final resolution of cases, this issue has been much discussed in Latvian criminal law practice and […]
-
Essential changes in the regulation of employment of third-country nationals: what employers need to prepare for?
Recently, several proposals have been registered in our country to change the Lithuanian legislation regulating the legal status of foreigners in Lithuania and their right to work. As a result, employers and third-country workers will be obliged to comply with them, which requires preparation in advance. Ana Borovko, senior associate at Sorainen law firm, outlines some vital potential changes and their implications. The following proposals have already entered into force on 1 July 2024: The proposal to allow a foreigner holding a temporary residence permit for work (as for non-highly skilled employee) to change employer only after 6 months “This […]
-
Annual Report of Sorainen Latvia: Sorainen retains market leadership position in Latvia
Sorainen Latvia Annual Report 2023 Independent auditors’ report The reporting period has closed successfully. The turnover of the Latvian office increased by 12% compared to the previous reporting year and amounts to EUR 9.4 million. The profit of the office is EUR 2.14 million, showing a 46% increase compared to the previous period. Meanwhile, net assets increased by 14% or EUR 285,000 during the year. As was the case last year, in this reporting year the turnover of Sorainen office is the highest among Latvian law firms. […]
-
Annual Report of Sorainen Estonia: 2023 had economic challenges, but was strategically strong
Annual reports have been published on the Company Registration Portal of the Estonian e-business register. The Sorainen office in Tallinn continues to be one of the biggest employers in the legal market in Estonia. The average number of employees in the firm has grown organically since its foundation in 1995, reaching 85 employees in 2023 (jumping up from 82 in 2022). The circle of owners also widened as Maria Pihlak, head of the firm’s International Arbitration sub-practice in Estonia, was promoted to partner. For several years, we have been among the legal sector’s biggest payers of state taxes. In 2023, […]
-
Life Sciences & Healthcare newsletter, June 2024
This month’s Life Sciences & Healthcare newsletter bring you a short overview of how off-label use of medicinal products is regulated in the Baltics. This is especially interesting in the light of the recent judgement of the European Court of Justice on off-label use of medicinal products. Risk-benefit balance includes risks resulting from off-label use The judgement of European Court of Justice dated 15 May 2024 pertains to off-label use and its connection with the suspension, revocation and variation of marketing authorisation (MA) by the competent authorities, pursuant to Article 116 of Directive 2001/83/EC on medicinal products for human use. The […]
-
The Baltic Times: How will Global Minimum Tax impact companies in the Baltic?
Author: Aija Lasmane, Sorainen Tax partner What is Global Minimum Tax? On October 8, 2021 an agreement between OECD countries was reached on two work directions regarding business income taxation, of which: the first pillar relates to new profit-sharing rules, which aim to redistribute the surplus profits of large international groups to jurisdictions where consumers or users are located, regardless of whether the group companies are physically located in those jurisdictions. The first pillar is still under discussion; the second pillar envisages the introduction of a Global Minimum Tax for large international business groups. Both pillars aim to address different […]
-
European Legal update: 29.05. – 10.06.
Assistant lawyer Nikola Cīparsone compiled the material. Banking and finance Commission Delegated Regulation (EU) 2024/1504 specifying the procedural rules for the exercise of the power to impose fines or periodic penalty payments by the European Banking Authority on issuers of significant asset-referenced tokens and issuers of significant e-money tokens Published: 30 May 2024 The regulation, issued on 22 February 2024, outlines procedural rules for the European Banking Authority (EBA) in imposing fines and periodic penalty payments on issuers of significant asset-referenced tokens and e-money tokens. It supplements Regulation (EU) 2023/1114 on markets in crypto-assets. Individuals or entities under […]
-
Tax Stories Podcast – Episode 59 – Raigo Uukkivi
Raigo Uukkivi is a head of the Estonian tax administration. In this Tax Stories episode we mainly tried to compare Estonia and Latvia – tax systems, tax administrations & discussed Baltic unity. Listen to the podcast here ! In the podcast you will learn: Why Estonia considers revoking the reduced CIT for regular dividends and other ‘unprecedented’ changes to the tax law? Which are those coming changes in the tax law? About the recent fuss in the media – why tax administration might want to have data from banks about aggregated amounts going through bank accounts of companies, and what is […]
-
European Legal update: 14.05. – 28.05.
Assistant lawyer Nikola Cīparsone compiled the material. Energy A regulation on tracking and reducing methane emissions adopted by the Council Adopted: 27 May 2024 The Council has adopted a regulation on tracking and reducing methane emissions. It is part of the ‘Fit for 55’ package. The regulation introduces new requirements on measuring, reporting and verifying methane emissions in the energy sector. See also: Press release Banking and finance The EBA finds divergences in the issuance and regulation of ‘virtual IBANs’ across the EU, identifies issues, and provides recommendations on how to address them Issued: 24 May […]
-
How will the insurance sector be affected by the new Defence Fund package?
On 21 May 2024, the Defence Fund package was presented in Lithuania, to bring Lithuania’s defence spending up to 3% of GDP. The proposal outlined how the defence budget will be increased; several are related to the insurance sector. According to the information available to us, the Lithuanian Government is planning to discuss and debate the proposed draft laws more extensively over the next few weeks, so the currently published drafts and ideas may still be subject to further modifications. However, according to the draft laws and other publicly available information, the insurance sector could be affected in the ways […]
-
The Court condemns ‘cherry-picking’ of risks and benefits of the internal market for banking services
Case C-822/21, Latvia v. Sweden (deposit guarantee schemes) The Swedish banks, which have long considered the Baltics their ‘home market’, were quick to reap the benefits of the internal market by expanding across the borders. However, the global financial crisis revealed the downside of this expansion and promoted banks to consolidate their position. The institution of the Banking Union, by centralising the supervision and resolution of the banks at the EU level, also incentivised banking groups, such as Nordea Bank, to re-domicile their headquarters from Sweden to the Euro Area. This strategic decision allowed them to benefit from the same set […]
-
Patria opens an armoured vehicle production facility in Latvia
We assisted Patria, a company owned by the Finnish and Norwegian states, an international provider of defence, security and aviation life-cycle support services, technology solutions and pilot training, in opening a new armoured vehicle production facility in Valmiera, Latvia. About project We have been a part of the project from the very beginning, and helped the client establish a joint venture, Defence Partnership Latvia. We also supported the client with various matters related to commencing operations on the part of the joint venture, which manages Patria’s Latvian production operations and facility. Furthermore, we provided all legal advice related directly to […]
-
European Legal update: 30.04. – 14.05.
Assistant lawyer Natālija Ķīse compiled the material. Data protection Digital Markets Act: Commission initiates market investigation for X and designates Booking as gatekeeper Published: 13 May 2024 In accordance with the Digital Markets Act (DMA), the European Commission decided not to designate X Ads or TikTok Ads and instead named Booking as the gatekeeper for their online intermediation business, Booking.com. Additionally, in order to assess the rebuttal submitted in relation to the online social networking service X, the Commission has launched a market investigation. Press release. Commission opens formal proceedings against Facebook and Instagram under the Digital Services Act Initiated: […]
-
Sorainen ESG-focused newsletter, May 2024
EU-level news ECTHR ruled that climate inaction violates human rights On 9 April 2024, the European Court of Human Rights handed down a groundbreaking ruling in a case concerning elderly Swiss women and climate change. This is a major decision, as it is the first time that the Court has dealt with climate change issues, setting an important legal precedent. The case highlights the complex link between climate change and fundamental human rights and underlines the urgent need for decisive action. Switzerland was found to have violated Article 8 of the European Convention on Human Rights (which guarantees the right […]
-
AML Watcher: Can Spotify be used as a Money Laundering Front?
Violeta Zeppa-Priedite, head of Sorainen Latvia Corporate Crime practice has recently mentioned that the development of various social networks and online platforms has not only created new opportunities for people to consume and publish different types of content, but unfortunately has also opened up new horizons for criminals to engage in illegal activities. As the digital environment evolves, so do the innovative methods used by criminals seeking to launder the proceeds of crime. The forms and methods of money laundering are becoming more varied and, in a sense, more “creative”. Spotify has previously been criticized for allowing users to play […]
-
En.lsm.lv: “Latvijas Gāze” dividends payment to Russian companies challenged in court
How correct is it that the Latvian gas company “Latvijas gāze” paid out several million euros in dividends to Russian state companies on its profits last summer? This question has been brought to court. Energy prices soared around the world after Russia’s full-scale invasion of Ukraine. This helped energy companies, including Latvijas gāze, to make good profits. Coupled with the company’s retained earnings from previous years, Latvijas gāze could pay out a significant sum to its shareholders – almost €110 million. Even two years after the outbreak of war, half of the company’s shares are owned by the Russian state energy giant […]
-
European Legal update 17.04. – 30.04.
Assistant lawyer Natālija Ķīse compiled the material. Data protection Fashion online retailer, Shein, to comply with more stringent DSA rules Published: 26 April 2024 Shein, an online fashion store with over 45 million monthly visitors in the EU, has been officially classified as a Very Large Online Platform (VLOP) by the Commission today in accordance with the Digital Services Act (DSA). Shein will now be subject to the strictest regulations under the DSA, including the requirement to implement particular policies to empower and safeguard users, including minors, online and to appropriately identify and reduce any systemic risks resulting from […]
-
Tax Stories Podcast – Episode 58 – Bernard Peeters
Bernard Peeters is a senior partner of the leading Belgium tax boutique Tiberghien, a member firm of WTS Global tax network. Listen to the podcast here! In this episode (no.58) you will learn about leadership principles, professional firm management and international tax topicalities. You will also discover about: what principles did Bernard Peeters and his colleagues apply to grow from ~20 tax lawyers in 1990s when he started to more than 120 tax lawyers now and to become Tier 1 tax boutique; what pricing principles to apply in order not to compromise on quality? the book Bernard recommends: The World is Flat by […]
-
Effects of inflation on public procurement contracts: when can the contract price be increased?
The changes in prices and inflation observed in recent years have created a lot of uncertainty regarding signed and still ongoing contracts. This has led to questions being raised regarding specific public procurement contracts. Related legal disputes have already reached the highest courts of Lithuania. According to the courts, the law generally allows for an increase in the price of a public procurement contract, but certain criteria have to be met. It is important to remember that the grounds for changing the price of a public procurement contract are essentially embedded in two possible sources: the law or the contract […]
-
Intellectual property audit: ensuring legal compliance and protection
Today, 26 April, we are celebrating the World Intellectual Property Day! This holiday emphasises the exceptional importance of protecting intellectual property (IP) rights, which are crucial for every business, as they provide a competitive advantage, prevent others from using or profiting from your innovations, and, moreover, allow you to monetise your intellectual assets through licensing or selling. This article aims to demonstrate how IP audits help businesses to evaluate, optimise and protect their intellectual assets, ensuring they are used and commercialised correctly. Introduction to IP audits An IP audit is a systematic review of a company’s IP assets to ensure legal […]
-
Latvia Takes a Bold Leap: Embracing International Standards with the Arbitration Law Reform
Latvia’s status as the arbitration unicorn remains undisputed after nearly ten years since adopting the country’s first Arbitration Law (“Latvian Arbitration Law”). In February 2024, the overly liberal Latvian regime resulted in 57 arbitral institutions. This record-high number, however, is considerably less than the 214 arbitral institutions in Latvia in 2013. Although advertised by the Latvian government to follow the UNCITRAL Model Law on International Commercial Arbitration, the Latvian regime was claimed to be the last of the 46 member states of the Council of Europe to not provide for setting aside proceedings for arbitral awards. Following the Constitutional Court’s judgment of 23 February 2023 that the […]
-
New EU tax initiatives: January–April 2024
Our Tax expert team has prepared an overview of the most relevant aspects of the latest European Union tax initiatives. Read more on the following topics to discover how these initiatives are relevant to your company. HOT Directive: SMEs gain the opportunity to use head office taxation rules for calculating taxes At the beginning of autumn 2023, the European Commission published a new legislative proposal, a Council Directive establishing a Head Office Tax (HOT) system for micro, small and medium-sized enterprises (SMEs) and amending Directive 2011/16/EU (the HOT Directive). The HOT Directive introduces rules that allow SMEs operating across different European Union (EU) countries […]
-
Belarusian government introduces restrictions on payment of dividends to foreign shareholders
Starting from 24 April 2024, investors from certain countries* (Affected Shareholders) will face restrictions when trying to receive dividends from their Belarusian subsidiaries. The details of the new restrictions are set out in Resolution of the Council of Ministers No. 299 (available in Russian) dated 19 April 2024 “On Application of a Special Restrictive Measure” (the Resolution). According to the Resolution, the restrictions on payment of dividends will comprise the following measures: limitation of the maximum amount of dividends that may be freely paid to Affected Shareholders requirement to obtain a permit from the local executive committee in order to pay dividends exceeding this limit in […]
-
News on filing annual reports and other issues
Deadline for filing annual reports with the State Revenue Service (SRS) approaching The Law on Annual Financial Statements and Consolidated Financial Statements requires all companies to file an annual report approved by the shareholders’ meeting with the SRS, no later than one month after approval by observing the deadline that is set based on the criteria applicable to the companies: micro and small companies must file an approved annual report for the year 2023 to the SRS no later than five months after the end of the reporting year. This means that if a company’s reporting year is the same […]
-
Life Sciences & Healthcare newsletter, April 2024
This month’s Life Sciences & Healthcare newsletter focuses on the distance selling of medicinal products. In February, the Court of Justice of the European Union made a fundamental decision concerning the legality of distance selling of over-the-counter (OTC) medicinal products. At the same time, in all of the Baltic States the possibilities under the brand “MyHealth@EU” are growing. Decision of the Court of Justice of the European Union on distance selling of medicinal products On 29 February 2024, the Court of Justice of the European Union clarified situations when a member state can require from the entity that participates in […]
-
New report – Independent production and retention of intellectual property rights
The European Audiovisual Observatory publishes a new in-depth analysis of the national definitions of independent production in Europe and the frameworks governing copyright retention by independent producers. The study has been co-financed by the European Commission under Creative Europe. The data used in the report was provided by a pan-European team of national experts and has been cross-checked with the national regulatory authority in each respective territory covered. The Latvian submission was provided by Ieva Andersone, partner and head of the competition and regulatory team and Lūcija Strauta, assistant lawyer at Sorainen. National approaches to defining independent producers What are […]
-
European Legal update 01.04. – 16.04.
Assistant lawyer Natālija Ķīse compiled the material. ESG ECtHR delivers three Grand Chamber rulings in cases concerning climate change Issued: 9 April 2024 The European Court of Human Rights issued rulings in three climate change-related cases, emphasising the relationship between environmental issues and human rights. Verein KlimaSeniorinnen Schweiz and Others v. Switzerland, Carême v. France, and Duarte Agostinho and Others v. Portugal and 32 Others are three lawsuits that deal with complaints about nations’ inadequate efforts to mitigate the consequences of climate change on people. Energy Performance of Buildings Directive adopted to bring down energy bills and reduce […]
-
Prohibition of re-exporting goods to Russia
Pursuant to the amendments to the European Union (EU) Regulation No. 833/2014, concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine (the Regulation) adopted on 18 December 2023, as of 20 March 2024 exporters of various categories of goods are obliged to include in their purchase or supply contracts a clause which prohibits a recipient/importer from a third country from further re-exporting (transferring) these goods to Russia or for use in Russia. The aim of these amendments is to combat the circumvention of EU sectoral sanctions, in cases where goods that are subject to sanctions are […]
-
The AI Act is here – the time to act is now
The AI Act is a comprehensive legislative framework designed to govern the development, deployment and use of artificial intelligence (AI) systems within the European Union, with the aim of ensuring safety, transparency and respect for fundamental rights. On 13 March 2024, the European Parliament adopted the consolidated AI Act. The next step before the Act can be enacted and officially published in The Official Journal of the European Union involves its formal adoption by the EU Council. The AI Act also prohibits the use of certain AI systems and under the current timeline, this ban is set to become applicable […]
-
Sorainen ESG-focused newsletter, April 2024
Legislative news and ESG initiatives in Estonia, Latvia, Lithuania Status of the Corporate Sustainability Reporting Directive’s transposition into local laws Lithuania Following the draft CSRD transposition package that was published at the end November 2023, now the proposal has been adjusted and a new version was put forward in March 2024. There are no substantial changes in this revised draft package that would materially impact companies now preparing for the disclosure of sustainability information. According to the schedule of the sittings of the Parliament of the Republic of Lithuania, the issue of transposing the CSRD into Lithuanian law will be […]
-
European Legal update 20.03. – 01.04.
Assistant lawyer Nikola Cīparsone compiled the material. Technology, media & telecommunications Commission and the research community develop guidelines on responsible use of generative Artificial Intelligence in research Official press release: 20 March 2024 The Commission and the European Research Area countries and stakeholders have jointly put forward a set of guidelines to support the European research community in their responsible use of generative Artificial Intelligence. Council adopts new rules to protect journalists and media providers Official press release: 25 March 2024 The Council has adopted a new law that will safeguard media freedom, media pluralism and […]
-
Fintech Day 2024 – Akvile Jurkaityte, Fintech Associate at Sorainen
At Fintech Day 2024, Akvile Jurkaityte, Fintech Associate at Sorainen, gathered her insights and impressions of the event for the Nordic Fintech Magazine. Akvile highlighted the remarkable growth of the event compared to the previous year, emphasizing the diversity of topics covered, ranging from sustainability to artificial intelligence and payments. She expressed enthusiasm for the collaborations between fintechs and banks, noting the increasing integration of advanced technologies like AI and blockchain into financial services. Read the full article here.
-
European Legal update 05.03. – 19.03.
Assistant lawyer Natālija Ķīse compiled the material. Data protection Commission opens formal proceedings against AliExpress under the Digital Services Act Official press release: 14 March 2024 The Commission has initiated formal procedures to evaluate whether AliExpress violated the Digital Services Act (DSA) in relation to risk management and mitigation, content moderation, internal complaint handling, advertising and recommender system transparency, trader traceability, and researcher data access. European Commission’s use of Microsoft 365 infringes data protection law for EU institutions and bodies Official press release: 11 March 2024 According to the EDPS, the Commission violated multiple sections of Regulation (EU) […]
-
Tax Stories Podcast – Episode 55 – Thomas Hoppe
Thomas Hoppe is a head of indirect taxation at Schwarz Group (Lidl/Kaufland). He is a co-host of TaxPunk podcast where he talks about makers and users of tax tech tools. Listen to the podcast here! In the podcast we discussed: triathlon; the book recommendation – Taxtopia by an anonymous Rebel Accountant; TaxPunk video-podcast (in German) – with people who do and use tax tech; TaxPunk.de – tax IT tools data base (300+ tax IT solutions listed, mostly related to VAT and other taxes, but also regarding, e.g., audit management); what technologies tax authorities are using; beer tasting and its link to characterisation of the podcast […]
-
European Legal update 20.02. – 05.03.
Assistant lawyer Nikola Cīparsone compiled the material. ESG Directive empowering consumers for the green transition and circular economy Adopted: 20 February 2024 The Council has adopted a directive aimed at empowering consumers to facilitate the shift towards sustainability. This new directive seeks to strengthen consumer rights by amending the unfair commercial practices directive (UCPD) and the consumer rights directive (CRD), tailoring them to the principles of green transition and circular economy. See also: Press release. Zalando commits to provide clearer information for consumer following EU action Press release: 22 February 2024 Zalando has committed to removing misleading sustainability flags and […]
-
Sorainen ESG-focused newsletter, March 2024
Legislative news and ESG initiatives in Estonia, Latvia, Lithuania Status of the corporate sustainability reporting directive’s transposition into local laws In Estonia, the draft law transposing the CSRD was published on 23 February 2024 and is currently waiting for approval from ministries. It is expected to come into force on 6 July 2024. The draft law proposes changes to three main laws – the Accounting Act, the Auditors Activities Act and the Securities Market Act – and some associated regulations. The draft also amends the size criteria for undertakings. According to the impact assessment, the number of undertakings affected by […]
-
Tax Stories Podcast – Episode 54 – Philip Baker
Philip Baker is a barrister (37 y), King’s Counsel, lecturer at the University of Oxford, LLM, PhD, MBA, an author of a book on Double Taxation Conventions “A guru on treaty and and cross-border tax”. Listen to the podcast here! In the podcast we discussed: his Order of the British Empire – for helping political refugees from China in the UK; his love to his family, sinology (the study of Chinese law, language, history, customs, and politics) and Arsenal; that there are already three generations of tax experts in his family – his father, himself and his son; his Latvian roots […]
-
Group insurance contracts – still an attractive structure for business models?
Group (or “affinity”) insurance models are well-known and widely used in the Lithuanian insurance market. They are particularly popular in the case of travel insurance, payment protection insurance and purchase protection insurance products offered by banks along with credit cards. Group insurance contracts are also commonly used for personal accident and health insurance, which employers typically provide to their employees as an additional benefit package. Practically any insurance product can be distributed under group insurance models, as insurable interest is justified. There are various reasons for the popularity of group insurance models. On the one hand, insurance models of this […]
-
Tax Stories Podcast – Episode 53 – Błażej Kuźniacki
Błażej Kuźniacki is a professor at Lazarski University in POL, works for PWC in NED, is an author of a book ‘Beneficial Ownership in International Taxation” and countless publications. Listen to the podcast here! In the podcast we discussed: his favourite destinations in the world, book recommendations (incl. Man’s Search For Meaning by Viktor E Frankl and The ONE Thing by Gary Keller) and hobbies, incl. singing rap in this song, some 14 years ago; how it is possible to combine both tax practice (policy and disputes) and academic research; tax policy vs law; Pillar 2 and offshores; arbitration for resolving tax disputes – the benefits of […]
-
European Legal update 06.02. – 19.02.
Assistant lawyer Nikola Cīparsone compiled the material. Technology / data protection Digital Services Act starts applying to all online platforms in the EU Applicable since: 17 February 2024 Digital Services Act (DSA), a significant regulatory framework of the EU designed to enhance safety, fairness, and transparency in the online environment, becomes applicable to all online intermediaries within the EU starting from February 17th. Commission initiates formal proceedings against TikTok under the DSA Start date: 19 February 2024 The European Commission has started formal proceedings under the DSA to establish whether TikTok has breached the protection of minors. Advertising transparency, data […]
-
Life Sciences & Healthcare newsletter, February 2024
This month’s Life Sciences & Healthcare newsletter focuses on the aspects of competition law. All the competition authorities in the Baltics keep a keen eye on the healthcare sector, which means that market participants should also keep up with possible changes in the authorities’ practices and approaches. The European Union Commission’s report on enforcement of competition rules in the pharmaceutical sector On 26 January 2024, the European Union Commission published a report on the enforcement of competition rules in the pharmaceutical sector from 2018 to 2022. Below you can find the key outtakes from the report. 1. The report highlights various […]
-
Katariina Kuum: How to rebuild Ukraine with Russia’s billions
In an opinion piece published in Äripäev, our associate Katariina Kuum wrote about decisions made in arbitration proceedings between Ukrainian companies and Russia and how an additional legal framework could help Ukrainian companies recover the huge damages awarded in international arbitration. While we have heard about sanctions against Russia as well as the freezing of oligarchs’ assets for several years now, one important lever that has proven effective notably during the last year has remained in the background. Indeed, Ukrainian companies that have incurred losses due to the war can bring claims against Russia before international arbitration tribunals if Russia’s […]
-
Taxes in a Nutshell 2024
Main comparative corporate tax principles for Estonia, Latvia and Lithuania. Available here: TAXES IN A NUTSHELL 2024
-
Employee share option card
Tax risks and incentives related to employee share options in the Baltics. Available here: Employee share option card
-
Transfer Pricing Card 2024
The most recent information on transfer pricing requirements in the Baltic States on the 2024 transfer pricing card. Available here: TRANSFER PRICING CARD 2024
-
Nordicfintechmagazine.com: Tier 1 Fintech Law Firm Unpacks the Fintech Scene in the Baltics
The Baltics are on the move when it comes to fintech. Each of the three Baltic states – Estonia, Latvia, and Lithuania – is highly digitalised, has phenomenal internet speeds, and has a strong local workforce of skilled and educated people. The zone’s relatively small size means its regulators are approachable, and it has numerous private and public sector initiatives to bolster the ecosystem. Lithuania grew its Fintech number from a handful to over 250 in a few years. Estonia is renowned for having the most unicorns per capita in the world and a strong IT sector. And Latvia has […]
-
Tax Stories Podcast – Episode 52 – Dr.Leopoldo Parada
Leopoldo Parada is an associate professor in tax law at the University of Leeds in UK. He has been recognised as one of the most promising tax policy experts worldwide. Listen to the podcast here! Topics discussed: his extravagant haircut and why he did not become a professional football player like he initially wanted to be; his homeland – Chile, and ‘10-cents war’ with Bolivia and Peru as a result of taxation there; a book One Hundred Years of Solitude by Gabriel Garcia Marquez that changed Leopoldo’s life by inspiring to look at the creative side of life, and develop his own style of […]
-
Intellectual property highlights in the Baltics
In the ever-evolving landscape of intellectual property, the Baltic states are at the forefront of transformative changes. From Estonia’s ambitious proposals to strengthen copyright laws and protect creators to Latvia’s battle against the surge in counterfeit goods, and the European Union’s groundbreaking move to extend geographical indication protection, the region is a hotbed of legal developments. Meanwhile, Lithuania grapples with a trade mark dispute, exemplifying the intricacies of protecting artistic identities in the modern era. Read more about the dynamic changes shaping the intellectual property scene across Estonia, Latvia and Lithuania, in the first Sorainen intellectual property newsflash of 2024. […]
-
Baltic M&A market: Deal activity gets no major hit in 2023, builds up encouraging pipeline for 2024
Last year, the Baltic mergers and acquisitions (M&A) market slowed down slightly from the previous year in terms of the number of deals. Despite the minor decline, the numbers still remained significantly above pandemic-time levels, according to statistics compiled by M&A database Mergermarket. While the deal count downturn wasn’t significant, the total disclosed value of all deals dropped back to 2019-2020 levels, leaving behind two recovery years. Overall, the year saw less large-value deals than in previous years. Of the top 10 disclosed deals by value in 2023, we saw only three deals above EUR 100 million. The year 2022 […]
-
Sorainen tops Mergermarket Regional M&A Rankings 2023
Sorainen continues to be a leading law firm for mergers and acquisitions in the Baltic region. Our firm has advised the highest number of M&A deals in 2023 in the region, according to the latest Global and Regional M&A Rankings 2023 by Mergermarket. The firm advised on 34 transactions with a combined value of USD 413 million. “We are pleased that so many companies have trusted our expertise when it comes to M&A in the Baltic region. In fact, our company has even advised four out of the top ten deals in the Baltics in 2023,” says Sorainen Partner Nauris […]
-
Tax Stories Podcast – Episode 50 – Pascal Saint-Amans
Listen to the podcast! Navigating the Future of Taxation: An exclusive interview with Pascal Saint-Amans (wts.com) In the interview we discussed: His book on offshores – Paradis Fiscaux (just in French so far); Pascal offers there to have a look in the kitchen of the largest tax decisions globally – US tax reform, both Pillars, etc. his new role at Brunswick to help companies to present their financial statements and tax reporting in a reader friendly language; for more than 10 years there is a public attention to taxation of large companies; companies now must not only pay more […]
-
European Legal update 09.01. – 23.01.
Assistant lawyer Nikola Cīparsone compiled the material. Data protection Data Act Entered into force: 11 January 2024 The European Data Act increases the accessibility of data and establishes regulations governing the utilization and access of data for various purposes across all economic domains within the EU. It aims to promote fairness in the digital realm by specifying the entities authorized to derive value from data and the associated conditions. Additionally, the act is designed to foster a competitive and innovative data market by unleashing industrial data and offering legal clarity on data usage. The Data Act will become applicable starting from […]
-
Eva Berlaus: Balancing Leadership, Family Life, and the Executive MBA at SSE Riga
Two master’s degrees and a wealth of managerial experience didn’t deter Eva Berlaus from embracing a new challenge — enrolling in SSE Riga’s Executive MBA programme. Eva shares her journey, offering insights into the highs, lows, and valuable lessons gained along the way. Eva Berlaus, previously holding the position of country managing partner for Sorainen in Latvia, has recently taken on the role of managing partner, now responsible for the firm’s day-to-day operations across all three Baltic states. Eva describes herself as a true family person and believes that hard work and determination are key to her professional success. In […]
-
Money laundering using Spotify
Dr Violeta Zeppa-Priedīte, head of Sorainen Latvia Corporate Crime practice and assistant lawyer Andīna Brīvule The recent development of various social networks and online platforms has not only created new opportunities for people to consume and publish different types of content, but unfortunately has also opened up new horizons for criminals to engage in illegal activities. As the digital environment evolves, so do the innovative methods used by criminals seeking to launder the proceeds of crime. The forms and methods of money laundering are becoming more varied and, in a sense, more “creative”. Our attention was caught by details published […]
-
European Legal update 19.12. – 08.01.
Assistant lawyer Nikola Cīparsone compiled the material. Data protection Regulation (EU) 2023/2854 of the European Parliament and of the Council of 13 December 2023 on harmonised rules on fair access to and use of data and amending Regulation (EU) 2017/2394 and Directive (EU) 2020/1828 (Data Act) Adopted: 13 December 2023 The Act addresses the transformative impact of data-driven technologies on various sectors of the economy. Recognizing the increased volume and potential value of data, the Act aims to eliminate barriers to data sharing, ensuring optimal allocation of data for the benefit of society. Other Regulation (EU) 2023/2844 of the European Parliament and […]
-
From software to jingles – an ABC of license agreement
Crafting an effective IP licensing agreement involves safeguarding interests and fostering mutually beneficial partnerships. Whether you are an author or acquirer of copyright-protected work, here are four key aspects to bear in mind when drafting these agreements. The article has been written by our associate with the Competition and Regulatory team Helery Maidlas. In the dynamic landscape of modern business, intellectual property (IP) holds immense value. Whether it’s a tailor-made jingle for an advert for your product or a software code that constitutes a cornerstone of your business, leveraging this valuable resource often involves the strategic use of licensing agreements. At the heart […]
-
Sporta Avīze: Racism in sport. Incidents in the sports in Latvia
Elvis Grinbergs, associate, and Āris Kakstāns The fight against racism in sports is broad, active and well-heard. FIFA and UEFA, the leading football organizations, are particularly actively involved in it, both by leading public awareness campaigns and by applying a zero tolerance policy for any activities displaying racism. The past year in Latvian sports, in connection with the problems of expression of racism, was coloured in darker shades than other years on average. The article reviews the loudest scandals related to racism in Latvian sports in 2023. More on this topic – in January 2024 issue of Sporta Avīze.
-
Changes for the introduction of electricity generation equipment or for increasing the capacity of existing equipment in Latvia
On 19 December 2023, at a meeting of the Cabinet of Ministers, new regulations entitled “Regulations on Permits for the Introduction of New Electricity Production Equipment or the Increase of Electricity Production Capacity” (the Regulations) were adopted, which were issued on the basis of the second part of Article 22 of the Law on the Electricity Market, and replace the regulation that was previously prescribed in the Cabinet Regulations No. 559 of 2 September 2020 (which expired on 11 August 2022). According to the Regulations, to introduce new electricity production equipment with a capacity of 500 kilowatts or more, or […]
-
European Legal update 05.12. – 19.12.
Assistant lawyer Nikola Cīparsone compiled the material. Technology & intellectual property Artificial Intelligence Act: European Parliament and the Council reach provisional agreement Reached: 9 December 2023 The AI Act introduces dedicated rules for general purpose AI models that will ensure transparency along the value chain. Specific banned applications of AI are set, as well as fines for non-compliance. The draft regulation is being developed to ensure that AI systems placed on the European market and used in the EU are safe and respect fundamental rights and EU values. This is going to be the first legla document stipulating rules and liability regarding use of AI […]
-
Insight into the future of combating corruption
On 3 May 2023, the European Commission presented a proposal for a directive of the European Parliament and of the Council on combating corruption, replacing Council Framework Decision 2023/568/JHA and the Convention on the Fight Against Corruption Involving Officials of the European Communities or Officials of Member States of the European Union and amending Directive (EU) 2017/1371 of the European Parliament and of the Council (Proposal for a Directive on Combating Corruption). In presenting this Proposal for a Directive on Combating Corruption, the European Commission has highlighted that the current European Union (EU) legal framework on corruption is outdated and […]
-
Reforms to GDPR Procedural Rules
Empowering Data Protection: European Commission proposes comprehensive reforms to GDPR enforcement In a significant move aimed at strengthening data protection measures, the European Commission has proposed a comprehensive proposal for a new regulation laying down additional procedural rules relating to the enforcement of Regulation (EU) 2016/679 (Proposal). This initiative follows the European Data Protection Board’s (EDPB) recommendations, and responds to their call for legal harmonisation to address obstacles in cross-border cooperation. Sorainen senior associate Jūlija Terjuhana was invited to serve as advisor to rapporteur Katrina Zarina, who led the work on the European Economic and Social Committee’s opinion on this […]
-
Batic Business Quarterly: Green bonds for implementing sustainable projects
Green bonds for implementing sustainable projects Green bonds are essential for sustainable financing, and Europe is ahead of many other regions in the world in green bond issuance. At the moment, it accounts for roughly half of the global volume. In recent years, the volume of green bonds issued in Europe has fluctuated around half a billion euros and analysts expect a growth in the coming years. In the Baltic region, green bonds are also becoming an increasingly important topic. The issuances that have taken place have been successful, helping to successfully implement the projects that are important for the […]
-
En.lsm.lv: Latvia’s VAT on food among highest in EU
A large proportion of European Union (EU) countries apply a low rate of value-added tax (VAT) to food, Latvian Television reported its study results November 30. It turns out Latvia has among the highest VAT rates on food in the EU. Value-added tax in Latvia brings about 30% of the budget revenue, so it is the second most profitable tax after the mandatory State Social Insurance contributions; the third is personal income tax. The EU VAT Directive provides that the standard rate of this tax may not be less than 15%. The lowest rate among EU Member States is in […]
-
Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is a new EU instrument aimed at reducing carbon leakage and leveling the playing field related to carbon emissions in the production of relevant goods in the EU and third countries. To whom do these requirements apply? Individuals or legal entities that import the goods listed in the annex to the CBAM regulation. The product categories are: Cement; Electric power; Fertilizers; Iron and steel; Aluminum; Chemicals (hydrogen and carbon dioxide). In this case, import means: goods from a non-EU country to the EU and release for free circulation in the EU; temporary entry of […]
-
Indication of prices for goods and services adopted in Latvia
In October this year, the guidelines of the Consumer Rights Protection Centre on the indication of prices for goods and services were adopted in a new wording, replacing “Guidelines on the Pricing of Goods and Services, Including Fair Commercial Practices” of 2015. The purpose of the new wording of the guidelines is to clarify the basic requirements for price indication, as well as to ensure compliance with consumer rights and the prohibition of unfair commercial practices. The most important explanations and clarifications of these guidelines are related to the indication of the original price and the discount price, as well […]
-
The Technology, Media and Telecommunications Review: Estonia
Over the past year, potential threats to press freedom and freedom of speech in Estonia have been a frequent subject of public debate. Russia’s invasion of Ukraine has had a considerable impact on the media and entertainment industry. Our experts Lee Raudsepp, Oliver Kuusk and Mihkel Miidla have analysed the latest trends in Estonia’s media and entertainment scene. Find out more in our yearly Technology, Media and Telecommunications Review. Estonian press freedom under pressure In 2022, a public debate arose on the issue of whether press freedom in Estonia was under threat. A controversial judgment was made by the Harju […]
-
European Legal update 07.11. – 21.11.
Assistant lawyer Nikola Cīparsone compiled the material. Tax Commission Implementing Regulation (EU) 2023/2493 of 15 November 2023 on the treatment for national accounts purposes of the non-collected VAT due to VAT fraud and due to insolvency (the discrepancy between theoretical VAT receipts and actual VAT receipts) for the application of Regulation (EU) 2019/516 of the European Parliament and of the Council on the harmonisation of gross national income at market prices Published: 16 November 2023 The Regulation sets out the calculations of the value of non-collected VAT, including VAT non-collected due to evasion ‘without complicity’ and, if relevant, VAT non-collected due to insolvency. […]
-
Tax Stories Podcast – Episode 49 – Susi Baerentzen (Denmark)
Listen to the podcast! https://open.substack.com/pub/janistax/p/susi-baerentzen-den-on-doing-things?r=240lr6&utm_campaign=post&utm_medium=web Susi Baerentzen is a tax law & human rights researcher from Denmark. She is lecturing at Vienna & Copenhagen Universities, holds a PhD in International Tax Law and Economics. Susi recently published her book “The Effectiveness of General Anti-Avoidance Rules”. She has worked for 5 years for one of the Big4 audit firms and is a Nordic Tax Manager at a large multinational company. In the podcast we spoke about: Extreme triathlon; Middle East; Why Susi wanted to be an air-force pilot; Why she switched from Big4 to academic work & inhouse; Past, present and […]
-
The era of unregulated crypto-asset markets is nearing its end. What must you know about MiCAR and how to get ready?
Starting 30 December 2024, the Regulation EU 2023/1114 of the European Parliament and of the Council on markets in crypto-assets (MiCAR) will take full effect. It will open a new chapter regulating virtual currencies, also known as tokens, and related services and is expected to bring more clarity to the field. This step is crucial for Lithuania, which is considered one of Europe’s hubs for Fintech services, with over 500 crypto-asset service providers currently operating in the country. So how will they be affected by the new regulation, and when should they start preparing for MiCAR compliance? What will MiCAR […]
-
Transposition of the Directive in Latvia
Amendments to the Insolvency Law, Civil Procedure Law and the Law On Protection of employees in case of Insolvency of Employer aimed at transposing the Directive on Restructuring and Insolvency were adopted in March this year and are applicable to proceedings initiated starting from 15 September. Read more about types of proceedings, statutory moratorium, classes of creditors and cross-class cram-down, as well as changes in the insolvency proceedings of a natural person in the article by senior associate Edvīns Draba published in Eurofenix. Transposition of the Directive in Latvia
-
European Legal update 24.10. – 07.11.
Assistant lawyer Nikola Cīparsone compiled the material. EU Law Commission welcomes G7 leaders’ agreement on Guiding Principles and a Code of Conduct on Artificial Intelligence Published: 30 October 2023 The Commission welcomes the agreement by G7 leaders on International Guiding Principles on Artificial Intelligence (AI) and a voluntary Code of Conduct for AI developers under the Hiroshima AI process. These principles and the voluntary Code of Conduct will complement, at international level, the legally binding rules that the EU co-legislators are currently finalising under the EU AI Act. See also: G7 Leaders’ Statement on the Hiroshima AI Process ESG European Green Bonds: […]
-
Consumer class actions in Latvia
On 14 September 2023, the Saeima approved amendments to the Consumer Rights Protection Law (CRPL) and related amendments to the Civil Procedure Law. These amendments will introduce a new procedural instrument to consumer class actions in Latvia, as provided for in the European Union (EU) Directive 2020/1828. The main objective of the law is to increase consumer protection, by providing an opportunity to join a special class action against unfair traders or producers. More effective consumer protection, even in cases of smaller claims Until now, in case of unfair commercial practices, for protection of their consumer rights people affected had […]
-
Financial and insurance law news 29.09.-11.10.
Asking for a loan will be safer in the EU after the Council’s final approval of the Consumer Credit Directive Adopted – 9 October 2023 The Council of the European Union has voted to adopt the proposed directive (CCD II) which will revise and replace the Consumer Credit Directive (2008/48/EC) (CCD). In short, CCD II aims to modernise and enhance protection at EU level for consumers applying for credit and will cover credit agreements of up to EUR 100,000. The new measures will apply to certain loans that were excluded from the scope of the CCD, including loans below EUR […]
-
Second annual sustainability report shows promising results
Sorainen has made considerable progress in the area of sustainability since releasing the first sustainability report last year. We have also experienced an expansion of the environmental, social, and governance (ESG) related services provided to clients. Notably, Sorainen was recognised by the Legal 500 Green Guide as the only pan-Baltic law firm with a focus on ESG. Sorainen also looks at sustainability in internal operations. The Estonian office has received the European Green Office certificate. This accomplishment is shared by only fifty companies in the country. “There are many reasons why each organisation should dedicate conscious efforts to ESG. Let […]
-
Fintech Latvija: It is important to be among the first to implement the MiCA regulation
The crypto asset market regulation (MiCA) will be applied from mid-2024 and each EU Member State is required to develop its own national regulation. If Latvia is the first to adopt it, we have a great chance to stand out at the European level with our offer. On 20 April 2023, the European Parliament adopted the MiCA Regulation, which is designed to promote and support the potential of digital finance for innovation and competition, while mitigating risks. This regulation is being developed in line with the European Commission’s priorities to make Europe fit for the digital age and to create […]
-
Criminal law news. September 2023
Sorainen Corporate Crime Investigation and Compliance Practice attorneys and lawyers continue to follow criminal law-related activities in Latvia and abroad. September’s highlights touched on issues such as legal liability in the area of national security, the burden of proof in cases of confiscating criminally acquired property, activities of the European Public Prosecutors` Office (EPPO), etc. However, from the overall set of updates, news of criminal cases for sanctions violations attracted our attention. Namely, since criminal cases of sanctions violations, in parallel to criminal cases of money laundering and tax fraud, are one of the central topics of Sorainen’s criminal law […]
-
Tax Stories Podcast – Episode 48 – Konrad Rohde (Germany)
Listen to the podcast! https://www.sorainen.com/wp-content/uploads/2023/10/Tax-Stories-Konrad-Rohde-DLA-GER-changes.mp3 Konrad Rohde is a tax partner at DLA law firm in Frankfurt, Germany, for more than 10 years. Globally DLA has ~1500 partners and ~100 tax partners. We spoke about: Nordic Business Forum and some topics covered there, charities, global minimum taxation – it seems Germany does not expect more than EUR 20 mil. as a result of it and the compliance cost might be substantially higher, DAC6 and how the tax structuring has changed, ‘if you call something a license from IP perspective doesn’t men it’s a license from tax perspective’ social media, […]
-
Intellectual property highlights in the Baltics
In the constantly changing realm of intellectual property, it is crucial to stay informed about recent developments and noteworthy cases. Our Intellectual Property team has compiled a collection of highlights from Latvia, Lithuania, and Estonia to keep you abreast of the latest trends and legal insights. These highlights offer a glimpse into recent trademark disputes, legislative amendments, trade secret litigation, domain usage rules, and copyright matters. Latvia: Long-awaited amendments to the Copyrights Law and Trade Mark Law have entered into force Latvia has one of the highest number of instances of trade secret litigation in the EU New domain usage […]
-
EU Dictionary of Insolvency Terms
We contributed to the EU Dictionary of Insolvency Terms, prepared by the international law firm DLA Piper, as regards the insolvency and restructuring legal frameworks in Latvia, Lithuania and Estonia. This invaluable resource provides a concise overview of all the corporate, personal and partnership insolvency proceedings for each EU member state. Each proceeding is briefly described, including key features such as who oversees the process and whether a moratorium is likely to be implemented to prevent enforcement. While there has been progress towards a harmonised approach to financial distress across Europe, restructuring and insolvency procedures and associated terminology remain highly […]
-
European Legal update 12.09. – 25.09.
Assistant lawyer Nikola Cīparsone compiled the material. Tax Press release: New proposals to simplify tax rules and reduce compliance costs for cross-border businesses Published: 12 September 2023 The European Commission adopted a key package of initiatives to reduce tax compliance costs for large, cross-border businesses in the European Union. The proposal, “Business in Europe: Framework for Income Taxation” (BEFIT), will make life easier for both businesses and tax authorities by introducing a new, single set of rules to determine the tax base of groups of companies. This will reduce compliance costs for large businesses who operate in more than one Member State […]
-
Carri Ginter: The previous versions of the whistleblower protection bill were dangerous to freedom of speech
The whistleblower protection bill, which has drawn diametrically opposite opinions from various groups in society, has been put to first reading in the Parliament of Estonia. Our partner Carri Ginter says in an article published on the financial and legal news website Rup that he has worked hard to prevent previous versions of the whistleblower protection bill from becoming law because they were clearly too restrictive of the freedom of speech. According to the Bill, public incitement to hatred, violence, or discrimination against a group or a member of a group of persons on the grounds of ethnicity, race, colour, […]
-
European Legal update 29.08. – 11.09.
Assistant lawyer Krišjānis Knodze compiled the material. Transport/energy Alternative fuels infrastructure: €352 million in EU funding for low-and zero-emission transport projects Published: 11 September 2023 The European Commission announced the 26 projects from 12 Member States that will receive funding to install alternative fuels infrastructure. Among those, a Latvian project “Elektrum Drive – e-mobility network in LV, LT, EE“ by AS Latvenergo. See also: List of selected projects Other Council Implementing Regulation (EU) 2023/1715 of 8 September 2023 implementing Regulation (EU) 2020/1998 concerning restrictive measures against serious human rights violations and abuses Adopted: 8 September 2023 Restrictive measures were imposed on […]
-
Clients value Sorainen legal competence highest among top tier Baltic law firms
Sorainen ranks first in the “Best legal competence” category among top tier Baltic law firms, according to the 2023 Baltic Kantar Prospera Tier 1 Law Firm Review. The survey interviewed 410 Baltic-based organisations that have spent at least EUR 15,000 over the last year on outsourced legal help. In total, 55% of the respondents are top executives and a third are corporate lawyers and heads of legal departments. As part of earning this regional ranking, Sorainen placed first in10 out of 14 legal competence categories, including: Mergers & acquisitions Banking & finance Dispute resolution Competition & EU Employment IT & […]
-
ECBC publishes 2023 Edition of European Covered Bond Fact Book
European Covered Bond Council (ECBC) published the 2023 Edition of the European Covered Bond Fact Book. This book is intended to be a benchmark and comprehensive source of information on the covered bond asset class. This 18th edition of the ECBC European Covered Bond Fact Book builds on the success of previous editions. Sorainen lawyers present an overview of the legislation and markets in Lithuania, Estonia and Latvia. Read the full book here.
-
European Legal update 15.08. – 28.08.
Assistant lawyer Nikola Cīparsone compiled the material. EU Law Regulation of the European Parliament and of the Council concerning batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing Directive 2006/66/EC Entered into force: 17 August 2023 A new law to ensure that batteries are collected, reused and recycled in Europe is entering into force today. The new Batteries Regulation will ensure that, in the future, batteries have a low carbon footprint, use minimal harmful substances, need less raw materials from non-EU countries, and are collected, reused and recycled to a high degree in Europe. See also: Press release EU […]
-
Criminal law news. August 2023
Sorainen’s criminal law counsels follow the activities and successes of the European Public Prosecutor’s Office (EPPO) in Latvia and abroad with constant interest. We pay particular attention to cases where investigations have been carried out into fraud against European Union (EU) funds, which is undoubtedly one of the target areas of the Latvian law enforcement authorities. Violeta Zeppa-Priedīte, Head of Sorainen’s Corporate Crime Investigations and Compliance Practice and associate Andīna Brīvule follow the latest developments in these and other areas of criminal law. This time, our attention was drawn to the recent announcement by the EPPO that in June this […]
-
Due diligence obligations of a contracting authority under the EU public procurement law
The head of our Public Procurement team Kadri Härginen successfully defended her PhD dissertation, “Due diligence obligations of a contracting authority under the EU public procurement law “. Errors in complying with public procurement, including legal practice examples of termination of employment and criminal punishments for breaches of public procurement law, lie in the heart of the thesis – what is a diligent contracting authority? EU public procurement rules have been in place since 1971, so it could be assumed that this is no longer an innovative issue but a long-overdue one. However, this is not the case. To find […]
-
moneylaundering.com: Lithuania, now a fintech hub, takes new, aggressive stance against AML infractions
Lithuania’s streamlined licensing environment and openness to innovation have transformed the country into a hub for fintech in recent years, with more than 260 payment platforms, blockchain companies and financial software developers now calling the Baltic nation home. “Previously Lithuania was focused on boosting the number of fintechs coming to the country,” said Eimantas Vytuvis, counsel at the local office of the Sorainen law firm. “There’s definitely been a drastic shift, and I don’t know whether the market can adapt fast enough to this new reality.” Read the full article here.
-
European Legal update 02.08. – 14.08.
Assistant lawyer Nikola Cīparsone compiled the material. ESG The Commission adopts the European Sustainability Reporting Standards Adopted: 31 July 2023 The Commission adopted today the European Sustainability Reporting Standards (ESRS) for use by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). This marks another step forward in the transition to a sustainable EU economy. The standards cover the full range of environmental, social, and governance issues, including climate change, biodiversity and human rights. Energy Estonia, Latvia & Lithuania agree to synchronise their electricity grids with the European grid by early 2025 Signed: 3 August 2023 An agreement by Estonia, Latvia and Lithuania to accelerate […]
-
Kaupo Lepasepp: Baltic law firms should aim for global market
The growing international reach of Estonian and Baltic companies is also opening the rapidly expanding global legal market for Baltic law firms, writes Kaupo Lepasepp, Sorainen’s country managing partner in Estonia, in Äripäev (Finantsuudised). The core of great legal service is the ability to apply excellent legal knowledge in the interests of clients. In terms of the quality of legal service and customer satisfaction, the Estonian legal services market has undergone colossal development in the last decade. While at the beginning of the century, we learned from our Western colleagues what it means to provide legal services, the international Prospera […]
-
EBRD: Baltics ahead in national insolvency policy
The European Bank for Reconstruction and Development (EBRD) has released the 2023 Survey Report of Insolvency and Secured Transaction Regimes. The survey highlights national-level policy issues that prevent companies from being able to restructure funds or declare insolvency. The Baltic countries overall have exceptionally good insolvency policies compared to other countries surveyed. The issues According to EBRD Senior Counsel for the Legal Transition Programme at the Office of the General Counsel Catherine Bridge Zoller, “The 2021 Enterprise Survey (BEEPS) VI1, led by the EBRD, in partnership with the World Bank, found that over half of the businesses surveyed across the […]
-
Sorainen Partner Paul Künnap: Let’s build a metro in Tallinn!
Tallinn should take after Helsinki and build a metro in Tallinn, our partner Paul Künnap has suggested in the Estonian daily Eesti Päevaleht. Building a metro in Tallinn is not something that is currently discussed in Estonia, but Paul says it would give Tallinn a huge boost. Paul debunks three myths that naysayers have used to ditch the idea: We are too poor and weak, goes the first argument. Yet, Helsinki was of the same size as Tallinn and much poorer when the city decided to construct a metro in 1969. Tallinn would not be the smallest city with a […]
-
Insight into Internet Organised Crime Threat Assessment (IOCTA) news
The threat of cybercrime in the European Union (EU) has increased. Cybercrime has become big business and a whole illicit economy of service providers and recruiters has been created to support it. This makes it increasingly difficult for law enforcement authorities to investigate cyberattacks, as many specialised criminals from all corners of the globe operate on this large criminal network. Cybercriminals continue to demonstrate high adaptability to new technologies, while constantly improving their specialisations. On 17 July 2023, Europol published its ninth Internet Organised Crime Threat Assessment (IOCTA), which looks at the online crime ecosystem and analyses its courses of […]
-
European Legal update 19.07. – 01.08.
Assistant lawyer Sofia Kurochka compiled the material. Competition Communication from the Commission – Guidelines on the applicability of Article 101 of the Treaty on the Functioning of the European Union to horizontal co-operation agreements Published: 21 July 2023 These Guidelines replace the 2011 Guidelines and are intended to provide legal certainty by assisting undertakings in assessing the compatibility of their horizontal cooperation agreements with Union competition rules while ensuring effective protection of competition. They also aim to make it easier for undertakings to cooperate in ways that are economically desirable, thereby contributing, for example, to the green and digital transitions and to […]
-
European Legal update 04.07. – 18.07.
Assistant lawyer Sofia Kurochka compiled the material. Data protection Proposal for a Regulation laying down additional procedural rules relating to the enforcement of GDPR Published: 04 July 2023 The new regulation provides detailed rules to support the smooth functioning of the cooperation and consistency mechanism established by the GDPR. The proposal harmonises the requirements for a cross-border complaint to be admissible, removing the current obstacles brought by DPAs following different rules. It also provides the parties under investigation with the right to be heard at key stages in the procedure, including during dispute resolution by the European Data Protection […]
-
Procedure for application of special restrictive measures introduced in Belarus
Law No. 280-Z dated 12 July 2023 “On the Application of Special Restrictive Measures” (the Law) was published on 20 July 2023. It defines the principles and the procedure for the application of special restrictive measures, as well as measures to remove obstructions to the protection of the rights, freedoms and legal interests of Belarus in light of unfriendly actions of foreign states. Nevertheless, the Law does not apply to any relations that arise from application of other measures which have the same aims and are regulated by other legislative acts. The Law, inter alia, defines “special restrictive measures” as special economic measures and other […]
-
Estonia aims to become the most transparent place in Europe to establish and grow FinTech globally
If you are interested in setting up or investing in a FinTech, then look no further. Estonia is known as (one of) the most advanced digital democracies in the world and an outstanding place for doing innovative business. Estonia is also known as the land of unicorns. For an estimated population of 1.4 million people, by 2021 there were 215 companies registered in Estonia that can be considered FinTechs and by 2022 there were already 10 unicorns, including Wise, Zego, Bolt and Veriff. According to the draft Fintech Strategy for 2023+, Estonia aims to become the most transparent place in […]
-
EU-US data transfers: new Data Privacy Framework adopted by the European Commission
On 10 July 2023, the European Commission adopted a decision on the EU-US Data Privacy Framework, recognising the US as a country providing sufficient protection for personal data subject to requirements under the GDPR. This marks the end of long-running and intense negotiations between the EU and the US, as a result of which personal data can be now safely transferred from the EU to US commercial organisations participating in the new Data Privacy Framework. Following the Schrems II decision in 2020 invalidating the Privacy Shield (see our previous article), this is considered a widely welcomed development, in particular by […]
-
Updated insolvency laws in Estonia
Our senior associate Mari Agarmaa and assistant lawyer Maarika Maripuu published an overview of insolvency law updates in INSOL Europe. Commercial insolvency Bankruptcy Act The Bankruptcy Act is the central act in Estonian insolvency law, handling the issue of commercial bankruptcy. In addition to that, the Bankruptcy Act also regulates questions regarding the newly founded Estonian Insolvency Division and the rights and obligations of bodies in the bankruptcy proceedings, i.e. the trustee and bankruptcy committee. Bankruptcy Act can be found in Estonian and in English. Reorganisation Act The Reorganisation Act concerns all issues regarding the restructuring of insolvent companies. The act regulates both […]
-
European Legal update 20.06. – 03.07.
The material is compiled by assistant lawyer Sofia Kurochka. Industry Regulation (EU) 2023/1230 of the European Parliament and of the Council of 14 June 2023 on machinery and repealing Directive 2006/42/EC of the European Parliament and of the Council and Council Directive 73/361/EEC (Text with EEA relevance) Published: 29 June 2023 Date of effect: 14 January 2027 This regulation replaces Machinery Directive 2006/42/EC. The Machinery Regulation intends to better cover new technologies such as autonomous mobile machinery (robots), internet of things with connected equipment, or artificial intelligence (AI), where specific modules of AI using learning techniques ensure safety functions. It provides […]
-
Annual Report 2022: Sorainen Estonia keeps on growth track on the back of major transactions
Sorainen Estonia Annual Report 2022 Sworn auditors’ report The sales revenue of Advokaadibüroo Sorainen AS, our legal entity operating in Estonia, grew by 1.46%, reaching EUR 14,562,000 in 2022. The operating profit fell slightly, by 2.34%, to EUR 5,823,000. Sorainen managed to outperform our growth level for the previous year despite a challenging economic environment, in which top law firms were seriously affected by a decline in deal activity. The Estonian M&A deal market clearly suffered the biggest hit of all the Baltic countries in 2022, both by deal count and value compared to 2021. Despite the changed deal landscape, […]
-
Annual Report 2022: Sorainen is market leader in Latvia
Sorainen Latvia Annual Report 2022 Independent auditors’ report According to the annual reports published for the first time by Latvian law firms, Sorainen had the highest net turnover in the Latvian legal market in 2022. The annual turnover of Sorainen Latvia was EUR 8,394,222, while the profit amounted to EUR 1,460,288. As this is the first year that Latvian law firms were required to publish financial results, it is also only now that we see the comparative data. The changes to the Advocacy Law of the Republic of Latvia of 16 March 2021 obliged law firms in the commercial register […]
-
TMT Newsletter Q2
Q2 2023 Below you can find our quarterly TMT newsletter, covering the latest updates about 5G rollout in Estonia, data protection enforcement in the Baltics, as well as safeguarding your intellectual property rights in the region. This issue covers: TMT Insight EU Legislation Data Protection Technology Media Telecom Knowledge Management & Innovation TMT Insight Tips for keeping your intellectual property safe Our international intellectual property teams in Estonia, Latvia, Lithuania and Belarus prepared a IP health check quiz to help companies ensure that their IP is properly safeguarded. Tax and legal rules applicable to DAOs EU Legislation Creating a European […]
-
We assisted Startup Estonia in creating necessary new documents for aspiring entrepreneurs
In order to simplify the life of aspiring entrepreneurs and save costs, Startup Estonia, in collaboration with Sorainen and other leading Estonian law firms, has created samples of legal documents. Assistance for aspiring entrepreneurs and startups Entrepreneurs who want to attract investors, share options, protect intellectual property and trade secrets, or expand their teams can benefit from the free sample documents available on the Startup Estonia website. The package of sample documents contains 25 basic contracts and documents that entrepreneurs and startup founders mostly need in the beginning. For example, the package of model documents includes a sample founders’ agreement […]
-
Baltictimes.com: The role and value of local government in promoting wind and solar parks – approvals
It is often asked whether a local government is obliged to give its approval to the installation of an energy supply object on a local government’s property – in particular, to the networks that cross it? The construction of a new energy supply facility (installation of production devices, networks, lines and accessories) usually requires third-party land being crossed in order to connect to utility networks. As a general rule, such construction must be agreed with the owner or possessor of the property to be crossed, including if the owner is a local government. With individuals, it is a simple matter […]
-
Latvia: New rules to place wind farms on public land
Market was expecting these regulations for years to finally access the public forest lands, so let’s look into details of amendments to Reg.No.350 approved on 13.06.2023: Auction – the only form to grant rights for research of the public land and construction of the wind farms; The auctions may be organised as (1) regular – by announcing on a yearly basis, before 1st of February (for year 2023 – within 30 days as of date of regulation); or (2) ad hoc – by announcing auction 4 month in advance. First auction planned within 6 months; The winner of the auction […]
-
European Legal update 06.06. – 19.06.
The material is compiled by assistant lawyer Sofia Kurochka. Finance Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets and amending Directive (EU) 2015/849 (Text with EEA relevance) Date of effect: 29 June 2023 Under the new rules, crypto asset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of the transfers of crypto assets they operate, regardless of the amount of crypto assets being transacted. This ensures the traceability of crypto asset transfers to be able to better identify possible suspicious transactions and […]
-
Eng.leta.lv: Decrease in productivity caused by lack of physical exercise costs Latvia’s economy EUR 190 million
RIGA, June 13 (LETA) – Decrease in productivity caused by lack of physical exercise costs Latvia’s economy EUR 190 million a year, according to a global study on impact of physical exercise on the economy conducted by Deloitte. The study reveals that negative impact of the shortage physical exercise on government budget is EUR 41.5 million. Gints Kuznecovs, a board member of the Latvian Association of Health and Fitness, said at the Saeima sports subcommittee meeting that about 30 percent of Latvian residents do not do any sports. At the same time, he said that physical exercise has direct and indirect […]
-
Latvia: Current amendments to the Commercial Law for public limited liability companies
Amendments to the Latvian Commercial Law, which will enter into force on 1 July 2023, set a number of important dates to be taken into account by all public limited liability companies (PLLC) (in Latvian – Akciju sabiedrība or AS) in order to comply with the obligations imposed by the amendments, i.e., to submit to the Company Register updated articles of association of the PLLC, as well as folios of shareholders’ registers or information on the central securities depository where shares of the PLLC are registered. If the PLLC fails to take the above-mentioned actions within the set deadlines, the […]
-
European Legal update 23.05. – 06.06.
The material is compiled by assistant lawyer Sofia Kurochka. Intellectual property The Unitary Patent system Launched: 1 May 2023 The new system provides for the establishment of a Unitary Patent, which will be regulated under the Unified Patent Court. Europe’s Unitary Patent is a new additional option for companies and inventors seeking to obtain patent protection in Europe. The unitary patent is a legal title that provides uniform protection across all participating countries on a one-stop-shop basis, providing huge cost advantages and reducing administrative burdens The Unitary Patent will provide unified protections in all EU countries that have ratified the Agreement on […]
-
Eng.leta.lv: Several hundred companies and organizations sign open letter to express support for Stakis’ decision to raise rainbow flag at Riga City Council for Riga Pride
Approximately 600 companies, associations and civil society representatives have signed an open letter to express support for Riga Mayor Martins Stakis (Progressives/For) for his decision to raise the rainbow flag at Riga City Council to mark the 2023 Riga Pride Week, as Dzivesbiedri (Spouses) movement representative Kaspars Zalitis informed LETA. The letter emphasizes that Stakis’ decree on raising the rainbow flag at Riga City Council “symbolizes the city’s support for the goals of the Pride march”, and that raising the flag at the municipality is “a common practice in the capitals of countries based on Western values”. Latvia’s support for […]
-
Baltictimes.com: Latvia opens its retail market for natural gas
The process of opening the natural gas market in Latvia was launched on 3 April 2017, when retail users became able to freely choose their natural gas trader, while continuing to buy it at a regulated price. Most households continued to buy natural gas from the incumbent Latvijas Gāze, controlled by Gazprom, at a regulated price. New traders did not join the market, because the regulated price was based on cheap Russian gas and the gas pipeline interconnection with Poland was under development. As of 1 May 2023, the natural gas market is fully open: i.e. households must choose their […]
-
European Legal update 09.05. – 23.05.
The material is compiled by assistant lawyer Sofia Kurochka. Employment Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms (Text with EEA relevance) Adopted: 10 May 2023 Date of effect: 6 June 2023 This Directive lays down minimum requirements to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women, and the prohibition of discrimination, in particular […]
-
European Legal update 25.04. – 09.05.
The material is compiled by assistant lawyer Sofia Kurochka. Information & Communication Technology Regulation (EU) 2022/1925 of the European Parliament and of the Council of 14 September 2022 on contestable and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (Digital Markets Act) (Text with EEA relevance) Date of effect: 2 May 2023 The purpose of the Digital Markets Act (DMA) is to ensure a level playing field for all digital companies, regardless of their size. The DMA establishes a set of narrowly defined objective criteria for qualifying a large online platform as a so-called “gatekeeper”. Under […]
-
INSOL Europe Newsletter Spring 2023: Insolvency & Restructuring Statistics: Update from Latvia
Our senior associate Edvīns Draba has contributed to INSOL Europe Newsletter Spring 2023, telling more about insolvency and restructuring statistics in Latvia. Read the full newsletter HERE.
-
Tax Stories Podcast – Episode 42 – Dick Molenaar (All Arts, NED) – on arts & sports
Dick Molenaar has advised clients like U2, Michael Jackson, Madonna, Bruce Springsteen, Enrique Iglesias, Prince, Paul McCartney, DJ Martin Garrix, Dutch most famous golf player Joost Luiten, etc. Listen to this podcast HERE. Dick Molenaar is a tax lawyer from the Netherlands, specialising on arts and sports. He is a partner of “All Arts Tax Advisers” firm for more than 37 years now. He has advised clients like U2, Michael Jackson, Madonna, Bruce Springsteen, Enrique Iglesias, Prince, Paul McCartney, DJ Martin Garrix, Dutch most famous golf player Joost Luiten, different festivals, museums, etc., but Dick tries not to be a star-gazer. […]
-
Эстония: искусственный интеллект против авторов
Уже появились и жертвы нарушений: как ранее писал Äripäev, работы Пирет Рауд, Ремо Сависаара, Эйко Ояла и других эстонских художников и фотографов отданы на обучение искусственному интеллекту – и, судя повсему, без их ведома. Как использовать искусственный интеллект, чтобы работа была защищена авторским правом, задаются вопросом юристы бюро Sorainen Оливия Краних и Елизавета Лазонен. Завораживающие картины, понятные художественные тексты и научные статьи – это одни из многих работ, которые человек может создать при помощи искусственного интеллекта (ИИ). Большинство людей уже успело опробовать способности новой технологии, при каждом запросе, возможно, создавая произведение искусства. Немногие, однако, задумываются о том, кому принадлежит авторское […]
-
LSM: Adventum Tech triumphs at TechChill
Adventum Tech, a startup based in Latvia, took home the main prize at the TechChill conference’s famous Fifty Founders Battle in Rīga April 28. The pitch competition included 250 applications from more than 30 countries, reported Labs of Latvia. Adventum Tech develops hardware and software to mitigate structure collapses during construction. Through applying a variety of sensors they are able to monitor the structural integrity of load-bearing supports. “This was the prize we were aiming for at TechChill. This EUR 11,000 cash prize has a very specific destiny – it will be used to develop a sensor to detect issues […]
-
Law on Imposing Restrictive Measures Regarding the Military Aggression Against Ukraine
From 3 May 2023, the Law on Imposing Restrictive Measures Regarding the Military Aggression Against Ukraine will enter into force in Lithuania. The new law outlines several new measures and updates some measures that were already applied. The law will be valid until 2 May 2024. Restrictive measures that will continue to apply Visas and temporary residence permit applications at visa service centres and external service providers of Lithuania abroad The acceptance of visa applications from Russian and Belarusian nationals and the adoption of decisions resulting from these applications at the visa service centres of Lithuania abroad are suspended, […]
-
Tips for keeping your intellectual property safe
Intellectual property (IP) – inventions, trademarks, copyrights, and trade secrets – is important for your business as it provides a competitive advantage, prevents others from using or profiting from your innovations, and allows you to monetise your intellectual assets through licensing or selling. Is your company in danger of losing its IP? Click on the banner to take a short quiz, and be safe! Contact our international expert team for any IP-related questions: Olivia Kranich in Estonia Linda Reneslāce in Latvia Stasys Drazdauskas in Lithuania The IP health check quiz was prepared by our international intellectual property teams in Estonia, […]
-
European Legal update 11.04. – 24.04.
The material is compiled by assistant lawyer Sofia Kurochka. Energy Commission Regulation (EU) 2023/826 of 17 April 2023 laying down eco-design requirements for off mode, standby mode, and networked standby energy consumption of electrical and electronic household and office equipment pursuant to Directive 2009/125/EC of the European Parliament and of the Council and repealing Commission Regulations (EC) No 1275/2008 and (EC) No 107/2009 (Text with EEA relevance) Adopted: 17 April 2023 The revised rules introduce a number of amendments to the 2008 eco-design regulation on standby, off mode and networked standby, and extend the scope of the rules, for example now including products with […]
-
DAO Day aftermath – tax and legal rules applicable to DAOs
Kaido Künnapas, our partner and attorney at law, discussed in his article whether DAOs still live in a legal vacuum and what the legal and tax rules applicable to distributed autonomous organizations (DAOs) actually are. DAO is a type of online cooperation that seeks to provide a flexible alternative to rigid corporate rules. They can be used as a technical framework for connecting investors to coordinating political parties and popular initiatives. DAOs do not exist in a legal vacuum. On the contrary, every DAO fits into existing legal categories in one way or another, be it minority member protection, unlimited […]
-
Transfer Pricing Card 2023
The most recent information on transfer pricing requirements in the Baltic States on the 2023 transfer pricing card. Available here: TRANSFER PRICING CARD 2023
-
Disputes with consumers in Lithuania: what insurers should avoid
On 28 March 2023, the Bank of Lithuania published a report on consumer disputes (the Report). In this Report, the Bank of Lithuania provided recommendations and guidelines for insurers that provide insurance services to consumers in Lithuania. The Report aims to ensure that insurers comply with legal regulations and follow best practices to prevent consumer disputes. Further, we provide the main takeaways from this report. Insurers’ duty to disclose information For insureds to properly fulfil their duties under the policies, insurers must ensure active communication with them and respond to their questions about interpreting the policy’s provisions during the policy […]
-
Taxes in a Nutshell 2023
Main comparative corporate tax principles for Estonia, Latvia and Lithuania. Available here: TAXES IN A NUTSHELL 2023
-
GDPR Fines and Data Breach Survey 2023
The fifth anniversary of the implementation of the European Union’s General Data Protection Regulation (GDPR) is approaching in May. The European Data Protection Board (EDPB) and many national regulatory bodies quietly agreed to “go easy” on businesses and institutions while they became acquainted with the laws and learned how to follow the new mandates during their operations. However, the latest report by DLA Piper’s cybersecurity and data protection team shows that the monetary total of fines increased by 50% in 2022 compared to the previous year. The report also includes contributions regarding the Baltics from our Sorainen GDPR specialists. Top […]
-
European Legal update 28.03. – 10.04.
Prepared by assistant lawyer Sofia Kurochka. Competition Updated guidance for measures to support the green transition Adopted: 4 April 2023 The European Commission published the updated State aid guiding templates to assist Member States in designing measures, which will be included in their national Recovery and Resilience Plans, in line with EU State aid rules. See also: Press release Amendment to the guidance on enforcement priorities Adopted: 27 March 2023 European Commission has launched a Call for Evidence seeking feedback on the adoption of Guidelines on exclusionary abuses of dominance. In parallel, it has amended its 2008 Guidance on enforcement priorities […]
-
Latvia: Filing of annual reports and related issues
Deadline for filing annual reports with the State Revenue Service (SRS) approaching The Law on Annual Financial Statements and Consolidated Financial Statements requires all companies to file an annual report approved by the shareholders’ meeting with the SRS, no later than one month after approval by observing the deadline that is set based on the criteria applicable to the companies: micro and small companies must file the approved annual report for the year 2022 to the SRS no later than five months after the end of the reporting year. This means that if a company’s reporting year is the same […]
-
TMT Newsletter Q1
Below you can find our quarterly TMT newsletter, covering statistics of GDPR-related fines and transposition of the European Accessibility Act in the Baltics, as well as updates about the deployment of 5G in Estonia and Lithuania. TMT Insight Transposition of the European Accessibility Act in the Baltics The European Accessibility Act sets out new product rules for electronic goods and online services in order to better accommodate their use by everyone. In order to transpose these rules, new laws have been adopted in the Baltics. EU Legislation The primary committee of the European Parliament is preparing to take a final […]
-
Collective Redress Directive: what will it bring for businesses and consumers?
In 2020, the European Union (EU) adopted the Collective Redress Directive[1] as a part of the New Deal for Consumers package. Strong consumer protection rules increase total consumer shopping, which boosts trade and market development. Therefore, the EU has taken a step further and established collective protection of consumers’ rights through representative actions. The Directive gives rights to organisations or public bodies to represent a group of consumers collectively against companies, whether this is for national or cross-border actions. The Directive was adopted on 20 December 2020, and its requirements must be applied by 25 June 2023. What are representative actions? […]
-
A Claim for Damages Arising from Interim Relief: a Legal Remedy that Has Faded into Oblivion or a Necessary Security for the Debtor?
The granting of interim relief pursuant to Chapter 40 of the Code of Civil Procedure is an important procedural institution for the effective realisation of the right of recourse to the courts as established in subsection 15 (1) of the Constitution of the Republic of Estonia. The right of appeal ensures not only access to a court but the opportunity for individuals to assert their rights in a court proceeding. The purpose of imposing the measure of interim relief is to ensure that during the enforcement of the judgment the defendant has the object or the sum of money needed […]
-
Checklist: Criteria to evaluate when deciding on a dispute resolution venue (Latvia)
We offer this practical checklist as a quick guide to showcase the strengths and weaknesses of the most popular dispute-resolution venues selected by our clients in Latvia. The material is available here.
-
Statistics on GDPR fines issued and data breaches reported in the Baltics
Last year, we collected information on fines issued under the GDPR and the number of reported personal data breaches. We collected data for two time periods: May 2018 to November 2022, and January 2022 to November 2022. The GDPR enables data protection authorities to apply fines of up to 4% of the total worldwide turnover of an undertaking in the preceding financial year or up to EUR 20 million, whichever is higher. The total value of fines issued in the Baltics from January 2018 to November 2022 was EUR 1,842,958. The largest fine was issued in Latvia, totalling EUR 1,200,000. […]
-
Accessibility to goods and services: new obligations for manufacturers, importers and distributors
To make technology goods and services accessible for people with functional impairments, such as disabled people, elderly people and people with impaired reading ability, the European Union (EU) in 2019 adopted a new directive – the European Accessibility Act (the Directive). The Directive set out new product rules for electronic goods and online services in order to better accommodate their use by everyone. It will improve equality and social inclusivity. New requirements for electronic goods and online services The requirements of the Directive will be applied to such goods as: general purpose computers and operating systems if intended for consumers […]
-
Intellectual property highlights in the Baltics
How will the Unified Patent Court work? What are the most outstanding trademarks in Estonia? What are the recent amendments to Latvian IP law? What is the distinctive character of domains from the perspective of Lithuanian law? Find the answers to these questions and explore other highlights in this overview prepared by our Intellectual Property team, covering Estonia, Latvia and Lithuania. Baltics’ news: Unified Patent Court will have jurisdiction in all three Baltic states 12th edition of Nice Classification enters into force Estonia: Decline in industrial property registration applications in 2022 Estonia has chosen its most outstanding trademarks for 2022 […]
-
Instead of corporate tax you can donate to NGOs/SLO!
https://taukacs.blog/ How much will I pay CIT if I pay EUR 1m in dividends? Some contacts asked for a translation of this blog originally posted in Latvian, so here we go. The distribution of EUR 1m in dividends results in a payment of EUR 250k CIT, in addition to the aforementioned dividends. How much of the EUR 250k CIT can I replace with a donation? No more than 30% of dividend CIT (EUR 75k) can be replaced by 85% of the donation – EUR 63 750. After a strange understanding of SRS and MoF, what could be disputed if the […]
-
Tax Stories Podcast – Episode 39 – Niklas J.R.M. Schmidt (Wolf Theis, AUT) – technology enthusiast
In this Tax Stories episode I speak with Niklas Schmidt who is a tax partner at WOLF THEISS law firm in Austria. The tax practice of WT has been in tier 1 by most of the directories. He is an author of various books, funder of WT Crypto Academy, one of Austria’s leading international tax lawyers, with a strong focus on technology and private clients. Has studied in Vienna, Munich, Barcelona and Oxford. A way of looking into a person’s mind Niklas not only studies Latin, but also Python programming. His aim is to read 52 books per year, 1984 by George Orwell being […]
-
The EU’s control list of dual-use items has been updated
On 12 January 2023, an updated EU list of dual-use items entered into force (Annex I to Commission Delegated Regulation (EU) 2023/66 of 21 October 2022 (the “EU Dual Use Items Regulation”) amending Regulation (EU) 2021/821 of the European Parliament and of the Council). The EU list of dual-use items includes goods which can be exported to non-EU countries only if an export license has been granted by the competent EU member state authority. Such goods include items which, by virtue of their nature or properties, can be used for both civilian and military applications. The newest amendments largely concern […]
-
Another look at drunk drivers and the confiscation of vehicles
INSIGHT INTO THE INNOVATION OF THE LATVIAN CRIMINAL LAW IN THE FIELD OF ROAD TRAFFIC A short time ago, a widely discussed topic in the media was a new introduction to the law, which allowed the confiscation of vehicles driven by drunk drivers.[1] This relates to the Law of 27 October 2022, “Amendments to the Criminal Law” (the Law), which, among other things, amends the Criminal Law in matters of criminal liability and road traffic safety (Articles 262 and 262.1). In particular, it is a specific offence under the Criminal Code to drive under the influence of alcohol (if […]
-
Comparison of the main employment law rules in the Baltics
Our Employment team prepared Employment card 2023 – a handy comparison of the main employment law rules in the Baltics. Read it here.
-
The requirements for participants in the crypto-asset sector continue to tighten
As of 1 November 2022, stricter requirements for the activities of virtual currency exchange operators and depository virtual currency monetary operators (VASP) entered into force in Lithuania. These requirements are provided by the amendment to the Money Laundering and Terrorist Financing Prevention Law of the Republic of Lithuania (PPTPF Law). Among the new requirements, minimum operational requirements have been established, which obligate the following from all VASPs seeking to operate in Lithuania: registered authorised capital of not less than EUR 125,000 when choosing to establish a legal entity in the form of a joint-stock company or a closed joint-stock company […]
-
5 hot legal areas in health tech for 2023
Connected Health published an article where our associate Liisa Maria Kuuskmaa provided an overview of five pressing legal trends in health technology in 2023. Health tech operates at the crossroads of health law and technology law. In addition, we also have to consider cross-cutting areas of law. And while navigating the labyrinth of legislation can be tricky, it is critical to find the right path to follow. Remember that the term ‘health tech’ is incredibly broad and encompasses medicinal products and treatment methods as well as medical and diagnostic equipment, bioinformatics, health software and more. Read the full article here. Law […]
-
Application of tax exemption to the armed forces
Since external security risks have significantly increased in our region, military personnel from the armed forces of the allied countries of the North Atlantic Treaty Organization (NATO) and NATO structural units are being stationed more and more often on the territory of Latvia, and military exercises also take place. These types of military operations require supplies, so it is important to understand the specifics of the taxes applicable to goods, services and possibly construction works. Value Added Tax (VAT) is a general consumption tax borne by the final consumer, but collected by businesses that supply goods or provide services. Basically, […]
-
Tax Stories Podcast – Episode 37 – Porus Kaka (India) – earning the trust of judges
Listen to this podcast HERE. In this Tax Stories episode I chat with Porus Kaka who is a tax world celebrity, a former president of IFA globally, now Honorary President, the 1st IFA president from Asia in it’s ~85 years’ history. Porus is a Senior Advocate (India) and a Barrister (England and Wales), a trustee at IBFD, completed his LL.M from Harvard Law School. His specialisation is TP litigation, direct and international tax. He is ranked by Chambers & Partners consistently as one of India’s leading Senior Tax Advocates and quoted as “The International Face of Indian Tax Practice”. Also the International Tax Review […]
-
The Space Law Review: Estonia
Estonian space law is in its infancy as there are no legally binding acts regulating space-related issues. As Estonians have already made their way into space having launched three satellites, the lack of legislation poses several different practical problems. At the same time there is a related need for recognised standards internationally that will ensure the safe and sustainable use of space-based equipment and operations, thereby increasing confidence for all who wish to develop their businesses and uses of space, including investors and insurers. Our partner Mihkel Miidla and assistant lawyer Maarika Maripuu analysed Estonian space legislation and the steps […]
-
M&A and private equity market in the Baltics – Estonia hit hardest by crises while Lithuania reaches record deal value
Following a booming 2021, the Baltic M&A market unsurprisingly slowed down both by transaction numbers and values in 2022 in response to the global economic downturn, the energy crisis, rising interest rates and geopolitical tensions triggered by the Russian war in Ukraine. Thankfully, the sanctions against Russia have had little effect on deals and businesses in the Baltics. The number of announced transactions in the Baltics dropped by 16% in 2022 compared to 2021, while deal values showed a 7% decrease, triggered by lower deal values in Estonia, according to the global M&A intelligence tool Mergermarket. However, all the numbers […]
-
Cross-border corporate mobility in the Baltics: up to the present moment, and what lies ahead
For more than a decade, the Baltic countries have enjoyed quite a dynamic cross-border company mobility within the EU and EEA through cross-border mergers. From 31 January 2023, companies in the Baltics will have a clear framework for three types of cross-border mobility: merger, conversion and division. The story so far The wave of cross-border mergers began back in 2007–2008 after the implementation deadline of the EU Directive[1] allowing companies established in different jurisdictions within the EU and EEA to merge cross-border. To express the idea of a cross-border merger in very simple terms: as a result of a cross-border […]
-
Latvia: New Rules in force – Reservation fee for electricity power to be installed
The Public Utilities Commission or the Regulator has adopted rules on payment of reservation fees for the electricity power to be installed (dated December 15, 2022). They came into force as of January 1, 2023 after extensive consultations with market participants. The rules are well balanced and are intended to facilitate development of the green energy projects by unlocking capacities which have been taken for so called ‘paper projects’, which cannot attract financing and ensure the real implementation of the project. “The cornerstone of the rules is the ultimate requirement for the developer to concentrate its all efforts and resources […]
-
Tax Stories Podcast – Episode 36 – Pekka Puolakka (FIN) – lessons from father and IOT
Listen to this podcast HERE. In this Tax Stories episode I chat with Pekka who has spent more than 20 years with Sorainen law firm. After that he was the Managing Partner of EY Law Baltics for nearly 2 years. He has been my role-model and many others. I’d describe him more as an artist in his heart, a lawyer who speaks business language and a friend who understands people, knows how to pay attention & listen. Making movies We started the chat about Pekka’s hobby – making movies. In 2021 his movie was demonstrated in cinemas of Tallinn, which was a tribute to Charlie Chaplin’s the […]
-
Latvia: Use of an e-address will be mandatory for companies from 1 January 2023
What is an e-address? An e-address is an e-mail address for communication between private individuals and for the circulation of documents to and from Latvian authorities (including judicial authorities, the prosecutor’s office, sworn bailiffs and insolvency administrators*). The reason for it being implemented is to make this communication faster and more secure, as well as to get rid of the circulation of paper documents and the associated costs. From January 1, 2023, the use of an e-address will be mandatory for companies, representative offices, branches, associations, foundations, and other entities (a list of all subjects is available here (in Latvian […]
-
TMT newsletter Q4
Seeing growing interest from our clients to stay ahead of market trends and prepare for upcoming legislation changes on a local and EU level, we have compiled a regional TMT newsletter to share relevant sector trends, updates in legislation, know-how, and more with our network. Below you can find our quarterly TMT newsletter, covering the latest updates about the Digital Services Act and the Digital Markets Act, the NIS2 Directive, the European Media Freedom Act and 5G license auctions. TMT Insight Latvia: ready to conquer the fintech sector Overall, Latvia has several competitive advantages to become a fintech centre in Europe: Resilience and experience of both the market participants and […]
-
Baltic Private M&A Deal Points Study 2022 is out now
The seventh edition of “Baltic Private M&A Deal Points Study” has been published. The report gives a detailed overview of the Baltic mergers and acquisitions (M&A) market in comparison with previous periods.
-
The most important aspects regarding amendments to the National Security Law of Latvia
We invite merchants operating in the fields of defence, electronic communications, mass media, electricity, heating supply and natural gas circulation to pay special attention to this news. On 14 November, amendments to the National Security Law (the Law) adopted by the Saeima entered into force. With these amendments, the range of subjects to which the Law applies is expanded, which means that these amendments are especially important for merchants who have become subjects of the Law as a result of these amendments. Also, with the amendments, a new case is defined when companies important to national security need to receive […]
-
Latvia: ready to conquer the fintech sector
Things have finally changed in the Latvian financial sector, and the country is ready to make use of its potential in fintech. That is the current message from the government and from the Latvian financial supervisory authority, the Financial and Capital Market Commission (FCMC). These are welcome words from the market, which has, along with the whole country, gone through a challenging period of “financial sector renovation” and is more than ready to continue developing at full speed. This hopeful trend can be seen from the public sector activities aimed specifically at fintech. First, the FCMC organised the Fintech Forum, […]
-
Who’s Who Legal: Arbitration 2023 lists our arbitration experts
Who’s Who Legal: Arbitration 2023 lists our arbitration experts in its recently published list featuring market-leading arbitrators, counsel, expert witnesses and Future Leaders aged 45 and under. Our highly regarded arbitrators are: Carri Ginter (recommended on the list of Future Leaders – Partner category in Estonia) Maria Pihlak (recommended on the list of Future Leaders – Non-Partner category in Estonia) Who’s Who Legal: Arbitration Harnessing tens of thousands of data points augmented by hundreds of in-person interviews, this is an extensive analysis of the international arbitration market. The report features more than 1,250 lawyers from 93 jurisdictions. In addition, over 300 expert witnesses […]
-
Tax Stories Podcast – Episode 34 – Simon Whitehead (JHA, UK) – on the Ancient Rome & tax litigation
Listen to this podcast HERE. EPISODE SUMMARY Simon is ranked consistently among the leading individuals for tax litigation by the Legal 500 and Chambers & Partners. He is a founding partner at Joseph Hage Aaronson, established 10 years ago. JHA is a boutique dispute resolution firm which specialises in tax litigation. JHA tax litigation practice is ranked in Tier One of Legal 500 and Chambers UK, for every year since the firm was established. We discussed Cicero, books Simon recommends, principles of life and taxation, keys to success of his tax litigation practice. EPISODE NOTES Simon is ranked consistently among […]
-
Intellectual property highlights in the Baltics
Is ŻUBRÓWKA similar to ZUBROFF? What about BOSS vs Bossa Nova? Can using a single-letter mark be prohibited? Find the answers to these questions and explore other highlights in this overview prepared by our Intellectual Property team, covering Estonia, Latvia and Lithuania. Latvia: Court imposes temporary protection from a political party on Sigulda municipality’s trademark “S!” Estonia: Estonia placed 10th in Europe in the WIPO Global Innovation ranking Decision of the Industrial Property Board of Appeal on BOSS vs Bossa Nova Lithuania: ŻUBRÓWKA versus ZUBROFF: assessing the likelihood of confusion between two marks Latvia Court imposes temporary protection from a political party on […]
-
Baltictimes.com: Back to the past – changes in Latvian-Belarusian investment protection standards
On 18 October 2023, the agreement of 3 March 1998 between Latvia and Belarus on the promotion and protection of investments will expire. The denunciation of the agreement substantially changes how the investments of nationals of one state will be protected in the territory of the other. This article is recommended for Belarusian entrepreneurs who have previously invested in a Latvian business, founded companies in Latvia or cooperated with partners from Latvia; and for Latvian entrepreneurs who have done likewise in Belarus. This article will explain how to interpret the current situation and what protections will remain, particularly in the […]
-
Certain B2B lenders will now have to report data to Bank of Lithuania
From now on, the obligation to provide certain information to the Bank of Lithuania is also established for companies providing unlicensed financial services. Non-banking financial companies or their branches established in Lithuania providing B2B lending (including mortgage loans) and B2B financial leasing services and meeting the significance criterion will be required to provide the Bank of Lithuania with data on borrowers and the debt instruments issued to them. These financial undertakings will also have the right to obtain data from the Loan Risk Database for their own use. Before the new requirements came into force, only lending market players providing […]
-
The Law Reviews: The Media and Entertainment Law Review: Latvia
The media industry in Latvia has won recognition of its rights and privileges in opposition to the state and individuals. Investigative journalists working online and in print, radio and television have done groundbreaking work to reveal serious violations and crimes. Public media, mainly owing to its digital presence, has been recognised as a legitimate, trustworthy and useful source of information. However, financial instability endangers its existence. Additionally, fake news, particularly in terms of social networks, is an ever-growing problem. Our colleagues Linda Reneslāce, Andris Tauriņš and Krišjānis Knodze shared their overview of The Media and Entertainment Law in Latvia. More […]
-
Baltics: new information to be included in employment contracts
On 1 August 2022, in common with other EU Member States, the Baltic countries implemented in their local employment laws requirements set out in Directive (EU) 2019/1152 (the Directive) on transparent and predictable working conditions in the EU. Please find below the list of additional information which in each country needs to be provided either in employment contracts, internal rules or policies or by referring to other applicable source (e.g., laws or other regulations). With respect to employees whose employment contracts were concluded before 31 July 2022, employers will be obliged to provide such additional information only in case it […]
-
Tax Stories Podcast – Episode 32 – Leonard Wagenaar (EY UK) – the art of making tax posts
Listen to this podcast HERE. EPISODE SUMMARY Leonard Wagenaar is a director at EY UK office, mostly visible as M&A, PE and international tax expert. He was with a Big4 for 9 years, was also working for a bank, two private equity funds and his own consulting. Probably what makes Leonard even more unusual and interesting to follow is that he has a degree in philosophy and one in history. And one can feel that his posts on LinkedIn are stand out, like small pieces of art, linked to music, languages, travels, etc. The art of LinkedIn posts […]
-
2022 Baltic Anti-corruption Guides
The World Law Group asked their member firms around the globe to provide some insight on anti-corruption laws applicable to corporations. Are bribes to foreign government officials prohibited? Is corruption of individuals punishable? Can a company be liable for the acts of its intermediaries or third parties? We contributed by answering these and many other questions for the Baltics. Read the Baltic guides: Estonia Anti-corruption Guide 2022 Latvia Anti-corruption Guide 2022 Lithuania Anti-corruption Guide 2022
-
Fintech Latvia Association: The pulse of FinTech industry in Latvia
FinTech report – a look at the state of the country’s FinTech ecosystem, sharing key growth metrics and emerging trends. Our colleagues Agneta Rumpa and Edvīns Draba have shared some insights regarding the FinTech industry from the legal perspective. You can find full report HERE.
-
Companies can request the exclusion of applicants from third countries from procurement in Latvia
The International Procurement Act On 29 August 2022, Regulation (EU) 2022/1031 of the European Parliament and of the Council, or the International Procurement Act (IPI)[1], entered into force. Its purpose is to promote access and equal conditions for European Union companies outside the EU. This is supposed to be done with response measures: if the EU or national authorities receive a notification about a third country having a ban on EU companies participating in procurements, the contracting authorities in the EU can exclude applicants from this country from participating in certain procurements. Excepted from the IPI are countries with which […]
-
Changes to the Immigration Law for Russian and Belarusian citizens
On 24 September 2022, amendments to the Immigration Law entered into force, changing the procedure for applying for and renewing long-term visas and residence permits for Russian and Belarusian citizens. The amendments were made in response to the war started by Russia in Ukraine, as well as the individual and economic sanctions applied by the European Union on Russia and Belarus. In the future, it will not be possible for Russian citizens to receive or extend long-term visas if the issuance of the visa is related to employment or residence in Latvia. Russian citizens will also not be issued visas […]
-
Deadline approaching: Last chance to review global data transfer agreements
Transferring personal data from the European Economic Area (EEA) to third countries safely has been a hot and fast-evolving topic for years. The General Data Protection Regulation (GDPR) establishes the free movement of personal data within the European Economic Area (EEA). However, the protection granted to personal data within the EEA must travel with the data no matter where the data goes. Data exporters in the EEA and data importers in third countries must apply a transfer mechanism and use the safeguards set out in the GDPR in order to ensure an adequate level of personal data protection. Transition to […]
-
TMT newsletter Q3
Seeing growing interest from our clients to stay ahead of market trends and prepare for upcoming legislation changes on a local and EU level, we have compiled a regional TMT newsletter to share relevant sector trends, updates in legislation, know-how, and more with our network. Below you can find our quarterly TMT newsletter, covering the latest updates about the implementation of the European Electronic Communications Code in the Baltic countries, practical implications of the metaverse, open-source software compliance and 5G license auctions. TMT Insights Sorainen Business Talks: Welcome to the Metaverse On 7 September 2022, Sorainen hosted an online […]
-
CEE Legal Matters Comparative Legal Guide: Restructuring 2022 is now available
We were invited to be the exclusive country contributor to the CEE Legal Matters Comparative Legal Guide: Restructuring 2022 for Estonia. The CEE Legal Matters Comparative Legal Guide: Restructuring 2022 provides critical information on the legal framework regarding insolvency and restructuring across the CEE region. It looks at legislation and international instruments, any special regimes that may apply, including in light of the COVID-19 pandemic, what triggers are in place and who can initiate either type of proceedings, as well as how they play out once initiated. The report also explores the cross-border dimension by looking at whether, and in […]
-
CEE Legal Matters: Lithuania Boosting Businesses: A Buzz Interview with Evaldas Dudonis
UBO register changes and an overall companies law overhaul to protect shareholder rights are on the agenda in Lithuania, according to Sorainen Partner Evaldas Dūdonis. “This January saw the introduction of the UBO register, with a rather rudimentary initial version only applying to entities owned by one single natural person,” Dudonis begins. “Subsequently, in May, new aspects were added to it that made it a bit too inquisitive – requiring information on every ownership chain member entity and CEOs, including addresses, passport copies, and tax residence info.” Dudonis reports that, during the summer, there has been a “vibrant public debate […]
-
Employment Card 2022
Sorainen Employment team released the comparison of the main employment law rules in the Baltics. You can find the document here.
-
Intellectual property highlights in the Baltics
The summer season has come to an end and the Sorainen Intellectual Property (IP) team is once again ready to share the latest IP highlights relevant to the Baltic region with you. What does the first sound trade mark registered in Estonia sound like? What kind of legislative changes are anticipated in Estonia and Latvia? Could you mistake Monster for Monstropedija? You will find answers to these questions and many more below. Estonia: Proposed changes to the patents act to streamline proceedings Sorainen ranked #1 in IP law field in Estonia 30 years of Copyright law in Estonia First sound […]
-
Investment Card 2022
Doing business in the Baltics – a snapshot of the most relevant commercial conditions in Estonia, Latvia and Lithuania in 2022. Available here: Investment Card 2022
-
Employing foreign nationals in Lithuania: certain migration procedures simplified
On 30 June 2022 the Parliament adopted amendments to the Law on the Legal Status of Foreigners simplifying certain migration procedures. Some of the changes entered into force on 1 August 2022, while others will come into force on 1 January 2023 or 1 July 2023. Our Employment team prepared an overview of the most relevant changes and their impact on business. In certain cases, three years of work experience will be enough for foreigners to be considered highly skilled (qualified) employees According to the supplemented definition of high professional qualification, professional experience of at least three years within the […]
-
Latvian parliament finally adopts the law implementing the European Electronics Communications Code (EECC)
What is the EECC? The EECC is an EU directive that came into force in December 2018, which updates and consolidates existing European rules on electronic communications networks and services, as well as aligning them with recent technological developments in the markets, consumer trends and technology. The EECC broadens the scope of regulation to include all interpersonal communication services, in addition to those conveying signals. Specifically, the EECC: enhances the deployment of 5G networks by ensuring availability and competition for investments benefits and protects end-users by ensuring access to the network, guaranteeing better cybersecurity, increasing the level of protection of […]
-
Approaching deadline for resubmitting notifications regarding benefiting from limited network exclusion
On 1 June 2022, the decision of the Bank of Lithuania (the BoL), stipulating that subjects which are benefiting from limited network exclusion under the Second Payment Services Directive (PSD2) are obliged to resubmit a notification to the BoL, entered into force. The notifications based on the provisions of the guidelines prepared by the European Banking Authority (the Guidelines) must be submitted to the BoL until 1 September 2022. Exclusions from the scope of PSD2 The Lithuanian Law on Payments contains provisions which implement the PSD2. They provide for exclusions from the law for payment instruments that can be used […]
-
Provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD)
Following a long delay in the negotiations, the Council and European Parliament reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD) on 21 June 2022. The agreed text was released on 30 June, however, it is still subject to the formal adoption procedure and thereby, further review. The proposal for the CSRD, introduced by the European Commission on 21 April 2021, demands the adoption of sustainability reporting standards across the European Union (EU) and aims to review and toughen the requirements set out in the Non-Financial Reporting Directive (NFRD) adopted in 2014. What is the Corporate Sustainability […]
-
Lithuania adopts an exception to the limitation on the transfer of claim rights under valid credit agreements
The Law on Securitisation and Covered Bonds, as well as related amendments to other legal acts, have recently entered into force in Lithuania. The amendments aim to contribute to the development of Lithuania’s capital market and to broaden the diversity of sources of funding. The new regulations will give financial institutions more opportunities to raise funds and finance businesses and contribute to the long-term growth of the country’s economy. Securitisation allows lenders to refinance sets of loans and exposures Among other things, the package of the new regulation includes amendments to the provisions of the Law on Consumer Credit, valid […]
-
The establishment of an Insolvency Division in Estonia
In the 2022 Summer issue of Eurofenix, the journal of INSOL Europe, our insolvency experts, senior associate Dr. Mari Agarmaa and associate Aleksandr Šapovalov published a report about Estonia focusing on the establishment of an Insolvency Division in Estonia. Late initiation of bankruptcy proceedings The main issues in Estonian bankruptcy proceedings are associated with the late initiation of bankruptcy proceedings and their financing. If bankruptcy proceedings are initiated later than prescribed by law, the debtor may not have the funds to conduct the bankruptcy proceedings. If there is a lack of assets to conduct the bankruptcy proceedings and there are […]
-
The CEELMDirect Profile Pick: An Interview with Toomas Prangli
”The legal market was very different in the 1990s compared to now. In my view, the firms which have controlled their egos and given more freedom to the younger generation have proven to be most successful over time. It is also incredible – and quite unique – how competing law firms collaborate with each other in order to develop the local ecosystem and improve regulations and market practice, and thus the investment climate of the country,” states our partner Toomas Prangli, reflecting on the development of the Estonian M&A market in the last 25 years in a CEELMDirect interview with CEE Legal […]
-
The latest amendments to the Lithuanian Labour Code enter into force from 1 August
At the beginning of the summer, the Parliament of the Republic of Lithuania adopted amendments to the Labour Code (hereinafter – the LC) covering many aspects of labour law. In total, more than 40 articles of the LC have been amended, most of which will enter into force on 1 August 2022. Here is an overview of the fundamental changes that affect both employers and employees. Termination of employment contract, discrimination and mobbing 1. Discrimination and dismissal at the employer’s will. From 1 August 2022, an extended list of non-discrimination criteria enter into force, including a prohibition of discrimination on […]
-
M&A market trends in the Baltics in H1 2022: healthy activity levels, though lower than record boom in 2021
In the first half of this year, 54 transactions were announced in the Baltic M&A market, with a total value of EUR 1 billion, according to Mergermarket, indicating that levels of activity are healthy*. “It’s a myth that the region’s M&A market has cooled down as scared investors stay away,” concludes Laimonas Skibarka, managing partner at Sorainen. Indeed, deal activity is down from the first six months of last year, when a total of 69 deals were completed, with a total value of EUR 1.5 billion. Yet, just a year earlier, in 2020, the first six months saw no more […]
-
Energy community regulation under development in Latvia
On 16 June 2022, the Saeima approved on first reading amendments to the Energy Law and the Electricity Market Law, which, among other things, regulate energy communities. Despite the fact that energy communities are well-known elsewhere in Europe, to date, there is no regulation specifically of energy communities in Latvia, and the concept is relatively new. What are energy communities? Energy communities are legal entities (e.g., an association or a capital company) whose purpose is to produce energy for their members and create environmental, economic and social benefits for the community and locality in which they operate. There are two […]
-
EU’s proposed Digital Markets Act and Digital Services Act: targeting gatekeeper online platforms and online intermediary service providers
EU digital services legislation is changing For the past 20 years, the e-Commerce Directive has been the piece of legislation governing digital services in the EU. Much has changed over these years, and so the EU is introducing Digital Market Act (DMA) and Digital Service Act (DSA), which according to the latest information are expected to be finally adopted during the next months. When adopted, the DMA and DSA will be binding on various types of online platforms, such as online marketplaces, app stores and social networks, among others. The DMA and DSA are intended to protect the fundamental rights […]
-
Tax Stories Podcast – Episode 30 – Christian Kaeser (Siemens, Germany)
Listen to this podcast: https://tax-stories.simplecast.com/episodes/christian-kaeser-siemens-germany-on-integrating-virtual-and-physical-worlds EPISODE SUMMARY Christian is a global head of tax @Siemens in charge of some 650 tax people, tax law professor & Dr., lecturing at Vienna and Freiburg Universities, president of IFA Germany, Chairman of the International Chamber of Commerce Tax Commission, Chairman of the supervisory board of WTS tax network, living an extremely busy life in Germany. EPISODE NOTES Among others we covered the following topics. Lobbying the right things only. Has Christian made a family tree? Any relations in the family to cheese making? Why did Christian go against his father’s (also a lawyer) […]
-
List of companies in which shares cannot be sold by investors from “unfriendly countries” has just been published
A resolution of the Council of Ministers of Belarus with a list of companies in which shares cannot be sold by investors from “unfriendly countries” has just been published (a specific list of investors has been provided too). This means that no state registration action reflecting changes in shareholders will be taken in respect of limited liability companies, and in respect of joint stock companies, shares will be blocked in the “depo” accounts of the current shareholders. Just contact us in case of any questions: Maksim Salahub, Partner +375 29 658 3151 maksim.salahub@sorainen.com Yuliya Sushchanka, Associate +375 29 111 6069 yuliya.sushchanka@sorainen.com Anastasiya Smirnova, Associate […]
-
TMT newsletter Q2
Seeing growing interest from our clients to stay ahead of market trends, prepare for upcoming legislation changes on a local and EU level, we have compiled a regional TMT newsletter to share relevant sector trends, updates in legislation, know-how, and more with our network. Below you can find our quarterly TMT newsletter, covering the latest updates about the implementation of the European Electronic Communications Code in the Baltic countries, requirements for the use of cookies, Estonian startup sector, Digital Nomad Visas in Latvia and regulation of cryptocurrency in Lithuania. TMT Insights Estonian startups raise EUR 1 billion of capital […]
-
Don’t risk open source noncompliance
Open source software components have become an integral element of the software industry, with almost every codebase containing open source code. At the same time, source code is protected as intellectual property. In the European Union, computer programmes are protected under copyright law as literary works. This means the rights to software generally lie with the software developer and third parties may use such rights only when granted to them, for example, when they are licensed, as is the case with open source components. When incorporating open source components into proprietary software, it is thus essential to ensure that you […]
-
Annual report 2021 of our firm in Estonia shows record results
The audited annual report for the year 2021 of Advokaadibüroo SORAINEN AS, our legal entity operating in Estonia, was published today on the Company Registration Portal of the Estonian e-business register, together with a thorough activity report highlighting the most significant achievements and focus areas of our firm. 2021—a record year The financial results of our company in Estonia show that we have been growing organically since the firm was founded in 1995. Despite an uncertain economic environment, we saw record turnover in 2021 and we are the largest employer in the sector by employee count. In 2021, the revenue […]
-
Issuing of Digital Nomad visas in Latvia
On 29 June 2022, amendments to the Immigration Law will enter into force, providing for the possibility for third-country nationals to receive the so-called Digital Nomad visa. This visa will be available to persons who are employed by an employer registered abroad or who are self-employed and carry out their work remotely, for example, providing consulting, translation services, information technology services, etc. The new regulation will provide an opportunity for Latvian citizens living in third countries with their civil partner or same-sex spouse to return to live in Latvia with their partner or spouse if they are employed in a […]
-
Update for employers: changes in daily allowance regulation and extra incentives for highly skilled foreign employees
From 1 July, amendments to the government resolution on the reimbursement of daily allowances and other business travel expenses, as well as amendments to the Law on Employment, will come into force. We have prepared an overview of the most relevant changes and guidance on how businesses could benefit. Changes to the rules on reduced daily allowances Until now, the agreement on reduced daily allowances had to be established in a collective agreement or employment contract (i.e. an agreement between the employee – or the employees’ representatives – and the employer). Once the changes have entered into force, companies without […]
-
Ober-Haus Real Estate Market Report 2022
Our pan-Baltic Real Estate & Construction team have prepared legal notes for the annual Ober-Haus Real Estate Market Report 2022 on the capitals of the Baltic States: Vilnius, Riga and Tallinn. The overview focuses on the markets in office, commercial, storage and residential premises, as well as on land plots in each of the capital cities. It also includes information related to taxes, which was drawn up by the audit, accounting and consulting company PricewaterhouseCoopers. Recovery after the pandemic and new challenges “Having recovered from the first shock caused by the Covid-19 pandemic, the Baltic economies showed rapid growth in […]
-
Intellectual property highlights
Springtime saw fruitful amendments in intellectual property legislation in Estonia, Latvia and Lithuania, as well as some interesting cases. Can BOSS prevent BOSSA NOVA from registering a trademark? Can Amazon be held liable for infringement of the Louboutin trademark? Read about these points and more by clicking the link below. We hope you find this compilation insightful and would as always be happy to tell you more about intellectual property (IP) protection in our jurisdictions. Estonia: Obligation to notify authors and performers took effect on 7 June 2022 Estonian Supreme Court: rights to a well-known trademark can belong to multiple […]
-
What are the legal requirements for the use of cookies?
What are cookies? Cookies are small text files saved on a device when a person browses a website. They are processed and stored by the web browser. Cookies can be saved on a personal computer, a mobile device, or any other type of device which can store information. Information stored in cookies can include IP addresses, usernames, Unique Device Identifiers, e-mail addresses, language settings, types of device, and other types of information. Application of the GDPR and the e-Privacy Directive The placing of cookies is regulated by the e-Privacy Directive, which should be transposed into national legislative acts by EU […]
-
Applying sanctions in public procurement in the Baltic states
In response to Russia’s aggression in Ukraine, the EU has decided to impose sanctions and end business ties with the aggressor. Estonia, Latvia and Lithuania have also spoken up clearly and consistently in this regard: restrictions will be applied. One of these involves amendments to the public procurement laws, which have already entered into force in Estonia and Lithuania. There have not been amendments to the laws of Latvia that would directly impact the conduct of public procurements, but there are now many more practical challenges. Please find below our highlights of important legal changes and challenges in the public […]
-
Public Procurement Act in Estonia had 300 amendments
Last week, the Parliament of Estonia (Riigikogu) passed amendments to the Public Procurement Act (RHS). In total, almost 300 changes are envisaged in the act, which is impressive in terms of numbers, but will not lead to drastic changes. The current Public Procurement Act has been in force since 1 September 2017 and transposed three EU public procurement directives. Preparations for amending the law began immediately after the adoption of the act, as it could be assumed at the time that the law would still require at least one round of amendments. Thus, the package has gone through a very […]
-
Practical challenges in public procurements in Latvia
There have not been any amendments to the laws of Latvia that would directly impact the conduct of public procurements in Latvia, including in the utility, defence or security sectors. However, due to the considerable increase in the number and scope of the sanctions (these are called “restrictive measures” in the EU) that the EU and many states have imposed in response to the situation in Ukraine, there are many more practical challenges. Exclusion of sanctioned persons As outlined above, the Law on International and National Sanctions of Latvia requires the contracting authorities and entities to exclude from procurements any […]
-
Why Finland wants NATO: 20 similarities between Ukraine-Russia war and Winter War
Finland has applied to join NATO, and Sweden also decided to apply to join simultaneously. Usually, Finland follows Sweden, but this time it was vice versa. Finland applied to join NATO today because it doesn’t want to be left alone as it sees Russia going back to the Stalin era. For decades Finns have thought that we can maintain good neighbourly relations with Russia while ensuring our ability to defend the country without needing to join NATO and thus irritate Russia. Many European countries felt that the end of the Cold War provided them with an opportunity to reduce their […]
-
The Buzz in Estonia: Interview with Aku Sorainen
Our founder and senior partner Aku Sorainen gave an interview under the headline “The Buzz in Estonia” to CEE Legal Matters. The interview focused on the strongest aspects of the Estonian business market right now. “A booming startup sector, unhampered by the war in the region, is the strongest suit of the Estonian market. The country continues to focus on improving its regulation of FDI, crypto, and fintech businesses,” said Aku in the segment The Buzz in Estonia. “The M&A market did, on average, slow down on account of the war. Especially for those companies having elements of their value […]
-
Taxes in a Nutshell 2022
Main comparative corporate tax principles for Estonia, Latvia and Lithuania. Available here: TAXES IN A NUTSHELL 2022
-
New public procurement conditions: three lists by the Lithuanian Government dedicated to fighting hostile states
In response to Russia’s war in Ukraine, the EU has quite unanimously decided to impose sanctions and end business ties with the aggressor. Lithuania has also spoken clearly and consistently in this regard: restrictions will be applied. One of them involves amendments to the public procurement laws, which were adopted as a matter of urgency and have already entered into force. Of these, three measures drawn up by the government should be emphasized. Possibility of contracts being terminated The first list outlines the states and territories hostile to Lithuania: Russia, Belarus, Russia’s annexed territory of Crimea, Transnistria and the territories […]
-
Tax Stories Podcast – Episode 28 – Dr. Marius-Cristian Frunza on VAT fraud
EPISODE SUMMARY Marius is a founder of Schwarzthal Tech, a Fintech start-up providing disruptive KYC solutions. He has published 4 books, the book that interests the tax world the most is called VAT Fraud. Marius also starred in 4 TV documentaries about financial crime, and a movie Lords of Scam about VAT fraud with CO2 emissions, on Netflix. He is an associate professor of finance with Dauphine University (FRA), and has a PhD in mathematics from Paris Sorbonne University. We discussed tax fraud and how to minimise it, how VAT fraudsters choose the target country, what’s wrong with the tax […]
-
Tax Stories Podcast – Episode 27 – Allison Christians (Canada)
EPISODE SUMMARY Allison Christians is a tax law professor who is named one of the “Global Tax 50” most influential individuals in international taxation. It was easy and fun to discuss such topics like social media, movies, digital design, visualisation of a tax story, her YouTube channel, her new book on an equal division of the benefits, so the majority of the benefits doesn’t just go to the rich countries, and help to Ukraine that every country can do and should do. Listen to this podcast: https://tax-stories.simplecast.com/episodes/allison-christians-canada-on-telling-stories-until-the-unjust-world-changes EPISODE NOTES During an interview it is often like in golf – in […]