As of 1 January 2013, a cash or non-cash advance issued to employees, board members, council members, shareholders or members will be treated as employment income if the advance or a part thereof is not settled within 90 days of either the end of the business trip or work-related travel, or the date on which the cash or non-cash advance was issued.

The advanced amounts will not be treated as employment income if the remaining balance of the cash or non-cash advance which is at the disposal of the recipient of the advance does not exceed 200 lats.

Any settlement in respect of advances issued up to 31 December 2012 will have to be made on or before June 30 2013, because from 1 July 2013 these advances will be treated as income from employment and will be subject to personal income tax.