Although Estonian income taxation system is not perfect, it is based on the right foundation, says Martti Hetemäki, the new permanent undersecretary of state of the Finnish Ministry of Finance.
Hetemäki notes in an interview to Kauppalehti that taxation is a key factor in attracting foreign investments and encouraging enterprises to take risks, reports bbn.ee.
“Speaking of the Estonian income taxation system, it has many shortcomings and is extreme. However, the principle that reinvested profits are taxed at a much lower rate than dividends, is the right one. It plays a big role in helping enterprises grow,” he says.
According to the official, productivity in Finland is growing too slowly, while labour costs are increasing rapidly which makes it difficult for companies to cover costs.
In his opinion, Finland could use taxes to attract more investments and boost competitiveness.
It should be added that Finland has been under pressure to cut corporate income tax because neighbouring countries Sweden and Estonia have notably lower tax rates than in Finland.
Meanwhile, experts point out that Finland’s high tax burden often serves as the reason why Finnish companies prefer to start business in Estonia. Finnish corporate tax burden totals 24.5% which is higher than the EU average – 22.4% (22% in Sweden and 21% in Estonia).
- Estonia to lure foreign specialists with softer laws
- More Finns want to work in Estonia
- Ansip: I envy salary of Enterprise Estonia's CEO
- Estonia's 2012 GDP growth confirmed at 3.2%
- Pension funds start investing in Estonian real estate
- Professor: Estonian wage system is too hierarchical
- Prices in eurozone still growing fastest in Estonia
- Non-citizens struggle to find work in Estonia
- Survey: Estonian producers are optimistic
- Latvian families spend one-third of salaries on food; Estonians – one-fifth
- Latvia’s accession to the eurozone would benefit Estonia
- Estonia average monthly wages up 5.9%
Moscow traffic police pay more attention to cars with foreign license plates because such vehicles are often used in crimes, according to the press office of the State Traffic Safety Inspectorate for Moscow.
Latvian residents overpaid a total of 12 million LVL when purchasing expensive compensated medications last year, as reported by the director of the National Health Service Maris Taube at the opening of the “Ārstējies nepārmaksājot” (Don't overpay for treatment) informative campaign.
Sales of the Galaxy S4 smartphone have reached 10 million in «record» time, Samsung announced on May 23.
Compared to March, the overall level of producer prices in Latvian industry in April 2013 increased by 0.1%. The producer prices of products sold on the domestic market rose by 1.1%, whereas prices of exported products reduced by 0.9%.
An 80-year-old Japanese mountaineer became the oldest person to reach the top of Mount Everest on Thursday — although his record may last only a few days. An 81-year-old Nepalese man, who held the previous record, plans his own ascent next week.
I deny the information that the whereabouts of the suspended director of the Customs Criminal Office of the State Revenue Service Vladimir Vaskevics are unknown, says his wife business woman Inara Vilkaste.
US car giant Ford Motor will shut all its Australian manufacturing plants by October 2016, after more than 85 years of making vehicles in the country.
Bomb disposal specialists of the Latvian National Armed Forces (LNAF) successfully neutralized the 500 kg aircraft bomb that was recently found in Ventspil port.
Yesterday, May 21, a 500 kg large aircraft bomb was found on the premises of Ventspils port, 3rd Zemessardze disttict headquarters representative Zanda Tamulone reports.
On Wednesday, May 22, the Enterprise Register of the Republic of Latvia registered a joint company - Kredītinformācijas Birojs – founded by a number of Latvian commercial banks – SEB bank, Swedbank, Nordea, DNB bank, Citadele bank and ABLV Bank. The goal of the newly founded enterprise is to have it function as a credit bureau.
The Baltic States continue to come close to the average level of the European Union – in the middle of 2011, the average income per capita in the Baltic states were above the peak of the pre-crisis period.
The Baltic States have been the most rapidly growing economies in the European Union lately, and they can retain their positions in the future as well. Economic growth in Latvia and Lithuania is expected to slow down this year. That in Estonia will remain unchanged – 3.3% respectively.
The general money offer index and attracted finances of credit institutions increased slightly this April. The general cash money demand, on the other hand, had reduced. There was also a moderate reduction in the general credit portfolio.
Apple found itself in front of a Senate Subcommittee Tuesday, May 21, defending its elaborate practice of keeping cash offshore in order to minimize their tax liability. But Apple is far from the only company that does this.
There are two scenarios available for the development of Latvia's economy – stay smart and grow naturally, or use a basis of cheap expenses – attract cheap workforce, Latvian Economy Minister Daniels Pavluts believes. The minister points to the growing interest of Russian business in Latvia, which could potentially lead toward rapid development.
- Ilves: Estonia is a world power in IT
- Estonia's unemployment at 10.2% in Q1
- Slow-down in Estonia’s growth expected
- Estonians offer credit scoring solution based on social media
- Estonian PM: Lithuanians need a new referendum | 1
- Estonian retailers selling smuggled food
- Opinion: Estonians are selling their work too cheaply | 1
- Estonians to develop four office buildings in Vilnius for EUR 44m
- Global IT report ranks Estonia 22nd, Lithuania 32nd, Latvia 41st
- Violations uncovered in Estonian fur farm
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Français abusés @ 2013-05-23 20:13:55
Nous avions cru bien faire en offrant une voiture renault clio en très bon état à une femme lettone qui prétendait ne pas en avoir et qui ne parlait que de sa misérable vie. Depuis Paris, Il a fallu prendre le bateau en Allemagne pour livrer la voiture à Riga. En réalité, elle était propriétaire d'une LANCIA qu'elle avait bien cachée
Egon @ 2013-05-23 12:07:44
Brian @ 2013-05-23 09:51:35
@ 2013-05-23 09:20:57
@ 2013-05-23 05:57:30