bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 29.09.2016 | Name days: Mihails, Miķelis, Mikus, Miks, Miģelis
LatviaLatvia

Latvia could become the second Cyprus

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Starting from next year, dividends paid to or received from non-residents will not be subject to Corporate Income Tax. This will allow attracting investors from third countries to Latvia, tax and logistics experts interviewed by Dienas Bizness note.

According to specialists, this innovation will help motivate foreign holdings to creating administrative centres in Latvia, not Cyprus or Malta, or other countries.

Latvia is made more attractive also by the recently signed convention with Russia regarding the cancellation of the twofold taxation. The signed convention will reduce Russian and Latvian corporate tax burdens, says Tax and Finance Consultant Marina Bickovska.

However, complicated accounting mechanisms and a higher Corporate Income Tax rates remain a serious obstacle for investors. Finance Ministry hopes the planned changes will contribute to the formation of regional management centres in Latvia, as well as finance management centres, copyrights and holding associations’ protection centres.

According to Ainis Dabols, business consultant, the changes to the Corporate Income Tax law – is a step forward towards non-residents, which shows Latvia is a country of low taxes. At the same time, he noted that Russian businessmen already come to Latvia to open their company branches here.

Ref: 104.109.109.4629


Leave a reply

  1. D. says:

    A very wise move by Latvia. I registered a company in LV and have all ready paid more than LVL 100,000 in tax. If LV attracts more international investors like me, the tax burden on regular people can (and should) be reduced.
    Singapore did this and has in record time become one of the wealthiest nations on earth.
    Also, more American and EU investors in LV will reduce the Russian influence.

    Thumb up 0 Thumb down 0

  2. LH says:

    spiegel.de/wirtschaft/soziales/a-865478.html

    Thumb up 0 Thumb down 0

Government approves Start-up Operation Support Law draft

On Thursday, 29 September, Latvian government approved Economy Ministry’s proposed draft for Start-up Operation Support Law to support and regulate operations of so-called start-up companies.

Swiss engineering firm ABB expands in Estonia

Swiss engineering system manufacturer ABB group will launch its new regional business service centre in Tallinn in October.

EUR 15,017 donated for infertility treatment programme in Latvia

To help finance infertility treatment programme, charity campaign organized by Butterfly Effect association in cooperation with Elvi and EGV Clinic has raised EUR 15,017 since the beginning of 2016.

Study: counterfeit medicine causes major losses for EU

Because of counterfeit medicine, the legal medical industry in Europe loses EUR 10 billion every year, which accounts for 4.4% of the entire trade volume of the pharmacy sector, as concluded in the latest European Union Intellectual Property Office study about counterfeit medicine and its effect on economies of EU member states.

«Death» shows support to UGF’s work in government during doctors’ protest

The protest act organized by Latvian Health and Social Care Workers Union near the Saeima gathered 300 to 350 people.

U.S. warns Russia about bombing of besieged Syrian city

The U.S. has warned Russia that Washington would stop cooperation with Moscow in Syria if Moscow would not stop the bombardment of besieged Aleppo.

Latvia supports Kristalina Georgieva as candidate for UN Secretary General post

Latvia supports EC Vice-President Kristalina Georgieva as a candidate for the post of UN Secretary General, as confirmed by Foreign Affairs Minister Edgars Rinkevics.

Aseradens: decline of electricity prices expected in Latvia

If reforms are successfully realized in the electrical energy market, Latvia may experience a decline in electricity prices, as announced by Economy Minister Arvils Aseradens.

MH17 investigators: Missile came from Russia, was shot from rebel-held territory

The Dutch-led international team of prosecutors stated on September 28 that it has found that the missile with which passenger plane on flight MH17 was downed in 2014 over eastern Ukraine was shot from territory held by pro-Kremlin separatists.

Politicians forget about transit industry as a source of income for state budget

Politicians and the public regularly discuss the lack of budget funds to afford improvements for healthcare, education, law enforcement. New taxes and new ways of adding money to the state chancellery are sought left and right. They forget that transit has always been a stable source of income for Latvia, Vesti Segodnya writes.

Study: most girls and half of boys in Riga do not tie their future to exact sciences

73.5% of girls and 49.1% of boys in Riga do not see their future associated with exact sciences, according to results of Jaunieši IT study carried out in Riga’s schools.

Businessmen: faster adoption of e-procurements system would benefit competition

To ensure more transparent procurements, businessmen urge government to introduce an electronic procurement system as soon as possible. This system is expected to ensure honest competition and help resolve other problems that are often present in state and municipal procurements.

President: KNAB supervisory institutions should explain the loss of classified documents

Institutions that supervise the Corruption Prevention and Combating Bureau have to determine the cause behind the loss of classified documents, as announced by Latvian President Raimonds Vejonis.

Data on students and graduates to be compiled for more effective budget planning

To help develop the State Education Information System, it is planned to expand one of its sections by creating a register for students and graduates. This is provided by amendments to the Law on Institutions of Higher Education supported by the Cabinet of Ministers.

Global trade growth slowing, WTO

The World Trade Organisation has this week released an altered forecast for the global trade growth for 2016, which, comparing to its previous forecast for the same period has been cut by over a third.

Latvia resettles 82 people as part of EU refugee programme

Today, 28 September, nine people were transported to Latvia from Greece as part of the European Union’s resettlement programme, as LETA was informed by the Office for Citizenship and Migration Affairs.

August’s construction costs declined by 0.4% in Latvia

Compared to July, the level of construction costs in Latvia dropped by 0.4% in August 2016. Prices of building materials decreased by 0.8%, maintenance and operational costs of machinery and equipment reduced by 0.1%, whereas labour remuneration of workers did not witness any significant changes.

One-third of state institutions to not have to report data on employees’ remuneration

On Tuesday, 27 September, the Latvian government accepted amendments to the Law on Remuneration of Officials and Employees of State and Self-government Authorities that relieve 233 state institutions from the duty to report information about remuneration of their employees.

Trial of two Russian 'observers' arrested at Adazi military base put off until 2017

On 27 September, Riga District Court decided to put off the viewing of the criminal case regarding the incident at Adazi military base involving two Russian citizens until 24 July 2017.

Valka expects even more alcohol buyers from Estonia next year

Because Estonia plans to raise excise tax for alcohol in January 2017, the number of alcohol buyers from the neighbouring country is expected to increase in Latvia’s border area stores, as predicted by Mayor of Valka Vents Armands Krauklis.

Study: Third of adults look into their phones at night

A study performed in the UK on addiction to smartphones found that a third of its adult population look into their devices at night, which often causes quarrels with their other halves.

Baltics and Iceland agree on strengthening mutual cooperation

Celebrating 25 years since the foundation of diplomatic relations between Iceland and Baltics, Latvian Foreign Affairs Minister Edgars Rinkevics visited Iceland’s capital city of Reykjavik on 26 September to discuss regional news and international relations with ministers from Iceland, Estonia and Lithuania.

Rimsevics: Latvia should prepare for future crises

Latvia should prepare for future crises, which will take place, said Governor of the Bank of Latvia Ilmars Rimsevics in his interview to 900 seconds programme of LNT.

Expert: average tourist in Latvia – German citizen of pension age

27 September is celebrated around the world as Tourism Day. This day marks the end of the tourism season in the northern latitudes and the beginning of the season for southern latitudes. For this event, Tourism Research Centre’s manager Eriks Lingeberzins explains the topical tourism trends and what has changed under influence of terrorism.

Former head of IMF tried for alleged credit card racket

The former head of the International Monetary Fund, Rodrigo Rato has stood before trial in Spain on September 26 over allegations that he and 64 other bankers have been involved in credit card racket at Bankia bank, which has been rescued at public expense.