bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 22.08.2017 | Name days: Rudīte, Everts

Tax proportions in Latvia and Estonia – some of the lowest in Europe

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe general tax rate in Latvia continues to decline and is 35% at the moment, which is 11th lowest index in the European Union and European Free Trade Association and the lowest among Baltic States.

Lithuania’s total tax rate is 42.6%. That of Estonia is 49.3%, as concluded in the latest report by the World Bank, International Finance Corporation and PricewaterhouseCoopers on the global tax situation.

The 35% tax rate in Latvia is made up of 4.9% corporate tax, 27.2% of labour tax and 2.9% of other tax forms. The average time it takes to settle accounts in Latvia remains above the average in the region – 193 hours (176 in the region). However, the average amount of time has reduced significantly in comparison with last year, when it was 264 hours.

Latvia’s total number of required taxes to pay (seven) is one of the lowest, and puts Latvia in the TOP five of Europe along with Norway, Sweden, Estonia and Malta.

It is also concluded in the report that an enterprise of average size in EU/EFTA region pays an average of 41% of taxes in a total of 12.3 payments. The average amount of time required to pay for everything is 176 hours. A medium-sized company in the world, on the other hand, has a tax burden of 40.9%, which is followed by 25.9 payments and a total of 264 hours to settle accounts with the country.

«Latvia’s figures demonstrate the country’s competitiveness in comparison with other European countries and countries in the rest of the world – companies in Latvia are able to divert more resources to their economic activities for future development or paying of dividends. Looking from a state management perspective, it is currently highly important for related institutions to improve the efficiency of the tax administration process, maintain an attractive business environment and create a stable tax policy in the country. We are also happy that the time required to settle all accounts and perform payment has been successfully reduced in Latvia. One of the reasons is the improved Electronic Declaration System. Nevertheless, the system in general has also been improved by changes carried out to methodology as well,» – as explained by PwC manager Zlata Elksniņa-Zaščirinska.

According to Paying Taxes 2015 survey, Latvia is on the 24th place among 190 countries of the world. Estonia is on the 28th and Lithuania is on the 44th place. All three Baltic States demonstrate an overall improvement in comparison to last year.

The method of paying taxes in the world has become easier as well, as concluded in the report. The average time it takes for a company to pay its taxes has reduced by four hours in comparison to last year. The general amount an average company pays in taxes (calculated in accordance with Doing Business methodology) reaches 40.9% of commercial profits. An average company performs a total of 25.9 tax payments a year and spends 264 hours on payment processes.

«Latest results of Paying Taxes survey show that many countries continue to perform tax reforms. This means there are still plenty of room for improvements to further rationalize and simplify the tax-paying system,» – explains PwC Tax Team Lead Andrejs Pekmens.

The Paying Taxes 2015 survey compiles all necessary taxes and duties that are required to be paid in a specific year.

Ref: 102.109.109.5783


Leave a reply

Terrorists in Barcelona were planning three explosions

Terrorists, who performed two attacks in Catalonia last week, were initially planning to blow up three shuttle buses in crowded areas in Barcelona, as reported by El Espano.

Lawyer: Maxima wants to earn by reducing compensations for the tragedy

Maxima Latvija and Zolitude 21.11 have reached an agreement on payment of EUR 900,000 to support victims of Zolitude tragedy – EUR 5,000 to EUR 75,000 to each person, as reported by Maxima Latvija.

Producer prices in industry in Latvia grew 0.4% in July

Compared to June, the level of producer prices in Latvian industry rose by 0.4 % in July 2017. The prices of products sold on the domestic market increased by 0.5 %, whereas the prices of exported products grew by 0.3 %.

Enefit: Latvia reduces electricity price difference with neighbouring countries

In recent years, Latvia has managed to reduce the electricity price difference with other Baltic neighbouring countries, as reported by Enefit Chairman Janis Bethers.

Farmers Saeima: butter price will not remain high for long

The high price on butter in Latvia will not remain so high for long, said Farmers Saeima Vice-Chairperson Maira Dzelzkaleja-Burmistre in an interview to 900 seconds programme of LNT.

Aseradens elected as chairman of Unity; Krisjanis Karins to lead party’s city council faction

Unity elected Economy Minister Arvils Aseradens as the new chairman of the party. MEP Krisjanis Karins has been elected as the party’s leader in Riga City Council with Santa Zarane as his deputy.

LPS manager: forming the budget, it is important for municipal funding to stay the same

In the formation process of the next year’s state budget, it is necessary to guarantee finances do not reduce for municipalities, said the chairman of Latvian Association of Local and Regional Governments Gints Kaminskis in an interview to Latvijas Radio.

Police to organize inspections in stores; parents asked to watch their children as well

For the new school year, Riga Municipal Police will be performing regular inspections at stores, bars and cafes from 21 August to 31 August, as well as the first days of September, to make sure minors are not sold alcohol and tobacco products, BNN was told by police.

Colder masses of air to enter Latvia this week; more rain expected

This week’s weather in Latvia will be dictated by a cyclone hovering above Northern Europe. Colder masses of air will flow into the country. A lot of rain is expected in Latvia this week, as reported by State Environment, Geology and Meteorology Centre.

Kirsis asks police to assess possible forging of votes at Riga City Council

Riga City Council’s Unity faction chairman Vilnis Kirsis has asked State Police to check if the city council’s electronic voting system was used without another deputy’s knowledge or consent, said the politician.

Expert: attack in Spain shows how terrorists switched to more easily reachable targets

Terrorist attacks that transpired in Spain this week shows how terrorists have switched to more easily reachable targets, where security requirements are not as strict, says Latvian National Defence Academy’s Security and Strategic Research Centre researcher Martins Hirss.

New mandatory tests in schools to be introduced four years from now

In four years’ time – 2021/2022 school year – it is planned to introduce completely new mandatory tests in schools, as reported by State Education Content Centre Director Guntars Catlaks.

Nearly 9,000 children and their parents got homes thanks to state support programme

In the first half-year of 2017, state support helped 1,527 families in Latvia to buy homes. Compared with last year, families’ demand for state support has grown 6%, as reported by Altum finance institute.

Prediction: Aseradens will likely take control over Unity

Economy Minister Arvils Aseradens will become the head of Unity, Betsafe bookmakers predict. The possibility of Aseradens becoming the head of the party is given 45% probability by Betsafe.

Provisional estimate for next year’s fiscal space in Latvia is EUR 60 million

Next year’s fiscal space has been estimated at EUR 60 million, as noted by Finance Minister Dana Reizniece-Ozola, adding that a more precise estimate will be available at the end of August.

Reconstruction of Vilnius airport runway concludes; aircraft return to Vilnius

On Thursday, 17 August, Vilnius airport’s runway was festively opened. This was the most massive reconstruction for the airport in the past 20 years. It was a unique project for Lithuania and all of Europe, airport representatives say.

Islamic State terrorist group takes responsibility for Barcelona attack

The recent terrorist attack in Barcelona, in which a shuttle bus rammed a crowd of people on La Rambla, killing 13 and injuring at least 100, has become this week’s topic.

Weather in Latvia to be warm but rainy on weekends

The sun will appear every now and then between clouds on Friday, 18 August. Still, some rain is expected, especially in the afternoon in Latvia’s eastern regions, where thunderstorms may appear. Rain is expected to reach the capital in the afternoon. Wind will draw in from the south. Air temperature will reach +21° C… +26° C, according to State Environment, Geology and Meteorology Centre.

Latvia’s export growth was moderately rapid in the first six months of 2017

Compared with the same period of 2016, Latvia experienced a moderately rapid export growth in the first six months of 2017, according to data published by Eurostat on Thursday, 17 August.

Latvia’s annual inflation in July was one of the highest in Europe

Inflation indexes in Latvia and the UK both reached 2.6% in July, which is one of the highest indexes in the European Union, according to data published by Eurostat on Thursday, 17 August.

Kirsis withdraws his candidacy in favour of Aseradens

Riga City Council member Vilnis Kirsis has decided to withdraw his candidacy from the race to become chairman of Unity in favour of a different candidate – Economy Minister Arvils Aseradens.

Rinkevics expresses Latvia’s interest in maintaining political consultations with Palestine

On Thursday, 17 August, Latvia’s Foreign Affairs Minister Edgars Rinkevics met with the leader of Palestine’s diplomatic mission in Latvia, ambassador Taissir Al Adjouri, to discuss mutual relations between Latvia and Palestine and the peace process in the Middle East.

Putin grins to the world’s seven billionth baby, Lithuania wary of border incidents

Russian President Vladimir Putin paid a visit this Wednesday to Kaliningrad, the westernmost point of Russia, but the reports about his trip in the Russian enclave and over the border in Lithuania were strikingly different.

Survey: red considered the safest colour for a car

Most Latvian drivers consider red to be the safest colour for a car. The most popular, however, is black, according to results of a survey by Virši-A fuel trader.

airBaltic’s number of carried passengers reaches a record in second consecutive month

Latvian airBaltic airline carried 393,312 passengers in July 2017, which is 21% more than the same period last year. The number of passengers carried by airBaltic remains the highest it has ever been in the airline’s history, BNN was informed by the company.

Newest comments