Healy Consultants reviews Latvia tax rates

Jan. 31, 2016 - PRLog -- In terms of the total tax rate, Latvia’s is 35.9 %, and is ranked 27th in the world and 12th in the European Union/European Free Trade Association countries. This total tax rate comprises of corporate income tax levied at the rate of 6.3 %, taxes on labour at the rate of 26.6 % and other taxes levied at 3 %. In comparison with the other 32 EU/EFTA countries, Latvia has comparatively low corporate income tax and medium to high labour taxes.

"Businessmen often complain about the tax burden in Latvia, but seeing hard figures and comparing Latvia to other countries in Europe, these claims turn out to be unfounded. Shadow economy poses a far more serious threat to business in Latvia, as it creates unfair competition and heavier burden on honest taxpayers - the problem is not in the tax rates but the fact that some businesses pay no taxes at all," PwC board chairwoman Zlata Elksnina-Zascirinska commented on the report's findings.

On average, it takes a company in Latvia 193 hours to comply with its tax payments, which is above the EU/EFTA average of 173 hours. With only seven tax payments, Latvia ranks among the lowest in the world and Europe in terms of tax payments. Only two countries have lower number of tax payments than Latvia - Norway and Sweden.

The main task for the Latvian Government at the moment is to develop effective tax policies by defining priority business sectors and making public administration more efficient, while the State Revenue Service should step up the measures against tax evaders and continue to convince businessmen about the importance of paying taxes.

About Healy Consultants

For over a decade, the incorporation experts at Healy Consultants Pte Ltd., with their branch in Latvia, have been assisting investors worldwide to set up the optimum corporate structure for doing business in the country. The services offered include company registration, banking solutions, accounting and tax and legal services and corporate support services.

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To inquire more about Latvia company setup options and schedule a conference call, email us at email@healyconsultants or call us on +65 6735 0120.