Latvia become a new tax haven
Since January 2013, significant modifications to corporate income tax have taken effect, making Latvia an attractive location for establishing holding companies.
The new tax law has benefits for those paying income tax, allowing an exemption for dividends paid out by residents to non-residents, and vice-versa.
Furthermore, as of 2014 Latvian holding companies will no longer have to pay taxes on interest and licensing fees they pay to foreign companies. This will make the country ever more attractive to foreign investors who set up holding companies in Latvia.
Latvia’s corporate tax rate is just 15 percent, one of the lowest rates in the EU. In EU average corporations is 23.5 percent.
Latvia seeped into the Euro zone in 2014! It has witnessed drastic changes and improvements with respect to both financial and economic aspects. Latvia is loaded with splendid investment policies and tax laws that can make you truly profitable. To be more precise, Latvia has become the next Cyprus. You will be astonished to note that Latvia is gearing up various EU finance ministers to improve its economical stature. Though the nation is filled with convincing policies and rules; some worry if existing tax rewards would prevent it from being the next biggest tax haven in Euro zone.
Rapid changes in Latvia are capable of rupturing and destabilising the current European economy.
According to the founder of TJN, very few members have issues in Latvia being a tax haven. There are situations when Latvia can be a victim to various abusive income tax laws. However, almost everything is within controllable margins. So, what does Latvia offer potential investors? Does the sound of Latvia Offshore Company mean something big? Experts believe that Latvia’s 15% corporate tax would be a much discussed topic. It will be compared against Ireland’s scintillating 12.5% tax margin.
Nevertheless, this is identified as a small deviation from the actual problem.
If you have a Latvia Offshore Company, you are likely to enjoy stock benefits too. All holding companies that have stocks of third party companies will enjoy a huge myriad of features. According to a recent study, stock sales and dividends have become totally tax free. This was a change from early 2013. Moving on, the act of transferring profits between countries is not a problem too. This is because the transferred profits would not be taxed. Adding to this, Latvia offshore corporates are not expected to pay taxes on their licensing fees or interest.
Latvia become a new tax haven. Meanwhile, one should comprehend the fact that Latvia doesn’t delight investors with sensible secrecy scores. Its financial secrecy index is quite low! Fortunately, it comprises of sensible standards on how dirty money is processed. This can be attributed to its bond with Cyprus.
If you have unlimited quantities of money, Latvia Offshore corporate agents will help you prevent great damage.
Latvia become a new tax haven. Inside the Euro zone, Latvia maintains high levels of transparency. It works in line with secretive players and promises to remain as a tax haven in the long run.