Tax Minimization in Latvia
Tax Minimization in LatviaUpdated on Friday 21st August 2015
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Tax minimization brings together all of the mechanisms and legal ways that can be used to minimize the amount of money payable by a company at the end of the year. However, tax minimization is more than just avoiding to pay higher taxes and it involves careful tax planning. It takes efficient planning and expertise to make the most out of every investment.
Our lawyers in Latvia can help you understand the tax system, if you are planning on investing in Latvia or opening a company there.
Tax minimization strategies in Latvia
Many companies and individuals can pay more taxes than necessary if they do not have the right knowledge to avoid overpaying. Some of the available tax minimization strategies can be implemented right away and they can help company owners save on tax during the current year.
Charitable donations can be an easy way to reduce taxes. Donations made for certain purposes or to registered organizations can be deductible. Charity donations are most often made in cash, but other forms of donations do exist, like donating tangible and/or intangible assets.
If you are considering a retirement plan, the contributions made in advance to the retirement plan can reduce the taxable income in the current year. The same can apply to interest paid to investment loans. In some cases, companies may benefit from deductions when advertising or when employing special categories of employees.
Taxes in Latvia
Our Latvian lawyers can help you with complete information about the Latvian taxation laws and taxation system. The corporate tax rate in Latvia is set at a general rate of 15% and a 9% rate applies for the annual turnover of microenterprises. The tax year is the same as the calendar year and the annual income tax return is due by June 1st the following tax year. The value added tax (VAT) in Latvia has a standard rate of 21%.
Our law firm in Latvia can help you arrange your investments and affairs in order to reduce the amount of taxes that need to be paid. Please contact our law firm in Latvia for more information about doing business here.