The Republic of Latvia is located in the Baltic Region of Northern Europe and is bordered by Lithuania, Estonia, Belarus and the Russian Federation. Latvia is a full member of the EU, United Nations, NATO, the World Trade Organisation and is part of the Schengen area.
After the economic stagnation of the early 1990’s Latvia posted high GDP growth figures during 1998-2006. During the global financial crisis of 2008-2010 Latvia was one of the hardest hit of the EU member states with a GDP decline of 26.54% during the period. By 2011 Latvia had started to recover and continues to show signs of growth.
Key benefits of Latvia:
- Latvia is a full member of the European Union
- Latvian legislation is liberal than other EU Member countries and the process of incorporating is relatively cheap and quick in comparison with other member states.
- If structured correctly a Latvian company can act as a tax efficient subsidiary for an EU parent company under the EU Parent/Subsidiary Directive. 100% foreign ownership is permitted with Latvia company formation.
- Only 1 director and shareholder is required, there is no requirement for a local director.
- Latvia is has a highly educated, multi-lingual and motivated workforce
- According to the World Banks 2011 Doing Business Survey Latvia is ranked as the 24th easiest place to do business
- The 2012 Index of Economic Freedom by the Heritage Foundation ranks Latvia as the 50th freest economy in terms of investment freedom and capital flow.
OECD publishes compliance review for all non-compliant jurisdictions
The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.
EU Parliament Committee release findings & recommendations for current offshore taxation measures
A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.
2017 G20 summit: Enforcement of taxation highest priority
The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.
The EC takes action against advocates promoting tax avoidance schemes
The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.
What are the new Beneficial Ownership reporting requirements for BVI companies?
Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.
Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?
Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.
Cyprus tax department releases new guidance on CRS deadlines and the online portal
The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).
Hong Kong establishes AEOI agreement with Indonesia
Last week, Hong Kong finalised and signed an agreement with Indonesia to allow for the automatic exchange of financial information (AEOI) regarding all tax matters.