Latvia: Tax breaks for businesses affected by the Russian sanctions

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latviaRussia has recently introduced an embargo on food products from the European Union, in retaliation for its sanctions on Russia due to the political and territorial issues. Latvia’s Economy Minister Vjaceslavs Dombrovskis has proposed a 12-month tax break for the companies affected by the Russian sanctions. Tax breaks could be applied to corporation tax and employers’ labor tax payments; also they could be made conditional on employers not laying off staff, he said. He described the plan as a ‘short-term measure,’ and said that the Government would also help the businesses to find new markets. He also suggested that Latvia could work with other countries most affected by the sanctions to persuade the EU to provide support. In the meanwhile, Russia’s Prime Minister Dmitry Medvedev has said that next year’s country’s budget may have to include tax increases. He described it as a necessity in the face of sanctions against Russian companies and the country itself. Please find more information about Latvia on our website.