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Total tax rate in Latvia reduces below Europe's average total tax rate

 RIGA, Nov 21 - The total tax rate in Latvia has reduced from last year's 37.9 percent to 36.6 percent, remaining below Europe's average total tax rate of 42.6 percent and the global average total tax rate of 44.7 percent, according to the "Paying Taxes 2013" study by "PricewaterhouseCoopers" (PwC), the World Bank and the International Financial Corporation (IFC).
At the global level, the share of corporate income tax in the total tax rate is 16.2 percent. In Latvia, it amounts to 4.8 percent due to favorable corporate income tax regulations. In Lithuania, the share of corporate income tax in the total tax rate is 5.9 percent, in Estonia - 8 percent.
Latvia's total tax rate has reduced due to amendments to the Law on Corporate Income Tax, namely the state allowing companies to reduce their taxable income for doubtful debt provisions to ease the tax burden on those companies which had difficulties in collecting payments from their clients, who were experiencing financial difficulties due to the crisis.
The report includes data on all EU member states, excluding Cyprus and Malta, and members of the European Free Trade Association
This year, "Paying Taxes" includes data not only on EU member states, but also on the European Free Trade Association. Even though Latvia's total tax rate has reduced, it is still higher than in two newcomers - Iceland and Switzerland.
Estonia's total tax rate has increased from 58.6 percent to 67.3 percent, Lithuania's total tax rate has reduced from 43.9 percent to 43.7 percent.
leta.lv

21-11-2012
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