Baltic States – CIS, Economics, Latvia, Legislation, Markets and Companies, Ukraine

He said that Kucinskis and Groysman had a telephone conversation and discussed Ukraine’s decision to remove Latvia from its list of tax havens to which it had been added along with a number of other countries since the beginning of this year.

The Ukrainian prime minister confirmed interest on further constructive and efficient economic cooperation between both countries.

As reported, Latvia on Tuesday presented Ukraine a note protesting against its inclusion in the list of tax havens. The Estonian Foreign Ministry also said on Tuesday that it would deliver a similar note to Ukraine. Latvian Foreign Minister Edgars Rinkevics explained that Latvia was included in Ukraine’s list of tax havens because of an incorrect interpretation of Latvia’s new tax regulation providing tax exemption for reinvested profit. This regulation, however, cannot be regarded as a tax-free system because Latvia charges taxes on dividends.

The Ukrainian Cabinet of Ministers then passed the resolution on removing Estonia, Latvia and Georgia from the list of the so-called offshores.