Financial Services, Latvia, Legislation, Markets and Companies, Taxation

The new amendments prevent unreasonably frequent amendments to tax laws. From now on, tax rates may be altered no more often than once a year, thus ensuring a more stable tax policy.

"This is a significant step toward ensuring a stable tax policy. Also, in order to facilitate the development of entrepreneurship that is so important to our national economy, the new amendments will provide business owners with a stable tax system and timely information on possible changes," Finance Minister Andris Vilks (Unity) indicates.

The new amendments stipulate restrictions in regard to enactment terms, namely, amendments that stipulate new taxes or tax rates will come into force no sooner than in six months since the day they are approved.

The latest amendments also stipulate that tax rates must be precise and unmistakable, whereas different tax rates for specific taxpayer groups must follow objective criteria.

The new regulation also stipulates opportunity to omit one or several principles in case of emergency situations, however, such cases will require extensive evaluation.

This regulation will make sure that both taxpayers and State Revenue Service are able to prepare for the implementation of new changes, the ministry believes.

The final decision on the legislation is yet to be made by Saeima.