Covid-19, Financial Services, Latvia, Legislation, Markets and Companies

International Internet Magazine. Baltic States news & analytics Saturday, 16.01.2021, 13:04

Covid-19: Offshore companies to be excluded from list of potential recipients of state support in Latvia

BC, Riga, 06.05.2020.Print version
The work group headed by Latvian Finance Minister Janis Reirs (New Unity) on Wednesday supported the proposal submitted by the National Alliance to ban all companies registered in offshore countries from access to financial assistance provided by the state during the state of emergency, informs LETA.

Legal entities registered in offshore, a low-tax or tax-free country or territory, or unions of persons who are legal entities registered in Latvia, but more than 25 percent of shares are held by a legal entity or union of persons registered in offshores. The same definition has been used in the Public Procurements Law.

The National Alliance said that about 17 percent of Latvia's gross domestic product is formed by public procurements. As these are resources of tax payers, also state investments during state of emergency through tax holidays and other financial instruments should be used in a transparent and fair way.

Providing state support to offshore companies would be wrong and even "fundamentally unfair" step, demotivating many others to honestly pay all taxes.

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