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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 23:29

32 Latvian companies affected by Russia sanctions turn with request for tax holidays

BC, Riga, 15.09.2014.Print version
32 companies affected by the Russia sanctions have turned to the State Revenue Service (SRS) with a request for tax holidays, the Revenue Service informed the business information portal Nozare.lv, cites LETA.

The SRS points out that in their requests, the companies usually state that the political situation and the sanctions have substantially impacted their cash flows, and that many have seen a reduction in demand for their products and are forced to substantially lower their prices, which has all led to losses in revenue.

 

The companies which have turned to the SRS represent a wide range of sectors, including the food sector, transportation and logistics, retail trade and timber.

 

As reported, on August 12, the government decided to grant tax holidays for companies affected by Russia's food embargo; the government also decided to allot additional EUR 5 million for companies' expansion into other export markets.

 

The government's decision applies to companies with more than 10% of their total sales volume going to Russia. The same criterion applies to these companies' suppliers.

 

The government also decided to award loan guarantees to the companies affected by Russia's sanctions. EUR 30-40 million is the maximum sum that can be diverted to loan guarantees, while the maximum sum for one company cannot exceed EUR 1 million.

 

The government also decided that the Ministry of Economy would redistribute EUR 5 million from its budget to help companies enter new export markets






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