Investments: challenges and opportunities in Latvia

1
Investments challenges and opportunities in
Latvia

• Valters Gencs

2
FICIL members

• Alte Leipziger
• Coca-Cola
• Ernst Young
• Linstow
• Schenker-BTL
• StoraEnso
• Vereinsbank
• Volvo Truck

• ABB
• Ericsson
• Jeld-Wen
• Readymix
• Statoil
• Tatko
• Volkswagen

3
Financial and Tax issues-1

• Competition between countries
• Estonian tax breaks
• Latvian proposal
• Free economic zones

4
Financial and Tax issues-2

• Repatriation of investments
• Royalties, interest, dividends
• Withholding taxes
• Tax treaty network

5
Financial and Tax issues-3

• Is the tax system simple and fair?
• VAT refunds
• 100-200 penalties
• Decrease of property tax

6
Legal framework

• Business forms and company names
• Pledging intangibles
• Pre-court appeal process
• Product approvals

7
Business environment

• Border crossing and customs
• Long term financing in Lats
• Black market share