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ID number:105021
Author:
Evaluation:
Published: 29.10.2005.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

I’ll begin with general ideas about taxes and taxation in Latvia. Taxation principles are determined by the law “On Taxes and Dues”. Taxes are administrated by the State Revenue Service and authorities established by it, officials appointed or institutions established by municipality government and other State authorities if they have been provided for in specific laws. The Republic of Latvia has the following State taxes: personal income tax, enterprise income tax, immovable property tax, value added tax, excise duty, customs duty, natural resources tax, lottery and gambling tax, mandatory payments of State social insurance.
Now I’ll give short description on each tax. First I’ll tell about Personal income tax. The law “On Personal Income Tax” determines it. Latvian residents are taxable on their worldwide income. Non-Latvian residents are liable on their income derived in Latvia.
The tax rate is 25%. The taxable income is income gained from labour relations, pensions and economic activities. Certain individual income is exempt from income tax in Latvia. Personal tax paid abroad may be credited again a tax payable in Latvia, but not for more than 25 % of the income taxed abroad.…

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