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Does Your Country Have a Fair Taxation System?
With Holland’s analogy Latvia should introduce a law for Repatriation of profits to ultimate shareholders. “The Dutch holding company can distribute the profits back to its investors. Alternatively it can reinvest the profits into other (foreign) companies.[..] Profits arising from the participations can be returned by the Dutch holding company to the shareholders without any withholding tax.” [see supplement nr. 1] The implementation of this law would create new work places and increase the actives of Latvian banks. Foreign companies would be interested in creating their intermediate holding companies in Latvia and this means the money would flow into the country and not out of it. Small taxes for tranzit companies should be introduced. Then such countries as China would be interested in transfering their goods througt Latvian ports. Then Latvia’s natural advantage – exelect geographic location would be used and our maritime business would grow.
In Latvia there are several companies which produce a great deal of their production for export. For instance, Grindex exports 95% of its total sales amount.…
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