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PEST Analysis, SWOT Analysis
Value added tax rate in Latvia is 18% in standard cases.
Excise duty is also applied to coffee and tobacco goods which are sold by Starbuck’s coffee. Currently the corporate income tax rate in Latvia is among the lowest (15%) in the EU. An employer must withhold social tax on a monthly basis at a rate of 24.09%. The total tax payable is 33.09%, meaning 9% must be paid from the employee’s payroll. Expatriates employed by non-resident employers are subject to a social tax of 31.11%. Self-employed rate of social tax is 30.27 per cent. A resident working for a non-resident pays 33% social tax.
The corporate income tax rate is 15%. Before payment of corporate income tax, the company’s financial results are adjusted by deductible and non-deductible expenses.
The minimal wage set by government in Latvia is 160 Ls. The minimum payment for an hour is 0,962 Ls. The determined working hours is 40 per week which is set by Latvian Government. …
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