#

Ease of Doing Business in

Latvia

Latvia Download Profile (1740.9KB, pdf)
Region Europe & Central Asia
Income Category High income
Population 1,978,440
GNI Per Capita (US$) 14,900
City covered Riga

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 14 17 up
3
80.61 79.14 down
1.47
Starting a Business 22 20 down
2
94.15 94.15
-
Dealing with Construction Permits 23 20 down
3
78.93 78.94 down
0.01
Getting Electricity 42 57 up
15
82.14 78.99 up
3.15
Registering Property 23 23
-
81.87 81.87
-
Getting Credit 7 19 up
12
85.00 75.00 up
10.00
Protecting Minority Investors 42 40 down
2
63.33 63.33
-
Paying Taxes 15 16 up
1
89.79 88.84 up
0.95
Trading across Borders 25 25
-
95.26 95.26
-
Enforcing Contracts 23 23
-
71.66 71.66
-
Resolving Insolvency 44 43 down
1
63.95 63.39 up
0.56

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

15

DB 2016 Rank:

16

Change in Rank:

up1

DB 2017 DTF (% points):

89.79

DB 2016 DTF (% points):

88.84

Change in DTF (% points):

up0.95

Indicator Latvia Europe & Central Asia OECD high income
Payments (number per year) info_outline 7 17.6 10.9
Time (hours per year) info_outline 168.5 221.5 163.4
Total tax rate (% of profit) info_outline 35.9 33.8 40.9
Postfiling index (0-100) info_outline 98.1 71.2 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Social security contributions 1 online 80 23.59% gross salaries 26.61
Corporate income tax 1 online 23 15% taxable profit 6.26
Real estate tax 1 online 1.5% cadastral value 2.08
Environmental tax 1 online various rates per kilo 0.90
Unemployment insurance contribution 0 jointly EUR 0.36 per employee number of employees 0.04
Vehicle tax 1 EUR 8.54-277.46 depends on weight 0.03
Fuel tax 1 various rates included in the price of fuel 0.00 small amount
Employee paid - Social security contributions 0 jointly 10.5% gross salaries 0.00 withheld
Value added tax (VAT) 1 online 66 21% taxable value 0.00 not included
Totals: 7 168.5 35.9
  • Answer
    Profit tax (% of profit) 6.3
    Labor tax and contributions (% of profit) 26.6
    Other taxes (% of profit) 3.0
    Answer Score
    Postfiling index (0-100) 98.1
    VAT refunds 100.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Unlikely
    Time to comply with VAT refund (hours) 0.0 100.0
    Time to obtain a VAT refund (weeks) 6.2 94.3
    Corporate income tax audits 98.2
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 2.5 98.2
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority General director of State Revenue Service
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines Online
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 30 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.