Business Reforms in Latvia
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Getting Credit: Latvia improved access to credit information by launching a private credit bureau.
Paying Taxes: Latvia made paying taxes less complicated by improving its online systems for filing corporate income tax return and mandatory labor contributions.
Dealing with Construction Permits: Latvia made dealing with construction permits more time-consuming by increasing the time required to obtain a building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions.
Registering Property: Latvia made transferring property easier by introducing a new application form for transfers.
Getting Credit: Latvia improved its credit information system through a new law governing the licensing and functioning of credit bureaus.
Paying Taxes: Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. On the other hand, Latvia reduced the rate for social security contributions paid by employers.
Enforcing Contracts: Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws regulating domestic arbitration and voluntary mediation.
Labor Market Regulation: 1) Latvia increased the maximum duration of a single fixed-term contract from 36 months to 60. 2) Latvia increased its minimum wage
Starting a Business: Latvia made starting a business more difficult by increasing registration fees, bank fees and notary fees.
Paying Taxes: Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing corporate income tax returns and reducing employers’ social security contribution rate.
Starting a Business: Latvia made starting a business easier by making it possible to file the applications for company registration and value added tax registration simultaneously at the commercial registry.
Dealing with Construction Permits: Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and by eliminating the Public Health Agency’s role in approving building permits and conducting inspections.
Getting Credit: Latvia improved its credit information system by adopting a new law regulating the public credit registry.
Trading across Borders: Latvia made trading across borders easier by reducing the number of documents required for importing.
Labor Market Regulation: Latvia eliminated notification requirements to third parties in cases of redundancy dismissal.
Starting a Business: Latvia made starting a business easier by reducing the minimum capital requirement and introducing a common application for value added tax and company registration.
Getting Electricity: Latvia made getting electricity faster by introducing a simplified process for approval of external connection designs.
Registering Property: Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax status of property, eliminating the requirement to obtain this information in paper format.
Resolving Insolvency: Latvia adopted a new insolvency law that streamlines and expedites the insolvency process and introduces a reorganization option for companies.
Trading across Borders: Latvia reduced the time to export and import by introducing electronic submission of customs declarations.
Resolving Insolvency: Latvia introduced a mechanism for out-of-court settlement of insolvencies to alleviate pressure on courts and tightened some procedural deadlines.
Getting Credit: Latvia’s new public credit registry started sharing data on loans, improving access to credit information.
Registering Property: Latvia made registering property easier by introducing an online database allowing the land registry’s employees to verify the cadastral value of real estate.
Resolving Insolvency: Latvia improved its insolvency system through a new insolvency law that for the first time allows financially distressed companies to continue operating by pursuing reorganization, and through stronger qualification standards for bankruptcy administrators.
Labor Market Regulation: Latvia increased the maximum cumulative duration of fixed-term contracts and introduced a requirement for third-party notification for a single redundancy dismissal.