The 2008 Latvian financial crisis, which emerged from the 2008-2009 global financial crisis, was a major economic and political crisis in Latvia.
Latvia is the Eastern European country hardest hit by the global financial crisis; it lost about 25 percent of its GDP from 2008 to 2010. It was also the most overheated pre-crisis economy. But in the second half of 2010 Latvia returned to economic growth.
Latvia has a population of 2 million and its annual GDP is 23 billion euros ($30 billion). But the troubles this Baltic country has been experiencing since 2008, when it kept the lat, its official currency, pegged to the euro while fiercely tightening fiscal policy has sparked a major row among most critics.
Latvia has been the subject of intense attention during the financial crisis due to the economic policies it has put in place to get its economy back on track. By maintaining its currency peg, adjusting through internal devaluation and frontloading austerity measures, this nation of 2 million people is now, 5 years later, back on a strong economic footing, although it may have been quite painful to get there.
As elsewhere, Latvian politics reacted too late to the boom; had good relationships with parent banks; avoided a large production drop thanks to deviations from strict currency board rules; had rapid productivity gains; and for policy purposes output growth may be as important or more important than its level.
The concept of outsourcing some activities relating to the company’s day-to-day operations has proved to be an effective method of improving performance in many countries. Many companies have found it beneficial to eliminate all departments that are not directly related to their primary line of business: sales, production, or services.
We offer accounting services to small and medium businesses(service of accounting in Latvia, Lithuania or Estonia only) providing efficient and friendly service offering cost effective solutions for your accounting and payroll-related needs in any of Baltic states. We realize full financial analysis of accountancy and timely notification to manager about any risk which endanger successful development of business. We manage making accounting reports, all necessary accounting documents related to Latvia and delivering them to State revenue service, Central Statistical Bureau and other institutions of the Republic of Latvia.
Our accounting in Latvia services include: Financial accounting and reporting Accounting for special purposes (payroll accounting, accounting in the client's system, assistance to foreign clients in the completion of VAT returns etc) Preparation of annual accounts Preparation of regulatory documents (i.e. internal accounting rules) Communication with the Tax Authorities Complete management of the company's accounts Day-to-day accounting advisory services We continue to co-operate with the client beyond doing the books and reports. At this stage our services include, but are not limited to, supervision of bookkeeping activities performed by the client and assistance in solving accounting problems.
Our services also include:
Ad hoc assistance for internal finance personnel, finance controllers and management on accounting and tax issues
Assistance during statutory or internal audits Conducting regular reviews of accounting documentation and procedures Implementation of a model for accounting transactions in the single currency used by the group Implementation of a reporting model for group reporting purposes Development of a methodology for drawing up and controlling the company’s budget Optimization of the financial and accounting function in any of the following countries - Latvia, Lithuania or Estonia Changes of internal and external conditions and volumes often give rise to new problems and challenges for any company. We help our clients to identify and implement the most advantageous solutions. We offer a wide range of services supporting the organisation and operation of accounting and financial services, in particular:
Evaluation and benchmarking of existing financial and administrative functions Solutions to specific accounting problems relating to merger, reorganization, insolvency and liquidation Assistance in selecting and implementing accounting systems Formulating and streamlining the existing accounting and financial control procedures Implementation of “Fast Closing” procedures Implementation of an onsite or offshore shared service center across multiple locations and countries Updating selected procedures/ rules governing proper business transaction recording processes (e.g., preparation, circulation and verification of accounting documents); ensuring the effective flow of financial information and documents What are the advantages of outsource accounting services in Latvia: You do not need to create working place for accountant (so you can decrease expenses) You do not need to pay for vacation to accounting company You can control all information and documents which you give to accounting company, so accounting company will receive just necessary information and documents for accountancy Decreases necessity to take into account individual temperament of accountant usually circulation of information in accounting company is greater (so representative of accounting company has more information about events related to accounting and taxes)
The Baltic Sea region is the fastest growing business region in Europe. The trade flow among the states in this region has been steadily increasing year by year. The taxation system of Estonia is considered one of the most liberal taxation systems in the world. In 2000, Estonia implemented a comprehensive tax reform with an aim to create the simplest, most comprehensible and most convenient taxation system possible. The main advantage of Estonia is the low-tax system that can be described as a simple system with no hidden surprises and that was basically established to promote business and increase profits.
The taxation system of Estonia includes state taxes stipulated by the tax legislation and local taxes imposed by local governments or city councils in the respective territories according to laws and regulations.
The state taxes are the following:
excise duty; income taxes; gambling tax; value added tax; land tax; social tax; customs tariffs; heavy goods vehicle tax. Corporate income tax As a result of reforms, the main benefit of entrepreneurs was the exemption from the corporate income tax in the event of reinvesting the profits. Thus, Estonian enterprises must pay the income tax only on their distributed profits, namely, dividends. The corporate income tax (tax on distributed profits) is 21 % of gross dividends.
This taxation system is conceptually different from the classic income tax system, because the tax is levied on distributed profits (also hidden distributed profits) instead of company profits.
Value added tax (VAT) The value added tax payers are enterprises the taxable supply (except for import) of which does not exceed EUR 16,000 during a calendar year. The tax is levied on transactions with goods and services in Estonia and on the import of goods. The tax rate is 20 % of the taxable value.
The taxable period is one calendar month, and the value added tax must be paid into the state budget by the twentieth day of each month. The tax is fully paid into the state budget.
The registration of enterprises is carried out by the Tax and Customs Board also administering the VAT levied on domestic goods and services.
Personal income tax In 2010, the tax rate is 21 % of taxable income, and residents must pay the tax on their income received both inside and outside Estonia. The taxable income includes the income from employment (salary, wage, bonus and other remunerations), business income, interest, royalties, rent, capital gains, maintenance support, pensions, scholarships (except for scholarships paid from the state budget or pursuant to law).
Social tax This tax is imposed to ensure state pensions and health insurance. It is paid by legal persons, natural persons and non-residents with regular income. The tax rate is 33 % of the taxable amount. The tax must be calculated monthly, and a corresponding amount of money must be transferred no later than by the tenth day of each month.
Since 1 January 1999 the social tax payments have been personalised, and they form pension funds which will be considered in each specific case. The tax is accumulated in a special account of health and pension insurance funds within the state budget.
Excise duty In Estonia, the excise duty is levied on tobacco, alcohol, fuel, packaging and vehicles.
The excise duty helps to control the amount of a specific product or provision of a specific service seeking to adjust the consumption of domestically sold goods.
Like value added tax revenues, also excise duty revenues are affected by changes in domestic demand, increase in imports of excise goods, as well as changes in excise duty rates.
Gambling tax The gambling tax is levied on income from games of skill, totalisators, betting and lotteries, as well as gambling tables and machines used for organising games of chance in licensed places. The tax is based on payments out of which the winnings are paid. The taxable period for organising lotteries, games of chance and skill is one calendar month. The taxable period for totalisators is the period during which the betting is organised (it must be within the same financial year).
Tax rates are the following:
EUR 447 per one gambling machine; EUR 1278 per one gambling table. The tax rate on betting is 5 %, on totalisators - 5 %, on games of skill - 18 %, and on lotteries - 18 %.
OP Corporate Bank plc is part of OP Financial Group, the leading financial services group in Finland with over 4 million customers. With 350 branches providing banking and non-life insurance services, the Group boasts the broadest customer base and the most extensive branch network in Finland. The amount of customers show, that we are most trusted in Finland.
OP Corporate Bank plc has been named as one of the safest banks. Leading banking magazine Global Finance announced in October their half-yearly list of the World's 50 Safest Banks, with 'OP Corporate Bank plc' in 32th place (in February 34th place).
Our current offering includes finance-company products, cash management and liquidity management as well as working capital finance and investment financing and international guarantees. Within a certain time span, we will expand our offerings to cover all services that businesses need.
BIGBANK AS was founded in 1992 in Tartu, Estonia. It specializes in term deposits and consumer credit and today operates in Estonia, Latvia, Lithuania, Finland, Spain and Sweden while offering cross-border services in the German, Austrian and Dutch markets.
BIGBANK offers everyone the opportunity to use all the services it offers via electronic channels – Internet and telephone – regardless of the time of day and location.
BIGBANK specializes in providing consumer credit and term deposits to individuals. Their strategy is to continue operating in the same field of activity and according to the same principles, focusing on the existing customer segment and always offering them the best possible services, taking into account their needs.
Ready-made Company, also known as Shell Company, previously formed company, seasoned company or aged company, describes a limited liability company (LLC) or partnership that had no activity, metaphorically put on the shelf to age or how to be an empty shell. As a rule, a complete company is subject to VAT.
Advantages of the shelf company process of business purchase Change of company name and/or address Recent practice
Advantages of the shelf company are: time saving. The incorporation process takes time, faster registration costs more money due to higher government fees. It's faster to change ownership of an existing business. longevity in the company. Some partners or credit institutions may check the registration date before proceeding with the cooperation. Potential customers will trust older companies that could be used for advertising. history of your company. Boosts the company's image with age and increases credibility. Need a bank loan. It may be easier if you have proof of your inclusion history. Baltic Legal provides legal support in the purchase of ready-made companies and offers first-class services and useful advice in related matters.
Process of business purchase The business purchase takes only a few days. Due to the reliability and cooperation with our partners, we are able to arrange a turnkey company for you in one day! Registration with the commercial register takes 4 working days (can be shortened to up to 2 days).
Change of company name and/or address The age, but not the name, of the finished business is of primary importance as a name change can be easily accomplished.
Legal address is mandatory in Latvia. Changing legal address or registering an additional office takes up to four business days or can be changed at the same time as the business purchase.
If you do not have a legal address for registration purposes, Baltic Legal is able to provide such a service. Go to Business Support Service.
Recent practice Recent practice shows that the number of newly formed companies with VAT number is not regularly for sale. This will inform the new businessmen about the increase in the price for VAT-registered companies.
Please let us know your needs and we will get back to you with a list of options.
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Fri May 12, 2023 8:39 pm
