Company in Latvia
15% CORPORATE TAX
SHELF COMPANY + VAT
REMOTE BANK ACCOUNT
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Latvia is in European Union since 2004 and in Euro Zone since 2014. It is located at the crossroads of Europe and Russia. Standard corporate tax is 15%, one of the lowest in the EU. A company in Latvia is effective vehicle for intermediary trading between Western Europe and Eastern Russian speaking countries.
LIMITED LIABILITY COMPANY (SIA) FOR TRADING
The most popular form of business in Latvia is SIA, the limited liability company. It is popular for VAT trading within European Union, as VAT registration process is normally straightforward, and the corporate income tax is just 15%.
Latvian Limited Liability Company pays corporate income tax (15%) on worldwide income. The Company can obtain Tax Resident Certificate to apply for Double Tax Treaties benefits.
LIMITED LIABILITY COMPANY (SIA) FOR HOLDING
In 2013 Latvia introduced a very effective holding regime. Latvian holding companies do not prescribe any special requirements towards subsidiaries in terms of holding period, percentage of participation, level of taxation of subsidiaries, etc. This is what makes Latvian holding regime different from other holding jurisdictions like the Netherlands or Malta and even Cyprus.
Income from dividends paid to Latvian holding company from its subsidiaries is not taxed.
Dividends paid by Latvian holding company to legal entities are exempt of withholding tax.
Latvian Micro-Enterprise can be a low-tax instrument for companies with small turnover and low costs. Micro-Enterprise is a regular limited liability company with special taxation - 9% from turnover (not profit!). It works well for companies with low expenses such as service companies, consulting, translations, marketing research companies, etc.
Any company can apply for 9% Micro-Enterprise Special Status, if it meets the following requirements: