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23/09/20

The income tax return for 2020 must be submitted in an updated form

The IFTS finalized the declaration form, its format and the procedure for filling it out.


22/09/20

The government has prepared a project according to which the annual income is more than 5 million rubles. you need to pay personal income tax at a rate of 15%.

It is planned that the new rules will need to be applied starting with revenues generated in 2021.


20/09/20

The minimum wage for 2021 became known

The Ministry of Labor has established a living wage for the working-age population for the II quarter of 2020. It is equal to 12 392 rubles.


Metalworking and Mechanical Engineering

Market

The Latvian branch of mechanical engineering and metalworking has come a long way of development and currently is a corner stone of the country`s economy. Many foreign companies think that it is gainfully to cooperate with the Latvian suppliers, place orders or make direct investments in metalworking and mechanical engineering industry of Latvia.

The industry uses a variety of technologies, both traditional and the most advanced, innovative engineering solutions. Following the traditions says that metal working and engineering historically developed in Latvia and evolved into one of the leading sectors of the economy. Between the end of the 19th century to the beginning of the 20th century and further, during the 21st century Latvia in general and Riga in particular has been and remains an important industrial region of the Baltic States.

To date, the industry enterprises have been restructured in order to increase their competitiveness in the global market – mainly to establish contract manufacturing of export products. Companies increase efficiency of manufacturing, develop management skills, establish a competitive salary. A significant part of the funds received from the EU structural funds under the economic development program was used for the reconstruction of infrastructure, modernization of production, introduction of new technologies, innovations and training of personnel.

Statistics

Metalworking and mechanical engineering industry has been continuously developing over the last years; production output of the sector was 1.5 billion euro in 2011 - 1/3 of the total production output of processing industries.

The volume of export was 3 billion euro in 2011, what is for 31% more than in 2010. Almost four-fifths of the total production is exported to about 160 countries of the world. Approximately 75% of products are exported to the EU countries. The largest trading partners of the export of the Latvian production of mechanical engineering and metalworking were Poland, Russia, Germany, Sweden and Denmark in 2011. This is clear indication of the fact that products made in Latvia become more and more popular because they have competitive prices, quality and in terms of delivery time.

About 22.600 people were employed in 1000 enterprises of this industry in early 2012.

Business Opportunities

Mechanical engineering and metalworking provide wide possibilities for business in Latvia, because skilled and experienced professionals are working in the industry, whose salary is on a commensurate level. There are several vocational training centres, delivery of orders is short, small and medium-sized enterprises work responsively and flexibly, modern technologies are applied, which allow improving communication and interchange of data.

ISO 9001-2000 and other quality certificates, which are assigned to the Latvian enterprisers, are essential for the formation of professional and long-term partnership. Besides, the willingness and ability to invest in modernization, improving the knowledge and skills of employees, participation in international exhibitions, fairs and competitions – all of this together helps Latvian metalworking enterprises to develop and compete with the East and West enterprises. Transport situation and logistics favours the enterprises of related industries, because there are three major ports in the country (in Riga, Ventspils and Liepaja), working all year round. The long-term plan includes the most promising manufacturing sub-sector of the electronic equipment, tools (templates and matrices), the production of component parts of vehicles and shipbuilding on a contractual basis. Pipelines, high-tech equipment and goods are in demand. It is possible to expand production in other countries where among other key factors are access to the Western Europe markets and successful correlation between the skills of workers and labour costs.

State Politics

In 2012, funding was made to the Metalworking cluster. The main purpose of the cluster is to increase export and productivity of enterprises. The initiative to create the cluster came from the Association of Mechanical Engineering and Metalworking Industries of Latvia, established in 1994 and bringing together more than 150 enterprises. The project highlights the development of technologies for woodworking, timber industry and power industry, production and projection of light building constructions, as well as the provision of specialized services of metalworking as the area of specialization, where a high level of competitiveness has been already reached and there is potential for export of the production.


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