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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.


Information and Communication Technologies in Latvia

Market

Sector of information and communication technologies (ICT) in Latvia began to develop in 1960`s, when the Institute of Mathematics and Computer Science and the Institute of Electronics and Computer Science were established, which developed the technology for the Soviet lunar program. The first Internet connection was created in Latvia with the support of UNESCO in 1992, after which the use of computers and the Internet was increasing from year to year. Latvia was one of the five countries with the highest average speed of the Internet in the world (8.8 Mbps) in 2012; the Internet is available to 92.5% of the population.

The main subsectors of ICT are development of software, mobile applications, home pages and payment card systems, localization services, hosting and data centres e-commerce.

Statistics

More than 2900 (including 403 companies providing electronic communications services) companies actively worked in the sector in 2011. Only 57 companies of the sector are the equipment manufacturers, but 2424 companies (97% of the total number of companies) provide services. Number of people employed in the industry exceeded 18 000 employees.

Although the enterprises of ICT sector experienced the financial crisis, the sector`s turnover exceeded the level of 2009 and reached 2.3 billion euro in 2011. The main export partners in the field of ICT sector are the Netherlands and Sweden, the share of export was 15.6% and 12.3% of total export services of the export in 2011.

Business Opportunities

The development of software for the fields of finance and insurance, electronic banking transactions, billing and ERP systems is at a high level in Latvia. Internet banking is one of the most commonly used e-commerce services. Most commercial banks in Latvia have achieved excellent results and currently about 95% of transactions are made in the electronic environment.

Also, the services of supporting business processes are commonly developed. A high level of education, knowledge of foreign languages the relatively low level of wages and the availability of specialists contribute the development of this type of service. In most cases, the customers of the services of supporting business processes are subsidiaries of larger structures and they often provide services for the entire company.

IT consulting and data processing fields develop actively. Promising areas are the development of mobile applications, e-solutions for government, local government and health care, IT outsourcing, hosting and game development.

The Riga IT Centre was opened in July 2012. The main idea of the Demo Centre is not the allocation of products and services to any particular company, but the opportunity to get acquainted with the achievements of the sector as a whole. The Centre was already visited by the international delegations, including the governmental ones, during which the participants of the Latvian IT-market were able to demonstrate their achievements to potential partners.

State Politics

The Latvian Information Technology Cluster actively works in Latvia, established in 2007. The cluster received additional funding from the EU Structural Funds in 2012 for the project “IT KVAP – Information Technology Cluster`s Embassies, Academy, Platforms”. The main aim of the project is increasing the competitiveness of companies and the industry as a whole, the increase in export volumes, strengthening the interaction of companies of the industry, research organizations and educational institutions in order to eliminate the cracks between the demand and supply of specific IT services by creating a network of agencies/embassies abroad, promoting development of a specific technology platform.


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