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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.


Transport and Logistics in Latvia

Market

Since olden days Latvia was a shipping point for international trade due to its geographical position. Transport corridors are crossing Latvia from east to west and from north to south. Analysis of the statistics shows that the main flow of goods, mostly transit is moving from east to west through Latvian ports, connecting Russia, the CIS and Asia countries not only with West Europe, but with the whole world.

The transport infrastructure of Latvia is well developed due to a wide network of railways directly connected with the railway system of the CIS and through the Trans-Siberian Railroad with the Far East. Latvian ports of Ventspils, Riga and Liepaja play an important role in the transit trade. They are a convenient gateway for import and export from Russia and other CIS countries. The strategic location of Riga is an important area of production and consumption in the Baltic States; ice-free ports in Ventspils and Liepaja provide favourable conditions for the transport of crude oil and petroleum products. Special economic zones are formed in the most important Latvian ports in Riga, Liepaja and Ventspils in order to create favourable conditions for attracting new business. The advantage of the Latvian ports is their huge potential, including large, undeveloped resources of ports and their territories.

Despite the fact that the road system in Latvia is quite developed, it is still constantly improving. The government's politics is designed to improve the quality of infrastructure and road safety standards in accordance with international requirements. A major transportation corridor is “Via Baltica”, crossing Latvia in the north-south direction. “Via Baltica” is also a part of the European transport corridor: a road E67 connects European cities such as Helsinki, Tallinn, Riga, Kaunas and Warsaw, as well as Riga, Kaliningrad and Gdansk. Latvian air transport system provides safe, quality and affordable services to Latvian and foreign residents. There are two international airports in the country: International Airport "Riga" and Liepaja International Airport, as well as Ventspils Airport. The International Airport "Riga" is the fastest growing airport in the Baltic States.

Latvia has identified as a priority the development of effective, safe and competitive transport system friendly for the environment. The main aim of long-term development of the transport system of Latvia is the full integration of the transport infrastructure of the country in European transport system. Particular attention is paid to the development of coastal cargo transport and combined transport. Ferry services are developed and will continue to develop in the Baltic Sea, involving the port authorities of Latvia to this activity. The main priority is considered to be the construction and development of industrial parks, logistics centres and distribution of cargo flows.

Statistics

Transport and logistics contribute significantly to GDP in Latvia (13% in 2011). 89% of the turnover at Latvian ports, more than 80% of the turnover on the railways and all the transportation of oil and oil products through a system of trunk pipelines are transit. More than 8% of the working population in Latvia is involved in activities of providing the transportation and servicing of transit goods.

Total cargo turnover at Latvian ports was more than 68 million tons in 2011 (an increase compared to 2010 was 12.3%). Transhipment of containers through Latvian ports continues to increase from year to year: it was processed containerized cargo by 19.1% more in 2011 than in 2010 (3.05 million tons).

Railway transport is one of the most promising types of ground transportation, both in terms of security and ecology. Even today it is of great importance in the economy of Latvia. The volume of railway freight service is about 52% as part of the total volume of the country's traffic, but passenger transport - 9%. International transportation in the structure of rail transport is 98%, mainly from Russia and Belarus in Latvian ports (East-West transit corridor); inland transportation is about 2%, which is explained by the relatively short distances. 59.4 million tons of cargo was transported by the railway overall in 2011.

In recent years, a state-owned company "Riga International Airport" has become one of the fastest growing airports in Europe. 5.1 million of passengers has been served at the airport in 2011 (53% of all passengers in the airports of the Baltic countries), which is for 9.5% more compared to 2010. Reaching a number of 5 million passengers, the airport is now officially belongs to the medium-sized airports according to the division of Airports Council International, which are assessed much higher than the small size of the airport at the international level. The number of direct flights from the airport "Riga" is 65.

Business Opportunities

Large world and European transnational enterprises occupy leading positions in the transport sector in Latvia. They act as a joint venture with the Latvian companies or as independent subsidiaries.

The advantage of the sector is the geographical location of Latvia between east and west. There are large international transport and shipment companies that have the ability and competence to improve the quality and level of transportation services and logistics. There is a well-developed infrastructure of roads, railways, air and maritime transport, as well as the availability of skilled labour force, the majority of whose speak three foreign languages ​​(English, Russian, German) is available in Latvia. IT services of high level are available in the transport sector.

Transport and logistics enterprises in Russia, the CIS and the Far East countries can use Latvia as a transport centre for trade with the countries of the European Union and around the world. There are huge opportunities for investment in logistics services, for instance, in freight forwarding and warehousing services, transportation of cargo and goods, their packaging, labeling, use of convenient facilities and comfortable working conditions in free ports and special economic zones in Latvia. As the opportunities for business development it should be indicated offering of its technological expertise in logistics, solutions and technologies in this field and the infrastructure development.

State Politics

Latvia has legislation fully agreed with the requirements of European Union in the field of transport. Latvian transport network is a part of the Trans-European Transport Network TEN-T. The funds provided by the European Union are used actively to improve transport infrastructure. Today the main priority is to increase the volume of containerized cargo in Latvia. Selection of such a priority was identified by the current situation in the global transport business and politics. An increasing amount of cargo is transported in containers due to their high value-added, providing the Latvian entrepreneurs the opportunity to earn more. It is important to maintain and strengthen the positions in the treatment of dry and liquid bulk cargo, paying special attention to attracting goods from new markets. At the moment active working is carried out with China - the development of Eurasian transport corridor with the aim of becoming a gateway for import of goods from China to the EU. Also, works are carried out to ensure the stable and reliable container transport with Russia - regular railway container transportation between the Latvian ports and Moscow. The Latvian transport infrastructure is used to transfer civilian cargo of the USA to Afghanistan since 2009. Also, the work related to promotion the transit of goods from other member countries participating in NATO through the port of Riga is continuing.


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