Tax incentives on investment projects in Latvia
Just recently, Deloitte Latvia Tax team contributed to a great success of one of the leading timber companies in Latvia – Stora Enso Latvija.
With the help of our team`s professional consulting experience and knowledge, Stora Enso Latvija received an approval from the Cabinet of Ministers of the Republic of Latvia for an implementation of a significant investment project worth 16.3 million euros on August 14, 2018. The project aims to improve production efficiency and attract group investments for the production of higher value added products in the future. After a successful implementation of the project, Stora Enso Latvija will be eligible for a tax incentive worth more than 4 million euros.
Since the implementation of investment project support programme, Deloitte Latvia has made a remarkable contribution to the overall programme by preparing almost half of the 37 projects approved by the Cabinet of Ministers so far. Thus, our team has helped to attract almost 400 million euro investments (63% from overall attracted investments amount in the support program), as well as ensured more than 90 million euro tax incentives for businesses in Latvia. The experience and focus of Deloitte Latvia team’s work included the most extensive and complicated projects in various industries with a significant impact on the regional development and overall advancement of the Latvian economy.
Cabinet of Ministers` investment project support programme was introduced in 2011 with the aim to stimulate economic growth by attracting large investment projects to Latvia by providing valuable tax incentives for preapproved investment projects. The programme has made a positive effect on the Latvian economy by creating new jobs, increasing production productivity, expanding export volumes, strengthening competitiveness of Latvian enterprises, and, in the long run, ensuring higher taxes paid to the state budget.
Unfortunately, with the new tax reform coming into force from January 2018, the investment project support programme ceased to exist. On the other hand, experience and knowledge gained within the programme together with access to Deloitte`s international network builds on the professional advantage of our team to assist Baltic companies on applications for European-level investment project competitions such as Horizon 2010 and CEF, that in near future will become more and more valuable for business development.