Foreign Free Trade Zones/Free Ports

There are four free trade areas in Latvia: free ports are established in the Riga and Ventspils ports, and special economic zones (SEZ) are created in Liepaja, a port city in western Latvia, and Rezekne, the center of an eastern Latvian region which borders on Russia. The IMF objects to free trade zones on the grounds that they distort competition and create tax collection problems.

Somewhat different rules apply to each of the four zones. In general, the two free ports provide for exemptions from indirect taxes, including exemptions from customs duties, VAT and excise tax. The SEZ offer additional incentives, such as 80-100 percent reduction of corporate income taxes and real estate taxes. In order to qualify for tax relief and other benefits, companies must receive permits and sign agreements with the appropriate authorities: the state joint stock company "Rigas Tirdzniecibas Osta" (Riga Commercial Port) for the free port of Riga; the Ventspils port authority, for the Ventspils free port; or the Liepaja SEZ administration or Rezekne SEZ administration

 

                      Copyright By :  Kish Trade Promotion Center  2002

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