Efficiency of Corporate Income Tax Reliefs for the Investment Promotion in Latvia

Authors

  • Ilmārs Šņucins University of Latvia

DOI:

https://doi.org/10.7250/eb.2013.018

Keywords:

tax reliefs, investments, corporate income tax

Abstract

Corporate income tax rate in Latvia is one of the lowest in the European Union and is favourable for business. However, the government additionally uses numerous CIT reliefs to stimulate investments, to promote specific industries and investors. Total costs of these tax reliefs are high, but many of the goals declared by their introduction are not reached, suggesting that tax relief efficiency could be questioned. The efficiency of the existing and potential CIT reliefs should be regularly evaluated. The suggested criteria for such examination are – clear objective, type of taxable rent, existence of positive externality, appropriate design and potential for tax planning, costs in revenue foregone, administrative burden.

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Published

14.05.2014

How to Cite

Šņucins, I. (2014). Efficiency of Corporate Income Tax Reliefs for the Investment Promotion in Latvia. Economics and Business, 24, 141-146. https://doi.org/10.7250/eb.2013.018