On Thursday, 4 April, the Saeima adopted in the final reading amendments to the Law on Application of Taxes in Free Ports and Special Economic Zones. Amendments stipulate that licenced capital companies and free port administrations are entitled to direct tax relief until 31 December 2035.

The period has been extended in order to facilitate attraction of investments, as during the crisis companies in free ports of Ventspils and Riga, as well as companies in special economic zones of Liepāja and Rēzekne could not fully benefit from tax reliefs and attract sufficient amount of investments. The previous wording of the Law set the tax relief period by the end of 2017.

Amendments to the Law set forth that in order to receive state support a capital company should conclude an investment contract with administration of a free port or special economic zone, and that the term of the contract should not exceed five years.

Furthermore, the amendments to the Law prescribe the procedure for applying state support measures in situations when a capital company has not concluded an investment contract with the administration of a special economic zone or free port authority.



Saeima Press Service