CARDIFF FREE PORT
Posted by Jeff Rees on December 22, 2007 12:35 PM | Permalink
Free Port as Special Economic Zone
Since 1997 Latvia has four special economic zones, one of them is Ventspils Free Port. Basically, the special economic zone means a designated territory of Ventspils City, about 2623.9 ha large, 265.9 ha of it is water and the remaining 2357.1 ha - land.
General Description
The companies within the designated territory can act without any restrictions as for general rules applicable in Latvia. In addition they have possibility to acquire a license for operation under free zone status and enjoy tax advantages (see incentives for investors) stipulated by a law On Tax Application in Free Ports and Special Economic Zones.
Tax Incentives
According to the law On Tax Application in Free Ports and Special Economic Zones, licensed companies are entitled to the direct and indirect tax rebates. There are massive tax reductions for indirect taxes like value added tax, excise tax and customs duty.
Direct taxes - Real Estate tax (1.5%) and Corporate tax (15%) are decreased by 80% until compensation of 50% (65% to SMEs) of total investment sum. That actually means that applied Corporate tax rate is 5% and the Real Estate tax 0.3%.
The law On Tax Application in Free Ports and Special Economic Zones, as well as the provided incentives, are entirely in line with the regulations of EU and the decision making process regarding issuing of free zone license and is in force at least till 2017. The incentives are applicable afterwards as well.
To compete, powers of the establishment of Free Ports as Special Economic Zone must be transferred to the Senedd. The Latvian Government is free to legislate competitive advantage for the Latvian economy and Latvian people. A Welsh Government must be able to do the same.
Comments (1)
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Annette Strauch wrote...
We had two visitors from Latvia in Wales for 4 days. They did not like it. It was a culture shock for them. They found it very backward here. We were only sad that they did not appreciate anything really, not even the scenery.
Posted by: Annette Strauch | February 27, 2008 1:59 PM