Increased minimum parenting benefit in Latvia from 01.01.2013. - 100,00 Lats

Since 01.01.2013. minium parenting benefit is increased from 63.00 up to 100.00 Lats - it s according to changes in Law on Maternity and Sickness insurance.
Increasing of parenting benefit is just a part from wider complex of improving actions of demographical situtation and starting from January this year minimum parenting benefit to all parents who takes a care of child up to 1,5 years is 100.00 Lats (150.00eur).
According to calculations of ministry - this year there will be necessaary 260 thousands lats for 900 persons this year.
There are also new regulation in civil law for persons who plan to marry. There wil not be necessity to mke publication one month before about wedding - it is because wedding is private and it is not necessary to distribute this information to others.
Starting from this year it is possible to get maried in any place(before ot was possible only in church or civilregistry office), so now young people will be able to married in nature or in museum or at their home.
These and other important changes are necessary because Civil law is made in 1937 and they are too old and can't satisfy necessity of new generations. 

Introducing euro in Latvia

Government of Latvia on year 2013 plan to make campaign on promoting good will of euro. It is because there are plans that starting from 2014 Latvia plan to introduce euro as main currency in Latvia.
For example - introducing euros instead of Latvian Lats poeple think that there can bes lost Latvian identity. But it does not mean so because there will national folk daugther's symbol, on two euro coin there will be first line of anthem of Latvian. We can also see that other European Union countries which introduced euro such as Germany, France, Italy, Estonia and even smallest Vatikan has not lost their identity by using euro instead of crones and franks etc.
Important thing is that since euro will introduced, there will not be fear of devaluation of Latvian Lats. It is also as safatey guarantee for foreign investors, who sometime are not sure about this risk. But since there will be euro in Latvia also foreign investors will be more sure about investment stability.

Changes in Taxes in 2013 in Latvia

Starting from January 1, several Finance Ministry’s managed legal regulations in relation to tax policy will come into force. More about taxes, comapny formation and accounting you can find in our webpage register your company in Europe.
Latvian residents will be mostly affected by the changes to PIT rate: starting from January 1, 2013, the standard rate will be 24%, instead of the current 25%. Starting for July 1, 2013, on the other hand, benefits for dependents will be increased from the current 70 to 80 LVL, informs Finance Ministry.
2013 will also introduce new tax avoidance prevention regulations in relation to taxation of income that comes to PIT payers from their participation in low tax and no tax or territorial associations, trusts or other judicial formations.
In order to limit tax planning for enterprises that avoid paying the salary tax and mandatory social insurance payments, when issuing cash or non-cash advance payments, from now on, advance payments in cash or not cash will be considered equal to an employee’s income if tax payments are not submitted for them within 90 days of the advance payment.
Next year’s state or EU support payments for agriculture and rural development will not be included in the yearly income. Starting from December 31, 2014, however, there will be an extension of the period of time when income, received as a result of reduction of credit obligations, can be considered non-taxable.
!!! Starting from 2013, CIT will not be applied to non-residents’ paid and received dividends. This regulation will not apply to dividends that are paid to low-tax or non-tax state residents. There will also be a central CIT regime on income and losses from sales of shares, except sales of tax or non-tax state shares.
January 1, 2013 will also introduce amendments to the Taxes and Duties Law in relation to restrictions of using cash – the cap will be reduced from 3000 LVL to 1000 LVL. After reaching this cap, it will be necessary to declare the cash transactions. Also, tax payers that carry out economic activities will be required to declare all cash transactions carried out in the previous year with private persons that are not required to register their economic activity, unless the amount of one cash transaction does not exceed 2000 LVL.