Amendments on Extending the Tax Incentive Period in the Liepaja SEZ Submitted to the Saeima for Approval

Today, on March 11, the Saeima Budget and Finance (Tax) Committee decided to submit to the Saeima for approval in the third reading the draft law “Amendments to the Law on the Application of Taxes in Free Ports and Special Economic Zones.” During the meeting of the Saeima Budget and Finance Committee Uldis Hmieļevskis, CEO of the Liepaja Special Economic Zone (SEZ), emphasized that extending the current tax framework of the Liepaja SEZ will ensure consistent and clear preconditions for attracting investments and strengthening the region’s competitiveness. This is an essential condition both for the stable development of existing investors and for attracting new ones. The amendments provide that companies operating in the Liepaja SEZ will be able to conclude investment agreements until December 31, 2035, and apply direct tax incentives by December 31, 2050. On February 12 of this year, Saeima already approved extension of the operational term of the Liepaja SEZ until December 31, 2050. Companies operating in the Liepaja SEZ may receive tax incentives against their investments, including an 80% corporate income tax rebate (on dividends) and an 80% real estate tax reduction.