• Anita Puzule Rezekne Higher Education Institution, Rezekne (LV)



Income taxes, municipal taxes, property tax, social insurance contributions, tax policy


Creation and development of a favourable business environment in regions is unthinkable without an appropriate tax system. The research study aims to assess the direct tax system in Latvia comparing it with the tax systems in Estonia, Sweden, Finland and Denmark in order to detect common features and differences, as well as to learn the experience that could be adopted in Latvia. The research tasks are to evaluate criteria of the tax policy and to analyse development directions of the direct tax system. The monographic descriptive method, statistical methods in economics, methods of logic and construction are used in the research. Relationships between the elements of the direct tax are explored, and differences between them are determined in the research; the conclusions that could be considered for the tax system improvement in Latvia are made. Evaluation of the direct tax systems in other countries shows that only distributed profit is subject to the corporate income tax in Estonia. The progressive rates are applied to the personal income tax; non-taxable income is higher; as well the tax distribution among budgets differs. In its turn, social security contributions depend on the financing arrangements of the services provided, and the property tax rates are determined by the municipalities, and they are affected by the location of the property and purpose of its use.


Download data is not yet available.


BOBOC, R.M., ALECU, I.I. (2013). Financial Packages for EU Member States after the Moment of the Economic Crisis. Economics and Finance, 6, p. 3 – 9. Retrieved 28.03.2015 from

Business Disticionary (2015). Direct tax. Retrieved 10.04.2015 from 4w6jRR

Business-Friendly (2015). Tax Rates. Retrieved 28.02.2015 from www.investindk.com Framework%20conditions/Establishing%20a%20regional%20headquarters.ashx

DAVULIS, G. (2009). Analysis of a situation on local taxes in Lithuania. Intelectual Economics, No. 1(5), p. 21–29. (2015). Working and living in Denmark. A brief introduction to tax, social security and immigration. Tax 2015 Retrieved 28.02.2015 from Deloitte%20Working%20living%20in%20Denmark%202015.pdf

EDMARK, K., GORDON, R. (2013). Taxes and the Choice of Organizational Form by Entrepreneurs in Sweden. IFN Working Paper, No. 982. Research Institute of Industrial Economics, p.49.

Employers’ Confederation of Latvia (LDDK) (2014). Nodokļu politikas stratēģija 2015.-2018.gadā. Projekts. Retrieved 08.04.2015 from

Estonian Ministry of Finance (EFM) (2015). Personal income tax. Retrieved 25.03.2015 from personal-income-tax

Estonian Investment Agency (EIA) (2015). Tax system. Retrieved 28.02.2015 from http://www.investinestonia. com /en/investment-guide/tax-system

Estonian Tax and Customs Board (EMTA) (2015). Tax rates. Retrieved 28.02.2015 from /index.php?id=3274

European Union European Commission (2015). Promoting the internal market and economic growth. Retrieved 08.04.2015 from taxation_customs/resources/documents/taxation/gen_info/tax_policy/ taxation_ internal_market_en.pdf

Eurostat (2014a). Taxation trends in the European Union. Publications Office of the European Union, p. 314.

Eurostat (2014b). Gross domestic product at market prices. PPS per inhabitant. Retrieved 20.03.2015 from index.php/National_accounts_and_GDP

KAVALE, L. (2011). Tax Policy under the Conditions of Globalization. Taikomoji ekonomika: sisteminiai tyrimai, issue: 5/2, p. 51-64. Retrieved 28.03.2015 from on

KAVALE, L. (2014). Tax policy in the conditions of changing economy: new challenges after crisis. Pp.637 – 647 Retrieved 28.03.2015 from

KAVALE, L., JOPPE, A. (2008). Nodokļu politikas un administrēšanas pamati. Latvijas Universitāte, 78 lpp.

KETNERS, K. (2007). Nodokļu plānošana. RTU Izdevniecība, 114 lpp.

KETNERS, K., TITOVA, S. (2009). Nodokļu politika Eiropas Savienības vidē. Banku augstskola, 128 lpp.

KRIZ, K.A., MERIKÜLL, J., PAULUS, A., STAEHR, K. (2007). Why do individuals evade payroll and income taxation in Estonia? Tartu University Press, p.40. Retrieved 18.03.2015 from RePEc/mtk/febpdf/febawb49.pdf

Latvian Ministry of finance (FM) (2015). Tax system in Latvia. Retrieved 28.02.2015 from /en/s/taxes/

National Development Plan of Latvia for 2014–2020 (20.12.2012). Decision of the Saeima.

Nordisk e-tax (2015). Tax rates – 2015. Retrieved 28.02.2015 from =files/sve/eng/i07.asp

PEREIRA, A.M., ROCA-SAGALE´S, O. (2011). Long-term effects of fiscal policies in Portugal. Journal of Economic Studies, Vol. 38, No. 1, p. 114-127. Emerald Group Publishing Limited.

PŪLE, B. (2014). Corporate income tax as a tool to promote the development of Latvian reģions. LLU Disertation summary. Retrieved 18.03.2015 from promoc_darba_kopsav_2014_LLU_ESAF.pdf

Regional Development Monitoring and Evaluation Procedures (01.07.2014.) LR MK noteikumi Nr. 367. Retrieved 08.04.2015 from doc.php?id=267737

REŠINA, G. (2011). Nodokļu process kā budžeta resursu veidošanas pamats. LU raksti. Ekonomika. Vadības zinātne, 771.sēj., 237.- 245.lpp.

Statistics Denmark (2015). Local government personal taxation by region and tax rate. Retrieved 28.02.2015 from SelectVarVal/Define.asp?Maintable=PSKAT&PLanguage=1

Valsts reģionālās attīstības aģentūra (VRAA) (2014). Plānošanas reģionu teritorijas attīstības līmeņa indeksi pēc 2013.gada datiem. Retrieved 20.03.2015 from darbiba/attistibas_indekss/

ZELGALVIS, E., JOPPE, A. (2014). National innovation policies and instruments to promote entrepreneurship in the regions. Economic Science for Rural Development, No.33, p.169 – 177. Retrieved 30.03.2015 from

ZVEJNIEKS, A. (1998). Nodokļi un nodevas. RTU Izdevniecība, 412 lpp.