The Estonian Government have proposed income tax exemptions for donations made to hospitals and other such bodies.
According to the Government, the exemption will apply to donations and gifts to support efforts at corporate hospitals, welfare institutions and state and local government agencies. Normally, donations can only be made tax-free to non-profit associations and foundations that operate in the public interest and which are charitable.
In Latvia, meanwhile, the Government this week approved a Ministry of Finance proposal to exempt donations intended to help prevent the spread of the virus from corporate tax.
Under the plans, the corporate tax exemption will apply to donations of goods and services to entities directly affected by the virus, including companies, associations and foundations. The exemption would apply from the start of the state of emergency until the end of 2020.
Both sets of measures need to be … Read More »
Flat taxes were all the rage in the not-too-distant past. But have they had their day? Latvia seems to have fallen out of love with them.
Flat taxes, normally defined as a single rate of tax on personal or corporate income, or in some cases both, are often associated with Eastern Europe, where countries embraced these supposed pro-growth tax policies as they emerged from the economic straight jacket of the Warsaw Pact. But they are found in all corners of the world, from Abkhazia to Tuvalu.
Nevertheless, it was Eastern Europe that many countries looked to when debating the merits of flat taxes versus progressive taxation, including the United States. Indeed, the region has been something of a massive laboratory performing a mass flat tax experiment.
So what can we glean from the results? To my mind, they are inconclusive. Undoubtedly, flat taxes … Read More »