Dear Colleague,

This week:

• Tax-news Headlines
• Latvia
• Bahamas
• Updated - Offshore Service Provider's Directory
• 25% Discount: LowtaxLibrary

I hope you find this update useful. Please remember that you can customise your mailing preferences by visiting your own profile page to choose from 29 offshore tax and law subjects in order to receive just the information you want. You can also unsubscribe completely by following the instructions at the bottom of this page.

Kind regards,

Kate James

Onshore

Latvia

Latvia is in Eastern Europe, bordering the Baltic Sea, between Estonia and Lithuania, and is about the same size as Ireland, with a population of 2.3m, including a substantial Russian minority. Most of the country is flat, with many lakes and rivers. Much is forested. Natural resources are scarce, but Latvia has 531km of coastline, and the ports of Liepaja and Ventspils provide important warm-water harbors on the Baltic. The capital is Riga.

Consolidation of the Latvian nation and development of a common language took place in the 1600s, but Latvia has spent much of its history under foreign rule. As an independent nation since 1991, Latvia joined the European Union in 2004. Latvia is a parliamentary democracy. The Council of Ministers is nominated by the prime minister and appointed by the Parliament.

The 1998 Russian financial crisis was hurtful for Latvia, but the government's budget stringency and a gradual reorientation of exports toward EU countries has lessened Latvia's trade dependency on Russia. Most companies, banks, and real estate have been privatized; Latvia joined the World Trade Organization in February 1999.

Latvia is in Eastern Europe, bordering the Baltic Sea, between Estonia and Lithuania, and is about the same size as Ireland, with a population of 2.3m, including a substantial Russian minority. Most of the country is flat, with many lakes and rivers. Much is forested. Natural resources are scarce, but Latvia has 531km of coastline, and the ports of Liepaja and Ventspils provide important warm-water harbors on the Baltic. The capital is Riga.

Learn more in our full Latvia Knowledgebase.

Directory

For Visitors

Our aim is to offer you the ability to locate a service provider specialising in the field of your choice, in the jurisdiction of your choice, with just a few clicks. We only list confirmed entries to reduce the number of dead-ends and strictly enforce categorisation criteria to ensure that you find exactly the service you are after. As of September 2007 we have begun to implement a new, expanded format to make the directory even more user friendly and comprehensive.

Click here for the new directory home page.

For Service Providers

The Lowtax Offshore Service Provider's Directory offers firms the ability to highlight their services to one of the web's largest specialised tax, legal and offshore audiences. Our visitors include large numbers of corporates and HNWIs. Standard entry in the directory is free as long as your details are kept up to date. Premium entry options are available. Please contact diectory@lowtax.net for further details.

Click here for the new directory home page.

Offshore

Bahamas

Bahamas Central Bank Appoints Inspector Of Bank And Trust Companies, by Amanda Banks, Tax-News.com, London 13/08/2008

Grenada Attends 20th COTA General Assembly, by Amanda Banks, for LawAndTax-News.com, London 31/07/2008

Caribbean Tax Administrators Meet In Belize, by Amanda Banks, Tax-News.com, London 23/07/2008

The Bahamas Are An Independent Nation State

The Bahamas became independent from the UK in 1973, although the Queen remains Head of State. Beginning 50 miles off Florida, in the Caribbean, the Bahamas has 700 islands and a population of 307,000. The official language is English. The capital is Nassau, there are a number of international airports with good connections, and there are excellent port facilities. The climate is sub-tropical. The Westminster-style government is business-friendly. In May 2007, voters brought back former Prime Minister Hubert Ingraham's Free National Movement Party, with 24 of the 41 House of Assembly seats. Prior to the election, which attracted a 90% turnout, the PLP, led by Perry Christie, had been in power since 3rd May, 2002.

Economy Based on Financial Services and Tourism

The Bahamas was a trust and tourist jurisdiction very early in the 20th century, but was relatively late in developing as a financial centre. The economy is heavily dependent on tourism (4m visitors a year), but financial services are growing in importance. GDP was USD8.3bn in 2007, and GDP per head was about USD25,000 in 2007 at PPP, good for the region but not wonderful. According to the IMF, the future for the economy looks bright, with GDP set for 4% growth in 2008 in real terms. Unemployment is a problem, but has eased recently. The Bahamas are very dependent on imports and have a structural trade deficit; recent years have seen budget deficits, which the government will have to address in the context of regional trade liberalisation.

The Bahamas' Stock Exchange

In May 2000, the Bahamas' new stock exchange (BISX) went live, originally with 2 established brokers; by the end of 2005 there were 19 companies listed on the exchange with a capitalisation of around $2.6 billion. The BISX has an upgraded infrastructure from which remote trading across a secure private WAN and the launch of an international segment can take place. However, the exchange has struggled to develop a secure financial base in the absence of promised privatisations.

The Bahamas' Lowtax Specialisations

Leading sectors are banking (about 300 banks with assets near $1 trillion) and mutual funds ($100bn under management). Trust management is also prominent. The insurance sector has assets of $700m. Professional services are excellent. The shipping registry has been very successful for larger vessels.

No Income Tax in the Bahamas!

There is no income tax, capital gains tax, VAT, sales or use tax or wealth tax. Annual government fees are imposed on businesses and there are national insurance, stamp duties and property taxes. Local businesses are controlled by licensing and somewhat protected, although there are good investment incentives in some sectors. Offshore operations take place through International Business Companies or other tax-exempt forms.

Learn more in our full Bahamas Knowledgebase.