JSC Olainfarm will be given corporate income tax exemption for approved long term investments made within the project “Introduction of new products and improved exporting capacity”. This decision was made on the meeting of Cabinet of Ministers held on May 7, and was based on assessment done by the Ministry of Economy about impact such exemption would have on national economy and local competition. It is planned that the total tax exemption could be as high as 5.21 million lats.
“We are glad about such decision our government has made to provide this tax exemption to Olainfarm. It is a very significant support for us to introduce new products and further develop our sales markets,” says Salvis Lapins, Member of the Board of JSC Olainfarm.
The project “Introduction of new products and improved exporting capacity” provides that JSC Olainfarm will introduce several new products and will significantly adjust several production processes and increase production efficiency. In total, within this project JSC Olainfarm will invest 22.95 million lats over the course of five years. Tax exemption will be applicable upon completion of the project.
Part of the investments that JSC Olainfarm will make within this project (5.29 million lats) will be merged with co-funding of European Regional Development Fund approved by Latvian Investment and Development Agency as part of “High Added Value Investments “.
As regulations of both support programmes allow combining tax exemptions with funding approved as part of other programmes and with the respective eligible costs, investmets worth 5.29 million lats supported by LIDA and ERDF are also included in the support programme adopted by the Cabinet.
Since intensity of the support in LIDA’s project approved for JSC Olainfarm is 35% of totas eligible costs and since company qualifies as big commercial company, a tax exemption of 15% will be applied for investments made from project approved by LIDA, while the rate of 25% is applicable to other investments worth 17.65 million lats.
JSC Olainfarm is one of the biggest pharmaceutical companies in Latvia with more than 40 years of experience in production of medication and chemical and pharmaceutical products. A basic principle of company’s operations is to produce reliable and effective top quality products for Latvia and the rest of the world. Products made by the Group are being exported to more than 35 countries of the world, including the Baltics, Russia, other CIS, Europe, Asia, North America and Australia.
Information prepared by:
Member of the Board
Tel: +371 6 7013 717
Cell: +371 2 6448 873