previous
next

2 and 3. Manufacturing and Processing Establishments

The profits and advantages derived from the industrial operations of factories, workshops, yards, etc., owned by a foreign enterprise in Latvia are taxable in the same way as profits from commercial business transacted in Latvia, and the rule governing the examination of the accounts of these establishments will be that their profits must correspond to those which a Latvian industrialist would have earned by similar operations.

If the industrial establishment has a commercial establishment attached to it which sells the manufactured goods direct, the whole profit from production, manufacture and sale is taxable.

The empirical method is also applied in this case and, as usual, obeys the general rules already given.

previous
next