On February 18, AmCham President and Board members met with Viktors Valainis, Minister of Economics to discuss issues related to improving the business and investment environment and strengthening economic relations between Latvia and the U.S.

During the conversation, AmCham representatives highlighted the current challenges faced by both individual U.S. investors in Latvia and local companies seeking to attract investors. Investors encounter double taxation on dividends distributed from companies registered in Latvia, as they are unable to benefit from the tax treaty. As a result, investors' profits are taxed both in Latvia and in their country of tax residence, thus creating an additional tax burden for U.S. investors. This hurts Latvia’s competitiveness and ability to attract and retain investment. The Minister to address this issue at the Coordination Council for Large and Strategically Important Investment Projects, led by the Prime Minister. 

"If we want to promote U.S. investments in Latvia, the issue of double taxation needs to be resolved immediately. This is an unnecessary burden on investors that needs to be finally addressed by those responsible," stated Minister Valainis.

During the meeting, discussions also covered the implementation of AI regulation in Latvia, and the significance of AI technology in various sectors, particularly in healthcare, as well as Latvia’s integration into the microchip manufacturing supply chain. Additionally, discussed were other investment climate issues, including the necessary improvements to labor regulation.