The Saeima has adopted and the President promulgated the following laws: For the Republic of Latvia and the Japanese Convention on the avoidance of double taxation with respect to income taxes, abusive tax avoidance and tax evasion prevention and its protocols article 1. 2017 January 18, signed in the Republic of Latvia and the Japanese Convention on the avoidance of double taxation with respect to income taxes, abusive tax avoidance and tax evasion prevention (hereinafter referred to as the Convention) and its 2017 January 18, signed the Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. Convention and the fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance. 3. article. The Convention and the Protocol shall enter into force the Convention article 30 within the time and in order, and the Ministry of Foreign Affairs shall notify the official Edition of the "journal". 4. article. The law shall enter into force on the day following its promulgation. With the law put the Convention and Protocol in English and their translation into Latvian language. The Parliament adopted the law of 30 March 2017. The President r. vējonis Riga 2017. on 5 April, the CONVENTION BETWEEN the REPUBLIC OF Latvia AND JAPAN FOR the ELIMINATION OF double TAXATION WITH RESPECT TO taxes ON income AND the PREVENTION OF TAX EVASION AND avoidance-the Republic of Latvia and Japan, further develop their relationship (menu Rngton Line4) to economics and to enhance their co-operation in tax matters, Intending to conclud a Convention for the elimination of double taxation with respect to taxes on income without creating opportunities for non-citizens ' rights or reduced tax evasion or avoidance through tax matters (including through treaty arrangements aimed at obtaining-shopping for the relief provided in this Convention for the indirect benefit of residents of third States), have agreed as follows: article 1 PERSONS COVERED this Convention shall apply 1. persons who are residents of one or both of the Contracting States. 2. For the purpose of this Convention, income derived by or through an entity or through a that is wholly or partly treated as fiscally transparent under the tax law of either Contracting State shall be considered to be income of a resident of a Contracting State but only to the exten the that the income is treated, for the purpose of taxation by that Contracting State as the income of a resident of that Contracting State. In the case of IR the provision of this paragraph be construed so as to restrict them in any way (a) the Contracting State's right to tax the residents of that Contracting State. For the purpose of this paragraph, the term "fiscally transparent" means a situation where, under the tax law of a Contracting State, or of the income of an entity or through thereof is not taxed at the level of the entity or through but at the level of the people who have an interest in that entity or through as if that income or part thereof were directly derived by such person at the time when that income or part thereof is whethers realised or not that income or part thereof is distributed by that entity or through such person it. Article 2 taxes COVERED 1. The existing taxes to which this Convention shall apply to: (a) in the case of Japan: (i) the income tax; (ii) the corporation tax; (iii) the special income tax for development; (iv) the local corporation tax; and (v) the local tax of the inhabitan (hereinafter referred to as "Japanese tax"); and (b) in the case of Latvia: (i) the enterprise income tax; and (ii) the personal income tax (hereinafter referred to as "Latvian tax"). 2. This Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes that have been made in their taxation laws. Article 3 GENERAL DEFINITION 1. For the purpose of this Convention, unless the context otherwise requires: (a) the term "Japan", when used in a location sense, means all the territory of Japan, including its territorial sea, in which the laws relating to the Japanese tax in force, and all the area beyond its territorial sea, including the seabed and subsoil thereof the , over which Japan has sovereign rights in accordanc with international law and in which the laws relating to the Japanese tax in force; (b) the term "United States" means the Republic of Latvia and, when used in a location sense, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which, under the law of the Republic of Latvia and in accordanc with international law, the rights of the Republic of Latvia may be exercised with respect to the seabed and subsoil and their natural resources in it; (c) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Japan, as the context requires; (d) the term "person" includes an individual, a company and any other body of persons; (e) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purpose; (f) the term "enterprise" applies to the carrying on of any business; (g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; (h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term "competent authority" means: (i) in the case of Japan, the Minister of finance or his authorised representative; and (ii) in the case of Latvia, the Ministry of finance or its authorised representative; (j) the term "national", in relations to a Contracting State, means: (i) any individual possessing the nationality of that Contracting State; and (ii) any legal person, partnership or association deriving its status as such from the law in force in that Contracting State; (k) the term "business" includes the performance of professional services and of other activities of an independent character; and (l) the term "pension fund" means any person that: (i) is established under the law of a Contracting State; (ii) is operated principally to administer or provide pension, retirement benefits or other similar remuneration or to earn income for the benefit of other pension funds; and (iii) is main from tax in that Contracting State with respect to income derived from the activities described in clause (ii). 2. As regards the application of this Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Contracting State for the purpose of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning Contracting given to the term under other laws of that Contracting State. Article 4 resident 1. For the purpose of this Convention, the term "resident of a Contracting State" means any person who, under the law of that Contracting State, is liabl to tax therein by reason of his domicile, residence, place of head or main office, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision Contracting or local authority thereof as well as a pension fund of that Contracting State. This term, however, does not include any person who is liabl to tax in that Contracting State in respect only of income from sources in that Contracting State. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident only of the Contracting State in which he has a permanent home available to him; If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident only of the Contracting State with which his personal and economic relations are closer (Centre of vital interests); (b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode; (c) if he has an habitual abode in both Contracting States or in ither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national; (d) if he is a national of both Contracting States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour the determin it by mutual agreement of the Contracting State of which such person shall be deemed to be a resident for the purpose of this Convention, having regard to its place of head or main office , its place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. In the absence of such agreement, such person shall not be entitled to any relief or exemption from tax provided by the Convention. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: (a) a place of management; (b) a branch; (c) an Office; (d) a factory; (e) a workshop; and (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. A building site or construction or installation project constitut a permanent establishment only if it lasts more than twelve months. For the purpose of determining whethers the twelve month period referred to in the first line of this paragraph has been exceeded, where: (a) an enterprise of a Contracting State to one activities in carr the other Contracting State at a place that (a) a building site or the constitut construction or installation project and these activities are carried on during one or more periods of time that , in the aggregate, exceeds 100 30 days without exceeding twelve months, and (b) connected with the activities carried on at the same building site or construction or installation project during different periods of time, each exceeding 30 days, by one or more enterprises closely related to the first-mentioned enterprise, these different periods of time shall be added to the period of time during which the first-mentioned enterprise has carried on activities at that building site or construction or installation project. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any activity not listed in subparagraph (a) to (d), provided that this activity has a features or auxiliary character; or (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraph (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Paragraph 4 shall not apply to (a) a fixed place of business that is used or maintained by an enterprise if the same enterprise or a closely related enterprise carr to one business activities at the same place or at another place in the same Contracting State and: (a) that place or other place a permanent establishment of the constitut for the enterprise or the closely related enterprise under the provision of this article; or (b) the overall activity resulting from the combination of the activities carried on by the two enterprises at the same place, or by the same enterprise or closely related enterprises at the two places, is not of a features or auxiliary character, provided that the business activities carried on by the two enterprises at the same place, or by the same enterprise or closely related enterprises at the two places complementary function of the constitut, are on the cohesiv of a business operation. 6. Notwithstanding the provision of paragraph 1 and 2 but, subject to the provision of paragraph 7, where a person is acting in a Contracting State on behalf of an enterprise and, in doing so, habitually conclud-contracts, or habitually plays the principal role leading to the conclusion of contracts that are concluded without material modification routinely by the enterprise, and these contracts are : (a) in the name of the enterprise; or (b) for the transfer of the ownership of, or for the granting of the right to use, property owned by that enterprise or that the enterprise has the right to use; or (c) for the provision of services by that enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect of any activities which that person undertak-for the enterprise, unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 7. Paragraph 6 shall not apply where the person acting in a Contracting State on behalf of an enterprise of the other Contracting State to one business in the carr first-mentioned Contracting State as an independent agent and acts for the enterprise in the ordinary course of that business. Where, however, a person acts exclusively or almost exclusively on behalf of one or more enterprises to which it is closely related, that person shall not be considered to be an independent agent within the meaning of this paragraph with respect to any such enterprise. 8. For the purpose of this article, a person is closely related to an enterprise if, based on all the relevant facts and, one has control circumstanc of the other or both are under the control of the same person or enterprises. In any case, a person shall be considered to be closely related to an enterprise if one who directly or indirectly for more than 50 per cent of the beneficial interest in the others (or, in the case of a company, more than 50 per cent of the aggregate vote and value of the company's shares or of the beneficial equity interest in the company) or if another person who directly or indirectly for more than 50 per cent of the beneficial interest (or, in the case of a company, more than 50 per cent of the aggregate vote and value of the company's shares or of the beneficial equity interest in the company) in the person and the enterprise. 9. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other Contracting State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other. Article 6 income FROM IMMOVABL PROPERTY 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other Contracting State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovabl property, livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, usufruc of immovabl property and rights to variable or fixed payments as considerations for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. The provision of paragraphs 1 and 3 shall also apply to the income from the immovabl property of an enterprise. Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl Contracting State unless you the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in that other Contracting State but only so much of them as is attributabl to that permanent establishment. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which It is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as a deduction in "of which the expense incurred for the purpose of the permanent establishment, including Executive and general administrative expense so incurred, whethers of in the Contracting State in which the permanent establishment is situated or elsewher. 4. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purpose of the preceding paragraphs of this article, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be only in the taxabl Contracting State a. 2. Notwithstanding the provision of article 2, an enterprise of a Contracting State shall be the main in respect of it in carrying on the operation of ships or aircraft in international traffic from, in the case of an enterprise of the Corporation, the enterprise tax of Japan and, in the case of an enterprise of Japan, any tax similar to the enterprise tax of Japan which is imposed after the date of signature of this Convention in Latvia. 3. For the purpose of this article, profits of an enterprise from the operation of ships or aircraft in international traffic shall include: (a) profits from the rental on a barebo basis of a ship or aircraft; and (b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise, where such rental or such use, maintenance or rental, as the case may be, is it the operations of incidentals ships or aircraft in international traffic carried on by the enterprise. 4. The provision of the preceding paragraph of this article shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting State of the directly or indirectly participat in the management, control or capital of an Enterprise of the other Contracting State, or (b) the same person is directly or indirectly to participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises , then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that Contracting State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been charged to tax in that other Contracting State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Contracting State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other Contracting State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. 3. Notwithstanding the provision of paragraph 1, a Contracting State shall not change the profits of an enterprise of that Contracting State in the referred to in that of circumstanc paragraph after ten years from the end of the year in which the taxabl profits that would be subjected to such change would, but for the conditions referred to in that paragraph , have accrued to that enterprise. The provision of this paragraph shall not apply in the case of fraud or wilful default. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, the dividend paid by a company which is a resident of a Contracting State may be taxed in the also a Contracting State according to the law of that Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the dividends. 3. Notwithstanding the provision of paragraph 2, dividends paid by a company which is a resident of a Contracting State and beneficially owned by a person, other than an individual who is a resident of the other Contracting State shall be only in that others taxabl Contracting State. 4. The provision of paragraphs 2 and 3 shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 5. The provision of paragraph 3 shall not apply in the case of a dividend paid by a company which is entitled to a dividend paid their marbles for it is in computing its taxabl beneficiar income in the Contracting State of which the company paying the dividends is a resident. 6. The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident. 7. The provision of paragraphs 1 to 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment situated therein and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment with. In such case the provision of article 7 shall apply. 8. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other Contracting State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of the other Contracting State or insofar you as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment situated in a, that other Contracting State , nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other Contracting State. Article 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, interest arising in a Contracting State may be taxed in the also a Contracting State according to the law of that Contracting State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State and beneficially owned by a person, other than an individual who is a resident of the other Contracting State shall be only in that others taxabl Contracting State. 4. The provision of paragraph 3 shall not apply to interest that is determined by reference to receipts, sales, income, profits or other cash flow of the debtor or a related person, to any change in the value of any property of the debtor or a related person or to any dividends, partnership distributions or similar payment made by the debtor or a related person. 5. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur as well as others of income that is subjected to the same taxation treatment as income from money lent by the laws of the Contracting State in which the income «arise. Income deal with in article 10 and penalty charges for late payment shall not be regarded as interest, however, for the purpose of this article. 6. The provision of paragraphs 1 to 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest of «arise through a permanent establishment situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provision of article 7 shall apply. 7. Interest shall be deemed to «arise in a Contracting State when the payer is a resident of that Contracting State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed the «arise in the Contracting State in which the permanent establishment is situated. 8. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 12 to 1 to ROYALT Royalt arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall be only in that others taxabl Contracting State. 2. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, any patent, or trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or, or scientific experience. 3. The provision of paragraph 1 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt to «arise through a permanent establishment situated therein and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment with. In such case the provision of article 7 shall apply. 4. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 13 ALIENATION OF PROPERTY 1. Income or gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State may be taxed in that other Contracting State. 2. Gains from the alienation of any property, other than property referred to in immovabl article 6, forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other Contracting State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated by that enterprise in international traffic or any property, other than property referred to in immovabl article 6, pertaining to the operation of such ships or aircraft shall be only in the taxabl Contracting State a. 4. Gains derived by a resident of a Contracting State from the alienation of shares of a company or of interests, such as comparabl interests in a partnership or trust, may be taxed in the other Contracting State if, at any time during the 365 days preceding the alienation, these shares or interests a comparabl derived at least 50 per cent of their value directly or indirectly from immovabl property , as defined in article 6, situated in that other Contracting State, unless the shares or interests in a comparabl traded on a recognised stock exchange specified in subparagraph (b) of paragraph 7 of article 22 and the resident and persons related to the resident own you in the aggregate of 5 per cent or less of the class of the shares or interests is comparabl. 5. Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxabl only in the Contracting State of which the alienator is a resident. Article 14 income FROM employment 1. Subject to the provision of articles 15, 17 and 18, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be only in the taxabl Contracting State unless you the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned Contracting State if: (a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the year concerned taxabl , and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State, and (c) the remuneration is not borne by a permanent establishment which the employer has in the other Contracting State. 3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State. Article 15 directors ' fees directors ' fe and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of Directors, or of a similar organ of a company which is a resident of the other Contracting State may be taxed in that other Contracting State. Article 16 1 ENTERTAINER AND SPORTSPERSON. Notwithstanding the provision of article 14, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from that resident's personal activities as such exercised in the other Contracting State, may be taxed in that other Contracting State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson acting as such notes to the accru entertainer or sportsperson but to another person, that income may, notwithstanding the provision of article 14, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. Article 17 PENSION subject to the provision of paragraph 2 of article 18, the pension and other similar remuneration beneficially owned by a resident of a Contracting State shall be in the Contracting taxabl only you state. Article 18 government service 1 (a), and others of the Salar WAGs similar remuneration paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that Contracting State or a political subdivision or local authority shall be only in the taxabl Contracting State a. (b) However, such salar, WAGs and other similar remuneration shall be taxabl only in the other Contracting State if the services are rendered in that other Contracting State and the individual is a resident of that other Contracting State who: (i) is a national of that other Contracting State; or (ii) did not become a resident of that other Contracting State solely for the purpose of rendering the services. 2. (a) Notwithstanding the provision of paragraph 1, remuneration paid for similar pension and others by, or out of funds which are created by or to which contributions are made by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that Contracting State or a political subdivision or local authority shall be only in the taxabl Contracting State a. (b) However, such pension shall be in and others similar remuneration taxabl only in the other Contracting State if the individual is a resident of, and a national of, that other Contracting State. 3. The provision of articles 14, 15, 16 and 17 shall apply to salar, WAGs, pension, and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or local authority thereof. Article 19 students payments which a student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that Contracting State , provided that such payments «arise from sources outside that Contracting State. The exemption provided by this article shall apply to an apprentice or a trainee only for a period not exceeding one year from the date on which he first begins his training in that Contracting State. Article 20 the silent PARTNERSHIP of the Notwithstanding any other provision of the Convention, any income and gains derived by a silent partner in respect of a silent partnership (in the case of Japan, the Kumi Tokum) contract or another similar contract may be taxed in the Contracting State in which such income and gains «arise and according to the law of that Contracting State. Article 21 OTHER income 1-items of income beneficially. owned by a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl Contracting State a. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the beneficial owner of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provision of article 7 shall apply. 3. Where, by reason of a special relationship between the resident referred to in paragraph 1 and the payer or between both of them and some other person, the amount of the income referred to in paragraph 1 exceeds 100 the amount which would have been agreed upon between them in the absence of such relationship, the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the income shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 22 the ENTITLEMENT TO benefits 1 A resident of a Contracting State shall be entitled to benefits granted by the provision of paragraph 3 of article 10, paragraph 3 of article 11 or paragraph 1 of article 12 if such resident is a qualified person as defined in paragraph 2 (A) resident 2 of a Contracting State is a qualified person only if such resident is either : (a) an individual; (b) the Government of that Contracting State, any political subdivision or local authority thereof or the central bank thereof; (c) a company, if its principal class of shares is regularly traded on one or more recognised stock exchanges. (d) a pension fund, provided that, as of the beginning of the year for which the taxabl claim to the benefit is made, at least 50 per cent of its members or participants beneficiar, with an individual who are residents of either Contracting State; (e) a person established under the law of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if all or part of it may be the main income from tax under the law of that Contracting State; or (f) a person other than an individual, if residents of either Contracting State that the person is qualified by reason of subparagraph (a), (b), (c), (d) or (e) own, directly or indirectly, at least 50 per cent of the voting power or other beneficial interests of the person. 3. A resident of a Contracting State shall be entitled to a benefit granted by the provision of paragraph 3 of article 10, paragraph 3 of article 11 or paragraph 1 of article 12 with respect to an item of income described in the respectiv paragraph if: (a) in the case of a pension fund, as of the beginning of the year for which the taxabl claim to the benefit is made , at least 75 per cent of its members or participants beneficiar, with an individual who is equivalent to the beneficiar; or (b) in all other cases, the persons are equivalent to own, directly or indirectly beneficiar, at least 75 per cent of the voting power or other beneficial interests of that resident. 4. For the purpose of applying the provision of subparagraph (f) of paragraph 2 and subparagraph (b) of paragraph 3, a resident of a Contracting State shall be considered to satisfy the conditions described in such subparagraph only if those resident in those conditions satisf during the twelve month period, including the date of the payment (in the case of a dividend, the date on which entitlement to the dividend is determined). 5. (a) A resident of a Contracting State shall be entitled to a benefit granted by the provision of paragraph 3 of article 10, paragraph 3 of article 11 or paragraph 1 of article 12 with respect to an item of income described in the respectiv paragraph if: (i) the resident is carrying on business in that Contracting State (other than the business of making or managing investments for the resident's own account, unless the business is banking , insurance or securities business carried on by a bank, insurance company or securities dealer); and (ii) the item of income is derived in connection with, or is it that business incidentals. (b) If a resident of a Contracting State of an item of deriv income from a business carried on by that resident in the other Contracting State or of deriv an item of income arising in the other Contracting State from a person that has with the relationship described in subparagraph (a) resident (a) or (b) of paragraph 1 of article 9, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business carried on in the first-mentioned Contracting State is substantial in relations to the business carried on in that other Contracting State. Whethers such business is substantial for the purpose of this subparagraph shall be determined on the basis of all the facts and circumstanc. (c) In determining (a) the person is carrying on whethers business in a Contracting State under subparagraph (a), the business conducted by a partnership in which the person is a partner or the business conducted by the person of such person shall be deemed connected to it to be conducted by such person. (A) a person shall be connected to another if one own directly or indirectly, of at least 50 per cent of the beneficial interests in the other (or, in the case of a company, at least 50 per cent of the voting power of the company) or a third party directly or indirectly, own, at least 50 per cent of the beneficial interests (or , in the case of a company, at least 50 per cent of the voting power of the company) in each person. In any case, a person shall be considered to be connected to another if, on the basis of all the facts and, one has control circumstanc of the other or both are under the control of the same person or persons. 6. A resident of a Contracting State that is not a qualified person entitled under ither nor paragraph 3 or 5 to a benefit granted by the provision of paragraph 3 of article 10, paragraph 3 of article 11 or paragraph 1 of article 12 shall not be entitled to such benefit vertheles if the competent authority of the Contracting State to which the benefit is claimed of determin that the establishment , acquisition or maintenance of such resident and the conduct of its operations did not have as one of the principal purpose the obtaining of such benefit. 7. For the purpose of this article: (a) the term "principal class of shares" means the class or classes of shares of a company in which a majority of the represen voting power of the company; (b) the term "recognised stock exchange" means: (i) any stock exchange established under the terms of the Financial Instrument and Exchange Law (Law No. 25 of 1948) of Japan; (ii) any regulated market pursuan to the directive in 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and directive 2011/61/EU (as amended) or any successors directive; (iii) the Hong Kong exchanges and Clearing, the NASDAQ system, the New York Stock Exchange, Singapore Exchange, SIX Swiss Exchange and the Taiwan Stock Exchange; and (iv) any other stock exchange which the competent authorities of the Contracting States agree the fact for the purpose of recognis of this article; (c) the term "equivalent beneficiary" means any person who would be entitled to a benefit, with respect to the item of income in respect of which the benefit of this Convention a Contracting State is claimed it, granted by that Contracting State under the law of that Contracting State, this Convention or any other international instrument, provided that such benefit is equivalent to the benefit to be granted to that item of income under the Convention. 8. Notwithstanding the other provision of this Convention, (a) a benefit under the Convention shall not be granted in respect of an item of income if it is reasonable, having regard to conclud it all relevant facts and, that obtaining circumstanc that benefit was one of the principal purpose of any transaction or through that resulted directly or indirectly in that the benefit , unless it is established that granting you the benefit in these would be in accordanc circumstanc's with the object and purpose of the relevant provision of the Convention. Article 23 ELIMINATION OF double TAXATION 1. Subject to the provision of the law of Japan regarding the allowance as a credit against tax of tax payable Japanese in any country other than Japan, where a resident of Japan's income from deriv Corporation which may be taxed in Latvia in accordanc with the provision of this Convention, the amount of the Latvian tax payable in respect of that income shall be allowed as a credit against the tax imposed in Japanese on that resident. The amount of credit, however, shall note 12 the amount of the Japanese tax which is appropriate to that income. 2. Where a resident of Latvia's income which, deriv in accordanc with the provision of this Convention, may be taxed in Japan, unless a more a favourabl treatment provided in the law of Latvia is applicable to the resident, Latvia shall allow as a deduction in "from the Latvian tax of that resident, an amount equal to the tax paid thereon in Japanese in Japan. Such notes shall, however, exceeds 100 Marbles that on of the Latvian tax, as computed before the deduction in "is given, which is attributabl to the income which may be taxed in Japan. Article 24 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other Contracting State in the same, in particular with circumstanc respect their residence, may be subjected to or. The provision of this paragraph shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. a person who with Stateles of residents of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other Contracting State in the same, in particular with circumstanc respect their residence, may be subjected to or. 3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. The provision of this paragraph shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. 4. Except where the provision of paragraph 1 of article 9, paragraph 8 of article 11, paragraph 4 of article 12 or paragraph 3 of article 21 apply, interest, and other disbursement royalt paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise , be under the same-deductibl condition as if they had been paid to a resident of the first-mentioned Contracting State. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned Contracting State may be subjected to or. 6. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description imposed on behalf of a Contracting State or of its political subdivisions or local authorities. Article 25 MUTUAL agreement procedure 1-where a person consider. that the actions of one or both of the Contracting States result or will result for him in taxation not in accordanc with the provision of this Convention, he may, irrespectiv of the remedies provided by the domestic law of those Contracting States, present his case to the competent authority of either Contracting State. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the Convention. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the provision of this Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of this Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States the may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs of this article. 5. Where, under paragraph 1 (a), (a) the person has presented a case to the competent authority of a Contracting State on the basis that the actions of one or both of the Contracting States have resulted for that person in taxation not in accordanc with the provision of this Convention, and (b) the competent authorities shall be unable to reach an agreement to resolve that case pursuan to paragraph 2 within two years from the presentation of the case to the competent authority of the other Contracting State, any unresolved issues arising from the case shall be submitted to arbitration if the person so requests. These unresolved issues shall not, however, be submitted to arbitration if a decision on these issues has already been rendered by a court or administrative tribunal of either Contracting State. Unless a person directly affected by the case does not accept the mutual agreement that implements the arbitration decision shall be binding, that decision on both Contracting States and shall be implemented notwithstanding any time limits in the domestic law of these Contracting States. The competent authorities of the Contracting States shall by the mutual agreement settle the mode of application of this paragraph. Article 26 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is foreseeably relevant for carrying out the provision of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2. Any information received under paragraph 2 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that Contracting State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of , the enforcement or prosecution in respect of, the determination of the appeal in relations to the taxes referred to in paragraph 1, or the oversigh of the above. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purpose when such information may be used for for such other purpose under the law of both Contracting States and of the competent authority of the Contracting State supplying the information of such use authoris. 3. In no case shall the provision of of paragraphs 1 and 2 be construed so as to impost on a Contracting State the obligation: (a) to carry out administrative measure's at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy; (d) to obtain or provide information that would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are: (i) produced for the purpose of seeking or providing legal advice; or (ii) produced for the purpose of use in existing or contemplated legal proceedings. 4. If information is requested by a Contracting State in accordanc with this article, the other Contracting State shall use its information gathering "to obtain the requested information, even though that other Contracting State may not need such information for its own tax purpose. The obligation in the preceding line led is subject to the limitations of paragraph 3 but in no case shall such limitations from be construed to permit a Contracting State to supply information to declin solely because it has from the domestic interest in such information. 5. In no case shall the provision of of paragraph 3 be construed to permit a Contracting State to supply information solely to declin because the information is held by a bank, other financial institution, or a person acting in nomine an agency or a fiduciary capacity or because it relate to ownership interests in a person. Article 27 assistance IN the COLLECTION OF taxes 1. The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by articles 1 and 2. The competent authorities of the Contracting States the may by mutual agreement settle the mode of application of this article. 2. The term ' revenue claim ' as used in this article means an amount owed table in respect of the following tax, insofar as the taxation thereunder is not contrary to this Convention or any other instrument to which the Contracting States are parties, as well as interest, administrative penalties and costs of collection or conservancy related to such amount: (a) in the case of Japan : (i) the taxes referred to in (i) the services (iv) of subparagraph (a) of paragraph 1 of article 2; (ii) the special corporation tax for development; (iii) the consumption tax; (iv) the local consumption tax; (v) the inheritance tax; and (vi) the gift tax; (b) in the case of Latvia: (i) the taxes referred to in subparagraph (b) of paragraph 1 of article 2; (ii) the value added tax; and (iii) the property tax immovabl; (c) any other tax as may be agreed upon from time to time between the Governments of the Contracting States through an exchange of diplomatic notes; (d) any identical or substantially similar taxes that are imposed after the date of signature of this Convention in addition to, or in place of, the taxes covered by subparagraph (a), (b) or (c). 3. When a revenue claim of a Contracting State is a enforceabl under the law of that Contracting State and is owed table by (a) a person who, at that time, cannot, under the law of that Contracting State, prevent its collection, that revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for the purpose of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other Contracting State in accordanc with the provision of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other Contracting State that met the conditions allowing that other Contracting State to make a request under this paragraph. 4. When a revenue claim of a Contracting State is a claim in respect of which that Contracting State may, under its law, take the measure of the conservancy with a view to ensur it collection, that revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for the purpose of taking measure of conservancy by the competent authority of the other Contracting State. That other Contracting State shall take measure of conservancy in respect of that revenue claim in accordanc with the provision of its laws as if the revenue claim were a revenue claim of that other Contracting State even if, at the time when such measure with applied, the revenue claim is not enforceabl in the first-mentioned Contracting State or is owed table by (a) a person who has a right to prevent its collection. 5. Notwithstanding the provision of paragraph 3 and 4, a revenue claim accepted by the competent authority of a Contracting State for the purpose of paragraph 3 or 4 shall not, in that Contracting State, be subject to the time limits or accorded any priority applicable to a revenue claim under the laws of that Contracting State by reason of its nature as such. In addition, a revenue claim accepted by the competent authority of a Contracting State for the purpose of paragraph 3 or 4 shall not, in that Contracting State, have any priority applicable to that revenue claim under the laws of the other Contracting State. 6. the acts carried out by a Contracting State in the collection of a revenue claim accepted by the competent authority of that Contracting State for the purpose of paragraph 3 or 4 which if they were carried out by the other Contracting State would have the effect of suspending or interrupting the time limit applicable to the revenue claim in accordanc with the law of that other Contracting State shall have such effect under the law of that other Contracting State. The competent authority of the first-mentioned Contracting State shall inform the competent authority of the other Contracting State of having carried out such acts. 6. Proceedings with respect to the validity or the existenc, the amount of a revenue claim of a Contracting State shall not be brough before the courts or administrative bodies of the other Contracting State. 8. Where, at any time after a request has been made by the competent authority of a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned Contracting State, the relevant revenue claim cease to be (a) in the case of a request under paragraph 3, a revenue claim of the first-mentioned Contracting State that is a enforceabl under the law of that Contracting State and is by a person who owed table, at that time, cannot, under the law of that Contracting State, prevent its collection, or (b) in the case of a request under paragraph 4, a revenue claim of the first-mentioned Contracting State in respect of which that Contracting State may, under its law, take the measure of the conservancy with a view to ensur it collection the competent authority of the first-mentioned Contracting State shall promptly notify the competent authority of the other Contracting State of that fact and, at the option of the competent authority of the other Contracting State, the competent authority of the first-mentioned Contracting State shall either suspend or withdraw its request. 9. In no case shall the provision of of this article be construed so as to impost on a Contracting State the obligation: (a) to carry out administrative measure's at variance with the laws and administrative practice of that or of the other Contracting State; (b) to carry out the measure of which would be contrary to public policy; (c) to provide assistance if the other Contracting State has not pursued all reasonable measure of collection or conservancy, as the case may be, available under its laws or administrative practice; (d) to provide assistance in those cases where the administrative burden for that Contracting State is clearly disproportionat to the benefit to be derived by the other Contracting State. Article 28 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this Convention shall be affec the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 29 headings the headings of the articles of this Convention are inserted for reference only and convenienc of shall not be affec the interpretation of the Convention. Article 30 ENTRY into force 1 this Convention shall be approved. in accordanc with the legal procedures of each of the Contracting States and shall enter into force on the date of exchange of diplomatic notes indicating such approval. 2. This Convention shall have effect: (a) in the case of Japan: (i) with respect to the taxes levied on the basis of a year, for taxes taxabl for any year beginning on the taxabl or after 1 January in the calendar year next following that in which the Convention enter into force; and (ii) with respect to taxes levied not on the basis of a year, for the taxabl tax levied on or after 1 January in the calendar year next following that in which the Convention enter into force; and (b) in the case of Latvia: (i) with respect to taxes withheld at source, on income derived on or after 1 January in the calendar year next following that in which the Convention enter into force; and (ii) with respect to other taxes, for taxes chargeabl for any year beginning on or after taxabl 1 January in the calendar year next following that in which the Convention enter into force. 3. Notwithstanding the provision of paragraph 2, the provision of articles 26 and 27 shall have effect from the date of entry into force of this Convention without regard to the date on which the tax is levied by or the taxabl year to which the taxes relate. Article 31 TERMINATION this Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention by giving notice of termination through diplomatic channels to the other Contracting State at least six months before the end of any calendar year beginning after expiry of five years from the date of entry into force of the Convention. In such event, the Convention shall cease to the have effect: (a) in the case of Japan: (i) with respect to the taxes levied on the basis of a year, for taxes taxabl for any year beginning on the taxabl or after 1 January in the calendar year next following that in which the notice is given; and (ii) with respect to taxes levied not on the basis of a year, for the taxabl tax levied on or after 1 January in the calendar year next following that in which the notice is given; and (b) in the case of Latvia: (i) with respect to taxes withheld at source, on income derived on or after 1 January in the calendar year next following that in which the notice is given; and (ii) with respect to other taxes, for taxes chargeabl for any year beginning on or after taxabl 1 January in the calendar year next following that in which the notice is given. In WITNESS WHEREOF the undersigned, being duly authorised by their Governments of the respectiv theret, have signed this Convention. Done in duplicate at Tokyo this 18th day of January, 2017 in the English language.  
For the Republic of Latvia Dana Reizniec – Minister of finance oak For Japan of the Parliamentary Takisaw Motom Vice-Minister for Foreign Affairs PROTOCOL At the signing of the Convention between the Republic of Latvia and Japan for the Elimination of Double Taxation with respect to taxes on income and the Prevention of Tax Evasion and avoidance (hereinafter referred to as "the Convention"), the Republic of Latvia and Japan have agreed upon the following provision which shall form an integral part of the United Nations Convention. 1. With reference to article 7 of the Convention: (a) paragraphs 1 to 6 of article 7 of the Convention shall be deleted and replaced by the following provision on the date to be agreed between the Governments of the Contracting States through an exchange of diplomatic notes: "1. the Profits of an enterprise of a Contracting State shall be only in the taxabl Contracting State unless you the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits that are attributabl to the permanent establishment in accordanc with the provision of paragraph 2, may be taxed in that other Contracting State. 2. For the purpose of this article and article 23, the profits that are attributabl in each Contracting State to the permanent establishment referred to in paragraph 1 with the profits it might be expected to make, in particular in its dealing with other parts of the enterprise, if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions , taking into account the functions performed, the assets used and risks assumed by the enterprise through the permanent establishment and through the other parts of the enterprise. 3. Where, in accordanc with paragraph 2, (a) the Contracting State will adjust the profits that are attributabl to a permanent establishment of an enterprise of one of the Contracting States and taxes accordingly profits of the enterprise that have been charged to tax in the other Contracting State, that other Contracting State shall, to the exten the cessary to eliminat not double taxation on these profits , make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, the competent authorities of the Contracting States shall if the cessary not consult each other. 4. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article. " (b) the provision of paragraph 1 to 4 of article 7 of the Convention as amended by the provision of subparagraph (a) shall be applicable with respect to the profits of an enterprise for any year beginning on the taxabl or after the date to be agreed between the Governments of the Contracting States through the exchange of diplomatic notes referred to in subparagraph (a). Until the provision of paragraphs 1 to 4 of article 7 of the Convention as amended by the provision of subparagraph (a), the applicable provision of the original paragraphs 1 to 6 of article 7 of the Convention shall continue to apply. 2. With reference to paragraph 5 of article 25 of the Convention: (a) the competent authorities of the Contracting States shall by the mutual Agreement establish a procedure in order to ensur that an arbitration decision will be implemented within two years from a request for arbitration as referred to in paragraph 5 of article 25 of the Convention unless the actions or inactions of a person directly affected by the case in respect of which the request for arbitration has been made hinder the resolution of the case or unless the competent authorities of the Contracting States and the persons that otherwise agree. (b) An arbitration panel shall be established in accordanc with the following rules: (i) An arbitration panel shall consis of three arbitrator who the individual with expertise or experience in international tax matters. (ii) Each of the competent authorities of the Contracting States shall the appoin one arbitrator, whethers he is a national of either Contracting State or not. The two appointed by the arbitrator to the competent authorities of the Contracting States shall be appoin the third arbitrator who shall serve as the chair of the arbitration panel in accordanc with the procedures agreed by the competent authorities of the Contracting to States. (iii) the arbitrator shall be an employee of the tax authority of either Contracting State, nor have to deal with the case in respect of which the request for arbitration has been made in any capacity. The third arbitrator shall not be a national of either Contracting State, nor have his usual place of residence had in either Contracting State, nor have been employed by either Contracting State. (iv) the competent authorities of the Contracting States shall ensur the that all will agree, the arbitrator in statements sent to each of the competent authorities of the Contracting States, the prior to their acting in an arbitration proceedings, abid by and be subject to the same confidentiality and non-disclosure obligation as those described in paragraph 2 of article 26 of the Convention and under the law of the Contracting States. (v) Each of the competent authorities of the Contracting States shall the bear the costs of its appointed arbitrator and its own expense. The costs of the third arbitrator and others expense of associated with the conduct of the arbitration proceedings shall be borne by the competent authorities of the Contracting States in the equal share. (c) the competent authorities of the Contracting States the shall provide the information without cessary for the arbitration decision to all without delay of the undu arbitrator. (d) An arbitration decision shall be treated as follows: (i) An arbitration decision has precedential value from. (ii) An arbitration decision shall be final, unless that decision is found to be unenforceable by a Court of either Contracting State due to a violation of paragraph 5 of article 25 of the Convention, of this paragraph or of any procedural rule determined in accordanc with subparagraph (a) that may reasonably have affected the decision. If the decision is found to be unenforceable due to the violation, the request for arbitration shall be considered not to have been made and the arbitration process shall be considered not to have taken place (except for the purpose of services (iv) and (v) of subparagraph (b)). (e) where at any time before the arbitration panel has delivered a decision on a case to the competent authorities of the Contracting States and to the the person who made the request for arbitration in respect of the case: (i) the competent authorities of the Contracting States to the reach a mutual agreement to resolve the case of the paragraph 2 pursuan article 25 of the Convention; or (ii) that person will withdraw the request for arbitration; or (iii) a decision concerning the case is rendered by a court or administrative tribunal of either Contracting State during the arbitration proceedings, the procedures under article 25 of the Convention in respect of the case shall terminate. (f) where a case in respect of which a request for arbitration has been made is pending in litigation or appeal, the mutual agreement that implements the arbitration decision on the case shall be considered not to be accepted by the person directly affected by the case if any person directly affected by the case who is a party to the litigation or appeal does not withdraw , within 60 days after receiving the decision of the arbitration panel, from the considerations by the relevant court or administrative tribunal all issues resolved in the arbitration proceedings. In this case, the case shall not be eligible for any further considerations by the competent authorities of the Contracting to States. (g) the provision of paragraph 5 of article 25 of the Convention and this paragraph shall not apply to cases falling within paragraph 3 of article 4 of the Convention. In WITNESS WHEREOF the undersigned, being duly authorised by their Governments of the respectiv theret, have signed this Protocol. Done in duplicate at Tokyo this 18th day of January, 2017 in the English language.  
For the Republic of Latvia Dana Reizniec – Minister of finance oak For Japan of the Parliamentary Takisaw Motom Vice-Minister for Foreign Affairs of the non-official translation into Latvian language Latvian and Japanese Convention on the avoidance of double taxation with respect to income taxes, abusive tax avoidance and tax evasion prevention and Japan the Republic of Latvia, the people's willingness to further develop their economic relations and strengthen their cooperation on tax matters in order to conclude a Convention for the avoidance of double taxation with respect to income taxes, not to tax or tax reduction suspension options, using abusive tax avoidance or tax evasion (including the Tax Convention with the best terms (treaty-shopping) for the purposes of this Convention, the benefits to be derived by residents of third countries), have agreed as follows: article 1 persons covered this Convention 1, the CONVENTION applies to persons that is one or both of the Contracting States residents. 2. for the purposes of this Convention, the entity or legal arrangement that is considered fully or partially fiscally transparent under a Contracting State tax laws or using such units or formations are considered to be income of a resident of a Contracting State, but only to the extent that this income is considered to be a resident of that Contracting State for that Contracting State, of income for taxation purposes. In any case, this part shall not be interpreted as in any way limiting the right of a Contracting State to any taxation of the residents of a Contracting State. In this part, the term "fiscally transparent" means the situation, where a Contracting State in accordance with the tax laws of business entities or legal arrangement or part of income subject to tax, not the entity or legal arrangement, but the person's participation in the entity or legal arrangement, level, as all or part of this income these persons would be made at a time when such income or part thereof is received regardless of If the entity or legal arrangement has or has not paid all or part of the income of such persons. Article 2 taxes covered by the Convention 1 the existing taxes to which this Convention applies: (a)) in Japan: (i) income tax; (ii) corporate tax; (iii) the Special income tax for reconstruction; (iv) local business tax; and (v) local residents tax (hereinafter referred to as "Japanese tax"); and (b)): (i) corporate income tax; and (ii) the individual income tax (hereinafter referred to as "Latvian tax"). 2. This Convention shall apply also to any identical or substantially similar taxes which, supplementing or replacing the existing taxes are introduced after the date on which the Convention is closed for signature. The competent authorities of the Contracting States inform each other of any substantial amendments made to the national tax legislation. Article 3 General definitions 1. In this Convention, unless the context otherwise not apparent: a) the term "Japan", used in a geographical sense, represents the entire Japanese territory, including its territorial sea, in which the legislation is in force in respect of all the taxes and the Japan zone beyond the territorial sea, including the land and sea depths to which Japan is a sovereign right under international law and that the laws of Japan; (b)), the term "Latvia" means the Republic of Latvia, and, used in a geographical sense, it represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the laws of the Republic of Latvia and international law can be implemented in the Republic of Latvia the right to land and sea depths and natural resources contained therein; (c) the terms "a Contracting State)" and "the other Contracting State", depending on the context, mean Latvia or Japan; (d)) the term "person" means an individual, a company and any other Association of persons; e the term "company") means any association or any corporate entity for taxation purposes is considered a corporate Association; (f)), the term "enterprise" applies to any business; g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; h) the term "international traffic" means any transport by a ship or aircraft by an enterprise of a Contracting State except where the ship or aircraft is operated solely by the other Contracting State; I) the term "competent authority" means: (i) in Japan, the Minister of finance or his authorised representative; and (ii) in Latvia, the Ministry of finance or its authorised representative; (j) the term "national") in relation to a Contracting State means: (i) any natural person who is a national of that Contracting State; and (ii) any legal person, partnership or association, whose status as the result of this Contracting State applicable regulatory enactments; k) the term "business" includes professional service and other forms of independent nature of the provision of services; and l) the term "pension" means any person who: (i) established under the laws of a Contracting State; (ii) are mainly managed to administer or provide pension, retirement benefits or other similar remuneration or income gained from other pension funds; and (ii) is exempt from tax in that Contracting State in respect of income derived from (ii) the activities mentioned in points. 2. as regards the application of this Convention any Contracting State shall, for all the undefined terms has the meaning to them at the time of the relevant Contracting State laws relating to taxes covered by the Convention, unless the context is otherwise, and the risk‐adjusted Contracting State the relevant tax laws take precedence over the intended meaning of this Contracting State legislation. Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means any person who, in accordance with the laws of a Contracting State shall be subject to taxes based on their place of residence, residence or main office location, place of management or any other similar criteria, and also includes the Contracting State and any political or administrative units of local government, as well as the Pension Fund of a Contracting State. However, this term does not include those individuals in this state tax is imposed only in respect of their income from this country to the existing sources of profit. 2. Where, in accordance with the provisions of part 1 an individual is a resident of both Contracting States, its status would be as follows: (a) the person is considered to be) only for the resident of the Contracting State in which the permanent residence available; If the permanent residence, it is available in both Contracting States, the person is considered only as a resident of the Contracting State with which it has a deeper personal and economic relations (Centre of vital interests); (b)) if it is not possible to identify the Contracting State that that person is a vibrant centre of interests, or it does not have a permanent place of residence, it is available in any Contracting State, that person is considered only as a resident of the Contracting State which has its usual home; c) if that person normally resident (domicile) is in both Contracting States, or is not in one of them, it is considered only as a resident of the Contracting State of which that person is a national; (d)) if that person is a national of both Contracting national or no, this national The competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of part 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to determine by common accord the Contracting State whose residents will be considered for the application of this Convention, that person's objectives, taking into account its head or main office location, its efficient management location, the place where it is incorporated or otherwise constituted and any other relevant facts. If such an agreement does not exist, this person is not entitled to any tax provided for in this Convention to the relief or exemption. Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of the company which fully or partially established. 2. The term "permanent establishment", mainly include: (a)) control location; b) branch; c) Office; (d) a factory;) e) workshop; and (f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. A building site or construction or installation project constitutes a permanent establishment only if they take longer than twelve months. To determine whether the first sentence of this part of the twelve-month period has been exceeded, if: (a) the Contracting State) company doing business in the other Contracting State in which the place considered the construction site or construction or installation project, and these actions are performed in one or more time periods that exceed 30 days in total, not exceed the 12-month period, and (b)) related activities are carried out at the same construction site or building or installation project in different time periods, each of which exceeds 30 days, by one or more companies that are closely related to the first, the company mentioned that the various time periods are added to the time period in which the first, the company has made the business into the construction site or construction or installation project. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only the goods belonging to, or for the storage of the products demonstrated or delivery; (b)) or of the goods belonging to the inventory of products which are intended only for storage, playback or delivery, maintenance; (c)) or of the goods belonging to the inventory of products that are used only for processing by other companies, maintenance; (d) the place of establishment), intended only for the goods or products shopping or gathering of information needs; e) place of business in, intended only to conduct business in any activity that is not listed in points (a) to (d))), if this transaction is preparatory or auxiliary character; or f) place of business in, intended only to make a) to (e)) the activities mentioned in points in any combination, if the place of business of a particular set of actions resulting from this combination is of a preparatory or auxiliary character. 5. part 4 does not apply to determine the business site, used or maintained by an enterprise if the same company or closely related company does business in the same or in a different location in the same Contracting State and: (a)) this or other place shall be considered as the company or closely related to the permanent representation of the company in accordance with the provisions of this article; or (b)) to the set of actions arising from the activities carried out by the combination of the two companies in the same position or the same company, or closely related companies in two places, there is no preparation or ancillary nature, if the business is carried out by two companies in the same place or in the same company, or closely related companies in two places, is considered more functions that are part of a single economic transaction. 6. Notwithstanding paragraph 1 and 2 of the Protocol, but in accordance with the provisions of part 7, if a Contracting State acting on behalf of the company and, in so doing, the permanent contracts or permanently has a key role in the conclusion of contracts, which are frequently closed without significant amendments made by the company, and these contracts are closed: a) company name; or (b)) for the transfer of ownership or the granting of rights of use in relation to that company's own assets or in relation to things that use rights is this company; or (c)) for the provision of services by this company, it is considered that this company has a permanent establishment in a Contracting State in respect of any activities which that person carries out on behalf of the company, unless such person is not limited to 4 following, in part, that, in the case of using a particular place of business, do not make this fixed place of business a permanent establishment under the provisions of this part. 7. Part 6 shall not apply if the person acting in a Contracting State in the other Contracting State, carries on business in the name of the first Contracting State as the independent agent and acting on behalf of their usual business. However, if the person acts exclusively or almost exclusively in one or more of the company, with which it is closely related, that person will not be considered an agent of an independent status within the meaning of this part in respect of any such company. 8. For the purposes of this article a person is closely associated with the company, where, on the basis of all relevant facts and circumstances, it controls the company, or both are controlled by the same person or company. In any case, a person regarded as closely connected with the company, if the person has, directly or indirectly, more than 50 percent participation in a company (or, in the case of the company, more than 50 percent of the total vote and the company's stock or equity participation) or if another person has, directly or indirectly, more than 50 percent participation in (or, in the case of the company, more than 50 percent of the total vote and the company's stock or equity participation) personal and enterprise. 9. The fact that the company-a resident of a Contracting State, controlled by the society, which is the territory of the other Contracting State resident or established in the other country (with the permanent representations, or in any other way), or controlled by the company, this in itself does not mean that any of these companies is the second permanent representation of society. Article 6 INCOME from real property 1. income which a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may impose taxes in the second Contracting State. 2. The term "immovable property" shall have the meaning which it has its laws and regulations of a Contracting State in which the property concerned is located. In any case, this term covers property which belongs to real estate property including livestock and equipment used in agriculture and forestry, rights to which the land property the General rules for the use of real property and rights to variable or fixed payments as consideration for the mineral deposits, natural ore and other natural resources, or the right to use them; vessels and aircraft are not considered real estate. 3. the provisions of part 1 apply to the income gained from the immovable property of the direct use, letting or use in any other way. 4. parts 1 and 3 terms also apply to the income from immovable property of the company. Article 7 business profits 1. Contracting State company profits are taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment there. If the enterprise carries on business in that way, the company's profits may be subject to taxes in the second Contracting State but only to the profit, which can be attributed to the permanent establishment. 2. in accordance with the provisions of part 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the profit margins, as it would if it had been separated and independent company that performs the same or similar business activities under the same or similar conditions and independently carry out transactions with the company that it is a permanent establishment. 3. in determining the profits of the permanent representation are allowed to deduct the expenses incurred for the purposes of permanent representation in the Contracting State in which it is situated, or elsewhere, including operational and general administrative costs. 4. On the permanent representation of the profits not only because it has purchased the goods or products for the company, which is the permanent representation. 5. for the purposes of applying this article, the provisions of the preceding paragraph, the profits attributable to the permanent establishment shall be determined each year by the same method, except if there is good and sufficient reason to act otherwise. 6. If the profit is included in the other articles of this Convention, see income separately, this article shall not affect the other provisions of this article. Article 8 shipping and air TRANSPORT 1. Contracting State company profits of ships or aircraft in international traffic, the use of taxable only in that Contracting State. 2. Notwithstanding the provisions of article 2 in respect of ships or aircraft in international traffic, the use of a Contracting State is exempt, the Latvian company in the case of the Japanese companies and the Japanese company in the event of any Japanese companies tax similar to the tax, introduced after the date of signature of this Convention in Latvia. 3. for the purposes of this article, the company's profit of ships or aircraft in international traffic shall include the use of: (a)) profit from ships or aircraft leasing, hiring them without crew and supply; and (b)) profit from containers (including trailers and related equipment for the transport of containers) use, maintenance or rental of products or for the transport of the products, where such rental or such use, maintenance or rental occurs in addition to the ships or aircraft in international traffic to use by the company. 4. the previous part of this article, the rules also apply to profits from the participation in a pool, joint business or international traffic transport agency. Article 9 ASSOCIATED enterprises 1. If a Contracting State) directly or indirectly participate in the company of the other Contracting State, in the controls or owns part of the company's capital, or b) the same persons directly or indirectly participating in the enterprise of a Contracting State in the other Contracting State and enterprise management, controls or owns part of the company's capital, and in any of these cases, these two companies in commercial or financial relations are created or established by the rules different from those provisions that the force between two independent enterprises, then any profits which would, but for one of the companies affected by the above provisions did not have, can be included in the company's profits, and it may be appropriate to impose taxes. 2. where a Contracting State includes in the profits of an enterprise of a Contracting State and taxed accordingly, it profits in respect of which the other Contracting State in the other Contracting State, the company has been taxed, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two independent companies, the other Contracting State shall make appropriate adjustments for the size of the tax What are the gains of the other country. In determining this adjustment, take into consideration other provisions of this Convention and, if necessary, the competent authorities of the Contracting States for consultations. 3. Notwithstanding the provisions of part 1, Contracting State not party to this corporate adjustment in the cases mentioned in this paragraph after ten years from the end of the taxation year in which the profits that would be adjusted as follows, would be formed if the company would not exist in that part of the specified conditions. This part does not apply to cases of fraud or intentional delay. Article 10 dividends 1. Dividends by the company-resident of a Contracting State, the cost of the other Contracting State, a resident may be subject to taxes in the second Contracting State. 2. However, the dividends paid to the company-a resident of a Contracting State, may be taxed in the Contracting State also taxes according to the laws of a Contracting State, but if the real beneficiary of the dividends is a resident of the other Contracting State, the tax does not exceed 10 per cent of the gross amount of dividends. 3. Notwithstanding the provisions of part 2, dividends paid by a company, resident of a Contracting State, and which is the real beneficiary is the person who is not a natural person who is a resident of the other Contracting State, the tax shall be imposed only in the second Contracting State. 4. parts 2 and 3 shall not affect the taxation of company profits from which dividends. 5. the provisions of paragraph 3 shall not apply in the case of dividends paid by a company which is entitled to deduct its beneficiaries the amount of dividends paid by calculating its taxable income in the Contracting State where the resident is a company that pays dividends. 6. The term "dividends" in this article means income from shares, or other debt obligations not resulting from the right to participate in company profits, as well as income from other rights which, in accordance with the laws of a Contracting State, a resident of which is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares. 7. the provisions of part 1 to 3 shall not apply if the real beneficiary of dividends-a resident of a Contracting State, carries on business in the other Contracting State of which the dividends is resident in the firm's costly using existing permanent representation there, and where participation, which is paid out in dividends, is actually related to the permanent representations. In this case, apply the provisions of article 7. 8. where a company which is a resident of a Contracting State derives profits or income of the other Contracting State in the other Contracting State may not impose any taxes paid dividends of the company, except if the dividends are paid to the other Contracting State, or if the resident participation, which is paid out in dividends is actually associated with a permanent representation in the second Contracting State, nor impose tax on the profit for the whole of society even If the dividends paid or retained earnings consists in whole or in part of this second State of profit or income. Article 11 interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes. 2. However, interest arising in a Contracting State may also impose taxes in accordance with the laws of a Contracting State, but if the real beneficiaries of the interest is a resident of the other Contracting State, the tax does not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of part 2, a interest arising in a Contracting State and which is the real beneficiary is the person who is not a natural person who is a resident of the other Contracting State, the r in this second taxable only in the Contracting State. 4. the provisions of part 3 do not apply to the interest that is calculated on the basis of the debtor or related parties revenue, sales, income, profit or other cash flow, debtor or related parties in any property value changes, or any dividends, partnership payments to participants or similar payments made by the debtor or the person. 5. for the purposes of this article, the term "interest" means income from debt claims of every kind, whether or not secured by mortgage and whether or not they have the right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes, which belong to these securities, bonds or debentures, as well as other income subject to the same taxation treatment as income from loans made in accordance with the laws of a Contracting State in which the interest arises. However, for the purposes of this article the interest is not considered income dealt with in article 10 and the penalties for late payments. 6. the provisions of part 1 to 3 do not apply, if the real beneficiaries of the interest, which is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the contained therein, and the debt claims on the basis of which the interest is paid is effectively connected with such permanent establishment. In this case, apply the provisions of article 7. 7. If the payer of the interest is a resident of a Contracting State, it is considered that the interest arising in a Contracting State. However, if the person who paid the interest, regardless of whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation, whereby debt obligations incurred for which the interest is paid, and if the interest is paid to the permanent representation, the percentage is believed to occur in the Contracting State in which the permanent establishment is situated. 8. If, based on the special relationship between the payer of the interest and the interest of the true beneficiary, or between both of them and some other person, the amount of interest that relate to debt claims, for which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest of the beneficiary, if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the payment of the part which exceeds this amount, taxes are levied according to each Contracting State laws and regulations, taking into consideration other provisions of this Convention. Article 12 ROYALTIES (1) Royalties arising in a Contracting State and which the real beneficiary is a resident of the other Contracting State imposes taxes only in the second Contracting State. 2. The term "royalties" in this article means payments of any kind received as a consideration for any literary, artistic or scientific work including cinematograph films, any patent, or trademark mark, design or model, plan, secret formula or process, or for the use or right to use, or for information concerning industrial, commercial or scientific experience. 3. the provisions of part 1 does not apply if the real beneficiary of the royalties, which is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, and if the right or property for which the royalties are paid is effectively connected with that permanent establishment. In this case, apply the provisions of article 7. 4. If, on the basis of the special relationship between the payer and the true beneficiaries or between both of them and some other person, the amount of the royalties relating to the use, right or information for which it is paid, exceeds the amount that would have been able to single payer and the beneficiary, if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the portion of the payment that exceeds this amount, is taxed in accordance with the national laws and regulations, taking into consideration other provisions of this Convention. Article 13 alienation of property 1. income or capital gains which a resident of a Contracting State derives, the disposal referred to in article 6, in the other Contracting State the existing real estate, taxes may be imposed in the second Contracting State. 2. Capital gains that accrued to forfeit any property that is not referred to in article 6 of the real estate, which is part of the company of a Contracting State to the permanent representation in business property in the other Contracting State, including the capital gains from the alienation of such a permanent representation (alone or with the whole enterprise), may be subject to taxes in the second Contracting State. 3. Capital gains by the public enterprise, the disposal of the company used in international traffic of ships or aircraft, or any such vessel or aircraft operations belonging to the property which is not referred to in article 6 of the real estate is taxable only in the Contracting State. 4. Capital gains, by a resident of a Contracting State derives, disposing of shares or equivalent public participation, such as participation in a partnership or trust, the tax may be imposed in the other Contracting State, if at any time, 365-day period before the transfer of the shares or the equivalent participation of at least 50 per cent of their value directly or indirectly derived from that in article 6 in the second Contracting State to an existing real property, unless the shares or comparable participation are not traded on a recognized stock exchange defined in article 22, paragraph 7 (b)), and that residents and persons associated with the resident, owns 5 percent or less of this category of shares or comparable participation. 5. Capital gains from the alienation of any property other than 1, 2, 3 and 4, the property is taxable only in the Contracting State of which the resident is the seizure of property. Article 14 INCOME for SALARIED work 1.15, 17 and 18 of the provisions for payment of wages and other similar remuneration, by a resident of a Contracting State receives for paid work, are taxable only in that Contracting State unless the paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can impose taxes in the other Contracting State. 2. Notwithstanding the provisions of part 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxable only in the first Contracting State if: (a) a beneficiary) is in the second Contracting State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxation year, and (b) the remuneration is paid), the employer that is not a resident of the other Contracting State, or other person in the name of the employer, and c the remuneration is not paid) permanent establishment which the employer has in the other Contracting State. 3. Notwithstanding the preceding provisions of this article, remuneration received for paid work, which is carried on board a ship or aircraft in international traffic by the use of State Contracting Company can impose taxes in this State. Article 15 DIRECTORS ' fees directors ' fees and other similar payments received by a resident of a Contracting State as the Board of directors or a similar organ of a company which is a member of the other Contracting State may be taxed in the resident taxes in the other country. 16. Article IZPILDĪTĀJMĀKSLINIEK and athletes 1. Notwithstanding the provisions of article 14 income, the resident of a Contracting State as izpildītājmāksliniek, such as a theatre, film, radio or television artist, or a musician, or as an athlete on the resident's individual activity the second Contracting State may be taxed in that other State taxes. 2. If izpildītājmāksliniek or athlete's income on his individual activity in its capacity to accumulate rather than is paid in the same izpildītājmāksliniek or athlete but to another person, to the following income, regardless of the provisions of article 14 can impose taxes of the Contracting State in which the activity or sports izpildītājmāksliniek. Article 17 pensions in accordance with article 18, part 2, rules for pensions and other similar remuneration that the real beneficiary is a resident of a Contracting State are taxable only in that State. Article 18 government service 1 a) for salaries, wages and other similar remuneration paid by a natural person in a Contracting State or of its political or administrative unit of local government for that Contracting State or a political or administrative unit for local services is taxable only in the Contracting State. (b) However, such salaries), fees and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that other Contracting State and the individual is a resident of that Contracting State who: (i) is the other Nationals of a Contracting State; or (ii) did not become the residents of the other Contracting State, only to provide these services. 2. a) irrespective of the provisions of part 1, pensions or other similar remuneration paid by a natural person in a Contracting State or of its political or administrative unit of local government, or who is paid from the funds which they have established, or which they have made contributions, for services provided by that person to that Contracting State or a political or administrative unit of the municipality are taxable only in the Contracting State. b) However, such pensions or other similar remuneration shall be taxable only in the other Contracting State if the individual is in the territory of the other Contracting State and national residents. 3.14, 15, 16 and article 17 shall apply to salaries, wages, pensions and other similar remuneration paid for services rendered in connection with a Contracting State or of its political or administrative unit of local business. Article 19 students payments which a residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the State was the territory of the other Contracting State and who is a resident of the first Contracting State is solely for the purpose of study or internship, in a Contracting State are not taxed if such payments are from sources that are not located in a Contracting State. The exemption provided for in this article shall apply to the apprentice or trainee only for a period not exceeding one year from the date on which he first started their internships in the Contracting State. Article 20 "quiet" partnership independent of any other provisions of this Convention, any income or capital gains received by the "silent" partner for "silent partnerships" (in the case of Japan, the Kumi Tokum) agreement or other similar agreement, taxes may be imposed in the Contracting State in which the income arises or capital gains, and in accordance with the laws of a Contracting State. Article 21 OTHER income 1. income which the real beneficiary is a resident of a Contracting State which are not specified in the preceding articles of the present Convention, irrespective of their sources are taxable only in the Contracting State. 2. the provisions of part 1 does not apply to income, other than income from article 6 referred to in part 2 of the real property, if the income of the beneficiary, who is a resident of a Contracting State, carries on business in the other Contracting State through a permanent representation of the existing there, and if the rights or property of which you receive this income is actually related to the permanent representations. In this case, apply the provisions of article 7. 3. If, on the basis of the special relations between the residents referred to in part 1 and payers or between both of them and some other person, the income referred to in paragraph 1 exceeds the amount for which they have been able to agree, if they would not have such a relationship, the provisions of this article are applied only to the latter amount. In this case, the payment of the part which exceeds this amount, taxes are levied according to each Contracting State laws and regulations, taking into consideration other provisions of this Convention. Article 22 right to relief 1. residents of a Contracting State shall be entitled to part 3 of article 10, article 11 of part 3 or part 1 of article 12 rules of benefits, if the resident is the qualified person, as defined in part 2. 2. a resident of a Contracting State is a qualified person only if the resident is either: (a) a natural person); (b) the Government of that Contracting State), any of its political or administrative unit of local government or a central bank; (c)) society, where its main categories of shares are regularly traded in one or more recognized stock exchange; d) Pension Fund, provided that, from the beginning of the tax year, for which relief is requested, at least 50 percent of the beneficiaries, members or participants is a natural person who is a resident of a Contracting State; e) person, established under the laws of a Contracting State and which work only in religious, charitable, educational, scientific, artistic, cultural or public purpose only if all or part of its income may be exempt from taxation in accordance with the laws of a Contracting State; or (f)) who is not a natural person, if one or the other residents of a Contracting State that, according to the a, b, c))), (d) or (e)),) is a qualified person directly or indirectly owns at least 50 percent of the voting rights or other interest in this person. 3. a resident of a Contracting State are entitled to part 3 of article 10, article 11 of part 3 or part 1 of article 12 of the rules of benefits for income referred to in the relevant part, if: (a) in the case of pension funds), starting with the beginning of the tax year, for which relief is requested, at least 75 percent of the beneficiaries, members or participants are natural persons, equivalent to beneficiaries; or b) in all other cases, the persons who are equivalent to beneficiaries, directly or indirectly owns at least 75 percent of the voting rights or other this resident's participation in it. 4. part 2 (f)) and paragraph 3 of part b) for the application of the provisions of paragraph 1, it is considered that a resident of a Contracting State satisfies the conditions referred to in those paragraphs only if the resident meet these conditions within twelve months of the period, including the date of payment (in the case of dividends, the date that certain rights to receive dividends). 5. a resident of a Contracting State) is entitled to part 3 of article 10, article 11 of part 3 or part 1 of article 12 of the rules of benefits for income referred to in the relevant part, if: (i) the resident carries on business in that Contracting State (other than investment or management of transactions-residents own good, if one business banking, insurance or securities industry not make bank, insurance company or securities dealer); and (ii) the return type is being made in connection with these transactions or is incidental. (b) where a resident of a Contracting State) receives income from business carried out by the resident of the second Contracting State or derive income that occurs the second Contracting State from persons with resident is article 9 of part 1 a) or (b) above), this part, (a) the conditions referred to in points) are considered to be met in respect of the following income item only if in the first Contracting State of the business is essential in relation to the second Contracting State of the business. Whether such business is essential for the purposes of this part, shall be based on all the facts and circumstances. (c)) in determining whether a person established in a Contracting State in accordance with point (a)), it is considered that the business conducted by a partnership in which the person is a partner, or a business carried on by such person-related persons, performed by that person. The person is related to another person if it directly or indirectly, at least 50 percent participation in the second person (or, in the case of a company, at least 50 percent of the voting rights in the company) or to a third party, directly or indirectly, at least 50 percent participation in (or, in the case of a company, at least 50 percent of the voting rights in society) in each person. In any case, the person shall be deemed to be associated with another person if, on the basis of all the facts and circumstances, one controls the other, or both are controlled by the same person or persons. 6. a resident of a Contracting State that is neither a qualified person, or is entitled to, in accordance with paragraph 3 or 5, the relief provided for in article 10, part 3 of article 11 or article 12 of part 1 of the rules, however, is entitled to the following relief, if the Contracting State to which the competent authority of the requested relief, notes that the establishment of such residents, acquisition or maintenance of, and business main purpose has not been such a relief. 7. for the purposes of this article: (a)), the term "main category of shares" means the shares of the public category or categories that represent a majority of the public; (b)) the term "recognized stock exchange" means: (i) any stock exchange, established in accordance with the Japanese financial instruments and Exchange Act (Act No. 1948.25); (ii) any regulated market in accordance with the directive of the European Parliament and of the Council in 2014/65/EU markets in financial instruments and amending Directive 2002/92/EU directive and 2011/61/EU (as amended) or any successive directive; (iii) the Hong Kong stock exchange and clearing system, NASDAQ, New York Stock Exchange, Singapore Exchange, SIX Swiss Exchange and the Taiwan Stock Exchange; and (iv) any other stock exchange, which the competent authorities of the Contracting States agree to recognize for the purposes of this article; (c)), the term "equivalent benefit beneficiary" means any person who would be entitled to relief in respect of income for which a Contracting State to this Convention is requested relief by this Contracting State grants in accordance with the laws of a Contracting State, the Convention or any other international document, if such relief is the equivalent of the benefit which is granted to this income in accordance with the Convention. 8. Notwithstanding the other provisions of this Convention, the Convention provided for relief in respect of income will not be granted if, in the light of all the relevant facts and circumstances, is a reasonable conclusion that the relief was one of the receipt of any arrangement or transaction purposes, as a result, directly or indirectly, received this benefit, unless it is established that the granting of relief in these circumstances would be in accordance with the relevant provisions of the Convention and the objectives of the objects. Article 23 avoidance of double taxation (1) in accordance with the provisions of the laws in Japan for permission to cut Japan's tax on any other country, rather than in Japan, the amount of tax, if a resident of Japan gaining in Latvia, which may impose tax in Latvia in accordance with the provisions of this Convention, the resident Japanese tax imposed on a permit to cut down on the amount of Latvia with regard to this income. However, the amount of the reduction shall not exceed the amount of the tax in Japan applicable to that income. 2. where a resident of Latvia derives income which, in accordance with the provisions of this Convention, may be subject to taxes in Japan, unless national legislation is more favourable provisions applicable to resident, resident of Latvia permits to reduce the Latvian tax on amount equal to the tax paid in Japan. This reduction does not, however, exceed that part of the tax in Latvia, which is calculated before the application of this reduction is attributable to the income which may be subject to taxes in Japan. 24. Article 1 of the prevention of DISCRIMINATION on the nationals of a Contracting State in the other Contracting State are not subject to any taxation or any requirements associated with it, which is different or more burdensome than the taxation or the related requirements in the same circumstances, in particular in the context of residence applies or may apply to the territory of the other country nationals. This part, regardless of the provisions of article 1, also apply to persons who do not have one or both of the Contracting States residents. 2. stateless persons who are residents of a Contracting State in the other Contracting State is not applied to any taxation or any requirements associated with it, which is different or more burdensome than the taxation or the related requirements in the same circumstances, in particular in the context of residence applies or may apply to the territory of the other country nationals. 3. Taxation the company of a Contracting State to the permanent representation the other Contracting State may not be less favourable than the taxation by the other Contracting State who is subject to the same transaction. This part shall not be interpreted as obliging the Contracting State the obligation to grant the other Contracting State, a resident of any personal allowances, reliefs and reductions for taxation purposes which it grants to its residents, in the light of civil status or family responsibilities. 4. Except where the applicable part 1 of article 9, article 11, part 8 part 4 of article 12 or article 21, the provisions of part 3, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident by establishing this company tax taxable profit is to be deducted by the same conditions as if they had been paid to the former residents of a Contracting State. 5. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more residents of the other Contracting State or in full or in part, directly or indirectly control these residents in the first Contracting State may not be subject to any taxation or any requirements associated with it, which is different from the taxation and related requirements, which are or may be exposed to similar to the first mentioned Contracting State enterprises or which is more burdensome for them. 6. The provisions of this article, notwithstanding the provisions of article 2, apply to all the type and name of the taxes on the Contracting State or of its political or administrative units, on behalf of the municipality. 25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting States in respect of the person causing or likely to cause the taxation which does not comply with the provisions of this Convention, that person may, irrespective of the Contracting State's national laws provided for remedies, submit a complaint for review to one or the other Contracting State, the competent authority. The complaint must be submitted for review within three years of the first notification of the action which led to the provisions of this Convention do not appropriate taxation. 2. If the competent authority deems the complaint to be justified and even fail to reach a satisfactory solution, it will endeavour to agree with the other competent authority of a Contracting State, the provisions of this Convention to prevent the non-taxation. Any such agreement is reached is due irrespective of the Contracting State's national laws and deadlines. 3. The competent authorities of the Contracting States shall endeavour by mutual agreement to solve any problems or prevent the doubts that may arise out of the interpretation or application of this Convention. They may also consult to avoid double taxation in cases not provided for in the Convention. 4. With a view to reaching an agreement in the preceding paragraph of this article, in these matters, the competent authorities of the Contracting States may communicate directly with one another or the use of Joint Commission, which consists of them or their representatives. 5. If a) in accordance with the provisions of part 1 of the Public Contracting Authority has submitted the complaint on the ground that one or both of the Contracting States in respect of that person has been caused by taxation, which does not comply with the provisions of this Convention, and (b)), the competent authorities within two years from the submission of the complaint, the other Contracting State, the competent authority cannot resolve the situation according to the rules of part 2, any unresolved complaint issue , at the request of the person, shall be submitted to the arbitration. However, if on this one or the other Contracting State, the Court or the Administrative Tribunal has already taken a decision to refer the matter to arbitration not filed. Except, if the person directly concerned does not accept the mutual agreement that the arbitration decision is introduced, this decision is binding on both Contracting States and it should be applied independently of any time limit shall be as set out in the Contracting State of internal legislation. The competent authorities of the Contracting States shall determine by mutual agreement the mode of application of this part. Article 26 exchange of information 1. The competent authorities of the Contracting States shall take such information exchange, which is expected in the important application of the provisions of this Convention or the national administration of the laws or enforcement for all the type and name of the duties imposed on a Contracting State or a political or administrative units of local government, insofar as such taxation is not contrary to the Convention. 1 and 2, of the Convention article does not limit the exchange of information. 2. any information that, in accordance with the format set out in part 1, the receiving Contracting State is considered as sensitive as information that is obtained in accordance with the laws of a Contracting State, and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the above part 1 tax calculation or collection, use of coercive measures or proceedings in , or appeals, or the aforementioned monitoring. Such persons or authorities uses this information only for the purposes mentioned above. They may disclose the information in public hearings or in judgements. Notwithstanding the above, the information received by the Contracting State, may be used for other purposes, if such information may be used for such other purposes in accordance with the laws of the Contracting States and contracting information to the competent authority of the country permits such use. 3. in any event, parts 1 and 2 shall not be interpreted in such a manner that they impose a Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to provide information that is not available under one or the other national legislation or administrative practice generally applicable; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret or process a transaction, or to provide information, the disclosure of which would be contrary to public policy; (d)) to receive or provide information that reveal confidential communications between a client and a representative, Attorney or other recognised legal representative, if such communication is made: (i) the receipt of legal advice; or (ii) uses for existing or anticipated proceedings. 4. If a Contracting State in accordance with this article shall be required to provide the information to the other Contracting State should use its information gathering measures to obtain the requested information, even if it is considered that the information requested in this the second Contracting State would not need their taxation requirements. The obligation referred to in the previous sentence is subject to the restrictions of part 3, but in no in the event these limits not be interpreted in such a manner that they allow the Contracting State refuse to provide information only because it is not national interests with regard to this information. 5. in no case shall the provisions of paragraph 3 are not to be interpreted as meaning that they permit the Contracting State refuse to supply information solely because the information is the holder of a bank, another financial institution, agent, or person acting on the authorisation or trust, or because it relates to ownership of the second person. Article 27 assistance in tax collection 1. Contracting States shall assist each other in the collection of revenue claims. 1 and 2 of this article shall not prevent the provision of assistance. The competent authorities of the Contracting States may, by mutual agreement, to resolve the question of the application of this article. 2. for the purposes of this article, the term "revenue claim" means such amount of tax outstanding, as long as the resulting taxation is not contrary to this Convention or any other instrument (Agreement), which is the contracting party countries, as well as with the amount of related interest, administrative penalties and recovery or conservation measures of funds costs: a) in Japan: (i) article 2, point (a) of part 1) (i) to (iv) the duty referred to in subparagraphs; (ii) the special business tax overhaul; (iii) consumption tax; (iv) local consumption tax; (v) the inheritance tax; and (vi) gift tax; (b)): (i) article 2 of part 1 of the tax referred to in paragraph (b)); (ii) value added tax; and (iii) the tax on immovable property; (c)) any other tax which may from time to time agree to Contracting Governments, by an exchange of diplomatic notes; (d)) any identical or substantially similar taxes which are imposed after the date of signature of this Convention in addition to (a), (b) or (c)))) laid down in point or replacing them. 3. when a revenue claim of a Contracting State is enforceable under the laws of a Contracting State and the person either fails to pay, which at the time could not prevent its collection in accordance with the laws of a Contracting State shall, at the request of that State, the revenue claim is accepted by the other Contracting State, the competent authority for charging purposes. The revenue claim charged that the other Contracting State in accordance with its laws and regulations applicable to its own tax collection and the collection of revenue claims, as would the other Contracting State, the revenue claim that meets the conditions that permit the second Contracting State to make a request in accordance with this part. 4. when a revenue claim of a Contracting State is a claim in respect of which this Contracting State may, in accordance with its laws, take measures for the conservation of resources, to ensure their collection, by that Contracting State, the competent authority of the other Contracting State, the competent authority shall adopt the revenue claim to make resources conservation measures. The second Contracting State shall take measures for the conservation of the resources on that revenue claim in accordance with its laws, as the revenue's claim to have this claim of the other Contracting State, even if these measures of revenue claim is not enforceable in the first Contracting State or it is not actually paid the person who has the right to prevent its collection. 5. Apart from parts 3 and 4, the Contracting State competent authorities adopted a revenue claim pursuant to part 3 and 4 in a Contracting State are not subject to time limits, and is not granted any revenues applicable to the priority claim in accordance with the laws of a Contracting State, in the light of its nature as such. In addition, the competent authorities of the country of the agreed revenue claim pursuant to part 3 and 4 in that Contracting State shall not be applicable to any priority claim of a revenue applicable to that of the other Contracting State legislation. 6. the Contracting State actions that Contracting State, the competent authorities in the collection of the revenue claim accepted according to part 3 and 4, which, if they are made in the other Contracting State, be suspended or terminated for time limits applicable to the revenue claim in accordance with the latter's national law, has the same effect under the latter's national laws and regulations. The first mentioned Contracting State the competent authority shall inform the other Contracting State, the competent authority for the conduct of such activities. 7. in the case of the revenue claim of a Contracting State's existence, validity or amount is not proposed in the other Contracting State, in the courts or administrative authorities. 8. If at any time after the party to request the competent authority in accordance with parts 3 and 4 and before the second Contracting State levies and transferred to the relevant revenue claim of the first Contracting State, the revenue claim is not considered to be: (a) more) first mentioned Contracting State revenue claim in accordance with the request referred to in part 3, which is enforceable under the laws of a Contracting State and which a person either fails to pay that at that time, in accordance with the laws of a Contracting State, it may prevent the collection or b) first mentioned Contracting State revenue claim in accordance with the request referred to in part 4, for which this Contracting State may, in accordance with its laws, take measures for the conservation of resources, to ensure the collection of the first mentioned Contracting State the competent authority shall immediately notify the other Contracting State, the competent authority of this fact and the other Contracting State, the competent authorities check that the former Contracting State the competent authority shall either terminate or withdraw your request. 9. in no case shall the provisions of this article is not to be interpreted as meaning that they impose a Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to take measures which would be contrary to public order; (c)) to provide assistance, if the other Contracting State has not made the appropriate all possible recovery or conservation measures of funds available under its laws or administrative practice; (d)) to provide assistance in cases where the administrative burden of a Contracting State is clearly disproportionate to the benefits gained in the other Contracting State. Article 28 diplomatic missions and consular personnel the provisions of this Convention shall not affect the diplomatic missions or consular posts personnel fiscal privileges which it applied in accordance with international law, the General rules or specific agreement terms. Article 29 of this Convention article TITLE headings are inserted for convenience only and shall not affect the interpretation of the Convention. Article 30 entry into force 1 this Convention is approved in accordance with each of the national legal procedures and shall enter into force on the diplomatic note indicating such approval, the date of the Exchange. 2. this Convention is in force: (a)) in Japan: (i) in respect of taxes levied on the basis of the tax year – starting with tax for any taxation years that begin on or after 1 January in the calendar year following the year in which the Convention enters into force; and (ii) in respect of taxes which are not imposed, based on the tax year – starting with the taxes imposed on or after 1 January in the calendar year following the year in which the Convention enters into force; and (b)): (i) in respect of taxes withheld at the time the cost – starting with the income accruing on or after 1 January in the calendar year following the year in which the Convention enters into force; and (ii) in respect of other taxes, starting with taxes due for any tax year beginning on or after 1 January in the calendar year following the year in which the Convention enters into force. 3. Notwithstanding the provisions of part 2, article 26 and 27 of the rules of this Convention is in force effective date, without taking into account the date on which the taxable or taxation year to which the tax relates. Article 31 termination This Convention is in force until the Contracting State shall not terminate its operation. Either Contracting State may terminate the Convention by submitting a notice of termination through diplomatic channels to the other Contracting State for at least six months before any calendar year beginning after the end of the five-year period from the date of entry into force of the Convention. In this case, the Convention shall cease to have effect: (a)) in Japan: (i) in respect of taxes levied on the basis of the tax year – starting with the taxes imposed on or after 1 January in the calendar year following the year in which the notice is given; and (ii) in respect of taxes which are not imposed, based on the tax year – starting with the taxes imposed on or after 1 January in the calendar year following the year in which the notice is given; and (b)): (i) in respect of taxes withheld at the time the cost – starting with the income accruing on or after 1 January in the calendar year following the year in which the notice is given; and (ii) in respect of other taxes, starting with taxes due for any taxation year that begins on the first day of January or after the calendar year following the year in which the notice is given. In witness whereof, the respective Governments duly authorised, have signed this Convention. Signed in duplicate in Tokyo 2017 January 18 in English.  
On behalf of the Republic of Latvia: Dana Reizniec-oak financial Minister on behalf of Japan: the Takisaw of Foreign Affairs Motom parliamentary viceministr signing the Protocol of the Republic of Latvia and Japan Convention on the avoidance of double taxation with respect to income taxes, abusive tax avoidance and tax evasion prevention (hereinafter referred to as "the Convention"), the Republic of Latvia and Japan agree on the following provisions which are an integral part of the Convention. 1. in relation to article 7 of the Convention: (a) article 7 of the Convention) 1 to 6 are eliminated and replaced with the following date for which the Governments of the Contracting States have agreed, by an exchange of diplomatic notes: 1. the profits of a Contracting State shall be taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment there. If the enterprise carries on business in that way, the profits in accordance with the rules of part 2 apply to permanent representations can impose taxes in the other Contracting State. 2. the following article and article 23 objectives referred to in paragraph 1 that each profit Contracting State can be attributed to the permanent representations, is profit, it could gain particularly in transactions with other business units, if it were a separate and independent company that perform the same or similar activities under the same or similar conditions, taking into account the activities, assets used and risks taken through its permanent representation or other departments. 3. Where, in accordance with part 2 of the Contracting State adjusted profit attributable to one or other of the Contracting State of the permanent representation of the company and accordingly imposes taxes on company profits, which taxed in the other Contracting State in the other Contracting State, to the extent necessary to avoid double taxation of the profits of this profit, take the appropriate amount of the tax imposed on adjustment. The competent authorities of the Contracting States, if necessary, consult each other this adjustment calculation. 4. If the profit includes income that is not separately stipulated in other articles of this Convention, then the provisions of this article shall not affect the provisions of this article. "), (b) article 7 of the Convention in the part 1 to 4 of the rules, as modified by the provisions of paragraph (a)), are applicable to the company's profits for any taxation year that begins on the date agreed by the Governments of the Contracting States, by exchanging a) referred to in diplomatic notes, or after it. To article 7 of part 1 to 4 of the regulations, as modified by the provisions of paragraph (a)), the application shall continue to apply to the original article 7 of part 1 through 6. 2. in relation to article 25 of the Convention, part 5: a) the competent authorities of the Contracting States, by mutual agreement, determine the procedures to ensure the enforcement of the decision of the arbitral tribunal within two years of the Convention article 25 part 5 of the request referred to in rule on the submission, unless the arbitration case, for which the request is made to examine it in the arbitration, directly involved in the Act or omission does not hinder the settlement of the case or, if the competent authorities of the Contracting States and that person have agreed otherwise. (b) the Arbitration Board is created) in accordance with the following rules: (i) the Arbitration Board shall consist of three arbitrators-individuals who have special expertise or knowledge in international tax matters. (ii) each of the Contracting States, the competent authority shall appoint one arbitrator, regardless of whether he is one or the other national or not. The competent authorities of the Contracting States designated by the two arbitrators shall appoint the third arbitrator, who is the Chairman of the Arbitration Board, in accordance with the arrangements agreed between the competent authorities of the Contracting States. (iii) one arbitrator is Not a Contracting State tax authorities, as well as any employee of the State was not involved in the case, a request to consider it in the arbitration proceedings. The third arbitrator is not one of the national party, and he had no habitual residence in one State, and it was not employed by any Contracting State. (iv) the competent authorities of the Contracting States shall ensure that before the arbitral proceedings in the action all referees each Contracting State the competent authority sent notices agrees to comply with and be subject to the same privacy and information non-disclosure obligations referred to in article 26 of the Convention, part 2, and in accordance with the laws of the Contracting States. (v) each of the Contracting States, the competent authority shall be liable for the costs of the arbitrator appointed and their expenses. The cost of the third arbitrator and arbitration proceedings with the other books and associated costs equal parts shall be borne by the competent authorities of the Contracting States. (c)), the competent authorities of the Contracting States shall provide the arbitration decision, the information required for all arbitrators without undue delay. (d)) to the arbitration decision shall be subject to the following procedures: (i) the arbitration decision is unprecedented. (ii) the arbitration decision is final unless a Contracting State of the Court does not consider it feasible in the context of article 5 of the Convention 25. parts of this part or any rule of procedure established in accordance with point (a)), the infringement that may significantly affect the decision. If it is found that the decision is not enforceable because it is considered that a request to proceed to arbitration is not filed, and the arbitration process has not happened (except b), point (iv) and (v) in point). e) if at any time before the Arbitration Board has adopted a decision in a case concerning the Contracting of national competent authorities and the person who submitted the request to proceed to arbitration: (i) the competent authorities of the Contracting States is mutual agreement, to resolve the case in accordance with article 25 of the Convention, part 2; or (ii) the person withdraws request to proceed to arbitration; or (iii) accept the decision in the case of one or other party to the Court or Administrative Tribunal of arbitration proceedings will be terminated in the case of a procedure in accordance with article 25 of the Convention. (f) in the case) if the proceedings in the arbitration request is submitted, have been instituted or pending appeal, it is considered that in case the person directly concerned has not reached a mutual agreement that the arbitration decision is introduced in case if any of the things the person directly involved in, which is a party to the action or proceedings of appeal within 60 days after receipt of the decision of the Arbitration Board are not all of the arbitral proceedings in conventional questions from review to the appropriate court or Administrative Tribunal. In this case, the competent authorities of the Contracting States do not continue further consideration of the case. (g) article 25 of the Convention) part 5 of the regulations and the provisions of this part do not apply to the matters covered by article 4 of the Convention part 3. In witness whereof, the respective Governments duly authorised, have signed this Protocol. Signed in duplicate in Tokyo 2017 January 18 in English.  
On behalf of the Republic of Latvia: Dana Reizniec-oak financial Minister on behalf of Japan: the Takisaw of Foreign Affairs Motom parliamentary viceministr in the