The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Swiss Federal Council Protocol amending the Republic of Latvia and the Government of the Swiss Federal Council 2002 January 31 conclusion of the Convention on the Elimination of double taxation with respect to taxes on income and capital article 1. 2016. November 2, signed by the Government of the Republic of Latvia and the Swiss Federal Council Protocol amending the Republic of Latvia and the Government of the Swiss Federal Council 2002 January 31 conclusion of the Convention on the Elimination of double taxation with respect to taxes on income and on capital (hereinafter referred to as the Protocol), with this law is adopted and approved.
2. article. Fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance.
3. article. This Protocol shall enter into force on its article 14 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 Protocol in English and Latvian. The law adopted by the Parliament in 2017 on May 11. The President r. vējonis Riga 2017 on May 29, the Government of the Republic of LATVIA and the Swiss Federal Council Protocol amending the Republic of LATVIA and the Government of the Swiss Federal Council 2002 January 31 conclusion of the Convention on the Elimination of double taxation with respect to taxes on income and on capital the Government of the Republic of Latvia and the Swiss Federal Council, desiring to conclude a protocol to amend the Government of the Republic of Latvia and the Swiss Federal Council 2002 January 31 conclusion of the Convention on the Elimination of double taxation with respect to taxes on income and capital ( hereinafter referred to as the Convention), have agreed on the following.
I. Article 1 of the Convention, the name is off. "and replace with the following:" the Government of the Republic of LATVIA and the Swiss Federal Council, the Convention on the Elimination of double taxation with respect to taxes on income and capital and tax avoidance and tax evasion prevention "2. Preamble is turned off and replaced with the following preamble:" the Government of the Republic of LATVIA and the Swiss Federal Council, reaffirming the desire to further develop their economic relations and strengthen their cooperation in the field of taxation In order to conclude a Convention for the avoidance of double taxation with respect to taxes on income and capital, to prevent the non-taxation or decrease in taxation, with tax evasion or abuse of tax evasion (including the Tax Convention with the best terms (treaty-shopping) with the residents of third countries do not directly use the Convention benefits). "
Article II of the Convention article 3 (General definitions) of point 1 (b)) is turned off and replaced with the following: "(b)), the term" Switzerland "means the Swiss Confederation territory, as it is defined in its legislation in accordance with international law;"
Article III of the Convention article 3 (General definitions) of point 1 (h)) (ii) is switched off and replaced with the following: "(ii) Switzerland, the Federal Department of finance or his authorized representative;"
Article IV of the Convention article 3 (General definitions) of paragraph 1 is supplemented with j) by the following: "(j)), the term" pension fund "means any plan, scheme, Fund, Foundation, trust or other entity that is created in a Contracting State which: (i) the General Regulation and in which order is exempt from tax in that State; and (ii) create primarily to administer or provide pension or retirement benefits or to one or more of the following Fund in good profit. "
Article v of the Convention, article 10 (dividends) are deactivated and replaced by the following: ' article 10 dividends 1. Dividends company-a resident of a Contracting State, the cost of the other Contracting State, a resident may be subject to taxes in the other country. 2. However, such dividends may also impose taxes under the national law of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax does not exceed 15 per cent of the gross amount of the dividends. 3. Notwithstanding the provisions of paragraph 2, the Contracting State of which the company is resident released this public dividends paid from taxation, if the owner is a true of dividends: a) the company (other than a partnership) which is a resident of the other Contracting State and has at least one year before the dividend cost directly holds at least 10 percent of the equity in the company paying the dividends; or (b)) to the Pension Fund; or (c)), the other national central banks. " 4. paragraphs 2 and 3 shall not affect the taxation of company profits from which dividends. 5. 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 its national legislation, which the resident is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares. 6.1, 2, and 3. the provisions of paragraph 1 shall not apply if the true owner of dividends, who is 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, or give independent personal services in the other State through a permanent base located there, and where participation, which is paid out in dividends, is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 7. If company-a resident of a Contracting State derives profits or income, in the other Contracting State, that other State may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other State, or if the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base in another country, nor to impose a tax on the profit for the whole of society even If the dividends paid or retained earnings total or partial consists of the second State of profit or income. "
Vi. Article 11 of the Convention article 1 a (percentage) point 2 is turned off and replaced with the following: "2. However, such interest may be taxed taxes according to national law the Contracting State in which they arise, but, if the interest owner is implemented on the territory of the other Contracting State, a resident of the tax may not exceed: (a) the percentage of interest) 0 total, where interest paid to a company which is a resident of a Contracting State , a company which is a resident of the other Contracting State (other than a partnership) and what is the true owner of the interest; b) 10 per cent of the total interest in all other cases. " 2. Article 11 of the Convention (percentage) point 3 shall be added to e) and (f)) for the following: "(e)) interest arising in a Contracting State and paid to the other Contracting State Pension Fund, which is the true owner of the tax imposed in that other country only; f) interest arising in a Contracting State and paid to a resident of the other Contracting State who is the true owner of the tax imposed in that other country, only if such interest is paid on any kind of a loan granted by the bank. "
Article VII of the Convention, article 12 (royalties) (2) is switched off and replaced with the following: "2. However, such royalties may also impose taxes under the national legislation of the Contracting State in which it arises, but if the true owner of the royalties is a resident of the other Contracting State, the tax shall not exceed: (a) the percentage of the royalties) 0 total, if the payment of the royalties a company which is a resident of a Contracting State of the other Contracting State the public (other than a partnership) which is a resident of the other Contracting State and is implemented by the owner of royalties; b) 5 percent of the total of the royalties in all other cases. "
Article VIII of the Convention article 17 (the artists and athletes) point 3 is turned off and replaced with the following: "3. paragraphs 1 and 2 will not apply to income that izpildītājmāksliniek or athletes is gaining on the State to take action, if the izpildītājmāksliniek or athletes actions directly or indirectly, entirely or mainly financed from the territory of the other Contracting State or of its political or administrative units of the local public finances. In this case, the income shall be taxable only in the Contracting State of which the resident is izpildītājmāksliniek, or the athlete. "
Article IX of the Convention is supplemented by article 22 (a) (the right to relief) by the following: ' article 22 (a) entitled to benefits 1. Notwithstanding the other provisions of this Convention, this Convention provides the relief to be granted in respect of income or capital, if, having regard to all the relevant facts and circumstances, has reason to believe that the relief was one of the receipt of any arrangement or transaction key objectives as a result, directly or indirectly, received this benefit, unless it is established that the granting of relief in these circumstances is in accordance with the relevant provisions of this Convention, object and goal. 2. where, in accordance with paragraph 1, a person is not granted relief under this Convention, a Contracting State, the competent authority, which would otherwise be granted this relief, however, considers this person to be entitled to this relief, or different incentives for certain kinds of income or capital, if the competent authority, by the person's request and after appropriate evaluation of the facts and circumstances finds that such relief should be granted to that person or another person, if there is no transaction referred to in paragraph 1 or agreed. Contracting State, the competent authority to which a request, consult with the other country's competent authority prior to the request made by another State resident under this paragraph, the rejection. "
Article x of the Convention article 23 (avoidance of double taxation), paragraph 2 (a)) is turned off and replaced with the following: "(a)) where a resident of Switzerland derives income or owns capital which, in accordance with this Convention may impose taxes in Latvia, then Switzerland in accordance with subparagraph (b)) released the following income or capital from taxation, but when calculating tax on the remaining income of a resident or capital may apply the tax rate which would be applicable if the income or capital are not exempt from taxation. However, such exemption under article 13, paragraph 4, in particular capital gains apply only if it is proven that actually happens in Latvia the imposition of tax on such capital gains. "
Article XI of the Convention article 25 (mutual consultation procedure) is added to point 5 and 6 by the following: "5. If, (a)) in accordance with paragraph 1 the person has made a complaint to a Contracting State, the competent authority, on the grounds that one or both of the Contracting States as a result of that person's taxable according to the provisions of this Convention, and (b)), the competent authority in accordance with paragraph 2 within a period of three years from the submission of the complaint, the other Contracting State, the competent authority cannot reach an agreement to resolve this thing, any remaining issues in this case are submitted for consideration in the arbitration, if that person so requests. However, the remaining issues are not submitted for consideration in the arbitration on the issue of a national court or Administrative Tribunal has already made a decision. If one person, to which the case relates directly to, does not accept the mutual agreement, by which the arbitration decision is introduced, or by the competent authority and the persons who are directly relevant case, agree on a different solution within six months from the time when the decision is notified to them, then the arbitration decision is binding the two countries, and it is to be enforced independently of any time limits laid down in the national legislation. The competent authorities of the Contracting States shall determine by mutual agreement the mode of application of this paragraph. 6. The Contracting States may be disclosed to the Arbitration Council, established in accordance with the provisions of paragraph 5, the information that is required for the provision of the arbitration process. Members of the Board of arbitration is subject to the disclosure restrictions specified in article 26, paragraph 2 with regard to such confidential information. "article XII of the Convention article 26 (Exchange of information) is switched off and replaced with the following:" 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 national legislation or the administration of the case to fulfill all the type and name of the duties imposed on a Contracting State or a political or administrative unit of local government in good 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 under paragraph 1, the contracting authority receives, should be considered as sensitive as information that is obtained in accordance with the national legislation and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the tax referred to in paragraph 1 in the calculation or collection, use of coercive measures or proceedings, or in appeals. 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 legislation of both countries, and the information of the national competent authority permits such use. 3. in any event, paragraph 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 do not comply with this or the other Contracting State legislation and administrative practice; (b)) to provide information that is not available under this or 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 the public interest (ordre public). 4. If a Contracting State in accordance with this article shall be required to provide the information to the other Contracting State the information required to use their own means of obtaining information, even if the requested information to the other country does not need your taxation needs. The obligation contained in the preceding sentence is subject to the limitations in paragraph 3 but in no case these limits not be interpreted in such a manner that they allow the Contracting State refuse to provide information only so that it does not need such information for its own tax purposes. 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. "
XIII. Article 1 of the protocol name is switched off and replaced with the following: the name of the Protocol "Protocol for between Government of the Republic of Latvia and the Swiss Federal Council signed the Convention on the Elimination of double taxation with respect to taxes on income and capital and abusive tax avoidance and tax evasion, the parties have agreed that the following provisions are an integral part of the Convention.". 2. Protocol to the Convention is accompanied by a new paragraph 2 as follows: "2. in relation to article 3 paragraph 1 (j)) it is understood that the term" pension funds "include the following and any identical or substantially similar funds established under legislation introduced after the date of signature of this Protocol: (a)), any pension fund, acting in accordance with: (i) on 2 November 1995, the law" on State pensions "; (ii) on 5 June 1997, the law on private pension funds '; (b)) in Switzerland, any pension fund, acting in accordance with: (i) 20 December 1946 the Federal law on old-age and survivors ' insurance; (ii) June 19 1959 federal law on insurance of persons with disabilities; (iii) 6 October 2006 of the Federal law on supplementary pensions for old age, survivors ' and disability insurance of persons; (iv) 25 September 1952 federal law on income compensation benefits compulsory service and maternity; (v) 25 June 1982 a federal law on old-age, survivors ' and disability insurance payments in respect of employment and self-employment, including unregistered pension funds that offer occupational pension plans and pension funds, which offer individual recognized pension plans, which are comparable to the employment pension plans. " 3. Protocol to the Convention is accompanied by a new paragraph 3 as follows: "3. with regard to article 4, paragraph 1, in relation to article 4, paragraph 1 it is understood that the term" resident of a Contracting State "includes in particular: a) to the Pension Fund, established in the country; and (b)), which is the organization up and running with the aim to carry out religious, charitable, scientific, cultural, sport or educational measures and who is a resident of that State, in accordance with the law, regardless of whether all of its income or capital or its part can be exempt from taxation in accordance with the law of this State. ". 4. the Protocol to the existing Convention 2, 3, and 4 renumbered according to points 4, 5 and 6 points. 5. Protocol to the Convention is supplemented by the new point 7 by the following: "7. with regard to article 10, paragraph 2 and 3 of the minimum holding period, if the conditions provided for in paragraph 3 of article 10 (a)), the dividends are not met at the time and therefore costs are deducted at the time of article 10 (2), and in fixing a minimum holding period, the condition is met, then the real owner of the dividends is entitled to reimbursement of the withholding tax." 6. Protocol to the Convention, the existing paragraph 7 are off. 7. Protocol to the Convention, the existing paragraph 5 is renumbered as paragraph 8. 8. Protocol to the Convention is accompanied by a new paragraph 9 by the following: "9. in relation to article 11, paragraph 3, subparagraph (f)) it is understood that the term "bank" means a bank, which governed the territory of the other Contracting State legislation. ". 9. Protocol to the Convention, the existing paragraph 6 is renumbered as paragraph 10. 10. Protocol to the Convention is supplemented by the following new paragraph 11: "11. with regard to articles 18 and 24 relating to article 18 and article 24, of the contributions paid to the Pension Fund of a Contracting State by an individual who provides services to the second Contracting State or by natural persons the right to determine an individual's tax payable and the company's profits, which can impose taxes in the other country , subject to the same rules and are subject to the same conditions and limitations as contributions made to the territory of the other Contracting State Pension Fund, provided that that individual was not a resident of this State, and was a member of the Pension Fund immediately before it begins to provide services in that other State. ". 11. Protocol to the Convention is accompanied by a new paragraph 12, as follows: "12. in relation to article 26: (a)) it is understood that information sharing is required only if the requesting Contracting State has exhausted all the usual sources of information available under the national taxation policy. (b)) it is understood that, by submitting a request for information pursuant to article 26, the requesting State tax authority shall provide the following information for the requested State tax authority: (i) a person who performs the inspection or investigation, the identity; (ii) the time period for which the information is sought; (iii) a statement of the information requested, including its nature and the form in which the requesting State wishes to receive the information from the requested State; (iv) the tax purpose for which the information is sought; (v) to the extent known, of any of the person's name and address, for which it is considered that they are in possession of the requested information. (c)) it is understood that the reference to "the importance of the expected" is intended to ensure the widest possible exchange of information in the field of taxation, while specifying that Member States are not allowed to conduct evidence searches at random ("a fishing expedition") or to request information that is most likely not related to the taxpayer's tax issues. Although b) provides important procedural requirements which aim to ensure that there will be evidence of the search carried out at random, (b)) (i) to (v) shall not be interpreted in a way that interfered with the effective exchange of information. d) it is understood that article 26 Contracting States impose no obligation to have the automatic exchange of information or the exchange of information on their own initiative. e) it is understood that in the case of the exchange of information shall continue to apply the provisions of the administrative procedure for taxpayers ' rights set out in the requested State. In addition it is understood that this provision aims at ensuring a fair procedure, the taxpayer, not obstructing the process of exchange of information or unreasonable delays. ".
Article XIV 1. Each Contracting State shall notify the other through diplomatic channels that it has completed the legislative statutory procedures necessary for the entry into force of this Protocol. The Protocol shall enter into force on the date on which you received the last of these statements. 2. the Protocol shall apply: (a)) in respect of taxes withheld at the time the costs for amounts paid or ieskaitītaj – the first day of January or after the calendar year following the year in which the Protocol enters into force; (b)) in the case of other taxes, for any taxation year that begins on the first day of January or after the calendar year following the year in which the Protocol enters into force; (c)) in relation to article 25 of the points 5 and 6, the mutual harmonization procedures which: (i) not completed between the Contracting State the competent authorities of the date of entry into force of the Protocol (in such cases, the three-year period in accordance with paragraph 5 (b)) begin with the entry into force of the Protocol), or (ii) launched after that date; (d)) in relation to article 26, on information relating to financial years beginning on the first day of January or after the calendar year following the date of entry into force of the Protocol. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. Be drawn up in two copies in 2016 November 2 Latvian, German and English, in addition, all texts being equally authentic. Different case is decisive for the interpretation of the text in English.

The Government of the Republic of Latvia, the Finance Minister of the Swiss Confederation on behalf of the Federal Council Ambassador Extraordinary and Plenipotentiary of the Republic of Latvia Dana Reizniec-oak Marcus Pauls Dutl, Niklaus PROTOCOL BETWEEN the Government OF the REPUBLIC OF Latvia AND the Swiss FEDERAL COUNCIL AMENDING the CONVENTION OF 31 JANUARY 2002 BETWEEN the Government OF the REPUBLIC OF Latvia AND the Swiss FEDERAL COUNCIL FOR the avoidance OF double TAXATION WITH RESPECT TO taxes ON income AND ON CAPITAL the Government of the Republic of Latvia and the Swiss Federal Council (menu Rngton Line4) a Protocol to amend the conclud the Convention of 31 January 2002 between the Government of the Republic of Latvia and the Swiss Federal Council for the avoidance of Double Taxation with respect to taxes on income and on Capital (hereinafter referred to as "the Convention"), have agreed as follows: article I 1. The title of the Convention shall be deleted and replaced by the following title: "CONVENTION BETWEEN the Government OF the REPUBLIC OF Latvia AND the Swiss FEDERAL COUNCIL FOR the avoidance OF double TAXATION WITH RESPECT TO taxes ON income AND ON CAPITAL AND the PREVENTION OF TAX EVASION AND avoidance" 2. The preamble shall be deleted and replaced by the following preamble: "the Government OF the REPUBLIC OF Latvia AND the Swiss FEDERAL COUNCIL (MENU RNGTON LINE4) it further develop their economic relationship and to enhance their cooperation in tax matters, INTENDING to conclud a Convention for the elimination of double taxation with respect to taxes on income and on capital without creating opportunities for non-taxation or reduced tax evasion or avoidance through tax matters (including through treaty arrangements aimed at obtaining a-shopping relief provided in this Convention for the indirect benefit of residents of third States) "article II paragraph 1 of Subparagraph (b)) of article 3 (General definition) of the Convention shall be deleted and replaced by the following subparagraph: "(b)) the term" Switzerland "means the territory of the Swiss Confederations as defined by the it law in accordanc with international law;" Article III clause (ii) of subparagraph (h) of paragraph 1 of) article 3 (General definition) of the Convention shall be deleted and replaced by the following clause: "(ii) in Switzerland, the Head of the Federal Department of finance or his authorised representative;" Article IV the following shall be added to subparagraph j) paragraph 1 of article 3 (General definition) of the Convention: "(j) the term" pension fund) "means any plan, scheme, fund, foundation, trust or others through the established in a Contracting State which is: (i) regulated by and generally from income taxation main in that State; and (ii) operated principally to administer or provide pension or retirement benefits or to earn income for the benefit of one or more such funds. " Article V article 10 (Dividends) of the Convention shall be deleted and replaced by the following article: "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 State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not 12 15 per cent of the gross amount of the dividends. 3. Notwithstanding the provision of paragraph 2, the Contracting State of which the company is a resident shall be from the main tax dividend paid by that company, if the beneficial owner of the dividends is: a) a company (other than a partnership) which is resident of the other Contracting State which holds directly at least 10 per cent of the capital in the company paying the dividend for at least one year prior to the payment of the dividend; or (b)) (a) the pension fund; or (c)) the central bank of the other State. 4. 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 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 State of which the company making the distribution is a resident. 6. The provision of paragraphs 1, 2 and 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, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 7. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other 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 that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits ' to a tax on undistributed profits of the company ' s, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other State. " Article 1 Paragraph 2 VI of article 11 (interest) of the Convention shall be deleted and replaced by the following paragraph: "2. However, such interest may also be taxed in the Contracting State in which it «arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State , the tax so charged shall not: (a) 12 0 per cent) of the gross amount of the interest, if the interest is paid by a company that is a resident of a Contracting State to a company (other than a partnership) that is a resident of the other Contracting State and is the beneficial owner of the interest; b) 10 per cent of the gross amount of the interest in all other cases. " 2. The following subparagraph (e)) and shall be added to paragraph f) 3 of article 11 (interest) of the Convention: "e) interest arising in a Contracting State and paid to a pension funds of the other Contracting State who is the beneficial owner thereof shall be only in the taxabl you others State; (f) interest arising in a Contracting) State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be only in the taxabl you others State to the exten that such interest is to be paid on any loan of whatever kind granted by a bank. " Article VII Paragraph 2 of article 12 (Royalt) of the Convention shall be deleted and replaced by the following paragraph: "2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not 12 0 per cent: (a)) of the gross amount of the stay, if the royalt royalt with paid by a company that is a resident of a Contracting State to a company (other than a partnership) that is a resident of the other Contracting State and is the beneficial owner of the royalt; (b) 5 per cent) of the gross amount of the stay in all other cases royalt. " Article VIII, Paragraph 3 of article 17 (artistes and Sportsmen) of the Convention shall be deleted and replaced by the following paragraph: "3. Paragraphs 1 and 2 shall not apply to income from activities performed in a Contracting State by an entertainer or sportsmen if the activities of the entertainer or sportsman's funded, directly or indirectly a wholly or mainly from published, funds of the other Contracting State , a political subdivision or a local authority thereof. In such a case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsman's is a resident. " Article IX the following article 22 (Entitlement to benefits) shall be added to the Convention: "article 22 of the Entitlement to benefits 1. Notwithstanding the other provision of this Convention, a benefit under this Convention shall not be granted in respect of an item of income or capital 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 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 this Convention. 2. Where a benefit under this Convention is denied to a person under paragraph 1, the competent authority of the Contracting State that would otherwise have granted this benefit shall not treat that person is vertheles as being entitled to this benefit, or to different benefits with respect to a specific item of income or capital, if such competent authority, upon request from that person and after considerations of the relevant facts and the circumstanc You determin the such, benefits would have been granted to the person, or to another person, in the absence of the transactions referred to in paragraph a or through 1. The competent authority of the Contracting State to which the request has been made will consult with the competent authority of the other State before rejecting a request made under this paragraph by a resident of that other State. " Article X of paragraph 2 Subparagraph a) of article 23 (Elimination of double taxation) shall be deleted and replaced by the following subparagraph: "(a)) where a resident of Switzerland or of deriv income own capital which, in accordanc with the provision of this Convention, may be taxed in Latvia, Switzerland shall, subject to subparagraph (b) of the provision of the main such income), or capital from tax but may , in calculating tax on the remaining income or capital of that resident, apply the rate of tax which would have been applicable if the exempted income or capital had not been so exempted. However, such exemption shall apply to gains referred to in paragraph 4 of article 13 only if actual taxation of such gains in Latvia is demonstrated. " Article XI the following paragraphs shall be added to article 25 (Mutual agreement procedure) of the Convention: "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 three 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 State. Unless a person directly affected by the case does not accept the mutual agreement that implements the arbitration decision or the competent authorities and to the people directly affected by the case agree on a different solution within six months after the decision has been communicated to them, the arbitration decision shall be binding on both States and shall be implemented notwithstanding any time limits in the domestic law of these States. The competent authorities of the Contracting States shall by the mutual agreement settle the mode of application of this paragraph. 6. The Contracting States may release to the arbitration board, established under the provision of paragraph 5, such information as is not cessary for carrying out the arbitration procedure. The members of the arbitration board shall be subject to the limitations described in paragraph 2 of the disclosure of article 26 with respect to the information so released. " Article XII article 26 (Exchange of information) of the Convention shall be deleted and replaced by the following article: "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 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 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, or the determination of the appeal in relations to the taxes referred to in paragraph 1. 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 States and the competent authority of the State supplying the authoris such use. 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 the 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 (ordre public). 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 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 XIII 1. The title of the Protocol shall be deleted and replaced by the following title of the Protocol: ' PROTOCOL With respect to the Convention concluded between the Government of the Republic of Latvia and the Swiss Federal Council for the avoidance of double taxation with respect to taxes on income and on capital and the prevention of tax evasion and avoidance, the undersigned have agreed that the following provision shall form an integral part of the of the Convention. " 2. The following new paragraph 2 shall be added to the Protocol to the Convention: "2. ad article 3 paragraph 1 (j)) It is understood that the term" pension fund "includes the following and any identical or substantially similar funds which are established in their legislation introduced after pursuan the date of signature of this Protocol: (a)) in Latvia, any pension fund covered by : (i) the Law on State Pension, of 2 November 1995; (ii) the Law On private Pension funds, of 5 June 1997; (b)) in Switzerland, any pension fund covered by: (i) the Federal Act on old-age and survivor ' attorney, of 20 December 1946; (ii) the Federal Act on disabled persons ' insurance of 19 June 1959; (iii) the Federal Act on supplementary pension in respect of old age, survivor ' and disabled persons ' insurance of 6 October 2006; (iv) the Federal Act on income compensation allowance in case of service and in the case of maternity of 25 September 1952; (v) the Federal Act on old age, survivor ' and disabled persons ' insurance payable in respect of employment or self-employment of 25 June 1982, including the non-registered pension funds which offer occupational pension plans and the pension funds which offer individual recognised pension plans occupational pension plans comparabl with. " 3. The following new paragraph 3 shall be added to the Protocol to the Convention "3. ad article 4 paragraph 1 In respect of paragraph 1 of article 4, it is understood that the term" resident of a Contracting State "includes in particular: (a) a pension fund established in the) a State; and (b)) an organisation that is established and is operated for religious, charitable, scientific, cultural, sporting or educational purpose, and that is a resident of that State according to its laws, notwithstanding that all or part of its income or gains may be main from tax under the domestic law of that State. " 4. Existing paragraphs 2, 3 and 4 of the Protocol to the Convention accordingly shall be renumbered paragraphs 4, 5 and 6.5. The following new paragraph 7 shall be added to the Protocol to the Convention: "7. ad article 10 paragraph 2 and paragraph 3 where the minimum holding period let down in subparagraph (a)) of paragraph 3 of article 10 was not met at the time of the payment of the dividend and, therefore, the tax stipulated in paragraph 2 of article 10 was withheld at the moment of the payment , and the condition of the minimum holding period is met, then subsequently the beneficial owner of the dividend shall be entitled to a refund of the tax withheld. " 6. the Existing paragraph 7 of the Protocol to the Convention shall be deleted. 7. Existing paragraph 5 of the Protocol to the Convention shall be renumbered paragraph 8 8. The following new paragraph 9 shall be added to the Protocol to the Convention: "9. in the ad. Article 11 paragraph 3 (f)) It is understood that the term "bank" means a bank regulated under the law of the other Contracting State. " 9. the Existing paragraph 6 of the Protocol to the Convention shall be renumbered paragraph 10 10. The following new paragraph 11 shall be added to the Protocol to the Convention: "11. ad articles 18 and 24 As regards article 18 and article 24 contributions to a pension fund of a Contracting State that are made by or on behalf of an individual who renders services in the other Contracting State shall, for the purpose of determining the individual's ' tax payable and the profits of an enterprise, which may be taxed in that State , be treated in that State in the same way and subject to the same conditions and limitations as contributions made to a pension fund in that Contracting State, provided that the individual was not a resident of that State, and was participating in the pension fund, immediately before beginning to provide services in that State. " 11. The following new paragraph 12 shall be added to the Protocol to the Convention: "12. ad article 26 (a)) It is understood that an exchange of information will only be requested once the requesting Contracting State has exhausted all regular sources of information available under the internal taxation procedure. (b)) It is understood that the tax authorities of the requesting State shall provide the following information to the tax authorities of the requested State when making a request for information under article 26: (i) the identity of the person under examination or investigation; (ii) the period of time for which the information is requested; (iii) a statement of the information sought including its nature and the form in which the requesting State wishes to receive the information from the requested State; (iv) the tax purpose for which the information is sought; (v) to the exten known, the name and address of any person believed to be in possession of the requested information. (c)) It is understood that the reference to "relevance" is a foreseeabl intended to provide for Exchange of information in tax matters to the the wides possible exten and, at the same time, to clarify that the Contracting States are not at liberty to engage in "fishing expedition" or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer. While subparagraph (b)) contains important procedural requirements that are intended to ensur that fishing expedition do not occure, clauss (i) through (v) of subparagraph (b)) is not vertheles not to be interpreted in a way to the effective exchange of frustrat information. d) It is understood that article 26 does not require the Contracting States to exchange information on an automatic or a basis of spontaneo. e) It is understood that in the case of an exchange of information, the administrative procedural rules regarding taxpayer ' rights provided for in the requested Contracting State remain applicable. It is further understood that these provision aim at guaranteeing the taxpayer a fair procedure and not at preventing or unduly delaying the exchange of information process. " Article XIV 1. Each Contracting State shall notify to the other, through diplomatic channels, the completion of the procedures required by its law for the bringing into force of this Protocol. The Protocol shall enter into force on the date on which the later of those notifications has been received. 2. The provision of the Protocol shall have effect: a in respect of taxes) withheld at source on non paid or credited on or after the first day of January of the calendar year next following the entry into force of the Protocol; (b)) in respect of other taxes for taxation years beginning on or after the first day of January of the calendar year next following the entry into force of the Protocol; (c)) in respect to article 25 paragraphs 5 and 6, their mutual agreement procedures that are: (i) pending between the competent authorities to of the Contracting States at the entry into force of the Protocol (in such cases the three year period under subparagraph (b)) of paragraph 5 begins with the entry into force of this Protocol), or (ii) initiated after that date; (d)) in respect to article 26, the information that relate to fiscal years beginning on or after the first day of January of the calendar year next following the entry into force of the Protocol. In witness whereof the undersigned, duly authorized, have signed the theret this Protocol. Done in duplicate at Riga this 2nd day of November, 2016 in the Latvian, German and English languages, all texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government of the Republic of Latvia Minister of Finance For the Swiss Federal Council Ambassador of Switzerland to Latvia Dana Reizniec-oak Marcus Paul Dutly Nikla