The Government Of The Republic Of Latvia And The Republic Of China In The Hong Kong Special Administrative Region Government, The Agreement On The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income

Original Language Title: Par Latvijas Republikas valdības un Ķīnas Tautas Republikas Honkongas īpašā administratīvā reģiona valdības līgumu par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma nodokļiem

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Read the untranslated law here: https://www.vestnesis.lv/op/2016/202.2


The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Republic of China in the Hong Kong Special Administrative Region Government, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes article 1. 2016. on 13 April, Riga, signed by the Government of the Republic of Latvia and the Republic of China in the Hong Kong Special Administrative Region Government, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Treaty) and its 2016 13 April, Riga, signed the Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The Treaty and the fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance. 3. article. The agreement and the Protocol shall enter into force the Treaty article 27 and for the period specified in the 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. To put the contract in law and Protocol Latvian and English. The Parliament adopted the law in 2016 on October 6. The President r. vējonis 2016 in Riga on October 18, the Republic of Latvia and the Government of the people's Republic of China in the Hong Kong Special Administrative Region Government, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income the Government of the Republic of Latvia and the Republic of China in the Hong Kong Special Administrative Region Government, reaffirming willingness to conclude an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income have agreed on the following. Article 1 persons covered this Agreement shall apply to the contract who is of one of the two Contracting Parties, or of the resident. Article 2 taxes covered 1. contract this contract applies to income taxes imposed by the Contracting Parties or the municipality, regardless of the method of collecting the tax. 2. income taxes deemed all taxes imposed on total income or on the part of income, including taxes on the capital gains of the movable or immovable property seizures, as well as taxes on the capital gains. 3. The existing taxes to which the agreement relates, in particular: (a)) of the Hong Kong Special Administrative Region in the event of: (i) the profit tax; (ii) the income tax; (iii) tax on immovable property; regardless of whether they are imposed on them by establishing a specific person; (b)) in the case of the Republic of Latvia: (i) the corporate income tax; (ii) the individual income tax. 4. the agreement shall also apply to any identical or substantially similar taxes which, supplementing or replacing the existing taxes are introduced after the date of signature of the Treaty, as well as on any other tax, which corresponds to the part 1 and 2, the Contracting Parties could be introduced in the future. The competent authorities of the Contracting Parties shall inform each other of any substantial amendments made to the tax laws of the parties. 5. Depending on the context, the existing duties and taxes imposed after the date of signature of the contract, means "taxes" or "the people's Republic of China in the Hong Kong Special Administrative Region". Article 3 General definitions 1. If the context is not otherwise specified, then this risk‐adjusted Treaty: (a)) (i) the term "Hong Kong Special Administrative Region" means any place where the application of the people's Republic of China in the Hong Kong Special Administrative Region tax laws; (ii) 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 area where, in accordance with the laws of Latvia and international law can be implemented in Latvia of rights on land and sea depths and natural resources contained therein; (b)), the term "business" includes the provision of professional services or other independent activities; (c) the term "company") means any association or any corporate entity for taxation purposes is considered a corporate Association; (d)) the term "competent authority" means: (i) the Hong Kong Special Administrative Region, in the case of inland revenue authorities the driver or his authorized representative; and (ii) in the case of Latvia, the Ministry of finance or its authorised representative; e) the term "Contracting Party" or "parties" means, depending on the context of Latvia or of the Hong Kong Special Administrative Region; (f) the term "company") refers to any type of business; (g)), the term "Contracting Party" and "enterprise of the other Contracting Party" means the company, run by a resident of a Contracting Party, and the company, run by a resident of the other Contracting Party; h) the term "international traffic" means any transport by a ship or aircraft by an enterprise of a Contracting Party, except when the ship or aircraft is moving only in the other Contracting Party; I) the term "national" means for Latvia: (i) any natural person who is Latvian; and (ii) any legal person, partnership or association, whose status as a result of the existing legislation of Latvia; (j)), the term "person" means a natural person, company, or any other Association of persons; k) the term "tax" means depending on the context of Latvia or in the Hong Kong Special Administrative Region. 2. for the purposes of this Agreement, the term "taxation" and "the Hong Kong Special Administrative Region tax" does not include any penalties or interest calculated in accordance with the laws of the Contracting Parties in respect of this agreement specified in article 2. 3. the Contracting Parties at any time during the application of this agreement, all terms not defined therein, have the meanings they have at the time, the laws and regulations of a party relating to taxes covered by the agreement, unless the context otherwise, besides not risk‐adjusted this side of the relevant tax legislation meaning prevails over other laws and regulations of the party, the intended meaning. Article 4 resident 1. In this agreement, the term "resident of a Contracting Party" means: (a)) of the Hong Kong Special Administrative Region in the event of: (i) any natural person resident in the Hong Kong Special Administrative Region; (ii) any natural person who, in the Hong Kong Special Administrative Region hosts more than 180 days in the tax year, or more than 300 days in two successive taxation years, one of which is the tax year for which the calculation is performed; (iii) the society established the Hong Kong Special Administrative Region, or if established outside the Hong Kong Special Administrative Region, it is controlled or supervised by the Hong Kong Special Administrative Region; (iv) any other person, established under the Hong Kong Special Administrative Region regulations or, if established outside the Hong Kong Special Administrative Region, but is controlled or supervised by the Hong Kong Special Administrative Region. (b) in the case of Latvia)-any person who, under the laws of Latvia impose taxes based on their place of residence, residence, location management, the creation of the site or any other substantially similar criteria. However, this term does not include those individuals in Latvia, the taxes are imposed only in respect of their income from existing sources of profit in Latvia or the capital; (c)) of the two Contracting Parties, parties to the case, the Government and any of its authorities; d) both Contracting Parties in the case of pension funds, or schemes that are established and monitored in accordance with the laws of the Contracting Parties and, in General, their income in that Contracting Party shall be exempt from taxation. 2. Where, in accordance with the provisions of part 1 an individual is a resident of both Contracting Parties, its status would be as follows: (a) the person is considered to be) only for residents of the party in which they are habitually resident; If permanent residence is on both sides, this person shall be deemed to be a resident only of the party, with which it has closer personal and economic relations (Centre of vital interests); (b)) if it is not possible to determine the Direction in which that person is a vibrant centre of interests, or if it is not a permanent residence in one of the two parties, that person is considered to be a resident only of the party, which has its usual home; c) if that person normally home in both parties or one of them is not, it is considered only for the residents of the party, where the nationals are this person (in the case of Latvia) or in which the person has a right of residence (in the Hong Kong Special Administrative Region); (d)) if that person is a national of Latvia and has the right of abode in the Hong Kong Special Administrative Region, or if the person is not Latvian nationals and it does not have the right of abode in the Hong Kong Special Administrative Region, the competent authorities of the Contracting Parties to settle this issue by mutual agreement. 3. Where, in accordance with the provisions of part 1 a person who is not a natural person, is a resident of both Contracting Parties, the Contracting Parties ' competent authorities should seek to resolve the matter by mutual agreement and determine the modalities of application of the agreement. If such agreement is reached, the application of the agreement, the person is not entitled to claim benefits in the contract. Article 5 permanent establishment 1. In this agreement, the term "permanent establishment" means a fixed place of business of the company, which is wholly or partly carried on business. 2. The term "permanent establishment" includes mainly: (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. The term "permanent establishment" also includes: a a building site, construction), Assembly or installation project or supervisory activities associated with them, but only if such works, project or activity occurs for more than nine months; and (b)) services, including advisory services, by an enterprise of a Contracting Party, either directly or by employing the company's employees or other personnel provided by the company for this purpose, but only if attracted a following (in the same or related project) in the other Contracting Party are carried out for a period or periods exceeding in the aggregate six months within any twelve month period. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. (d) the specific site) designed exclusively for the purchase of goods or products to your company's needs or the collection of information for the company's needs; e) specific action site intended solely to carry out the business of any other preparatory or ancillary activities; f) specific action site intended solely to deal with (a) to (e))) the following, in any combination thereof, if the combination of the action are generally preparatory or auxiliary character. 5. Notwithstanding paragraph 1 and 2 of the regulations, if a person who is not referred to in part 6 status of independent agent, running your business, and it has empowered the contracting parties enter into contracts on behalf of the company, and it constantly uses this power, then in all activities carried out by such person for your business, it is considered that the company has a permanent representation on this side, except if such person has carried out only part 4 actions foreseen in the that perform certain actions in place, the place of action under the said part is not considered permanent representation. 6. It is considered that the company does not have permanent representation in that Contracting Party, if the undertaking is established in the side, only brokers, sales agent or any other agent of an independent status, provided that such persons perform their normal business activities. 7. The fact that the company-a resident of a Contracting Party, control of the company, which is a resident of the other Contracting Party, or established in the other side (with the permanent representations, or in any other way), or is subject to the control of such undertaking 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 Party from real property (including income from agriculture or forestry) situated in the other Contracting Party may impose taxes in the other side. 2. The term "immovable property" shall have the meaning which it has its laws and regulations of the Contracting Party where 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 law general rules and any option or similar right to acquire immovable property, 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 from immovable property directly, letting or use in any other way. 4. parts 1 and 3 terms also apply in relation to income from the company's real estate. Article 7 business profits 1. the Contracting Parties for company profits are taxed only on this side, except where the company does business in the other Contracting Party, through the permanent representation there. If the enterprise carries on business in that way, the company's profits may impose taxes on the other side, 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 Parties company does business in the other Contracting Party, through the existing permanent representation there, each of the Contracting Parties to apply the permanent representation of the amount of profit, it would, if it were separate and independent organization that carries out the same or a similar business in 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, including operational and general administrative expenses, whether incurred in the party or outside it. 4. If the Contracting Party the profits attributable to the permanent establishment shall be determined by dividing the company's total profit in proportion between its divisions, part 2 does not prohibit a Contracting Party as usual after this principle, determine the profit for tax purposes; However, the method of distribution must be such that the result matches the principles contained in this article. 5. 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. 6. for the purposes of applying the provisions of the preceding paragraph, the profits attributed to the permanent establishment shall be determined each year by the same method, except if there is sufficient reason to do otherwise. 7. If the profit is included in the other articles of this agreement are considered separate income type, this article shall not affect the other provisions of this article. Article 8 shipping and air transport 1. the Contracting Parties for company profits of ships or aircraft in international traffic shall impose use taxes only on this side. 2. the provisions of part 1 shall also apply to profits from the participation in a pool, joint business or international traffic transport agency. 3. The application of this article the company profit of ships or aircraft in international traffic shall include the use of: (a)) revenue and gross revenue from ships or aircraft in international traffic, letting passengers, mail or goods, the transport of the product, including: (i) income from ships or aircraft leasing, hiring them without crew and supplies where such letting is performed in addition to the ship or to the use of aircraft in international traffic; (ii) income from ticket sales and service in relation to such transport, or the company, or other business, provided that in the case of the provision of services they are provided in addition to the ship or to the use of aircraft in international traffic; b a) interest income from investments made in the Contracting Parties, as the ships or aircraft in international traffic, the use of the establishment, integral, to apply to the profits obtained from ships or aircraft in international traffic, the use of, and the interest income will not apply the provisions of article 11. c) 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, if these operations take place in addition to the company's ships or aircraft for use in international traffic. Article 9 Associated enterprises 1. If: (a) the Contracting Parties) the company directly or indirectly participate in the enterprise of the other Contracting Party, in control, or it owns part of the company's capital; or (b)) the same persons participate directly or indirectly in the company of a Contracting Party and other Contracting Parties in the management, control, or they own part of the company's capital; and in any of these cases, these two companies commercial or financial relations are created or established by the rules, which differ from those which would be in force between the 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 party includes in the profits of the party, and consequently taxed it profits in respect of which the other side of the other Contracting Party, the company has been taxed, and this included the profit is the profit that would have been the first company of the Contracting Party, if the relationship between the two companies would have been as exist between two independent companies, then the other party shall take the appropriate adjustment for the size of the tax What is imposed on the earnings of the other side. In determining this adjustment, take into consideration other provisions of this agreement and, if necessary, the competent authorities of the Contracting Parties for advice. Article 10 dividends 1-dividends, a company resident in a Contracting Party, the cost of a resident of the other Contracting Party may impose taxes in the other side. 2. However, such dividends may also impose taxes according to relevant laws and regulations of the party at which the resident is a company that pays dividends, but if this the real beneficiary of the dividends is a resident of the other Contracting Party, the tax may not exceed: (a) the percentage of the dividend) 0 total, if the real beneficiary of the dividends is a company (other than a partnership); b) 10 per cent of the total dividends in all other cases. This part shall not affect the taxation of company profits from which dividends. 3. Notwithstanding the provisions of part 2, dividends arising in a Contracting Party, shall be exempt from tax if they are paid on this side: a) the Hong Kong Special Administrative Region: (i) in the case of the Hong Kong Special Administrative Region Government; (ii) the Hong Kong Monetary Authority (the Hong Kong Monetary Authority);
(iii) the Exchange Fund (Exchange Fund); (iv) any other institution wholly or mainly owned by the Hong Kong Special Administrative Region Government and for which in the course of time mutually agreed by the competent authorities of the Contracting Parties. (b) in the case of Latvia): (i) the Government of Latvia or its local authorities; (ii) the Bank of Latvia; (iii) established by law or by any other public institution, wholly or mainly owned by the Latvian Government or municipality, and which in the course of time mutually agreed by the competent authorities of the Contracting Parties; c) both Contracting Parties in the case, pension funds or schemes, corresponding to article 4 in part 1. 4. 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 legislation of the party where the resident is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares. 5. parts 1 and 2 shall not apply if the payment of the actual beneficiary who is a resident of a Contracting Party established in the other Contracting Party which is resident in the firm's costly dividends using the 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. 6. If company-a resident of a Contracting Party makes a profit or income of the other Contracting Party, the other party may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other party or if the participation of which is paid out in dividends, is actually related to the permanent representations in the other side, nor to impose tax on the profit for the whole of society, even if the dividends paid or retained earnings consists in whole or in part from the other side of profit or income. Article 11 interest 1. Interest arising in the Contracting Parties and is paid to residents of the other Contracting Party may impose taxes in the other side. 2. However, such interest may be subject to taxes in accordance with the relevant laws of the party in the Contracting Party in which they occur, but if this the real beneficiaries of the interest is a resident of the other Contracting Party, the tax may not exceed: (a) the percentage of interest) 0 if the total interest paid to a company which is a resident of a Contracting Party to the public (other than a partnership) which is a resident of the other Contracting Party and is the real beneficiary of the interest; b) 10 per cent of the total interest in all other cases. 3. Notwithstanding the provisions of part 2, a interest arising in a Contracting Party, shall be exempt from taxation on this side, if they are paid to: (a)) of the Hong Kong Special Administrative Region: (i) in the case of the Hong Kong Special Administrative Region Government; (ii) the Hong Kong Monetary Authority (the Hong Kong Monetary Authority); (iii) the Exchange Fund (Exchange Fund); (iv) any other institution wholly or mainly owned by the Hong Kong Special Administrative Region Government, and for which in the course of time mutually agreed by the competent authorities of the Contracting Parties. (b) in the case of Latvia): (i) the Government of Latvia or its local authorities; (ii) the Bank of Latvia; (iii) established by law or by any other public institution, wholly or mainly owned by the Latvian Government or municipality, and which in the course of time mutually agreed by the competent authorities of the Contracting Parties; c) both Contracting Parties in the case of pension funds, or schemes that comply with article 4, paragraph 1. 4. 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. The term "interest" does not include any income which, in accordance with the provisions of article 10 are treated as dividends. The application of the provisions of this article, interest received on time payments, are not considered interest. 5. parts 1 and 2 shall not apply if the interest the real beneficiary who is a resident of a Contracting Party established in the other Contracting Party in which the interest arises, through a permanent representation of the existing there and 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. 6. If the payer of the interest is a resident of a Contracting Party, it is considered that interest arises from this side. However, if the person who paid the interest, regardless of whether that person is a resident of a Contracting Party or not, using the existing permanent representation, whereby debt obligations incurred for which the interest is paid, and if such interest is paid (bear) permanent representation, it is considered that the interest incurred on the side in which the permanent establishment is situated. 7. If, on the basis of 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, the tax shall be imposed according to the laws of each of the Contracting Parties, taking into consideration other provisions of this agreement. Article 12 royalties 1. Royalties arising from contracting parties and paid to residents of the other Contracting Party may impose taxes in the other side. 2. However, such royalties may also impose taxes according to relevant laws and regulations of the party at the Contracting Party in which it occurs, but if the real beneficiary of the royalties is a resident of the other Contracting Party, the tax may not exceed: (a) the percentage of the royalties) 0 total for industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience or the right to use it, if the payment of the royalties the company that is a resident of a Contracting Party, the public (other than a partnership) which is a resident of the other Contracting Party and is the real beneficiary of the royalties; b) 3 per cent of the total of the royalties in all other cases. 3. The term "royalties" in this article means payments of any kind received as a compensation for any literary, artistic or scientific work including motion picture, movie, or a recording of radio or television broadcasts on any patent, trademark, design or the model, plan, secret formula or process, or the right to use, industrial, commercial or scientific equipment or the use of or the right to use it, or for information concerning industrial, commercial or scientific experience. 4. parts 1 and 2 shall not apply if the real beneficiary of the royalties who are residents of a Contracting Party, established second Contracting Party 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. 5. If the payer of the royalties is a resident of a Contracting Party, it is considered that the royalties come from this side. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting Party or not, using the existing permanent representation, due to the resulting obligation to pay the royalties, and if the payment of the royalties (bear) the permanent representation, it is considered that the image occurs at the side in which the permanent establishment is situated. 6. 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 are taxed according to the laws of each of the Contracting Parties, taking into consideration other provisions of this agreement. Article 13 capital gains 1. Capital gains, by a resident of a Contracting Party, the disposal of the beneficiaries referred to in article 6 to the other existing real property, may be subject to taxes in the other side. 2. Capital gains that accrued, disposing of property, which is part of the Contracting Parties of the permanent representation of the company business property on the other Contracting Party, including the capital gains from the following permanent missions (alone or with the whole enterprise), may be subject to disposal taxes in the other side. 3. Capital gains, which the Contracting Parties the company, which is used in international traffic of ships or aircraft, shall be forfeited to the use in international traffic of ships or aircraft or disposing of the property, which belongs to the ships or aircraft, are taxed only on this side. 4. Capital gains, by a resident of a Contracting Party, the disposal is gaining shares or any kind of similar, more than 50 (fifty) per cent of the value of the direct or indirect benefit of the other Contracting Party existing real property, may be subject to taxes in the other side. However, the conditions mentioned in this paragraph do not apply to capital gains, the disposal of the shares: a) listed on the following stock exchange, on which the parties have agreed, or (b) disposed of or exchanged) company reorganization, amalgamation, Division or similar transaction. 5. Capital gains generated by the disposal of any property that is not 1, 2, 3 and 4, the property is taxable only in the Contracting Party that is a resident of the property seizure. Article 14 Income from employment 1.15, 17 and 18 of the provisions for payment of wages and other similar remuneration, the Contracting Parties resident receives about paid employment are taxable only on this side, if one paid work is not performed in the other Contracting Party. If the salaried work is performed in the other Contracting Party, to the remuneration received for it can impose taxes in the other side. 2. Notwithstanding the provisions of part 1, remuneration which a resident of a Contracting Party receives about paid work that is performed in the other Contracting Party, are taxable only in the first half, if: (a) the beneficiary is found) to the other side 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 party, or any other person on behalf of the employer, and c the remuneration is not paid) (bear) permanent establishment which the employer uses the other side. 3. Notwithstanding the preceding provisions of this article, remuneration received for paid work that is being done to the Contracting Parties the company used in international traffic, vessel or aircraft, shall be taxable only in that party. Article 15 Directors ' fees directors ' fees and other similar remuneration received by a resident of a Contracting Party as of the Board of directors or any other similar institutions of the Member of the society, which is a resident of the other Contracting Party may impose taxes in the other side. Article 16 artists and athletes 1.7 and the provisions of article 14 income benefit as a resident of a Contracting Party, for example, the izpildītājmāksliniek Theatre, film, radio or television artist, or a musician, or as an athlete for your individual activities in the other Contracting Party may impose taxes in the other side. 2. If izpildītājmāksliniek or athlete's income on his individual activity in the area in question is paid rather than izpildītājmāksliniek or athlete himself but to another person, to the following income regardless of the 7 and the provisions of article 14 can impose taxes at the contracting party to which the izpildītājmāksliniek or athletes. Article 17 pensions and annual payments under this article 1, part 2, and article 18, part 2, rules for pensions and other similar remuneration (including lump-sum payments) received by a resident of a Contracting Party for the previous paid employment including self-employment is taxed only on this side. 2. in accordance with article 18, part 2, rules for pensions and other similar remuneration (including lump sums) paid under pension or old-age pension plan, which is: (a)) public plan that are Contracting Parties to the social insurance system; or (b)) plan, in which you can participate in person, to ensure the benefits of old-age pensions for tax purposes which are recognized by the Contracting Party, is taxable only in that Contracting Party. Article 18 government service 1 a) for salaries, wages and other similar remuneration, other than a pension and paid by the natural person contracting or municipality for that party or municipality services are taxed only on this side. (b) However, such salaries), fees and other similar remuneration shall be taxable only in the other Contracting Party, if the service has been provided on this side and this natural person is resident, which the party: (i) in the case of Latvia is the Latvian nationality and the Hong Kong Special Administrative Region, have the right to reside there; or (ii) did not become a resident of the other party solely to provide these services. 2. (a) any retirement) (including lump sums), and other similar remuneration paid by a natural person, the Contracting Party or the Government, or who is paid from the funds set up for services provided by that person or Government, the party is taxed only on this side; (b) However, if a natural person) who supplied services is a resident of the other Contracting Party and this case meets this part of article b), to any relevant pension (including lump sums), and other similar remuneration shall be taxable only in that other Contracting Party. 3.14, 15, 16, and article 17 shall apply to salaries, wages, pensions (including lump sums) paid for services provided in connection with the parties or the local business. Article 19 students payments which a residence, study or internship needs receives a student or apprentice who is professional or just before the arrival of the Contracting Parties was a resident of the other Contracting Party, and who in the first half has come only for the purpose of study or internship, this side is not taxed, provided that the source of these payments is not in this side. Article 20 other income 1. Other income of a resident of a Contracting Party, other than those referred to in the preceding articles of this agreement, regardless of their source, are taxed only on this side. 2. the provisions of part 1 does not apply to income, other than income from article 6 defined in part 2 of the real property, if the income beneficiary who is a resident of a Contracting Party established in the other Contracting Party, through the existing permanent representation 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. Article 21 The avoidance of double taxation (1) the Hong Kong Special Administrative Region in the case of double taxation is resolved as follows: in accordance with the Hong Kong Special Administrative Region's legislative rules on another jurisdiction other than Hong Kong Special Administrative Region, paid a tax deduction from the Hong Kong Special Administrative Region tax payable (without prejudice to the General provisions of this article), the Latvian tax paid under the laws of Latvia and the provisions of this Convention of any type of income the person who is in the Hong Kong Special Administrative Region residents, regardless of whether it is paid directly or by set-off, may be deducted from the Hong Kong Special Administrative Region regarding the income tax provided that the deduction does not exceed the Hong Kong Special Administrative Region in respect of that income, according to the Hong Kong Special Administrative Region regulations calculated tax amount. 2. in the case of Latvia, double taxation is avoided as follows: Where a resident of Latvia derives income which, in accordance with this agreement may be subject to taxes in the Hong Kong Special Administrative Region, then, unless national legislation is more favourable provisions, reduce the resident's permit Latvia income tax for an amount that is equal to the Hong Kong Special Administrative Region of the paid income tax. This reduction, however, exceed that part of the income tax, which is calculated in Latvia before the application of this reduction is attributable to the income which may be taxed taxes of the Hong Kong Special Administrative Region. 22. Article 1 of the prevention of Discrimination to persons who, in the case of Latvia is the Latvian nationality and the Hong Kong Special Administrative Region, the right of residence or establishment or otherwise holds up, the other Contracting Party shall not be applied to the taxation or related requirements that are different or more burdensome than the taxation or the related requirements in the same circumstances, in particular in the context of the residence apply or can be applied to these other nationals (Latvia by the other party) or other persons enjoying the right of residence or establishment or otherwise holds up (when the other side is the Hong Kong Special Administrative Region). This provision shall, notwithstanding the provisions of article 1, also apply to persons not of one of the two Contracting Parties, or of the resident. 2. For stateless persons – residents of a Contracting Party, in one of the Contracting Parties is not applied to the taxation or related requirements that are 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 persons to whom the parties are a party affiliation (when the party is in Latvia) or the right of residence or establishment or otherwise there is created (when the side is the Hong Kong Special Administrative Region). 3. Taxation of the Contracting Party of the permanent representation of the company to the other Contracting Party shall not be less favourable than the taxation of these other companies doing the same action. This provision shall not be interpreted so that it imposes obligations on the Contracting Party shall grant the other Contracting Party any personal relief to residents, discount and reduction in relation to taxation, which that party assigns its residents, in the light of their civil status or family responsibilities. 4. Except where the applicable part 1 of article 9, article 11 part 7 or article 12 part 6 rules, interest, royalties and other payments made by the Contracting Parties the company paid to residents of the other Contracting Party, in determining the taxable profit, must be deducted by the same rules as if they are paid to a resident of the first mentioned party. 5. the Contracting Parties for which the company capital, in whole or in part, directly or indirectly, belongs to one or more residents of the other Contracting Party or in full or in part, directly or indirectly control these residents in the first half 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, like the former party companies or which is more burdensome for them. 6. The provisions of this article independently of the provisions of article 2, apply to taxes of every kind and name. Article 23 conciliation procedure between 1. If a person believes that one or both of the Contracting Parties ' action in relation to this person causes or will cause the taxation which does not comply with the terms of this agreement, that person may, irrespective of the parties ' national legislation provided for remedies to submit complaints to the competent authority of the Contracting Party where the person is resident of, or, if the complaint relates to article 22, part 1, the contracting party to the competent authority that national is this person (in the case of Latvia), or in which it has a right of residence, or in which it is established, or otherwise create (in the Hong Kong Special Administrative Region). The complaint shall be submitted for review within three years of the first notification of the action which led to the terms of this agreement without corresponding 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 competent authority of the other Contracting Party to this Treaty, to avoid inappropriate taxation. Any such agreement is reached must be met regardless of the Contracting Parties ' national legislation set out the time limits. 3. the Contracting Parties ' competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise in the interpretation or application of this agreement. They may also consult to avoid double taxation in this contract in the event of unforeseen circumstances. 4. in order to reach agreement on these issues in the preceding subparagraph, the competent authorities of the Contracting Parties may communicate directly with one another, as well as the use of competent authorities or their representatives through the Commission. Article 24 exchange of information the Contracting Parties 1 the competent authorities should take the information that is expected in the important application of the provisions of this agreement or of the Contracting Parties, the national administration of laws or enforcement in respect of the duties laid down in this agreement, in so far as such taxation is not contrary to this agreement. Article 1 of the agreement shall not preclude the exchange of information. 2. any information provided under part 1 of the receiving Contracting Party, be considered as sensitive as information that is obtained in accordance with that party's laws and regulations, and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the above part 1 tax calculation or collection, enforcement or trials or appeals. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public hearings or in judgements. The information must not be disclosed to any third jurisdiction for any purpose. 3. In any case, part 1 and 2 of the rules may not explain that they impose an obligation on the Contracting Party: (a)) to take administrative measures which do not comply with one or other of the Contracting Parties and the laws and administrative practice; (b)) to provide information that is not available under one or other of the Contracting Parties the laws 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 (ordre public). 4. If a Contracting Party in accordance with this article shall be required to provide the information to the other Contracting Party should use its information gathering measures to obtain the requested information, even if the requested information to the other party does not need your taxation needs. The obligation referred to in the preceding sentence is subject to the restrictions of part 3, but in any case, these limits must not be explain that they permit a Contracting Party to 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 may not be explained so that they allowed a Contracting Party to refuse to provide 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 is linked to participation in the ownership of a person. Article 25 the Government mission staff this contract the rules do not affect the Government's mission, including consular staff, fiscal privileges which it applied in accordance with international law, the General rules or specific agreement terms. Article 26 miscellaneous provisions 1. This agreement shall not prejudice the right of each Contracting Party to apply its national legislation and measures in relation to tax evasion prevention, regardless of whether they are defined as follows. 2. for the purposes of this article, "legislation and measures in relation to tax evasion prevention" include laws and measures aimed to prevent, limit, prevent or suspend any transaction, agreement or practice, the object or effect of which is the tax for the benefit of any person. Article 27 entry into force 1. each Contracting Party shall notify the other in writing that it has complied with the laws and procedures laid down for the entry into force of this Treaty. The contract shall enter into force on the date of receipt of the latter notification. 2. this Agreement shall apply: (a)) of the Hong Kong Special Administrative Region in respect of: Hong Kong Special Administrative Region tax, for any taxation period beginning on the first day of April or after the calendar year following the year in which the agreement enters into force; (b) in the case of Latvia): (i) in respect of taxes withheld at the time the cost – starting with the income accruing on the first day of January or after the calendar year following the year in which the agreement enters into force; 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 agreement enters into force. Article 28 termination this Agreement shall remain in force until the contracting party terminates its activities. Each Contracting Party may terminate the agreement by giving the other party written notice of termination at least six months before any of the calendar year. In this case, the Agreement shall cease to have effect: (a)) of the Hong Kong Special Administrative Region in respect of: Hong Kong Special Administrative Region tax, for any taxation period beginning on the first day of April or after the calendar year following the year in which the notice is given; (b) in the case of Latvia): (i) in respect of taxes withheld at the time the cost-starting with the income accruing on the first day of January or after the calendar year following the year in which the notice is given; (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 thereof, the undersigned, being duly authorised, have signed this agreement. Be drawn up in two copies in 2016. on 13 April, every Latvian, Chinese and English, in addition, all three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia, the people's Republic of China in the Hong Kong Special Administrative Region Government, Dana Reizniec-oak Chan Kakeng Sīdžer a protocol Signed by the Government of the Republic of Latvia and the Republic of China in the Hong Kong Special Administrative Region Government, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the agreement), the two Governments have agreed upon the following provisions which are an integral part of the Treaty. 1. as regards article 5: it is understood that the Contracting Parties to the other companies of the Contracting Parties in the formation of an independent agency for marine and subsoils and there existing natural resource exploration and exploitation prospect of the other Contracting Party, if the other Contracting Party shall take such action, but only if the activity lasts for a period or periods exceeding in the aggregate 30 days in any twelve month period. 2. with regard to article 6: it is understood that all income and capital gains from the agreement referred to in article 6 of the real estate that is in the Contracting Parties, seizures, may be taxed in that party. 3. with regard to article 17: it is understood that the pension or retirement pension plan is considered to be recognised for the purposes of taxation, if it is created and supervised the Contracting Parties and contributions to the plan are qualified as exempt from tax. 4. in respect of article 24 (a)) it is understood that the provisions of this article shall apply also in relation to the following taxes are administered and assigned: (i) value added tax; and (ii) real estate taxes. (b) the provisions of article) does not oblige a Contracting Party to carry out the automatic exchange of information, exchange of information or on its own initiative. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. Be drawn up in two copies in 2016. on 13 April, every Latvian, Chinese and English, in addition, all three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia, the people's Republic of China in the Hong Kong Special Administrative Region Government, Dana Reizniec-oak Chan Sīdžer of the Kakeng agreement BETWEEN the Government OF the REPUBLIC OF Latvia AND the Government OF the HONG KONG SPECIAL ADMINISTRATIVE REGION OF the people's REPUBLIC OF China FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income the Government of the Republic of Latvia and the Government of the Hong Kong Special Administrative Region of the The people's Republic of China, an agreement the conclud (menu Rngton Line4) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows: article 1 Persons Covered this Agreement shall apply to persons who are residents of one or both of the Contracting Parties. Article 2 Taxes Covered 1. This agreement shall apply to taxes on income imposed on behalf of a Contracting Party or of its local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovabl property, as well as taxes on capital appreciation. 3. The existing taxes to which the agreement shall apply are in particular: (a) in the case of the Hong Kong Special Administrative Region, (i) profits tax; (ii) the salar to tax; and (iii) the property tax; whethers or not charged under personal assessment; (b) in the case of a corporation, (i) the enterprise income tax (corporate income tax); and (ii) the personal income tax (individual income tax). 4. The agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the agreement in addition to, or in place of, the existing taxes, as well as any other taxes falling within paragraphs 1 and 2 of this article which (a) a Contracting Party may impost in future. The competent authorities of the Contracting Parties shall notify the other of any each significant changes that have been made in their taxation laws. 5. The existing tax, together with the taxes imposed after the signature of this agreement, hereinafter referred to as "Latvian tax" or the "Hong Kong Special Administrative Region tax", as the context requires. Article 3 General Definition 1. For the purpose of this agreement, unless the context otherwise requires: (a) (i) the term "Hong Kong Special Administrative Region" means any place where the tax law of the Hong Kong Special Administrative Region of the people's Republic of China apply; (ii) the term "United States" means the Republic of Latvia and, when used in the sense of location, 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 Latvia and in accordanc with international law, the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (b) the term "business" includes the performance of professional services and of other activities of an independent character; (c) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purpose; (d) the term "competent authority" means: (i) in the case of the Hong Kong Special Administrative Region, the Commissioner of Inland Revenue or his authorised representative; (ii) in the case of Latvia, the Ministry of finance or its authorised representative; (e) the term "Contracting Party" or "Party" means a corporation or the Hong Kong Special Administrative Region, as the context requires; (f) the term "enterprise" applies to the carrying on of any business; (g) the terms "enterprise of a Contracting Party" and "enterprise of the other Contracting Party" mean respectively an enterprise carried on by a resident of a Contracting Party and an enterprise carried on by a resident of the other Contracting Party; (h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting Party, except when the ship or aircraft is operated solely between places in the the other Contracting Party; (i) the term "national" in relations to Latvia means: (i) any individual possessing the nationality of a corporation; and (ii) any legal person, partnership or association deriving its status as such from the law in force in Latvia; (j) the term "person" includes an individual, a company and any other body of persons; (k) the term "tax" means Latvian tax or the Hong Kong Special Administrative Region tax, as the context requires. 2. In this agreement, the term "Latvian tax" and "the Hong Kong Special Administrative Region tax" do not include any penalty or interest imposed under the law of either Contracting Party relating to the taxes to which this agreement applies by virtue of article 2 As regards 3 the application of the agreement at any time by a Contracting Party, 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 Party for the purpose of the taxes to which the agreement applies, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party. Article 4 resident 1. For the purpose of this agreement, the term "resident of a Contracting Party" means: (a) in the case of the Hong Kong Special Administrative Region: (i) any individual who ordinarily resident programs in the Hong Kong Special Administrative Region; (ii) any individual who stay in the Hong Kong Special Administrative Region for more than 180 days during a year of assessment or for more than 300 days in two consecutive year of assessment one of which is the relevant year of assessment; (iii) a company incorporated in the Hong Kong Special Administrative Region or, if incorporated outside the Hong Kong Special Administrative Region, being normally managed or controlled in the Hong Kong Special Administrative Region; (iv) any other person constituted under the laws of the Hong Kong Special Administrative Region or, if constituted outside the Hong Kong Special Administrative Region, being normally managed or controlled in the Hong Kong Special Administrative Region; (b) in the case of a corporation, any person who, under the laws of Latvia, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature. This term, however, does not include any person who is liabl this tax in Latvia in respect only of income from sources in the United Kingdom or of capital situated therein; (c) in the case of either Contracting Party, the Party, the Government of that Party and any local authority thereof; (d) in the case of either Contracting Party, a pension fund or scheme that is established and regulated according to the statutory provision of a Contracting Party and the income of which is generally the main tax in that Contracting Party from. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting Parties, then his status shall be determined as follows: (a) he shall be deemed to be a resident only of the Party in which he has a permanent home available to him; If he has a permanent home available to him in both parties, he shall be deemed to be a resident only of the Party with which his personal and economic relations are closer (Centre of vital interests); (b) if the Party 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 Party, he shall be deemed to be a resident only of the Party in which he has an habitual abode; (c) if he has an habitual abode in both parties or in ither of them, he shall be deemed to be a resident only of the Party of which he is a national (in the case of Latvia), one in which he has the right of abode (in the case of the Hong Kong Special Administrative Region); (d) if he is a national of the United States and also has the right of abode in the Hong Kong Special Administrative Region, or if he is not a national of the United Kingdom nor have the right of abode in the Hong Kong Special Administrative Region, the competent authorities of the Contracting Parties 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 Parties, the competent authorities of the Contracting Parties shall endeavour: the it settle the question by mutual agreement and determin the mode of application of the agreement to such person. In the absence of such agreement, for the purpose of the agreement, the person shall not be entitled to claim any benefits provided by the agreement. Article 5 permanent establishment 1. For the purpose of this agreement, 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. The term "permanent establishment" also encompass: (a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only if such site, project or activities last more than nine months; (b) the furnishings of services, including consultancy services, by an enterprise of a Contracting Party directly or through employees or other personnel engaged by the enterprise for such purpose, but only where such activities continue (for the same or a connected project) in the other Contracting Party for a period or periods exceeding in the aggregate six months within any twelve month period. 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 other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraph (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. Notwithstanding the provision of paragraph 1 and 2, where a person – other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting Party an authority it has contracts in conclud the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Party 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. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting Party merely because it to one business in the carr a Party through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company which is a resident of a Contracting Party or is controlled by a control a company which is a resident of the other Contracting Party, or one business in which carr to that other Party (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 Party from immovabl property (including income from agriculture or forestry) situated in the other Contracting Party may be taxed in that other Party. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting Party 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, any option or similar right to the immovabl property, usufruc acquir 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 Party shall be only in that Party taxabl unless the enterprise to one business in carr the other Contracting Party through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other Party, 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 Party carr to one business in the other Contracting Party through a permanent establishment situated therein, there shall in each Contracting Party 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 Party in which the permanent establishment is situated or elsewher. 4. Insofar as it has been customary in a Contracting Party to determin the profits to be attributed to a permanent establishment on the basis of an apportionmen of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclud that Contracting Party from determining the profits to be taxed by such an apportionmen as may be customary; the method of apportionmen, however, the adopted shall be such that the result shall be in accordanc with the principles led in this article. 5. 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. 6. For the purpose of the preceding paragraphs, 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. 7. Where profits include items of income which the deal with separately in other articles of this agreement, 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 Party from the operation of ships or aircraft in international traffic shall be only in the taxabl you Party. 2. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 3. For the purpose of this article, profits of an enterprise from the operation of ships or aircraft in international traffic include: (a) the revenue and gross receipts from the operation of ships or aircraft for the transport of persons, goods, mail or merchandise in international traffic including: (i) the income derived from the lease of ships or aircraft on a charter basis where you barebo such lease is incidentals to the operation of ships or aircraft in international traffic; (ii) the income derived from the sale of tickets and the provision of services connected with such transport whethers for the enterprise itself or for any other enterprise, provided that in the case of provision of services, such provision is incidentals to the operation of ships and aircraft in international traffic; (b) interest on investments that are made in a Contracting Party as integral part of carrying on the business of operations of ships or aircraft in international traffic, which shall be regarded as profits derived from the operation of such ships or aircraft and the provision of article 11 shall not apply in the relations it such interest; (c) profits from the use, maintenance or lease of containers (including trailers and related equipment for the transport of containers) by the enterprise for the transport of goods or merchandise when such activities are the incidentals to the operation of ships or aircraft in international traffic. Article 9 Associated enterprises 1. Where (a) an enterprise of a Contracting Party directly or indirectly of participat in the management, control or capital of an enterprise of the other Contracting Party, or (b) the same person is directly or indirectly to participat in the management, control or capital of an enterprise of a Contracting Party and an enterprise of the other Contracting Party , 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 Party includes in the profits of an enterprise of that Party-and taxes accordingly-profits on which an enterprise of the other Contracting Party has been charged to tax in that other Party and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Party if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other Party 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 agreement and the competent authorities of the Contracting the Parties shall consult each other if not cessary. Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting Party to a resident of the other Contracting Party may be taxed in that other Party. 2. However, such dividends may also be taxed in the Contracting Party of which the company paying the dividends is a resident and according to the law of that Party, but if the beneficial owner of the dividends is a resident of the other Contracting Party, the tax so charged shall not: (a) exceeds 100 0 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership); (b) 10 per cent of the gross amount of the dividends in all other cases. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. Notwithstanding the provision of paragraph 2 of this article, a Contracting Party arising in dividends in the main from tax in that Party, if they are paid: (a) in the case of the Hong Kong Special Administrative Region: (i) to the Government of the Hong Kong Special Administrative Region; (ii) the Hong Kong Monetary Authority to the; (iii) the Exchange Fund; (iv) any institution wholly or mainly owned by the Government of the Hong Kong Special Administrative Region as may be agreed from time to time between the competent authorities of the Contracting the parties; (b) in the case of Latvia: (i) to the Government of Latvia or its local authority; (ii) to the Bank of Latvia; (iii) to a statutory body or institution wholly or mainly owned by the any the Government of Latvia or its local authority, and in either case as may be agreed from time to time between the competent authorities of the Contracting the parties; (c) in the case of either Contracting Party, to a pension fund or scheme as referred to in paragraph 1 of article 4. 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 Party of which the company making the distribution is a resident. 5. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting Party, the one business in carr the other Contracting Party 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. 6. Where a company which is a resident of a Contracting Party or of deriv profits income from the other Contracting Party, that other Party 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 Party or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment situated in a to that other Party , 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 Party. Article 11 interest 1-interest arising in a Contracting. Party and paid to a resident of the other Contracting Party may be taxed in that other Party. 2. However, such interest may also be taxed in the Contracting Party in which it «arise and according to the law of that Party, but if the beneficial owner of the interest is a resident of the other Contracting Party, the tax so charged shall not: (a) exceeds 100 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 Party to a company (other than a partnership) that is a resident of the other Contracting Party and is the beneficial owner of the interest; (b) 10 per cent of the gross amount of the interest in all other cases. 3. Notwithstanding the provision of paragraph 2 of this article, interest arising in a Contracting Party is main from tax in that Party, if it is paid: (a) in the case of the Hong Kong Special Administrative Region: (i) to the Government of the Hong Kong Special Administrative Region; (ii) the Hong Kong Monetary Authority to the; (iii) the Exchange Fund; (iv) any institution wholly or mainly owned by the Government of the Hong Kong Special Administrative Region as may be agreed from time to time between the competent authorities of the Contracting the parties; (b) in the case of Latvia: (i) to the Government of Latvia or its local authority; (ii) to the Bank of Latvia; (iii) to a statutory body or any institution wholly or mainly owned by the Government of Latvia or its local authority, and in either case as may be agreed from time to time between the competent authorities of the Contracting the parties; (c) in the case of either Contracting Party, to a pension fund or scheme as referred to in paragraph 1 of article 4. 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. The term "interest" shall not include any income which is treated as a dividend under the provision of article 10. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting Party, the one business in carr the other Contracting Party 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. 6. Interest shall be deemed the «arise in a Contracting Party when the payer is a resident of that Party. Where, however, the person paying the interest, whethers he is a resident of a Contracting Party or not, has in a Contracting Party 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 Party in which the permanent establishment is situated. 7. 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 Party, due regard being had to the other provision of this agreement. Article 12 to 1 to Royalt Royalt arising in a Contracting Party and paid to a resident of the other Contracting Party may be taxed in that other Party. 2. However, such may be taxed in royalt also in the Contracting Party in which they «arise and according to the law of that Party, but if the beneficial owner of the royalt to is a resident of the other Contracting Party, the tax so charged shall not: (a) exceeds 100 0 per cent of the gross amount of the royalt for the use of , or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience if the royalt with paid by a company that is a resident of a Contracting Party to a company (other than a partnership) that is a resident of the other Contracting Party and is the beneficial owner of the royalt; (b) 3 per cent of the gross amount of the stay in all other cases royalt. 3. 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, films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of , or the right to use, industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting Party, the one business in carr the other Contracting Party 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. 5. you shall be deemed the Royalt «arise in a Contracting Party when the payer is a resident of that Party. Where, however, the person paying the whethers royalt, he is a resident of a Contracting Party or not, has in a Contracting Party a permanent establishment in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment, then such shall be deemed to be the royalt «arise in the Party in which the permanent establishment is situated. 6. 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 Party, due regard being had to the other provision of this agreement. Article 13 Capital gains 1. Gains derived by a resident of a Contracting Party from the alienation of property referred to immovabl in article 6 and situated in the other Contracting Party may be taxed in that other Party. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting Party has in the other Contracting Party, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other Party. 3. Gains derived by an enterprise of a Contracting Party operating ships or aircraft in international traffic from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be only in the taxabl you Party. 4. Gains derived by a resident of a Contracting Party from the alienation of shares or of a comparabl interest of any kind deriving more than 50 per cent of their value directly or indirectly from immovabl property situated in the other Contracting Party may be taxed in that other Party. However, this paragraph does not apply to gains derived from the alienation of: (a) quoted shares on such stock exchange as may be agreed between the parties; or (b) alienated or exchanged in the framework of a reorganisation of company a, a, a division or a similar merger registry operations. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be only in the taxabl Contracting Party 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 Party in respect of an employment shall be only in the taxabl a Party unless the employment is exercised in the other Contracting Party. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Party. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting Party in respect of an employment exercised in the other Contracting Party shall be the taxabl only in the first-mentioned Party if: (a) the recipient is present in the other Party for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the period concerned taxabl , and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Party, and (c) the remuneration is not borne by a permanent establishment which the employer has in the other Party. 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 Party shall be only in the taxabl you Party. Article 15 directors ' fees directors ' fees and other similar remuneration derived by a resident of a Contracting Party in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Contracting Party may be taxed in that other Party. Article 16 artistes and Sportsmen 1. Notwithstanding the provision of articles 7 and 14, income derived by a resident of a Contracting Party as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting Party, may be taxed in that other Party. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman's in his capacity as such notes to the accru entertainer or sportsman's himself but to another person, that income may, notwithstanding the provision of articles 7 and 14, be taxed in the Contracting Party in which the activities of the entertainer or sportsman's are exercised. Article 17 Pension 1. Subject to the provision of paragraph 2 of this article and paragraph 2 of article 18, the pension and other similar remuneration (including a waded sum payment) paid to a resident of a Contracting Party in considerations of past employment including self-employment shall be only in the taxabl you Party. 2. Subject to the provision of paragraph 2 of article 18, the pension and other similar remuneration (including a waded sum payment) made under a pension or retirement scheme which is: (a) a public scheme which is part of the social security system of a Contracting Party; or (b) a scheme in which an individual may to participat secure retirement benefits and which is recognised for tax purpose in a Contracting Party, shall be only in that Contracting taxabl Party. Article 18 government service 1 (a), and others of the Salar WAGs similar remuneration, other than a pension, paid by a Contracting Party or a local authority thereof to an individual in respect of services rendered to that Party or authority shall be only in the taxabl you Party. (b) However, such salar, WAGs and other similar remuneration shall be taxabl only in the other Contracting Party if the services are rendered in that Party and the individual is a resident of that Party who: (i) in the case of a corporation, is a national thereof and in the case of the Hong Kong Special Administrative Region, has the right of abode therein; or (ii) did not become a resident of that Party solely for the purpose of rendering the services. 2. (a) Any pension (including waded a sum payment) and other similar remuneration paid by, or out of funds created paid or contributed by a Contracting Party or a local authority thereof to an individual in respect of services rendered to that Party or authority shall be only in the taxabl you Party. (b) However, if the individual who rendered the services is a resident of the other Contracting Party and the case falls within subparagraph (b) of paragraph 1 of this article, any òàæó pension (whethers a payment in the sum or by instalment waded) and other similar remuneration shall be only in the taxabl you other Contracting Party. 3. The provision of articles 14, 15, 16, and 17 shall apply to salar, WAGs, of the pension (including waded a sum payment), and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting Party or a local authority thereof. Article 19 students payments which a student or business apprentice who is or was immediately before visiting a Contracting Party a resident of the other Contracting Party and who is present in the first-mentioned Party 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 Party , provided that such payments «arise from sources outside that Party. Article 20 Other income 1-items of income. of a resident of a Contracting Party, wherever arising, not deal with in the foregoing articles of this Agreement shall be the only Party in that taxabl. 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 recipient of such income, being a resident of a Contracting Party, the one business in carr the other Contracting Party 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. Article 21 Elimination of Double Taxation 1. In the case of the Hong Kong Special Administrative Region, shall be eliminated double taxation as follows: subject to the provision of the laws of the Hong Kong Special Administrative Region relating to the allowance of a credit against the Hong Kong Special Administrative Region tax of tax paid in a jurisdiction outside the Hong Kong Special Administrative Region (which shall not be affec the general principles of this article) , Latvian tax paid under the law of Latvia and in accordanc with this agreement, whethers directly or by deduction in ", in respect of income derived by a person who is a resident of the Hong Kong Special Administrative Region from sources in Latvia, shall be allowed as a credit against Hong Kong Special Administrative Region tax payable in respect of that income , provided that the credit so allowed does not exceeds 100 the amount of the Hong Kong Special Administrative Region tax computed in respect of that income in accordanc with the tax law of the Hong Kong Special Administrative Region. 2. In the case of Latvia, double taxation shall be eliminated as follows: where a resident of Latvia's income which, deriv in accordanc with this agreement, may be taxed in the Hong Kong Special Administrative Region, unless a more favourabl treatment is provided in its internal law, Latvia shall allow as a deduction in "from the tax on the income of that resident , an amount equal to the income tax paid thereon in the Hong Kong Special Administrative Region. Such notes shall, however, exceeds 100 Marbles that part of the income tax in Latvia, as computed before the deduction in "is given, which is attributabl to the income which may be taxed in the Hong Kong Special Administrative Region. Article 22 Non-Discrimination 1. a Person who, in the case of Latvia, the Latvian national, and, in the case of the Hong Kong Special Administrative Region, have the right of abode or are incorporated or otherwise constituted therein, shall not be subjected in the other Contracting Party 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 Party (where the other Party is a corporation) or persons who have the right of abode or are incorporated or otherwise constituted in that other Party (where that other Party is the Hong Kong Special Administrative Region) in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting Parties. 2. a person who with Stateles of residents of a Contracting Party shall not be subjected in either Contracting Party to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of the Party (where the Party is a Corporation) or the persons who have the right of abode in the Party (where the Party is the Hong Kong Special Administrative Region) in the same of circumstanc in particular, with respect to residence, are or may be subjected. 3. The taxation on a permanent establishment which an enterprise of a Contracting Party has in the other Contracting Party shall not be less favourably levied in that other Party than the taxation levied on enterprises of that other Party carrying on the same activities. This provision shall not be construed as obliging a Contracting Party to grant to residents of the other Contracting Party 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 l of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursement royalt paid by an enterprise of a Contracting Party to a resident of the other Contracting Party shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned Party. 5. Enterprises of a Contracting Party, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting Party, shall not be subjected in the first-mentioned Party 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 Party 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. Article 23 Mutual agreement procedure 1-where a person consider. that the actions of one or both of the Contracting Parties result or will result for him in taxation not in accordanc with the provision of this agreement, he may, irrespectiv of the remedies provided by the internal law of those parties, present his case to the competent authority of the Contracting Party of which he is a resident or , if his case comes under paragraph 1 of article 22, to that of the Contracting Party of which he is a national (in the case of Latvia) or in which he has the right of abode or is incorporated or otherwise constituted (in the case of the Hong Kong Special Administrative Region). 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 agreement. 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 Party, with a view to the avoidance of taxation which is not in accordanc with the agreement. Any agreement reached shall be implemented notwithstanding any time limits in the internal law of the Contracting Parties. 3. The competent authorities of the Contracting Parties shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the agreement. They may also consult together for the elimination of double taxation in cases not provided for in the agreement. 4. The competent authorities of the Contracting the parties 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. Article 24 exchange of Information 1. The competent authorities of the Contracting the Parties shall exchange such information as is foreseeably relevant for carrying out the provision of this agreement or to the administration or enforcement of the internal law of the Contracting Parties concerning taxes covered by the agreement, insofar as the taxation thereunder is not contrary to the agreement. The exchange of information is not restricted by article 1. Any information received under paragraph 2 by a Contracting Party shall be 1 treated as secret in the same manner as information obtained under the internal law of that Party 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. Information shall not be disclosed to any third jurisdiction for any purpose. 3. In no case shall the provision of of paragraphs 1 and 2 be construed so as to (a) a Contracting Party impost on the obligation: (a) to carry out administrative measure's at variance with the laws and administrative practice of that or of the other Contracting Party; (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 Party; (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 Party in accordanc with this article, the other Contracting Party shall use it for information gathering of the "obtain the requested information, even though that other Party 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 Party 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 Party 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 25 the members of Government missions Nothing in this Agreement shall be affec the fiscal privilege of members of Government missions, including consular posts under the general rules of international law or under the provision of special agreements. Article 26 miscellaneous provisions 1. Nothing in this Agreement shall prejudice the right of each Contracting Party to apply its internal law and the measure concerning tax avoidance, or not described as such whethers. 2. For the purpose of this article, "the law and the measure concerning tax avoidance" includes law and measure for preventing, discouraging, or «avoiding the effect of counteracting any transaction, or practice through which has the purpose or effect of conferring a tax benefit on any person. Article 27 Entry into force 1. Each of the Contracting Parties shall notify the other in writing of the completion of the procedures required by its law for the bringing into force of this agreement. The agreement shall enter into force on the date of the later of these notifications. 2. The provision of the agreement shall thereupon have effect: (a) in the case of the Hong Kong Special Administrative Region: in respect of the Hong Kong Special Administrative Region tax, for any year of assessment beginning on or after the first day of April in the calendar year next following that in which the agreement enter into force; (b) in the case of Latvia: (i) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following that in which the agreement enter into force; (ii) in respect of other taxes on income, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following that in which the agreement enter into force. Article 28 Termination this Agreement shall remain in force until terminated by a Contracting Party. Either Contracting Party may terminate the agreement by giving the other Party written notice of termination Contracting at least six months before the end of any calendar year. In such event, the agreement shall cease to have effect: (a) in the case of the Hong Kong Special Administrative Region: in respect of the Hong Kong Special Administrative Region tax, for any year of assessment beginning on or after the first day of April in the calendar year next following that in which the notice has been given; (b) in the case of Latvia: (i) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following that in which the notice has been given; (ii) in respect of other taxes on income, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following that in which the notice has been given. In WITNESS WHEREOF, the undersigned, duly authorised the theret, have signed this agreement. Done in duplicate at Riga this 13th day of April 2016, in the Latvian, Chinese and English languages, all three 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 For the Government of the Hong Kong Special Administrative Region of the people's Republic of China Dana Reizniec-Ceajer Ka-keung Chan oak PROTOCOL At the time of signing of the agreement between the Government of the Republic of Latvia and the Government of the Hong Kong Special Administrative Region of the people's Republic of China for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income (" the agreement "), the two Governments have agreed on the following provision which shall form an integral part of the United Nations agreement. 1. With reference to article 7: It is understood that an enterprise of a Contracting Party shall be deemed to have a permanent establishment in the other Contracting Party in respect of offshore activities in connection with the exploration or extraction from the sea bed and sub-soil of the natural resources situated in the other Contracting Party if it carr to one such activities in the other Contracting Party , but only where such activities are carried on for a period or periods exceeding in the aggregate 30 days in any twelve month period. 2. With reference to article 7: It is understood that all income and gains from the alienation of property referred to immovabl in article 6 and situated in a Contracting Party may be taxed in that Party. 3. With reference to article 17: It is understood that a pension or retirement scheme is recognised for the purpose of tax if it is established and regulated in a Contracting Party and the contributions to the scheme qualify for tax relief. 4. With reference to article 24: (a) It is understood that the provision in this article also apply to the following taxes that are administrated and enforced in the United Kingdom: (i) the value added tax (value added tax); and (ii) the immovabl property tax (estate tax). (b) the article does not require the Contracting Parties to exchange information on an automatic or a basis of spontaneo. In WITNESS WHEREOF, the undersigned, duly authorised the theret, have signed this Protocol. Done in duplicate at Riga this 13th day of April 2016, in the Latvian, Chinese and English languages, all three 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 For the Government of the Hong Kong Special Administrative Region of the people's Republic of China Dana Reizniec-Ceajer Ka-keung Chan oak