The Government Of The Republic Of Latvia And The Government Of The United Arab Emirates To The Convention On The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income And Capital And Its Protocol

Original Language Title: Par Latvijas Republikas valdības un Apvienoto Arābu Emirātu valdības konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma un kapitāla nodokļiem un tās protokolu

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Read the untranslated law here: https://www.vestnesis.lv/op/2012/189.11


The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of the United Arab Emirates to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and its Protocol article 1. 11 March 2012 in Abu Dhabi signed by the Government of the Republic of Latvia and the Government of the United Arab Emirates to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital (hereinafter the Convention) and its 2012 March 11, Abu Dhabi signed a Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. Convention and the fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance. 3. article. The Convention and the Protocol shall enter into force of the Convention for the period specified in article 33 and in order, and the Ministry of Foreign Affairs shall notify the official Edition of the "journal". 4. article. The law shall enter into force on the day following its promulgation. With the law put the Convention and Protocol in English and Latvian. The Parliament adopted the law in 2012 on November 15. The President a. Smith in 2012 on November 30, the Government of the Republic of LATVIA and the GOVERNMENT of the United Arab Emirates to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital the Government of the Republic of Latvia and the Government of the United Arab Emirates, reaffirming the desire to promote and strengthen the economic relations, concluding the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital , agree on the following: article 1 persons covered this Convention the CONVENTION applies to persons who have one or both of the Contracting States residents. Article 2 taxes covered by the CONVENTION (1) this Convention shall apply to taxes on income and on capital imposed by the Contracting State, its local government or local authorities, irrespective of the good this tax collection. 2. On the income and capital taxes, regarded all taxes imposed on total income, total capital or income or capital, including taxes on the capital gains of the movable or immovable property seizures, as well as taxes on capital appreciation. 3. The existing taxes to which this Convention applies, in particular, is: (a)): (i) corporate income tax; (ii) the individual income tax; (iii) tax on immovable property; (hereinafter referred to as the Latvian tax); b) United Arab Emirates: (i) the income tax; and (ii) the corporation tax; (hereinafter referred to as the United Arab Emirates, taxes). 4. This Convention shall apply also to any identical or substantially similar taxes which, supplementing or replacing the existing taxes are introduced after the date of signature of this Convention. The competent authorities of the Contracting States shall notify each other of any significant amendments to this country in the relevant tax legislation. Article 3 General definitions 1. If the context does not otherwise specified, then this risk‐adjusted Convention: a) the term "Latvia" means the Republic of Latvia, and, used in a geographical sense, it represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the laws of Latvia and international law can be implemented in Latvia of rights on land and sea depths and natural resources contained therein; (b)), the term "United Arab Emirates" means the combined Arab Emirates and, used in a geographical sense, it represents the area over which it exercises its sovereignty as well as territorial sea, air and submarine areas, including land and Islands under their jurisdiction for the United Arab Emirates, in accordance with international law and the United Arab Emirates laws and sovereign rights to implement any action in connection with natural resource exploration or exploitation; (c) the terms "a Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or the combined Arab Emirates; (d)), the term "taxation" means depending on the context of Latvia or the United Arab Emirates; e) the term "person" means a natural person, company, or any other Association of persons; (f) the term "company") means any association or any corporate entity for taxation purposes is considered a corporate Association; g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; h) the term "international traffic" means any transport by a ship or aircraft by an enterprise of a Contracting State except where the ship or aircraft is moving only in the other Contracting State; I) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) the United Arab Emirates, the Ministry of finance or its authorised representative; j) the term "national" means: (i) any natural person who has the nationality of a Contracting State; and (ii) any legal person, partnership or association, whose status as the result of contracting in force in national legislation. 2. a Contracting State at any time pursuant to this Convention, all it not defined terms shall have the meaning they have at the time of the relevant Contracting State laws relating to taxes covered by the Convention, unless the context is otherwise, and the risk‐adjusted State the relevant tax legislation meaning prevails over other laws of this state the intended meaning. Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means: (a)), 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 similar criteria, but this term does not include those individuals in that State taxes are imposed only in respect of their income from this country to the existing sources of profit or the capital; b) United Arab Emirates: (i) a natural person who is a national of the United Arab Emirates national, if this a natural person United Arab Emirates have substantial presence, permanent residence or the United Arab Emirates is its usual home, and such natural persons the personal and economic relations are closer to the United Arab Emirates than with any other country. (ii) community, which has been established under United Arab Emirates law. 2. the application of the first subparagraph, the term "resident of a Contracting State" also includes: a) country, any of its local government, the local authorities; b) pension funds, which have been identified and are being monitored in accordance with the laws of a Contracting State to determine the conditions and that the income in this country is completely exempt from taxation; c) Contracting State Government body. Any institution that has established a wholly owned and supervised by the Government of a Contracting State or a local government, and that the Contracting States, the competent authorities, by mutual consent, are recognised as such, is seen as a government institution. 3. where, in accordance with the provisions of the first subparagraph, an individual is a resident of both Contracting States, its status would be as follows: (a) the person is considered to be) only for residents of the country in which they are habitually resident; If you are habitually resident in two countries, this person shall be deemed to be a resident only of the State, with which it has closer personal and economic relations (Centre of vital interests); (b)) if it is not possible to determine the country in which that person is a vibrant centre of interests, or if it is not a permanent residence in one of the two countries, this person is considered a resident of the country only, which is its usual home; c) if that person normally home in both countries or is not one of them, it is considered to be the only resident in the country, which is a national of that person; (d)) if that person is a national of both States or no, the national competent authorities of the Contracting States shall settle the question by mutual agreement. 4. where, in accordance with the provisions of the first subparagraph, a person who is not a natural person, is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to resolve the matter by mutual agreement. Article 5 permanent establishment 1. In this Convention, 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: (a)) control location; b) branch; c) Office; (d) a factory;) e) workshop; f) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources, and g) farm or plantation; 3. A building site, a construction, Assembly or installation project or supervisory activities associated with them are considered permanent representation only if these works, project or activity occurs for more than nine months. 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 the first and second subparagraph, if the person is not referred to in the sixth paragraph of the status of independent agent, running your business, and it has empowered the State to 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 establishment in the country concerned, unless such person is carried out only in the fourth paragraph, the proposed action 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 the Contracting State where the undertaking is established in that country, using only the broker, agent or any other agent of an independent status, provided that such persons perform their normal business activities. 7. the fact that the company is a resident of a Contracting State-controlled company, which is a resident of the other Contracting State, or which carries on business in that other State (via 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 State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State taxes. 2. The term "immovable property" shall have the meaning which it has its laws and regulations of a Contracting State in which the property concerned is located. In any case, this term covers property which belongs to real estate property, livestock and equipment used in agriculture and forestry, rights to which the land property law general rules, any rights to use the opportunity to buy real estate 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 the first subparagraph are applied in respect of income from real estate direct use, letting or use in in any other way, as well as income from the alienation of immovable property. 4. part of the first and third terms also apply in relation to income from the company's real estate, as well as income from real property used for independent individual services. Article 7 business profits 1. Contracting State company profits are taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits may impose taxes in the other country, but only to the profit, which can be attributed to the permanent establishment. 2. in accordance with the provisions of the third subparagraph, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the profit amount as it would if it had been separated and independent company that performs the same or similar business activities under the same or similar conditions and independently carry out transactions with the company that it is a permanent establishment. 3. in determining the profits of a permanent representation in that Contracting State, are allowed to deduct the expenses incurred for the purposes of the standing representative offices located in the country or elsewhere, including operational and general administrative costs. 4. where a Contracting State the profits attributable to the permanent establishment shall be determined by dividing the company's total profit in proportion between the IT departments, the second part does not prohibit a Contracting State, as usual, this principle to 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 Convention see income separately, this article shall not affect the other provisions of this article. Article 8 shipping and air TRANSPORT 1. Contracting State company profits gained from ships or aircraft in international traffic, the use of taxable only in that State. 2. The application of this article the company profit of ships or aircraft in international traffic shall include the use of: (a)) profit from ships or aircraft leasing, hiring them without crew and supply; and (b)) profit from containers (including trailers and related equipment for the transport of containers) use, maintenance or rental of goods or products; If such lease or such use, maintenance or rental occurs in addition to the company's ships or aircraft for use in international traffic. 3. The provisions of the first subparagraph shall also apply to profits from the participation in a pool, joint business or international traffic transport agency. Article 9 ASSOCIATED enterprises 1. If: (a) the Contracting State) directly or indirectly participating in the other Contracting State, the company's management or control or it owns part of the company's capital, or b) the same persons directly or indirectly participating in the enterprise of a Contracting State in the other Contracting State and the company's management or control or they own part of the company's capital, and in any of these cases, these two companies in commercial or financial relations are created or established by the rules different from those provisions that the force between two independent enterprises, then any profits which would, but for one of the companies affected by the above provisions did not have, can be included in the company's profits, and it may be appropriate to impose taxes. 2. where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on it, for the second State of the other Contracting State has been taxed, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two independent companies, the other country take appropriate adjustment for the size of the tax What are the gains of the other country. In determining this adjustment, take into consideration other provisions of this Convention and, if necessary, the competent authorities of the Contracting States for consultations. Article 10 dividends 1. Dividends company-a resident of a Contracting State in the other Contracting State, the cost of the resident may be taxed in that other State taxes. 2. However, such dividends may also impose taxes under the national laws of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed 5 per cent of the gross amount of the dividends. This part shall not affect the taxation of company profits from which dividends. 3. Notwithstanding the first and second part of society – the resident of a Contracting State paid dividends are taxable only in the other Contracting State if the true owner of dividends is the second State, its local government, the local authority or the central bank, or any article 4 (c) of the second paragraph of point defined in the other) State Government body. 4. The term "dividends" in this article means income from shares and share capital, or other debt not resulting from the requirements of the right to participate in company profits, as well as income from other rights which, in accordance with the laws of the State of which the resident is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares and share capital. 5. the first and second subparagraphs shall not apply, if the true owner of dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the dividends is resident in the firm's costly using there existing permanent representations, or independent personal services provided in other countries, using the standing base, located and where participation, for which the dividends are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 6. If company-a resident of a Contracting State derives profits or income in the other Contracting State, that other State may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other State, or if the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base in another country; nor does it impose a duty of retained earnings retained earnings of the company, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. Article 11 interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes. 2. However, such interest may also impose taxes according to relevant national laws in the Contracting State in which they arise, but, if the interest owner is implemented on the territory of the other Contracting State, a resident of the tax must not exceed 2.5 per cent of the gross amount of the interest. 3. Notwithstanding paragraph 1 and 2, part, interest arising in a Contracting State are taxable only in the other Contracting State, if the interest owner is implementing this second State, its local government, the local authority or the central bank, or any article 4, second paragraph, point c) defined in the other Contracting State Government body, or interest arising in a Contracting State of any loan granted by the bank, the other residents of a Contracting State, the first State is exempt from taxation. 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 income, which according to the provisions of article 10 are considered dividends. Interest received on payments made within that time, are not considered interest for the application of the provisions of this article. 5. the first, second and third subparagraphs shall not apply, if the interest owner will exercise that is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located there, and if the claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 6. If the payer of the interest is a resident of a Contracting State, it is considered that the interest generated in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred debt obligations, on which the interest is paid, and if such interest is paid (bear) permanent establishment or a permanent basis, it is considered that this interest arises in the State in which the permanent establishment or fixed base. 7. If, on the basis of the special relationship between the payer and the interest percentage implemented owner 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 owner will, if implemented, they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the payment of the part which exceeds this amount, taxes are levied according to each Contracting State laws and regulations, taking into consideration other provisions of this Convention. Article 12 ROYALTIES (1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes. 2. However, such royalties may also impose taxes according to national regulations of the Contracting State in which it arises, but if the true owner of the royalties is a resident of the other Contracting State, the tax shall not exceed 5 per cent of the total royalties. 3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work, including cinematograph films and films or recordings and other image or sound reproduction means the radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the production , commercial or scientific equipment, or for the right to use them, or for information concerning industrial, commercial or scientific experience. 4. The first and second subparagraphs shall not apply, if the true owner of the royalties, which is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located there, and if the right or property for which the royalties are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the payer of the royalties is a resident of a Contracting State, it is considered that the image occurs in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representations or permanent base located there, due to which a duty to pay the royalties, and if the payment of the royalties (bear) the Permanent Mission or a permanent basis, it is considered that the royalties arise in the State in which the permanent establishment or fixed base. 6. If, on the basis of the special relationship between the payer of royalties and royalties shall implement the owner 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 of royalties that would have been able to implement a single payer and the owner if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the portion of the payment that exceeds this amount, is taxed in accordance with the national laws and regulations, taking into consideration other provisions of this Convention. Article 13 capital gains 1. Capital gains, by a resident of a Contracting State derives, the disposal referred to in article 6, in the other Contracting State the existing real property, may be subject to taxes in the other country. 2. Capital gains, by a resident of a Contracting State derives, to: (a) disposal) shares and principal parts of their value directly or indirectly derived mainly from this second country real estate; or (b) the participation of a partnership or other) in a similar unit in which their value directly or indirectly from this mainly obtained in the other country the property referred to in paragraph (a)) or shares and principal parts, can impose taxes in the other country. 3. Capital gains that accrued, disposing of property, which is part of the company of a Contracting State to the permanent representation in business property in the other Contracting State, or disposing of property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, including capital gains from such permanent missions (alone or with the whole enterprise) or of such a permanent disposal base disposal can impose taxes in the other Contracting State. 4. Capital gains by the public company, which used the ships or aircraft in international traffic, shall forfeit the use in international traffic of ships or aircraft or disposing of the property, which belongs to the ship or aircraft, is taxed only in the country. 5. Capital gains generated by the disposal of any property, other than the first, second, third and fourth estate, referred to in part are taxable only in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. resident of a Contracting State – natural persons income, providing professional services or other independent activities are taxable only in the country, except if that person needs their activities using it regularly available permanent base the second Contracting State. If you are using such a permanent base, the income may be subject to taxes in the other country, but only to the extent that they apply to this permanent base. The application of this article, if a resident of a Contracting State – natural person resident in the other Contracting State for a period or periods exceeding in the aggregate 183 days in any 12-month period that begins or ends in the tax year, it is considered that the person uses regular access to permanent base in the other State and the income that accrued on the second country made the above actions are applied to this permanent base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18, 19 and 21 of the regulations, the payment of wages and other remuneration, similar to that of a resident of a Contracting State receives for gainful employment are taxable only in that State unless paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can impose taxes in the other country. 2. Notwithstanding the provisions of the first subparagraph, a consideration that a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxable only in the first mentioned State if: (a) the beneficiary) is found in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxation year, and (b) the remuneration is paid), the employer that is not a resident of the other State, or the name of the employer, and c the remuneration is not paid) (bear) permanent representation or permanent base that the employer uses the second in the country. 3. Notwithstanding the previous paragraph of this article, the rules of remuneration received for paid work that is being done to a company of a Contracting State in international traffic used the ship or aircraft are taxable only in that State unless the remuneration is received by residents of the other Contracting State. 4. Land-based personnel who perform management functions and what work in the other Contracting State has appointed a national Contracting Company that uses aircraft in international traffic, Head Office, remuneration is exempt from taxation in the other Contracting State. Article 16 DIRECTORS ' fees directors ' fees and other similar payments received by a resident of a Contracting State as the Board of directors or any other similar organ of a company that is a member of the other Contracting State, a resident may be taxed in that other State taxes. Article 17 artists and athletes 1. articles 14 and 15 of the regulations to the income of a resident of a Contracting State as izpildītājmāksliniek, such as a theatre, film, radio or television artist, or a musician, or as an athlete for your individual activities in the other Contracting State may be taxed in that other State taxes. 2. If izpildītājmāksliniek or athlete's income on his individual activities in the area concerned is paid instead of the same izpildītājmāksliniek or athlete but to another person, to the following income regardless of the 7, 14 and 15 the provisions of article 1 may be subject to taxes in the Contracting State in which the activity or sports izpildītājmāksliniek. 3. The first and second subparagraphs shall not apply to income that izpildītājmāksliniek or athlete has learned about the State of the individual actions carried out when this state visit is supported wholly or mainly from one or both of the Contracting States, the local government or local authorities. In this case, the income shall be taxable only in the Contracting State of which the resident is this izpildītājmāksliniek or athlete. Article 18 pensions 1. in accordance with the second subparagraph of article 19 of the regulations for pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment are taxable only in that State. 2. Notwithstanding the first paragraph of this article and article 19 the provisions of the second paragraph of retirement and other similar remuneration, which is paid in accordance with the Contracting State social insurance system is taxed only in the country. Article 19 government service 1 a) for salaries, fees and other similar remuneration, other than a pension, and a natural person in the Contracting State, cost the local government or local authority of that State, Government or municipality services are taxable only in that State. (b) However, such salaries), fees and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely to provide these services. 2. (a) to any pension to which) of the natural person in the Contracting State, cost the local government or local authorities, or which is paid from the funds set up for services provided by that person in this country, Government or municipality, is taxed only in the country. (b) However, such pension shall be) taxable only in the other Contracting State if the individual is a resident of this State and national. 3.15, 16, 17, and article 18 shall apply to salaries, wages, and other similar remuneration for retirement, which is paid for services rendered in connection with a Contracting State or a local government or the local government business. Article 20 students payments which a residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the State was the territory of the other Contracting State and who was the first resident in that country have come only for the purpose of study or internship, in this country are not taxed if such payments are from sources that are not in the country. Article 21 teachers and researchers 1. The revenue of the teaching or research work shall receive physical person entering Contracting State with a view to teach or engage in research at a University, college or other recognized that Contracting State educational or scientific institution and directly before the arrival of a Contracting State has or had in the other Contracting State, the first resident in that country are not taxed during the period not exceeding two years from the date on which that person first came for this purpose. 2. This article shall not apply to income from research if such research is undertaken not in the public interest but primarily a private person or persons of interest. Article 22 other income 1. Other income of a resident of a Contracting State which are not specified in the preceding articles of the present Convention, irrespective of their sources are taxable only in that State. 2. The provisions of the first subparagraph shall not apply to income, other than income from the second paragraph of article 6, as defined in the property, if the income beneficiary who is a resident of a Contracting State, carries on business in the other Contracting State through a permanent representation of the existing there, or give independent personal services in the other State through a permanent base located there, and if the rights or property of which you receive this income is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. Article 23 INCOME from hydrocarbons and other natural resources, nothing in this Convention shall affect the Contracting State or any of its local governments or local authorities the right to enforce national laws and regulations and the rules relating to the taxation of income and profits from the territory in the hydrocarbons and other natural resources, and related activities. Article 24 of the pension funds, irrespective of any provisions of this Convention, except article 23, income arising in a Contracting State and the other a resident of a Contracting State referred to in the second subparagraph of article 4 (b)), the first national competent authority recognised for pension funds, which generally correspond to such that for the purposes of taxation in the first State are recognised as pension funds, are exempt from taxation in that State. 25. Article 1. Capital the CAPITAL, consisting of article 6 that a resident of a Contracting State of the real estate, which is situated in the other Contracting State may be taxed in that other State taxes. 2. Capital, which consists of movable property that is part of the company of a Contracting State to the permanent representation in business property in the other Contracting State or capital, which consists of movable property that belongs to a resident of a Contracting State, to the standing base of independent personal services in the other Contracting State may be taxed in that other State taxes. 3. Capital, formed by the ships and aircraft of a Contracting State of which the company used for international traffic, as well as movable property that belong to this ship and the aircraft, is taxed only in the country. 4. all other Contracting State, a resident of the capital items are taxable only in that State. 26. Article 1 of the LIMITATION of benefits notwithstanding any other provisions of this The provisions of the Convention, article 4 (b) of the first subparagraph of point (ii)), the public has a right to a 7, 8, 10 to 15, 22 and 25. benefits provided for in article only if that company can demonstrate that: (a)) and all the company part of share capital carried owners are residents of the United Arab Emirates; and (b) a society or its) business management and the share capital of shares or participation in the acquisition of this company, or its share and the share capital or other property acquisition or maintenance of the main goal was not to get any relief in this Convention, a person who is not a resident of the United Arab Emirates, gain. 2. tax incentives in accordance with the first subparagraph shall apply on the basis of the United Arab Emirates, approval by the competent authority that the conditions referred to in the first subparagraph are fulfilled. 3. The first and second subparagraphs shall not apply article 4, second paragraph, point (c)) referred to. Article 27 PREVENTION of double taxation in Latvia 1, double taxation is avoided by the following: (a) where a resident of Latvia) derives income or owns capital which it in accordance with this Convention may impose taxes the United Arab Emirates, then, unless national legislation is more favourable provisions, Latvia permission: (i) reduce the resident's income tax on the amount that is equal to the United Arab Emirates paid the income tax; (ii) reduce the resident's capital tax on an amount equal to the United Arab Emirates paid capital duty. These reductions, however, in no case, exceed the income tax or capital tax, part of which is calculated in Latvia before the application of this reduction and, depending on the circumstances of which is attributable to the income or the capital which may be taxed taxes the United Arab Emirates. (b)) to apply a) point if the company – Latvia receives a dividend from a resident of the community – residents of the United Arab Emirates, in which it owns at least 10 percent of the shares and the share capital with full voting rights, the United Arab Emirates paid tax is included not only the tax paid on the dividend, but also the appropriate portion of the tax paid on the profits of the company out of which the dividend was paid. 2. United Arab Emirates double taxation is resolved by the following: (a)) where a resident of the United Arab Emirates has income or capital, which belongs to it in accordance with the provisions of this Convention may impose taxes in Latvia, the United Arab Emirates allow to reduce that person's income or capital tax on amount equal to the income tax paid in Latvia or the capital tax. (b) However, none of these reductions) may not exceed the income tax or capital tax, part of what is calculated before this fall and depending on the circumstances, which is attributable to the income or the capital which may impose tax in Latvia. 28. Article 1 of the Prevention of discrimination on the nationals of a Contracting State in the other Contracting State not subject to taxation or related requirements that are different or more burdensome than the taxation or the related requirements which, in the same circumstances, in particular in the context of residence applies or may apply to the nationals of the other. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not party to one or both of the Contracting States of the residents. 2. For stateless persons – residents of a Contracting State in one of the Contracting States not subject to taxation or related requirements that are different or more burdensome than the taxation or the related requirements which, in the same circumstances, in particular with respect to residence, or can be applied to nationals of the country concerned. 3. Taxation the company of a Contracting State to the permanent representation the other Contracting State may not be less favourable than those of other taxation public companies which perform the same operation. This provision should not be interpreted that it imposes on the Contracting State the obligation to grant the other Contracting State any personal relief to residents, discount and reduction in relation to taxation, which this country give its residents, in the light of their civil status or family responsibilities. 4. except where applicable to article 9, the first paragraph of article 11, or the seventh subparagraph of article 12 of the sixth subparagraph, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident, in determining the taxable profit of the company is to report by the same rules as if they are paid to a resident of the first mentioned State. Similarly, the enterprise of a Contracting State in the other Contracting State debt residents, establishing this company's taxable capital, is to be deducted by the same rules as if they would apply to the first residents of that State. 5. Nothing in this article may not be interpreted in such a way that it imposed on the Contracting State a legal obligation to extend to the other residents of a Contracting State benefits conferred by any procedure, benefits, or privileges that can be applied to any other country or its residents, in accordance with the Customs Union, economic Union, create a free-trade area or pursuant to any regional or sub-regional consensus that completely or mostly related to taxation where one of the parties is the first in this country. 6. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more residents of the other Contracting State or in full or in part, directly or indirectly control these residents, the first State may not be subject to any taxation or any requirements associated with it, which is different from the taxation and related requirements, which are or may be exposed to similar to the former State enterprises or which is more burdensome for them. 7. The provisions of this article independently of the provisions of article 2, apply to all the type and name of the taxes, except taxes that may be imposed in accordance with article 23. Article 29 mutual reconciliation Procedure 1. If a person believes that one or both of the Contracting State party to a national action in relation to this person causes or will cause the taxation which does not comply with the provisions of this Convention, that person may, irrespective of the country in national legislation that remedies to submit complaints to the competent authority of the country of which the person is resident, or if the complaint relates to article 28, first subparagraph -the competent authority of the country where national is that person. The complaint shall be submitted for review within three years of the first notification of the action which led to the provisions of this Convention do not appropriate taxation. 2. If the competent authority deems the complaint to be justified and even fail to reach a satisfactory solution, it will endeavour to agree with the other competent authority of a Contracting State to this Convention shall not prevent the adequate taxation. Any such agreement is reached is due irrespective of the Contracting State, national laws and the time limits laid down. 3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise out of the interpretation or application of this Convention. They may also consult to avoid double taxation in cases not provided for in the Convention. 4. in order to reach agreement on these issues in the preceding subparagraph, the competent authorities of the Contracting States may communicate directly with one another, as well as the use of competent authorities or their representatives through the Commission. 30. Article 1 of the exchange of information the competent authorities of the Contracting States shall exchange the information necessary for the carrying out of the provisions of this Convention or a Contracting State's national legislative requirements relating to taxes covered by the Convention, insofar as such taxation is not contrary to this Convention. Article 1 of the Convention does not restrict the exchange of information. Any information received by a Contracting State, should be considered as sensitive as information that is obtained in accordance with the laws of this State, and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in this Convention included in the calculation of tax, in the collection, the use of coercive measures, trials or appeals related to these taxes. Those persons or institutions that information must be used only for the purposes mentioned above. They may disclose the information in public hearings or in judgements. 2. in no case shall the provisions of the first subparagraph may not be explained so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to provide information that is not available under one or the other national legislation or administrative practice generally applicable; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret, or business process, or to provide information, the disclosure of which would be contrary to public policy (ordre public). Article 31 miscellaneous provisions the provisions of this Convention shall not be interpreted so that they in any way limiting any exemption, deduction, set-off or other relief under: (a) the Contracting State) laws of this State for the determination of the tax imposed on; or (b)), any other agreement between the Contracting States, or between a Contracting State and a resident of the other Contracting State. Article 32 the diplomatic and consular personnel, nothing in this Convention shall affect the diplomatic missions or consular posts personnel fiscal privileges which international law granted the General provisions or special agreements. Article 33 entry into force 1. Contracting Governments, through diplomatic channels, shall inform each other of their compliance with their constitutional requirements for the entry into force of this Convention. 2. the Convention shall enter into force with the referred to in the first subparagraph, the last statement date and its provisions in both Contracting States shall apply: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January or after the calendar year following the year in which the this Convention enters into force; (b)) in the case of other income taxes and capital taxes-taxes payable for any taxation year that begins on the first day of January in the calendar year or after the following the year in which this Convention enters into force. Article 34 termination This Convention is in force for an indefinite period, as long as the Contracting State shall terminate its activities. Each Contracting State may terminate this Convention, through diplomatic channels, by submitting a written notice of termination at least six months before any end of the calendar year following the five-year period beginning with the commencement of the application of the provisions of the Convention. In this case the Convention in both Contracting States shall cease: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January or after the calendar year following the year in which the notice has been filed for dissolution; (b)) in the case of other income taxes and capital taxes-taxes to be paid in any taxation year that begins on the first day of January or after the calendar year following the year in which the notice has been filed for dissolution. In witness thereof, the undersigned, being duly authorised, have signed this Convention. The Convention was drawn up in two copies in the Abudab 2012 March 11, Latvian, Arabic 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 United Arab Emirates Government Māris Ebeid El-Hamid Tayer offing Latvian Ambassador Extraordinary and Plenipotentiary in the United Arab Emirates Minister of State for financial affairs by signing the Protocol of the Government of the Republic of Latvia and the United Arab Emirates Government The Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as the Convention), the parties have agreed upon the following provisions which are an integral part of the Convention. 1. as regards article 2, first paragraph: it is understood that the United Arab Emirates consists of:-a federal State consisting of seven Emirates, − federal state local governments (the Abu Dhabi Emirate, Dubai Emirate, Šardž Adžman of the Emirates, Emirates, Emirates of Umm Al Kaivain, Raselhaim Fudžeir of the Emirates and Emirates), and − local Government to local authorities. 2. in respect of article 4, second paragraph, (c)): it is understood that the United Arab Emirates in the case of article 4, second paragraph, (c)) as defined in the Government institutions include the Abu Dhabi investment authority, Abu Dhabi investment Council, the Mubadala Development Company (Mubadala), Dubai World, a Dubai investment company (DIC), the investment management of the U.A.E. and international petroleum investment company (IPIC). 3. with regard to the third subparagraph of article 7: it is understood that the deduction of the expenses conditions are determined according to the Contracting State in which the permanent establishment is situated, national regulations, taking into account the provisions of article 28, especially in third and fourth. 4. with regard to article 8, first paragraph: it is understood that the term "earnings" means: − profit, net profits, gross receipts and revenues directly from ships or aircraft in international traffic of use; − interest on amounts that directly originates from ships or aircraft in international traffic the use that is being made, in addition to such use; − income from ticket sales for the company, which uses the ships or aircraft in international traffic; − income from engineering services and any other income arising from the other technical services, where the provision of such services is taking place, in addition to the use of aircraft in international traffic. 5. with regard to the third paragraph of article 11: If a Contracting Government indirectly through agents or otherwise participate in the grant of the loan, then the exemption laid down in the third subparagraph is applied in proportion to the participation of the Government in such a loan. Participation is confirmed by that Contracting State, a certificate issued by the competent authority. 6. with regard to article 13: it is understood that the fifth part includes capital gains, by a resident of a Contracting State, including the Government institutions or investment firms, the benefiting from the stock and the share capital, or other similar participation, with the exception referred to in the second subparagraph, disposal, and such taxes are imposed the increase only in the country where residents have a seizure. 7. with regard to article 30: If in accordance with this article shall require a Contracting State to provide information to the other Contracting State shall obtain the information requested, including a bank, another financial institution, or the representative person acting as trustee or trustee, available information, in the same manner and to the same extent as that State's first duty should this other State tax and collect the other State even if the other country does not need such information for its own tax purposes. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies in the Abudab 2012 March 11, Latvian, Arabic 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 United Arab Emirates Government Māris Ebeid El-Hamid Tayer offing Latvian Ambassador Extraordinary and Plenipotentiary in the United Arab Emirates Minister of State for financial affairs in the CONVENTION BETWEEN the Government OF the REPUBLIC OF Latvia AND the Government OF the UNITED ARAB Emirates FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income AND ON CAPITAL the Government of the Republic of Latvia and the Government of the United Arab Emirates (Menu Rngton Line4) promote and strengthen it, their economic relations by concluding a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, have agreed as follows: article 1 PERSONS COVERED this Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This Convention shall apply to taxes on income imposed on behalf of the Andean capital on (a) the Contracting State or of its local governments or local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, 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 Convention shall apply in particular to: (a)) in the United Kingdom: (i) the enterprise income tax (income tax of enterprises); (ii) the personal income tax (will tax revenue); (iii) the immovabl property tax (tax on immovable property); (hereinafter referred to as "Latvian tax"); (b)) in the United Arab Emirates: (i) the income tax; and (ii) the corporation tax; (hereinafter referred to as "United Arab Emirates tax"). 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes which have been made in their taxation laws of respectiv. Article 3 GENERAL DEFINITION 1. For the purpose of this Convention, unless the context otherwise requires: a the term) "Corporation" 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 "United Arab Emirates" means the United Arab Emirates and, when used in a sense, the location means the area in which the territory is under its sovereignty as well as the territorial sea, airspac and submarine areas over which the United Arab Emirates exercises, in conformity with international law and the law of the United Arab Emirates's sovereign rights, including the mainland and Islands under its jurisdiction in respect of any activity carried on in connection with the exploration for or the exploitation of the natural resources; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or the United Arab Emirates, as the context requires; (d) the term "tax") means Latvian tax or the United Arab Emirates taxi, as the context requires; e the term "person") includes an individual, a company and any other body of persons; (f) the term "company") means any body corporate or any entity which is treated as a body corporate for tax purpose; (g)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; I) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) in the United Arab Emirates, the Ministry of finance or its authorised representative; (j) the term "national") means: (i) any individual possessing the nationality of a Contracting State; and (ii) any legal person, partnership or association deriving its status as such from the law in force in a Contracting State. 2. As regards the application of the Convention at any time by a Contracting State any term not defined therein, shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purpose of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4 resident 1. For the purpose of this Convention, the term "resident of a Contracting State" means: (a) the 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, but does not include any person who is liabl to tax in that State in respect only of income from sources in that State or capital situated therein; (b)) in the United Arab Emirates: (i) an individual who is a national of the United Arab Emirates, provided that the individual has a substantial presence, permanent home or habitual abode in the United Arab Emirates and that individual's personal and economic relations ' are closer to the United Arab Emirates than to any other State; (ii) a company which is established under the law of the United Arab Emirates. 2. For the purpose of paragraph 1, the term "resident of a Contracting State" also includes: (a)) that the State, any local government, the local authority thereof; (b)) (a) the pension fund that is recognised and controlled according to the statutory provision of a Contracting State and the income of which is generally the main tax in the State from you; (c) a governmental institutions of a Contracting) State. Any institution shall be deemed to be a governmental institution which has been created, wholly owned and controlled by the Government of one of the Contracting States or of its local governments and which is recognized as such by mutual agreement of the competent authorities of the Contracting to States. 3. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 4. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question it by mutual agreement. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e) a workshop; (f) a mine, an oil) or gas well, a quarry or any other place of extraction of natural resources; g a farm or plantation and). 3. A building site, a construction, assembly or installation project or a supervisory activity connected therewith constitut a permanent establishment only if such site, project or activity lasts for a period of more than nine months. 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-paragraphs (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 State an authority it has contracts in conclud the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise, unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State 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 State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other. Article 6 income FROM IMMOVABL PROPERTY 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovabl property, livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, 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, as well as income from the alienation of property immovabl. 4. The provision of paragraphs 1 and 3 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services. Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which It is a permanent establishment. 3. In determining the profits of a permanent establishment in a Contracting State, 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 State in which the permanent establishment is situated or elsewher. 4. Insofar as it has been customary in a Contracting State 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 State 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 Convention, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. For the purpose of this article, profits of an enterprise from the operation of ships or aircraft in international traffic include: a) profits from the rental on a barebo basis of a ship or aircraft; and (b)) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is it the operations of incidentals ships or aircraft by the enterprise in international traffic. 3. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceeds 100 5 per cent of the gross amount of the dividends. 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 1 and 2 of this article, a dividend paid by a company which is a resident of a Contracting State shall be in the taxabl only other Contracting State if the beneficial owner of the dividends is that other State itself, a local government, local authority, or the Central Bank thereof, or any other governmental institutions of the State as defined in subparagraph (c)) of paragraph 2 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 State 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 State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein and the holding in respect of which the dividend is paid is effectively connected with a such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits ' to a tax on undistributed profits of the company ' s, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other State. Article 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it «arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 2.5 per cent of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 1 and 2 of this article, interest arising in a Contracting State shall be in the taxabl only other Contracting State if the beneficial owner of the interest is that other State, a local government itself, a local authority or the Central Bank thereof, or any governmental institution of the other Contracting State as defined in subparagraph (c)) of paragraph 2 of article 4 , or interest arising in a Contracting State on any loan of whatever kind granted by a bank which is a resident of that other State, shall be the main from tax in the first-mentioned State. 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, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base 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 State, due regard being had to the other provision of this Convention. Article 12 to 1 to ROYALT Royalt arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not exceeds 100 5 per cent of the gross amount of the royalt. 3. The 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 and films or tapes and other means of image or sound reproduction for radio or television broad-casting, 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 State, carr to one business in the other Contracting State in which the royalt «arise, through to a permanent establishment situated therein or perform in that other State independent personal services from a fixed base situated therein and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment or with fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base 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 State, due regard being had to the other provision of this Convention. Article 13 CAPITAL gains 1. Gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State may be taxed in that other State. 2. Gains derived by a resident of a Contracting State from the alienation of: (a) shares, the value) of which is derived directly or indirectly from immovabl property situated principally in that other State; or (b) an interest in a partnership) or other similar entity, the value of which is derived directly or indirectly from immovabl property situated principally in that other State or from subparagraph (a) referred to in shares), may be taxed in that other State. 3. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base may be taxed in that other State. 4. Gains derived by an enterprise of a Contracting State 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 state. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxabl only in the Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve month period commencing in or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent personal services 1-subject to the provision of articles 16, 18, 19 and 21, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned , and b the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be only in the taxabl that State unless the remuneration is derived by a resident of the other Contracting State. 4. Ground staff performing functions of a managerial nature and appointed from the head office of an enterprise of a Contracting State operating aircraft in international traffic to the other Contracting State shall be exempted from taxes levied on their remuneration in that other Contracting State. Article 16 DIRECTOR's FEES Director ' ' fe and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 artistes AND SPORTSMEN 1. Notwithstanding the provision of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 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, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman's are exercised. 3. The provision of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by an entertainer or a sportsman's if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or local governments or local authorities thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsman's is a resident. Article 18 PENSION 1. Subject to the provision of paragraph 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. 2. Notwithstanding the provision of paragraph 1 of this article and paragraph 2 of article 19, and other similar remuneration paid at pension under the social security system of a Contracting State shall be only in the taxabl you state. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a local government or a local authority thereof to an individual in respect of services rendered to that State or authority, Government shall be only in the taxabl you state. (b) However, such, salar) WAGs and other similar remuneration shall be taxabl only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. 2. a Any pension paid by, or) out of funds created by, a Contracting State or a local government or a local authority thereof to an individual in respect of services rendered to that State or authority, Government shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16, 17 and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a local government or a local authority thereof. Article 20 students payments which a student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. Article 21 teachers AND RESEARCHER. An individual who visits a Contracting State generally for the purpose of teaching or carrying out research at the university, college or other recognised educational or scientific institution in that Contracting State and who is or was immediately before that visit a resident of the other Contracting State, shall be exempted from taxation in the first-mentioned Contracting State on remuneration for such teaching or research for a period not exceeding two years from the date of his first visit for that purpose. 2. The provision of this article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. Article 22 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl you state. 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 State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. Article 23 income FROM HYDROCARBON AND OTHER NATURAL resources Nothing in this Convention shall be affec the right of a Contracting State, or any of its local governments or local authorities thereof, to apply its domestic laws and regulations related to the taxation of income and profits from hydrocarbon and other natural resources and associated activities situated in the territory of that State. Article 24 Notwithstanding any provision in the PENSION FUNDS of this Convention, except article 23, income arising in a Contracting State that is derived by a resident of the other Contracting State mentioned in subparagraph b) of paragraph 2 of article 4 that has been accepted by the competent authority of the first-mentioned State as a pension fund pension fund generally recognised a òàæó as such for tax purpose by that State , shall be the main tax in the State from you. Article 25 CAPITAL 1. Capital represented by the immovabl property in the article referred to 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State. 3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State and by movable property pertaining to the operation of such ships and aircraft, shall be only in the taxabl you state. 4. All other elements of capital of a resident of a Contracting State shall be only in the taxabl you state. Article 26 the LIMITATIONS OF benefits Notwithstanding any other provision 1 of this Convention, a company mentioned in subparagraph (b)) (ii) of paragraph 1 of article 4, shall be entitled to the benefits of articles 7, 8, 10, 15, 22 and 25 only if such company can process that: (a)) all of the shares of the company are beneficially owned by residents of the United Arab Emirates; and (b)), the principal purpose of establishment of the company or of the conduct of its business or the acquisition of a shareholding of or an interest in such company, or of the acquisition or maintenance by it of the shareholding or other property, was not to obtain any benefits under this Convention to the advantage of a person who is not a resident of the United Arab Emirates. 2. Relief from Latvian taxes under paragraph 1 is conditional on confirmation by the competent authority of the United Arab Emirates that the prerequisite of mentioned in paragraph 1 have been fulfilled. 3. The provision of paragraphs 1 and 2 shall not apply to companies covered by subparagraph (c)) of paragraph 2 of article 4 article 27 ELIMINATION OF double TAXATION 1. In Latvia, double taxation shall be eliminated as follows: a where a resident of) Corporation's deriv income or own capital which, in accordanc with this Convention, may be taxed in the United Arab Emirates, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow: (i) as a deduction in "from the tax on the income of that resident , an amount equal to the income tax paid thereon in the United Arab Emirates; (ii) as a deduction in "from the tax on the capital of that resident, an amount equal to the capital tax paid thereon in the United Arab Emirates. Such marbles in either case shall not, however, that about 12 of the income tax or capital tax in Latvia, as computed before the deduction in "is given, which is attributabl, as the case may be, to the income or the capital which may be taxed in the United Arab Emirates. (b)) For the purpose of subparagraph (a)), where a company that is a resident of Latvia receive a dividend from a company that is a resident of the United Arab Emirates in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in the United Arab Emirates shall include not only the tax paid on the dividend , but also the appropriate portions of the tax paid on the underlying profits of the company out of which the dividend was paid. 2. In the United Arab Emirates, double taxation shall be eliminated as follows: a where a resident) of the United Arab Emirates of income or own deriv capital which in accordanc with the provision of this Convention may be taxed in the United Kingdom, the United Arab Emirates shall allow as a deduction in "from tax on income or on capital of that person, an amount equal to the tax on income or tax on capital paid in Latvia. (b) Such marbles in) either case shall not, however, that about 12 of the income tax or capital tax, as computed before the deduction in "is given, which is attributabl, as the case may be, to the income or the capital which may be taxed in the United Kingdom. Article 28 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State 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 States. 2. a person who with Stateles of residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of the State concerned in the same, in particular with circumstanc respect their residence, may be subjected to or. 3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of the of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. 4. Except where the provision of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursement royalt paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debt of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the capital of the taxabl such enterprise, be-deductibl under the same conditions as if they had been contracted to a resident of the first-mentioned State. 5. Nothing in this article shall be construed as imposing a legal obligation on a Contracting State to extend to the residents of the other Contracting State for the benefit of any treatment, preference or privilege which may be accorded to any other State or its residents by virtue of the formation of a customs union, economic union, a free trade area or by virtue of any regional or sub-regional relating wholly or mainly to their through taxation , which the first-mentioned State may be a party. 6. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned State may be subjected to or. 7. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description, except the taxes that may be levied in accordanc with article 23 article 29 MUTUAL agreement procedure 1-where a person consider. that the actions of one or both of the Contracting States result or will result for him in taxation not in accordanc with the provision of this Convention , he may, irrespectiv of the remedies provided by the domestic law of those States, present his the case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 28, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the Convention. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States the may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 30 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to, the taxes covered by the Convention. 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. 2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 31 miscellaneous rules the provision of this Convention shall not be construed to restrict in any manner any exemption, allowance, credit or other deduction in "is accorded: (a)) by the law of a Contracting State in the determination of the tax imposed by that State; or (b)) by any other agreement between the Contracting States or between one Contracting State and a resident of the other Contracting State. Article 32 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this Convention shall be affec the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 33 ENTRY into force 1. The Governments of the Contracting States shall notify each other in writing through diplomatic channels when the constitutional requirements for the entry into force of this Convention have been complied with. 2. The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the Convention enter into force. Article 34 TERMINATION this Convention shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year following after the period of five years from the year in which the provision of the Convention is effective becam. In such event, the Convention shall cease to the have effect in both Contracting States: a in respect of taxes) withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given; (b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done at Abu Dhabi this 11th day of March 2012, in two originals, in the Latvian, Arabic 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 the United Arab Emirates Maris Ebeid El-Hamid Tayer offing Ambassador Extraordinary and Plenipotentiary of the Republic of Latvia in the United Arab Emirates Minister of State for Financial Affairs PROTOCOL At the signing of the Convention between the Government of the Republic of Latvia and the Government of the United Arab Emirates for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as "the Convention"), the undersigned have agreed upon the following provision which will form an integral part of the Convention. 1. With reference to paragraph 1 of article 2. It is understood that the United Arab Emirates consist of:-the federal State composed of the seven Emirates,-the local governments of the federal State (Emirate of Abu Dhabi, the Emirate of Dubai, the Emirate of Sharjah, the Emirate of Ajman, Emirate of Umm Al-Qaiwain, Ras al-Kaimah of Emirates and the Emirate of Fujairah) , and − the local authorities of the local governments. 2. With reference to subparagraph (c)) of paragraph 2 of article 4 It is understood that in the case of the United Arab Emirates (a) governmental institutions defined in subparagraph (c)) of paragraph 2 of article 4 shall include the Abu Dhabi Investment Authority, the Abu Dhabi investment Council, Mubadala Development Company (Mubadala), Dubai World, Dubai investments Company (DIC), UAE investment Authority and International Petroleum Investment Company (IPIC).
3. With reference to paragraph 3 of article 7: It is understood that conditions for the deductibility of expense with a matter to be determined by the domestic law of the Contracting State in which the permanent establishment is situated, subject to the provision of article 28, in particular, paragraphs 3 and 4 With 4 reference to paragraph 1 of article 8 : It is understood that the term "profits" includes: − the profits, net profits, gross receipts and revenues derived directly from the operation of the ship or aircraft in international traffic; − interest on sum generated directly from the operation of ships or aircraft in international traffic which they incidentals such operations ISO; -income from the sale of tickets on behalf of an enterprise operating ships or aircraft in international traffic; − income from rendering of engineering services and any other income arising from other technical services if such services are the incidentals to the operations aircraft in international traffic. 5. With reference to paragraph 3 of article 11: If the Government of a Contracting State in a participat indirectly through an agent or a loan otherwise, the exemption provided for in paragraph 3 shall apply proportionally to the participation of that Government in such a loan. The participation shall be evidenced by a certificate issued by the competent authority of that Contracting State. 6. With reference to article 12: It is understood that paragraph 5 includes capital gains from the alienation of shares or other interest, other than comparabl those referred to in paragraph 2, by a resident of a derived Contracting State, including the governmental institutions or investment companies of that State, and such gains shall be taxabl only in the State of which the alienator is a resident. 7. With reference to article 30: If information is requested by a Contracting State in accordanc with this article, the other Contracting State shall obtain the information to which the request for information held by relate, including a bank, other financial institution, or a person acting in nomine an agency or a fiduciary capacity, in the same manner and to the same as if the exten tax of the first-mentioned State were the tax of that other State and were being imposed by that other State, even though that other State may not need such information for its own tax purpose. In witness whereof, the undersigned, duly authorised the theret, have signed this Protocol. Done at Abu Dhabi this 11th day of March 2012, in two originals, in the Latvian, Arabic 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 United Arab Emirates Maris Ebeid El-Hamid Tayer offing Ambassador Extraordinary and Plenipotentiary of the Republic of Latvia in the United Arab Emirates Minister of State for Financial Affairs