For The Government Of The Republic Of Latvia And The Government Of The United Mexican States Of The Convention For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income And The Protocol

Original Language Title: Par Latvijas Republikas valdības un Meksikas Savienoto Valstu valdības konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma nodokļiem un tās Protokolu

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://www.vestnesis.lv/op/2012/172.3


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 Mexican States of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the Protocol to article 1. 2012 on April 20 in Washington, d. c., signed by the Government of the Republic of Latvia and the Government of the United Mexican States of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Convention) and its Protocol with this law is adopted and approved. 2. article. The Convention and its Protocol commitments provided for in the coordinated by the Ministry of finance. 3. article. Convention and its Protocol shall enter into force on article 27 of the Convention within the time and in order, and the Ministry of Foreign Affairs shall notify the official Edition of the "journal". 4. article. The law shall enter into force on the day following its promulgation. With the law put to the Convention and its Protocol of Latvian and English. The Parliament adopted the law in 2012 on October 18. The President a. Smith in 2012 on October 31, the Government of the Republic of LATVIA and the GOVERNMENT of the United Mexican States of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income the Government of the Republic of Latvia and the Government of the United Mexican States, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed the following: article 1 persons covered this CONVENTION shall apply to persons Convention that is one or both of the Contracting States residents. Article 2 taxes covered by the CONVENTION (1) this Convention shall apply to taxes on income imposed on behalf of a Contracting State regardless of the method of collecting the tax. 2. income taxes deemed all taxes imposed on total income or on the part of income, including taxes on the capital gains of the movable or immovable property seizures. 3. The existing taxes to which this Convention applies, in particular, is: (a)): (i) corporate income tax; (ii) the individual income tax (hereinafter referred to as "Latvian tax"); (b)) in Mexico: (i) the federal income tax (impuesto sobre la Renta federal); (ii) flat-rate business tax (impuesto empresarial a TASA únic); (hereinafter referred to as "Mexican tax"). 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 inform each other of any substantial amendments made to the public 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 "Mexico" means the United Mexican States; used in a geographical sense, it includes the territory of the United Mexican States, as well as the Federation, Islands, including the reefs and waters adjacent to the sand bank; Guadalupe (Guadalupe) and Reviljahihed (Revillagiged) Islands, the continental shelf and Islands land and sea depths, sandbanks and reefs; the territorial sea and inland waters and outside those areas over which, in accordance with international law, Mexico may exercise its sovereign rights to the sea, deep subsoils and water for natural resource exploration and exploitation, and the country's air space in accordance with international law in general terms; (c) the terms "a Contracting State)" and "the other Contracting State" mean, depending on context or Latvia Mexico; (d)) the term "person" means a natural person, company, or any other Association of persons; e the term "company") means any association or any corporate entity for taxation purposes is considered a corporate Association; (f) the terms ") of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise company, run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; (g)) 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; h) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) in Mexico, financial and Government loan of the Ministry; I) the term "national" means: (i) any natural person who has the nationality of a Contracting State; (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 in the national legislation 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 any person who, under the laws of this country are taxed based on their place of residence, residence, location management, place of incorporation or any other similar criteria, and also includes the State and any political or administrative units of local government. However, 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. 2. Where, in accordance with the provisions of part 1 an individual is a resident of both Contracting States, its status would be as follows: (a) the person is considered to be) only for 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. 3. Where, in accordance with the provisions of part 1 a person other than an individual is a resident of both Contracting States, the competent authorities must seek to resolve the matter by mutual agreement and determine the mode of application of the Convention to such person. If such an agreement does not exist, then the application of the Convention, that person is not entitled to claim any tax benefits granted in accordance with this Convention. 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 mainly: (a)) control location; b) branch; c) Office; (d) a factory;) e a workshop, and f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: a a building site or construction), Assembly or installation project or supervisory activities associated with them, but only if these works, project or activity continues for more than 6 (six) months; (b)) in the Contracting State in the context of action taken in the country and the existing marine subsoils and there existing natural resource exploration or use where such operations are carried out for a period or periods exceeding in the aggregate 90 (ninety) days in any 12 month period (twelve). 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)) or of the goods belonging to the product items that are intended solely for storage, demonstration or delivery; (c)) or of the goods belonging to the inventory of products 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)) determine the site intended solely to carry out the business of any other preparatory or ancillary activities; f) specific action site intended solely to deal with (a) to (e))) the following, in any combination thereof, if the combination of the action are generally preparatory or auxiliary character. 5. Notwithstanding paragraph 1 and 2 of the regulations, if a person not referred to in part 6 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 has carried out only part 4 actions foreseen in the that perform certain actions in the workplace, in accordance with that part does not make this fixed place of business of the undertaking's permanent representation. 6. It is considered that the company does not have a permanent establishment 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. However, if such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this part. In this case, the application of part 5. 7. The fact that the company-a resident of a Contracting State, controlled by the society, 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 including livestock and equipment used in agriculture and forestry, rights to which the land property the General rules for the use of real property and rights to variable or fixed payments as consideration for the mineral deposits, natural ore and other natural resources, or the right to use them, right on the sea and subsoils and to natural resource exploration or use of the property to be acquired including the right to participation or benefit from this property. Vessels, barges and aircraft are not considered real estate. 3. the provisions of part 1 apply to the income from immovable property directly, letting or use in any other way, as well as income from the alienation of immovable property. 4. parts 1 and 3 terms also apply in relation to income from the company's real estate, as well as income from real property used for independent personal services. Article 7 business profits 1. Contracting State business profits are taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment there. If the enterprise carries on business in that way, the business profits tax may be imposed in the other country, but only to the profit, which can be attributed to the permanent establishment. However, the profit gained by the sale of goods or products that are the same or similar to those that are sold via the permanent representations, can be considered to be attributable to the permanent representations, if it is established that the sale has been organised in such a way as to avoid paying taxes in the country in which the permanent establishment is situated. 2. in accordance with the provisions of part 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the profit margins, as it would if it had been separated and independent company that performs the same or similar business activities under the same or similar circumstances, and independently carry out transactions with the company that it is a permanent establishment. 3. in determining the profits of the permanent representation are allowed to deduct the expenses incurred for the purposes of the standing representative offices located in the country or elsewhere, including operational and general administrative costs. However, such a deduction is not allowed for payments (other than the actual expenditure), permanent representation of the cost of the main undertaking, or any other Office of the company as royalties, fees or other similar payments for patents or other rights, or as a Commission on management or for special services, or, except in the banking business, as interest payments on the money amounts that is loaned to the permanent representation of. Also, establishing permanent representation in return, does not take account of amounts (other than the actual expenditure), permanent representation from the main company or other it Office as royalties, fees or other similar payments for patents or other rights, or as a Commission on management or for special services, or, except in the case of banking service company, the payment of interest on the sums of money that is loaned to the main undertaking, or any of its other offices. 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 its divisions, part 2 does not prohibit Contracting State as usual after 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 of ships or aircraft in international traffic, the use of taxable only in that State. 2. the profits referred to in paragraph 1 does not include hotel or transportation activities of profit, other than ships or aircraft in international traffic use.
3. the application of this article, profits from the ships or aircraft in international traffic shall include the use of: (a)) profit from ships or aircraft leasing and supply without crew; or b) profit from containers (including trailers and related equipment for the transport of containers) use, maintenance or rental of goods or products; If, following these steps, depending on the circumstances, take place in addition to the company's ships or aircraft for use in international traffic. 4. the provisions of part 1 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 participate in the company of the other Contracting State, in the controls or owns part of the company's capital; or (b)) the same persons directly or indirectly participating in the enterprise of a Contracting State in the other Contracting State and enterprise management, controls or owns part of the company's capital, and in any of these cases, these two companies in commercial or financial relations are created or established by rules different from those provisions that the force between two independent enterprises, then any profits What would one of the companies, but the above provisions do not affect the Oscars can be included in the profits of this company, 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, in respect of which no other country in the other Contracting State, the company has been taxed, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies should been as exist between two independent companies, the other country take appropriate adjustment for the tax, which is imposed on the profits of the second State. 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, the cost of the other Contracting State, a 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 the real beneficiary of the dividends is a resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total, if the true beneficiary of the dividends is a company (other than a partnership) which directly manage at least 10 percent of the company capital that paid dividends; b) 10 per cent of the total dividends in all other cases. This part shall not affect the taxation of company profits from which dividends. 3. The term "dividends" in this article means income from shares, or other debt obligations not resulting from the right to participate in company profits, as well as income from other corporate rights and other income, which in accordance with the laws of the country in which the resident is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares. 4. parts 1 and 2 shall not apply if the true beneficiary of dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the dividends is resident in the firm's costly using existing permanent representation there, or give independent personal services in the other State through a permanent base located there, and where participation, which is paid out in dividends, is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the company-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 tax on the profit for the whole of society, even if the dividends paid or retained earnings consists in whole or in part from the other 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 this the real beneficiaries of the interest is a resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the percentage) of the total paid to banks and paid to the bank; b) 10 per cent of the total interest in all other cases. 3. Notwithstanding the provisions of part 2, part 1 percent referred to are taxable only in the Contracting State of which the resident is the true beneficiary where: (a)) the true beneficiary is a Contracting State, its political and administrative unit or a local authority or central bank of a Contracting State; (b) the cost of any) per cent) referred to in paragraph (a) units; (c)) the true beneficiary is recognised Pension Fund, provided that the income is generally exempt from tax in that State; (d) interest arising in Latvia) and is paid on the Bank of Mexico (Banco de México), the national foreign trade bank (Banco Nacional de Comercio Exterior, S.N.C.), national financial institutions (Nacional Financier, S.N.C.) or the national public works and services bank (Banco Nacional de Servicio y Fig públicos, S.N.C.), or any of the other institutions, which over time could be agreed between the Contracting States agreed by the competent authorities , issued, guaranteed or insured loans; or e) occurs in Mexico and interest is paid on the Bank of Latvia, Latvian mortgage and land bank, or any of the other institutions, which over time could be agreed between the Contracting States agreed by the competent authorities, issued, guaranteed or insured loans. 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, as well as any other income that the Contracting State in which the income arises, law is considered income from lending money. The term "interest" does not include any income which, in accordance with article 10 of part 3 of the regulations are considered dividends. 5.1, 2 and 3 shall not apply if the interest in the true beneficiary who 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 therein, and of 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. However, if the person who paid the interest, regardless of whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation 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 the interest arises in the Contracting State in which the permanent establishment or fixed base. 7. If, on the basis of the special relationship between the payer of the interest and the interest of the real beneficiaries or between both of them and some other person, the amount of interest for any reason, exceed the amount that would have been able to agree to the interest payer and the interest in the true beneficiary, if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the payment of the part which exceeds this amount, taxes are levied according to each Contracting State laws and regulations, taking into consideration other provisions of this Convention. Article 12 ROYALTIES (1) Royalties arising in a Contracting State and 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 beneficiary of the royalties is a resident of the other Contracting State, the tax shall not exceed 10 per cent of the total royalties. 3. The term "royalties" in this article means payments of any kind received as compensation for: (a)), any patent, trade mark, design or model, plan, secret formula or process, or for the right to use it; (b)) of any industrial, commercial or scientific equipment or for the right to use it; c) information concerning industrial, commercial or scientific experience; (d)) any literary, artistic or scientific work including cinematograph films, and films or recordings of television or radio broadcasts, the use of or the right to use it. 4. and part 2 shall not apply if the true beneficiary of the royalties, which is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, 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 representation or permanent base located there, due to which a duty to pay the royalties, and if the payment of the royalties (bear) a 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 the true beneficiary of the royalties or between both of them and some other person, the amount of the royalties for any reason, exceed the amount that would have been able to agree the true payer and beneficiary, if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the portion of the payment that exceeds this amount, is taxed in accordance with the national laws and regulations, taking into consideration other provisions of this Convention. Article 13 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 Contracting State. 2. Capital gains, by a resident of a Contracting State derives, disposes of shares or comparable interests, more than 50 per cent of their value directly or indirectly from the other Contracting State the current real property may be taxed in that other State taxes. 3. in addition to capital gains, which are taxed under the previous part of this article, the provisions of the capital gains that residents of a Contracting State derives, disposing of share participation or other rights to any company that is a resident of the other Contracting State, the capital, can impose taxes in the other Contracting State. However, the tax must not exceed 20 percent of the taxable capital gains. 4. 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, established independent personal services, including capital gains from the alienation of such a permanent representation (alone or with the whole enterprise) or of such a disposal of the standing base can impose taxes in the other country. 5. capital increases by the company of a Contracting State that is used in international traffic of ships or aircraft, shall forfeit the use in international traffic of ships or aircraft or property that belongs to such ships or aircraft, are taxable only in that State.
6. Capital gains from the alienation of any property other than those mentioned in the preceding paragraphs of this article, are taxable only in the Contracting State of which the resident is the seizure of property. 7. part 3 of this article, the application of the capital gains from a company which is a resident of a Contracting State, the transfer of shares is taxable only in the other Contracting State if the alienation takes place between companies of the same group of players, so much so that the remuneration of the seizure consists of receiving the shares or other rights on capital or other such company or other right to the capital that directly or indirectly owns at least 80 percent of the voting rights in the receiving society and its values, and that is a resident of a Contracting State or a resident of a country with which Mexico has an extensive information exchange agreement, which correspond to an administrative tax rules (Resolución Misceláne is Indicated) Annex 10, but only if the following conditions are met: (a) the beneficiary is a public-) one resident of a Contracting State or a resident of a country with which Mexico has an extensive information exchange agreement, which correspond to an administrative tax rules (Resolución Misceláne is Indicated) Annex 10; (b) seizure or recipient) before and directly after the transfer, directly or indirectly owns at least 80 percent of the voting power in the other company and of its values, or a company which is a resident of a Contracting State or a resident of a country with which Mexico has an extensive information exchange agreement, which correspond to an administrative tax rules (Resolución Misceláne is Indicated) Annex 10, owns directly or indirectly (through a company which is a resident of that State) at least 80 percent of the vote in each of them and the value of each; and (c)) in determining capital gains on any later operations: (i) the acquisition value of shares in the recipient is determined based on the value of the seizure, the raising of any money or other consideration other than shares or other rights; or (ii) the capital gain is determined using another method, which basically gives the same result. Notwithstanding the above, if you receive money or other consideration other than shares or other rights, capital gains amount (only received money or other compensation, other than shares or other rights) may impose taxes of the Contracting State where residents seized the shares in the company. Article 14 independent personal services 1. resident of a Contracting State – physical persons income gained from 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 it is applicable 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 (three hundred and eighty) days in any 12 (twelve) months period, which begins or ends in the tax year, it is considered that the person uses it regularly available permanent base in the other State and the income that accrued on the second country made the above activities is 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 and article 19 rules for payment of wages and other similar remuneration, by 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 part 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxable only in the first Contracting State if: a the beneficiaries) is found in the other State for a period or periods not exceeding in the aggregate 183 (three hundred and eighty) days in any 12 (twelve) months period, which begins or ends in the tax year and (b) the remuneration is paid) an employer who 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, used by the employer in the other country. 3. Notwithstanding the preceding provisions of this article, remuneration received for paid work that is being done to a company of a Contracting State in international traffic used the ship or aircraft, can impose taxes in the country. 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. Return the izpildītājmāksliniek or athlete who is a resident of a Contracting State, a resident of this individual activity in the other Contracting State that is associated with this as the izpildītājmāksliniek or the resident athlete's reputation, can impose taxes in the other country. 2. If izpildītājmāksliniek or athlete's income on his individual activity in the area in question is paid rather than izpildītājmāksliniek or athlete himself but to another person, to the following income regardless of the 7, 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. parts 1 and 2 of the rules are not applied to the income that izpildītājmāksliniek or athlete has learned about the activities performed in the Contracting State, if the visit to that State is wholly or is financed primarily from one or both of the Contracting States or local public financing. In this case, the income shall be taxable only in the Contracting State of which the resident is izpildītājmāksliniek, or athlete. Article 18 pensions 1. in accordance with article 19 of part 2 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 paragraph 1 and article 19 of part 2 of the part of the pension 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 paid by the natural person contracting State or of its political or administrative unit of local government for that State or entity 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) irrespective of the provisions of part 1 of the pensions and other similar remuneration paid by a natural person in a Contracting State or of its political or administrative unit of local government, or who is paid from the funds set up for services provided by that person or entity for this country or municipality, is taxed only in the country. (b) However, such pension and) other similar remuneration 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, pensions and other similar remuneration, which is paid for services rendered in connection with a Contracting State or of its political or administrative unit of local 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 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. However, the following other income arising in the other Contracting State may be taxed in that other State taxes also. 2. the provisions of part 1 does not apply to income, other than income from article 6 defined in part 2 of the real property, if the income beneficiary who is a resident of a Contracting 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 22 the avoidance of double taxation 1. In Latvia, double taxation is avoided by the following: (a) Where a resident of Latvia) derives income which, in accordance with this Convention may impose taxes in Mexico, when one of its national legislation is more favourable provisions, reduce the resident's permit Latvia income tax for an amount equal to the income tax paid in Mexico. These reductions must not, however, exceed that part of the income tax, which is calculated in Latvia before the application of this reduction is attributable to the income which may be taxed taxes in Mexico. (b)) to apply a) point if a company resident of Latvia receives a dividend from a company resident in Mexico, in which it owns at least 10 percent of shares with full voting rights, the tax paid in Mexico 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. in accordance with the Mexican laws and regulations respecting their limits, which over time can be amended, without amending the General principles, allows its residents to apply to Mexico the credit method for Mexican taxes) on: (a) the tax paid in Latvia of the income arising in Latvia, this amount does not exceed the tax payable in Mexico on such income; and (b)), the company which owns at least 10 percent of the shares of the company which is a resident of Latvia, and from which the first mentioned company receives dividends in the case of the paying public in Latvia, the tax paid on the profit that was paid in dividends. 3. where in accordance with any of the provisions of this Convention to a resident of a Contracting State would be exempt from income taxation in that State, then calculating the amount of tax on the remaining income of a resident of this State may take into account the exempted income. 23. Article 1 of the prevention of DISCRIMINATION on the nationals of a Contracting State in the other Contracting State is 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 do not have one or both of the Contracting States 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 in the context of residence applies or may apply 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 the applicable part 1 of article 9, article 11 part 7 or article 12 part 6 rules, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident by establishing this company's taxable profit must be deducted subject to the same provisions as if they were to be paid to the first residents of that State. 5. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more residents of the other Contracting State, or to their directly or indirectly controlled by the residents, first mentioned in that country 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. 6. The provisions of this article independently of the provisions of article 2, apply to taxes of every kind and name. Article 24 mutual conciliation procedure 1. If a person believes that one or both of the Contracting States concerning 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 refers to part 1 of article 23, the national competent authority that national is that person. The complaint shall be submitted to the 3 (three) years from 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, to prevent the inappropriate taxation, provided that the other Contracting State, the competent authority has been notified about this case 4.5 (four and a half) years of pay or fill in the date of the Declaration in the other country, whichever is later. In this case, any arrangement reached must meet the 10 (ten) years from the date of payment or the date of filing of the Declaration in the second in the country, choosing the date, or later in the longer period, if allowed by the other country's national laws and regulations. 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.
Article 25 exchange of information 1 Contracting State the competent authorities must exchange information that is expected in the important for the carrying out of the provisions of this Convention or the national administration of legislation or the requirements for the type and name of all taxes imposed in the Contracting State, its political and administrative units or local authorities, insofar as such taxation is not contrary to the Convention. 1 and 2, of the Convention article does not limit 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 the first sentence in the above calculation or collection of taxes, the use of coercive measures or proceedings, appeals in relation to the taxes referred to in the first sentence, or under the supervision of the above. 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 part 1 should 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 process a transaction, or to provide information, the disclosure of which would be contrary to public policy (ordre public). Article 26 diplomatic missions and consular staff nothing in this Convention shall affect the diplomatic missions or consular posts personnel fiscal privileges which it applied in accordance with international law, the General rules or specific agreement terms. Article 27 entry into force 1. Each Contracting State shall inform by diplomatic channels other that is executed by the laws of the specific procedures for the entry into force of this Convention. 2. this Convention shall enter into force on the thirtieth day after the date of the notification referred to in the past, which is mentioned in part 1, and the rules of both Contracting States shall apply: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January in the calendar year or after the following the year in which this Convention enters into force; (b)) in the case of other 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 28 termination this Convention shall remain valid as long as the one Contracting State it shall be terminated. Each Contracting State may terminate this Convention after a period of five years after the date of entry into force of the Convention, through diplomatic channels, by giving written notice of termination at least 6 (six) months prior to any end of the calendar year. 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 is given; (b)) in the case of other taxes, payable for 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. In witness thereof, the undersigned, being duly authorised, have signed this Convention. Drawn up in Washington, d. c., in duplicate, in the year two thousand and twelfth in the twentieth of April, Latvian, Spanish and English languages, each text being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia, the Government of the United Mexican States on behalf of Andrew Wolf José Antonio Meade Kuribreñ 's Finance Minister of finance and Minister of State loans to the Protocol of the Government of the Republic of Latvia and the Government of the United Mexican States of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Convention) at the time of signature of the parties have agreed that the following provisions are an integral part of the Convention: (I). with respect to article 6 : 1. It is understood that the term "real property" shall include any option or similar right to acquire immovable property. 2. It is understood that, if the company's shares or other corporate rights ownership gives the shares or corporate rights to the owner of the rights to the company's holding of real property, the income from the direct use, letting or use in any other manner may impose taxes in the Contracting State in which the immovable property is situated. II. As regards article 11: application of part 6 of article 11, if the loan is originated from the main company and the amount relates to a number of permanent representations, located in different countries, it is considered that interest arises in the Contracting State in which the permanent establishment is situated, but only the interest payments that are paid (bear) the permanent representation. III. As regards article 12: in application of article 12 part 5 of the regulations, if the obligation to pay the royalties is sealed with the main company and the amount relates to a number of permanent representations, located in different countries, it is considered that the royalties arise in the Contracting State in which the permanent establishment is situated, but only the payment of royalties, which are paid (bear) the permanent representation. IV. With regard to articles 12 and 13: it is understood that payments from any part 3 of article 12 of the said rights or property seizures are considered royalty and taxable in accordance with that article, unless the payments are not made by the parties to completely and utterly agreed prices at the date of disposal, but are dependent on these rights or property or the use of the actual capacity. V. with regard to article 14: part 1 of article 14 also applies to income, what the company-a resident of a Contracting State derives providing professional services through the second Contracting State hosted a standing base. Vi. With regard to article 24: apart from all the other contracts the parties contracting States, any tax issues relating to tax referred to in article 2, including disputes concerning application of the Convention between the Contracting States are settled only in accordance with this article, unless the competent authorities have agreed otherwise. VII. With regard to article 25, if the Contracting State in accordance with this article shall be required to provide the information to the other Contracting State should use its information gathering measures to obtain the requested information, even if it is considered that the information requested in the other country would not need their taxation requirements. The obligation referred to in the first sentence applies to part 2 of the restrictions, but in no case shall such limitations may not explain that these Contracting State permits decline to provide information solely because it has no national interests with regard to this information. In any case, the provisions of part 2 may not explain that they therefore Contracting State allowed the subject to provide information solely because the information is the holder of a bank, another financial institution, its representative or person acting on the authorisation or trust, or because it relates to ownership of the second person. VIII. With respect to the term "permanent base": it is understood that, for the purposes of taxation in Mexico, a permanent base will be established in accordance with the principles that are used in the determination of the permanent representation. IX. General: 1. It is understood that the Contracting States to the provisions of the Convention must seek to apply in accordance with the Income and capital tax there in the article's comments, which over time has been developed by the OECD Committee on fiscal affairs, in so far as the provisions of the Convention meets in this there. 2. the benefit of this Convention shall not apply to companies or other persons applying special treatment under one of the laws of the Contracting States or administrative the practice is completely or partially exempt from tax evasion. In the first sentence of that provision, that special arrangements will be considered as such only when mutual harmonisation of the road will be agreed between the competent national authorities. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. Drawn up in Washington, d. c., in duplicate, in the year two thousand and twelfth in the twentieth of April, Latvian, Spanish and English languages, each text being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia, the Government of the United Mexican States on behalf of Andrew Wolf José Antonio Meade Kuribreñ 's Finance Minister of finance and Minister of State loans to the CONVENTION BETWEEN the Government OF the REPUBLIC OF Latvia AND the Government OF the UNITED MEXICAN States FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income the Government of the Republic of Latvia and the Government of the United Mexican States To conclud a Convention (menu Rngton Line4), for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows: article 1 PERSONS COVERED this 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 a Contracting State, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovabl property. 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); (hereinafter referred to as "Latvian tax"); (b)) in Mexico: (i) the federal income tax (impuesto sobre la Renta federal); (ii) the flat rate business tax (impuesto empresarial a TASA únic); (hereinafter referred to as "Mexican tax"). 4. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes that have been made in their taxation laws 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 "Mexico" means the United Mexican States; When used in a sense, the location it includes the territory of the United Mexican States, as well as the integrated parts of the Federation, the island, including the reef and cays in the adjacent to the water; the islands of Guadalupe and Revillagiged, the continental shelf and the seabed and sub-soil of the Islands, cays and reef; the waters of the territorial seas and the inland waters and beyond them, the area over which, in accordanc with the international law, Mexico may exercise its sovereign rights of exploration and exploitation of the natural resources of the seabed, sub-suprajacen the water and the soil, and the air space of the national territory, to the exten and under conditions established by international law; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Mexico, as the context requires; (d) the term "person") includes an individual, a company and any other body of persons; e the term "company") means any body corporate or any entity that is treated as a body corporate for tax purpose; (f) the term ") enterprise 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; g) 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; h) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) in Mexico, the Ministry of finance and Public Credit; (I) 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 any person who, under the law of that State, 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, and also includes that State and any political subdivision or local authority thereof. This term, however, 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. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the 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. 3. Where by reason of the provision of paragraph 1, a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question by their mutual agreement and determin the mode of application of the Convention to such person. In the absence of such agreement, for the purpose of the Convention, the person shall not be entitled to claim any benefits provided by this Convention. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e) a workshop; and f a mine, an oil) or gas well, a quarry or any other place of extraction of natural resources. 3. The term "permanent establishment" of a likewis: encompass) a building site or a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than 6 (six) months; (b) activities carried on) in a Contracting State in connection with the exploration or exploitation of the seabed and its sub-soil and their natural resources situated in that State, if such activities are carried on for a period or periods exceeding in the aggregate 90 (ninety) days in any 12 month period (twelve). 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 to conclud-contracts in 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. However, when the activities of such an agent are exercised wholly or almost wholly on behalf of that enterprise and when the condition between the agent and the enterprise differ from those which would be made between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this paragraph. In such case the provision of paragraph 5 shall apply. 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, usufruc of immovabl property and rights to variable or fixed payments as considerations for the working of, or the right to work, mineral deposits, sources and other natural resources , rights to assets to be produced by the exploration or exploitation of the seabed or sub-soil and their natural resources, including rights to interests in or to the benefits of such assets. Ships, boats 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 business 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 business profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. However, profits derived from the sale of goods or merchandise of the same or similar kind as those sold through that permanent establishment may be considered attributabl to that permanent establishment if it is established that such sales were structured in a manner intended to avoid taxation in the State where the permanent establishment is situated. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which It is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as a deduction in "of which the expense incurred for the purpose of the permanent establishment, including Executive and general administrative expense so incurred, whethers of in the State in which the permanent establishment is situated or elsewher. However, no such deduction in "shall be allowed in respect of non, if any, paid (otherwise than towards reimbursemen of actual expense) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of the royalt, fe or other similar payments in return for the use of patents or other rights, or by way of commission , for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the permanent establishment. Likewis, from the account shall be taken, in the determination of the profits of a permanent establishment, for a non charged (otherwise than towards reimbursemen of actual expense) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of the royalt, fe or other similar payments in return for the use of patents or other rights , or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the head office of the enterprise or any of its other offices. 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. the profits referred to in paragraph 1 do not include profits derived from the operation of the hotel, or a transport activity other than the operation in international traffic of ships, or aircraft. 3. For the purpose of this article, profits 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; or (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 activities, as the case may be, the incidentals to the operation of ships or aircraft by the enterprise in international traffic. 4. 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 (a) 12:5 per cent) of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividend; b) 10 per cent of the gross amount of the dividends in all other cases. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. 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 corporate rights which is subjected and others income 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. 4. 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 such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. 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 the company's undistributed profits, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other 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: (a) 12) 5 percent of the gross amount of the interest paid to and by the bank; b) 10 per cent of the gross amount of the interest in all other cases. 3. Notwithstanding the provision of paragraph 2, interest referred to in paragraph 1 shall be the taxabl only in the Contracting State in which the beneficial owner is a resident if: (a) the beneficial owner) is a Contracting State, a political subdivision or a local authority thereof, or the Central Bank of a Contracting State; (b) the interest is paid) by any of the entities mentioned in subparagraph (a)) to;
(c)) the beneficial owner is a recognized pension fund provided that it is generally the main income from tax in that State; (d)) the interest «arise in Latvia and is paid in respect of a loan granted or guaranteed, insured, by Banco de México, the Banco Nacional de Comercio Exterior, S.N.C., Nacional Financier S.N.C., or Banco Nacional de Servicio y Fig públicos, S.N.C., or by any other institution, as may be agreed from time to time between the competent authorities of the Contracting to States; or (e)) the interest «arise in Mexico and is paid in respect of a loan granted or guaranteed by the insured, with the Bank of Latvia, the mortgage and Land Bank of Latvia, or by any other institution, as may be agreed from time to time between the competent authorities of the Contracting to States. 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, as well as all other income that is treated as income from money lent by the laws of the Contracting State in which the income «arise. The term "interest" shall not include any item of income which is considered as a dividend under the provision of paragraph 3 of article 10.5. 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 Contracting 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 exceeds 100, for whatever reason, 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 10 per cent of the gross amount of the royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for: (a) the use of,) or the right to use, any patent, trade mark, design or model, plan, secret formula or process; (b)) the use of, or the right to use, any industrial, commercial or scientific equipment; (c) the supply of information concerning) industrial, commercial or scientific experience; (d)) the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films and films or tapes for television or radio broadcasting. 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 stay exceeds 100 royalt, for whatever reason, 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 Contracting State. 2. Gains derived by a resident of a Contracting State from the alienation of shares or of a comparabl interests deriving more than 50 per cent of their value directly or indirectly from immovabl property situated in the other Contracting State may be taxed in that other State. 3. In addition to gains taxabl in accordanc with the provision of the preceding paragraph of this article, the gains derived by a resident of a Contracting State from the alienation of the stock, or other rights, participation in the capital of a company which is a resident of the other Contracting State may be taxed in that other Contracting State. However, the tax so charged shall not exceeds 100 20 per cent of the taxabl is gain. 4. 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. 5. 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. 6. Gains from the alienation of any property other than that referred to in the preceding paragraphs of this article, shall be taxabl only in the Contracting State of which the alienator is a resident. 7. For the purpose of paragraph 3 of this article, gains from the alienation of shares of a company resident in one of the Contracting States shall be taxabl only in the other Contracting State if the alienation of shares takes place between members of the same group of companies to the exten that the remuneration to be received by the transferor consist of shares or other rights in the capital of the transfere or of another company that own directly or indirectly 80 per cent or more of the voting rights and the value of the transfere and that is resident of one of the Contracting States or of a country with which Mexico has a broad exchange of information agreement in terms of the Annex 10 of the administrative Tax Regulations (Resolución Misceláne is Indicated), but only if the following conditions are met: (a)) the transfere is a company resident of one of the Contracting States or of a country with which Mexico has a broad exchange of information agreement in terms of the Annex 10 of the administrative Tax Regulations (Resolución Misceláne's Programme); (b) immediately before and after this) transfer, the transferor or the transfere of own, directly or indirectly, 80 per cent or more of the voting rights and the value of the other, or a company resident in one of the Contracting States or of a country with which Mexico has a broad exchange of information agreement in terms of the Annex 10 of the administrative Tax Regulations (Resolución Misceláne the Fiscal) own directly or indirectly (through companies resident in one of those States) 80 per cent or more of the voting rights and the value of each of them; and (c)) for the purpose of determining the gain on any subsequent disposition: (i) the initial cost of the shares for the transfere is determined based on the cost it had for the transferor, increased by any cash or other remuneration other than shares or other rights paid; or (ii) the gain is measured by another method that give substantially of the same result. Notwithstanding the foregoing, if cash or other remuneration other than shares or other rights is received, the amount of the gain (limited to the amount of cash or other remuneration other than shares or other rights received), may be taxed by the Contracting State of which the company of which the shares are alienated 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 a (one hundred and eighty three) days in any 12 month period (twelve) commencing 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 the 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 and 19, 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 the 183 (one hundred and eighty three) days in any 12 month period (twelve) 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, may be taxed in that State. Article 16 directors ' fees directors ' fees 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 SPORTSPERSON 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 sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. Income derived by an entertainer or a sportsperson who is a resident of a Contracting State from that resident's personal activities relating to that resident's reputation as an entertainer or sportsperson 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 sportsperson in his capacity as such notes to the accru entertainer or sportsperson 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 sportsperson 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 sportsperson if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or local authorities thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsperson 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 State 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 political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority 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) Notwithstanding the provision) of paragraph 1, remuneration paid for similar pension and others by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such pension) and others similar remuneration shall only be taxabl 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, WAGs, pension and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or 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 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. However, such items of income, arising in the Contracting State, the other may also be taxed in that other 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 22 ELIMINATION OF double TAXATION 1. In Latvia, double taxation shall be eliminated as follows: a where a resident of) Corporation's deriv income which, in accordanc with this Convention, may be taxed in Mexico, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow as a deduction in "from the tax on the income of that resident, an amount equal to the income tax paid thereon in Mexico. Such notes shall, however, exceeds 100 Marbles that part of the income tax in Latvia, as computed before the deduction in "is given, which is attributabl to the income which may be taxed in Mexico. (b)) For the purpose of sub-paragraph (a)), where a company that is a resident of Latvia receive a dividend from a company that is a resident of Mexico in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Mexico 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 accordanc with the provision and subject to the limitations of the law of Mexico, as may be amended from time to time without changing the general principle hereof, the Office shall allow its Mexico residents as a credit against the Mexican tax: a) the Latvian tax paid on income arising in Latvia, in an amount not exceeding the tax payable in Mexico on such income; and (b)) in the case of a company owning at least 10 per cent of the capital of a company which is a resident of Latvia and from which the first-mentioned company receive the dividend, the Latvian tax paid by the distributing company with respect to the profits out of which the dividend is paid with. 3. Where in accordanc with any provision of the Convention income derived by a resident of a Contracting State is a tax in the main from a State, such State may not vertheles, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. Article 23 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. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned 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. 6. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description. Article 24 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 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 23, to that of the Contracting State of which he is a national. The case must be presented within 3 (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, provided that the competent authority of the other Contracting State is notified of the case within 4.5 (four and a half) years from the due date or the date of filing of the return in that other State, whichever is later. In such case, any agreement reached shall be implemented within 10 (ten) years from the due date or the date of filing of the return in that other State, whichever is later, or a longer period if permitted by the domestic law of that other State. 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 for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 25 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is foreseeably relevant for carrying out the provision of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by articles 1 and 2. Any information received 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 the determination of the appeal, in relations to the taxes referred to in the first line, or the oversigh of the above. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. 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) 's at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not obtainabl) is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 26 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 27 ENTRY into force 1. The Contracting States shall notify each other through diplomatic channels of the completion of the procedures required by their domestic law for the bringing into force of this Convention. 2. This Convention shall enter into force on the thirtieth day after the date of the later of the notifications referred to in paragraph 1 and it will the provision shall 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 Convention enter into force; (b)) in respect of other taxes, for any fiscal year beginning on or after the first day of January in the calendar year next following the year in which the Convention enter into force. Article 28 TERMINATION this Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least 6 (six) months before the end of any calendar year after the fifth year following the year in which the Convention has entered into force. 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, for any fiscal year beginning 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 in duplicate at Washington, D.C. on this twentieth day of April of two thousand and twelve, in the Latvian, Spanish and English languages, all texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government of the Republic of Latvia For the Government of the United Mexican States Andris Vilks José Antonio Kuribreñ Minister of Meade Finance Minister of finance and Public Credit PROTOCOL At the moment of signing the Convention between the Government of the Republic of Latvia and the Government of the United Mexican States for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereafter referred to as "the Convention") , the undersigned have agreed upon the following provision which shall form an integral part of the United Nations Convention. I. With reference to article 6:1. It is understood that the term "immovabl property" includes any option or similar right to acquir-immovabl property. 2. It is understood that where the ownership of shares or other corporate rights in a company the owner of entitl such shares or corporate rights to the enjoymen of immovabl property held by the company, the income from the direct use, letting, or use in any other form of such right may be taxed to the enjoymen in the Contracting State in which the immovabl property is situated. II. With reference to article 11: For the purpose of the provision of paragraph 6 of article 11, if the loan is incurred by the head office of the enterprise and the amount in question several permanent establishment of Lady situated in different countries, then the interest shall be deemed the «arise in the Contracting State in which the permanent establishment is situated , but only so much of the interest payment that is borne by that permanent establishment. III. With reference to article 12: For the purpose of the provision of paragraph 5 of article 12, if the obligation to pay the royalt is contracted to by the head office of the enterprise and the amount in question several permanent establishment of Lady situated in different countries, then you shall be deemed the royalt it «arise in the Contracting State in which the permanent establishment is situated , but only so much of the royalty payment that is borne by that permanent establishment. IV. With reference to articles 12 and 13: It is understood that payments deriving from an alienation of any right or property as mentioned in paragraph 3 of article 12 shall be regarded as the taxabl royalt and according to the said article, when the payments are not in settlement of a full and final price agreed upon at the date of the alienation , but of the contingen actual productivity or use thereof. V. With reference to article 13: Paragraph 1 of article 14 shall also apply to income derived by a company which is a resident of a Contracting State from the furnishings of professional services through a fixed base in the other Contracting State. Vi. With reference to article 24: Notwithstanding any other agreement to which the Contracting States are parties, any tax issue between the Contracting States involving a tax covered by article 2, including a dispute whethers the Convention applies, shall be settled only under this article unless the competent authorities agree to otherwise. VII. With reference to article 25: If information is requested by a Contracting State in accordanc with this article, the other Contracting State shall use its information gathering "to obtain the requested information, even though that other State may not need such information for its own tax purpose. The obligation in the preceding line led is subject to the limitations of paragraph 2 of the case shall be in such limitations be construed to permit a Contracting State to supply information to declin solely because it has from the domestic interest in such information. In the case of IR the provision of paragraph 2 be construed to permit a Contracting State to supply information solely to declin because the information is held by a bank, other financial institution, or a person acting in nomine an agency or fiduciary capacity or because it relate to ownership interests in a person. VIII. With reference to the term "fixed base": It is understood that for Mexican tax purpose, the fixed base will be treated in accordanc with the principles that apply to permanent establishment. IX. General: 1. It is understood that the Contracting States shall endeavour to apply the provision of the Convention in accordanc with the Commentar to on the articles of the Model Tax Convention on income and on Capital drawn up from time to time by the OECD Committee on Fiscal Affairs to the exten that the provision will be led in the Convention correspond to those set forth under such a Model. 2. The benefits of the Convention are not applicable to companies or other persons which are wholly or partly from taxation by a main special regime under the law or administrative practices of either one of the States. A special regime as mentioned in the first line of this provision will only be considered as such after the competent to the authorities of the States have by mutual agreement decided that this is the case. In witness whereof, the undersigned duly authorised the theret, have signed this Protocol. Done in duplicate at Washington, D.C. on this twentieth day of April of two thousand and twelve, in the Latvian, Spanish and English languages, all texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government of the Republic of Latvia For the Government of the United Mexican States Andris Vilks José Antonio Kuribreñ Minister of Meade Finance Minister of finance and Public Credit