For The Republic Of Latvia And Georgia, The Protocol Amending The October 13, 2004, The Convention On The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income And Capital

Original Language Title: Par Latvijas Republikas un Gruzijas protokolu, ar ko groza 2004.gada 13.oktobra konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma un kapitāla nodokļiem

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Read the untranslated law here: https://www.vestnesis.lv/op/2012/172.2


The Saeima has adopted and the President promulgated the following laws: For the Republic of Latvia and Georgia, the Protocol amending the October 13, 2004, the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital article 1. 29 may 2012 in Riga and Latvia signed the Georgia Protocol amending the October 13, 2004, the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as the Protocol), with this law is adopted and approved. 2. article. Fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance. 3. article. This Protocol shall enter into force on its article 12 within the time and in order, and the Ministry of Foreign Affairs shall notify the official Edition of the "journal". 4. article. The law shall enter into force on the day following its promulgation. With the law put the Protocol in English and Latvian. The Parliament adopted the law in 2012 on October 18. The President a. Smith in 2012 on October 31, the Republic of Latvia and Georgia, the PROTOCOL amending the October 13, 2004, the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital of the Republic of Latvia and Georgia, desiring to conclude a Protocol amending the 2004 13 October in Riga and Latvia signed the Georgia Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as the Convention) , agree on the following: 1. Article 3 of the Convention article 1 of part g) point is switched off and replaced with the following: "(g)) the term" international traffic "means any transport by a ship, aircraft or road vehicles by the company of a Contracting State, except for the cases when the vessel, aircraft or vehicle moves only in the other Contracting State;" 2. Article 5 of the Convention, article 3, the words "six months" is deactivated and replaced by the words ' nine months '. 3. Article 6 of the Convention, article 2, part of the third sentence is off and replaced with the following sentence: "the ships, aircraft and road transport are not considered real estate." 4. Article 8 of the Convention the name of the article and part 1 are switched off and replaced with the following name and: "article 8 profits from international TRANSPORT 1. Contracting State company profits gained from the ship, aircraft or road vehicles in international traffic of use are taxable only in the Contracting State in which the actual place of management of the company." Article 5 of the Convention, article 10 is turned off and replaced with the following: "article 10 dividends 1. Dividends company-a resident of a Contracting State in the other Contracting State, the cost of the resident may be taxed in that other State taxes. 2. However, such dividends may also impose taxes under the national laws of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total, if real owner of 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. 3. Notwithstanding paragraph 1 and the provisions of part 2, dividends paid by a company, resident of a Contracting State are taxable only in the other Contracting State if the true owner of the dividends is a company (other than a partnership) that is resident in the other Contracting State and is directly managed by at least 50 percent of its capital, which paid dividends. 4. The term "dividends" in this article means income from shares, or other debt not resulting from the requirements of the right to participate in company profits, as well as income from other rights which, in accordance with the laws of the State of which the resident is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares. 5.1, 2, and 3. the provisions of part is not appropriate when the owner of dividends, which 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. 6. If company-a resident of a Contracting State derives profits or income in the other Contracting State, that other State may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other State, or if the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base in another country; nor does it impose taxes the undistributed profits of the company, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. " 6. Article 11 of the Convention article 1 in part 2 of the figures and the words "10 percent" are eliminated and replaced by numbers, and the words "5 per cent". 2. Article 11 of the Convention part 3 is turned off and replaced with the following: "3. Notwithstanding the provisions of part 2, a interest arising in a Contracting State and paid to a resident of the other Contracting State who is the rightful owner, it is taxed only in that other State if such interest is paid to: a) for any type of loan or credit granted by the bank; (b)) of the other Contracting State, including any Government in its political and administrative unit or a local authority, a central bank or any financial institution that is subject to the control of the Government, or as interest payments on the loans guaranteed by the Government. " 7. Article 12 of the Convention in part 2 of article numbers and the words "10 percent" are eliminated and replaced with numbers and the words "5 percent". Article 8 of the Convention, article 13, part 3 is turned off and replaced with the following: "3. the capital gains gained disposes the use in international traffic of ships, aircraft or road vehicles or property that belongs to such a ship, aircraft or road vehicle use is taxable only in the Contracting State in which the actual place of management of the company." Article 9 of the Convention, article 15 of part 3 are eliminated and replaced with the following: "3. Notwithstanding the preceding provisions of this article, remuneration received for paid work that is being done to use in international traffic of ships, aircraft or road vehicles, can impose taxes of the Contracting State in which the place of effective management of the company." Article 10 of the Convention article 23 Part 3 is turned off and replaced with the following: "3. the capital, consisting of the use in international traffic of ships, aircraft and road transport, as well as movable property belonging to the ships, aircraft and vehicle use are taxable only in the Contracting State in which the actual place of management of the company." Article 11, paragraph 4 of the Protocol to the Convention is switched off and replaced with the following: "4. in relation to article 8, article 13, article 15, article 23: it is understood that article 8 of part 1, part 3 of article 13, article 15 of part 3 and part 3 of article 23 shall not apply in Latvia until their national legislation is not enacted, the actual place of management as a criterion for the determination of residence but their site is applicable to the following provisions: article 8 part 1 "enterprise of a Contracting State from the profits, aircraft or road vehicles in international traffic of use is taxed only in the country." Part 3 of article 13 "capital gains by the public company, which is used in international traffic of ships, aircraft or vehicles, benefit, disposing of used in international traffic of ships, aircraft or road vehicles or disposes of property that belongs to that ship, aircraft or road vehicle use is taxed only in the country." 3. Article 15 of the "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, aircraft or road vehicles, can impose taxes in this country." Article 23 Part 3 "capital, formed by the enterprise of a Contracting State in international traffic, used ships, aircraft and road transport, as well as movable property belonging to the ships, aircraft and vehicle use is taxed only in the country." Article 12 1. Contracting Governments through diplomatic channels in writing inform each other about their compliance with their constitutional requirements for the entry into force of this Protocol. 2. the Protocol shall enter into force by 1. referred to in the last statement date and its provisions in both Contracting States shall apply: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January in the calendar year or after the following the year in which this Protocol enters into force; (b)) in the case of other income taxes and capital taxes-taxes payable for any taxation year that begins on the first day of January in the calendar year or after the following the year in which this Protocol enters into force. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies in the 29 may 2012 in Latvian, Georgian and English, in addition, all three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
On behalf of the Republic of Latvia Andris Razān on behalf of Georgia, Nino Kalandadz of the Ministry of Foreign Affairs, Deputy State Secretary, Deputy Minister of Foreign Affairs PROTOCOL BETWEEN the REPUBLIC OF Latvia AND GEORGIA on OCTOBER 13, 2004 AMENDING the CONVENTION FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income AND ON CAPITAL the Republic of Latvia and Georgia, a Protocol amending their conclud (menu Rngton Line4) the Convention between the Republic of Latvia and Georgia for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on Capital, signed at Riga on 13th October 2004 (hereinafter referred to as "the Convention"), have agreed as follows: article 1 Sub-paragraph (g) of paragraph 1 of) article 3 of the Convention shall be deleted and replaced by the following paragraph: "(g) sub-) the term" international traffic "means any transport by a ship , aircraft or road vehicle operated by an enterprise of a Contracting State, except when the ship, aircraft or road vehicle is operated solely between places in the other Contracting State; " Article 2 the reference in paragraph 3 of article 5 of the Convention to "six months" shall be deleted and replaced by the reference to "nine months". Article 3 the third line of paragraph 2 of article 6 of the Convention shall be deleted and replaced by the following line: "ships, aircraft and road vehicles shall not be regarded as immovabl property." Article 4 the title and paragraph 1 of article 8 of the Convention shall be deleted and replaced by the following title and paragraph: "article 8 profits FROM INTERNATIONAL transport 1. Profits derived by an enterprise of a Contracting State from the operation of ships, aircraft or road vehicles in international traffic shall be taxabl only in the Contracting State in which the place of effective management of the enterprise is situated." Article 5 article 10 of the Convention shall be deleted and replaced by the following article: "article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not (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. 3. Notwithstanding the provision of paragraph 1 and 2 of this article, a dividend paid by a company which is a resident of a Contracting State shall be in the taxabl only other Contracting State if the beneficial owner is a company (other than a partnership) that is a resident of that other State and holds directly at least 50 per cent of the capital of the company paying the dividend. 4. The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits to a tax on 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 6 1. The reference in paragraph 2 of article 11 of the Convention to "10 per cent" shall be deleted and replaced by the reference to "5 per cent". 2. Paragraph 3 of article 11 of the Convention shall be deleted and replaced by the following paragraph: "3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be only in the taxabl you others if such a State interest is paid: (a) on any loan or credit) of whatever kind granted by a bank; (b)) to the Government of the other Contracting State, including any political subdivision or local authority thereof, the Central Bank or any financial institution controlled by that Government or on loans guaranteed by that Government. " Article 7 the reference in paragraph 2 of article 12 of the Convention to "10 per cent" shall be deleted and replaced by the reference to "5 per cent". Article 8 Paragraph 3 of article 13 of the Convention shall be deleted and replaced by the following paragraph: "3. Gains from the alienation of ships, aircraft or road vehicles operated in international traffic or movable property pertaining to the operation of such ships, aircraft or road vehicles shall be taxabl only, in the Contracting State in which the place of effective management of the enterprise is situated."
Article 9 Paragraph 3 of article 15 of the Convention shall be deleted and replaced by the following paragraph: "3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated."
Article 10 Paragraph 3 of article 23 of the Convention shall be deleted and replaced by the following paragraph: "3. Capital represented by ships, aircraft and road vehicles operated in international traffic and by movable property pertaining to the operation of such ships, aircraft and road vehicles, shall be taxabl only in the Contracting State in which the place of effective management of the enterprise is situated."
Article 11 the reference 4 in the Protocol of the Convention shall be deleted and replaced by the following: "4. With reference to article 8, article 13, article 15, article 23 It is understood that the provision of paragraph 1 of article 8, paragraph 3 of article 13, paragraph 3 of article 15 and paragraph 3 of article 23 are not applicable until Latvia has not introduced in its domestic legislation the place of effective management as a criteria for the determination of residence, but the following provision to the applicable instead: article 8, paragraph 1 "Profits of an enterprise of a Contracting State from the operation of ships, aircraft or road vehicles in international traffic shall be taxabl only in that State." Article 13, paragraph 3 "gains derived by an enterprise of a Contracting State operating ships, aircraft or road vehicles in international traffic from the alienation of ships, aircraft or road vehicles operated in international traffic or movable property pertaining to the operation of such ships, aircraft or road vehicles shall be, in the taxabl only a State." Article 15, paragraph 3 "Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic by an enterprise of a Contracting State may be taxed in that State." Article 23, paragraph 3 "Capital represented by ships, aircraft and road vehicles operated in international traffic by an enterprise of a Contracting State and by movable property pertaining to the operation of such ships, aircraft and road vehicles, shall be only in the taxabl a State." " Article 12 1. The Governments of the Contracting States shall notify each other in writing through diplomatic channels when the constitutional requirements for the entry into force of this Protocol have been complied with. 2. The Protocol shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Protocol enter into force; (b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the Protocol enter into force. In witness whereof, the undersigned, duly authorised the theret, have signed this Protocol. Done in duplicate at Riga this 29th day of May 2012, in the Georgian and Latvian, English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Republic of Latvia For Georgia Andrew Nino Kalandadz of the Razān of the Under-Secretary of State of the Ministry of Foreign Affairs Deputy Minister of Foreign Affairs