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

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

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/218074

The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of the State of Kuwait to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and its Protocol article 1. 2009 November 9, signed by the Government of the Republic of Latvia and the Government of Kuwait Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital (hereinafter the Convention) and its 2009 November 9, signed the Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved.
2. article. Convention and the fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance.
3. article. The Convention and the Protocol shall enter into force on article 31 of the Convention within the time and in order, and the Ministry of Foreign Affairs shall notify the newspaper "journal".
4. article. The law shall enter into force on the day following its promulgation. With the law put the Convention and Protocol in English and Latvian.
The Parliament adopted the law in 2010 on September 2.
The President of the Parliament instead of the President g. Many Riga 2010 on September 21, the Government of the Republic of LATVIA and the Government of Kuwait Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital the Government of the Republic of Latvia and the Government of the State of Kuwait, reaffirming willingness to promote their mutual economic relations by concluding among them the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital , agree on the following: article 1 persons covered this Convention the CONVENTION applies to persons who have one or both of the Contracting States residents.
Article 2 taxes covered by the CONVENTION (1) this Convention shall apply to taxes on income and on capital imposed by the Contracting State or of its local authorities, irrespective of the good this tax collection.
2. On the income and capital taxes, regarded all taxes imposed on total income, total capital or income or capital, including taxes on the capital gains of the movable or immovable property seizures, as well as taxes on capital appreciation.
3. The existing taxes to which this Convention applies, in particular, is: (a)): (1) corporate income tax;
(2) the individual income tax;
(3) the real estate tax;
(hereinafter referred to as the Latvian tax);
b) Kuwait: (1) corporate income tax;
(2) the Kuwait company contributions from net profit of Kuwait Fund for the promotion of Science (CF);
(3) the Zakat;
(4) the tax imposed under the national law of the workers.
(hereinafter referred to as the Kuwaiti taxes).
4. This Convention shall apply also to any identical or substantially similar taxes which add to or replace the existing taxes are introduced after the date of signature of this Convention. The competent authorities of the Contracting States shall notify each other of any significant amendments to this country in the relevant tax legislation.
Article 3 General definitions 1. If the context does not otherwise specified, then this risk‐adjusted Convention: a) the term "Latvia" means the Republic of Latvia, and, used in a geographical sense, it represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the laws of Latvia and international law can be implemented in Latvia of rights on land and sea depths and natural resources contained therein;
(b)), the term "Kuwait" means Kuwaiti territory, including the territorial sea of any adjacent areas that are, or may be determined in accordance with international law and in accordance with the laws of Kuwait as the area in which Kuwait may exercise sovereign rights or jurisdiction;
(c) the terms "a Contracting State)" and "the other Contracting State" mean, depending on context or Kuwait Latvia;
(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: (1) in Latvia, the Ministry of finance or its authorised representative;
(2) in Kuwait, the Ministry of finance or the Ministry of finance authorized representative;
I) the term "national", in relation to a Contracting State, means: (1) any natural person who has the nationality of the Contracting State;
(2) any legal person, partnership or association, whose status as a result of the existing relevant laws of a Contracting State;
(j)), the term "taxation" means depending on the context of Latvia or the Kuwaiti taxes.
2. a Contracting State at any time pursuant to this Convention, all it not defined terms shall have the meaning they have at the time of the relevant Contracting State laws relating to taxes covered by the Convention, unless the context is otherwise, and the risk‐adjusted State the relevant tax legislation meaning prevails over other laws of this state the intended meaning.
Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means: a): any person who, under the laws of Latvia impose taxes based on their place of residence, residence, location management, the creation of the site, or any other similar criteria, but this term does not include those individuals in Latvia, the taxes are imposed only in respect of their income from existing sources of profit in Latvia or the capital;
(b)): natural persons in Kuwait whose permanent residence is in Kuwait and Kuwaiti national and society, which has been established in Kuwait.
2. for the application of paragraph 1, the Contracting State resident includes all the following: (a) the Government of a Contracting State) and any of its authorities;
(b)) any under public law in the Contracting State create a government body, such as a corporation, central bank, Fund, authority, Foundation, agency, or any similar entity;
(c) any this country set) unit that all capital together with other national Governments, has provided the Government, any municipality or any defined in point (b)), the Government body.
3. 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 the person's status) cannot be determined in accordance with (a)) to c) above, the competent authorities of the Contracting States shall settle the question by mutual agreement.
4. Where, in accordance with part 1 and 2 of the regulations a person other than a natural person is resident of both Contracting States, it is considered to be a resident of the State for which it has been established.
Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of the company, which is wholly or partly carried on business.
2. The term "permanent establishment" includes: (a) the management of the company);
b) branch;
c) Office;
(d) a factory;)
e a workshop, and f)) mine shaft, oil or gas extraction sites, quarries or any other natural resource exploration, extraction or exploitation of the eligible site.
3. A building site or construction, Assembly or installation project or supervisory activities associated with them are considered permanent representation only if these works, project or activity occurs for more than nine months.

4. The provision of services, including consultancy services, by an enterprise of a Contracting State, employing staff or other staff that the company attracted for this purpose, is considered a permanent establishment only if such activities in the other Contracting State in the territory will continue for a period or periods exceeding in the aggregate six months within any twelve month period.
5. the Contracting State ice zone activities associated with the State of the sea and Earth Science natural resource exploration or mining, are considered permanent representation only when such activities are carried out for a period or periods exceeding in the aggregate 90 days in any twelve month period.
6. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies;
(b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery;
(c) the goods belonging to the company) or article items intended exclusively for processing in the other company.
(d) the specific site) designed exclusively for the purchase of goods or products to your company's needs or the collection of information for the company's needs;
e) specific action site intended solely to carry out the business of any other preparatory or ancillary activities;
f) specific action site intended solely to deal with (a) to (e))) the following, in any combination thereof, if the combination of the action are generally preparatory or auxiliary character.
7. Notwithstanding paragraph 1 and 2 of the regulations, if a person who is not referred to in paragraph 8 the status of independent agent, running your business, and it has empowered the State to enter into contracts on behalf of the company, and it constantly uses this power, then in all activities carried out by such person for your business, it is considered that the company has a permanent establishment in the country concerned, unless such person makes only 6. actions provided for in that perform certain actions in place, the place of action under the said part is not considered permanent representation.
8. It is considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, using only the broker, agent or any other agent of an independent status, provided that such persons perform their normal business activities.
9. the fact that the company is a resident of a Contracting State-controlled company, which is a resident of the other Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way), or is subject to the control of such undertaking in itself does not mean that any of these companies is the second permanent representation of society.
Article 6 INCOME from real property 1. income which a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State taxes.
2. The term "immovable property" shall have the meaning which it has its laws and regulations of a Contracting State in which the property concerned is located. In any case, this term covers property which belongs to real estate property 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 individual services.
Article 7 business profits 1. Contracting State company profits are taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits may impose taxes in the other country, but only to the profit, which can be attributed to the permanent establishment.
2. in accordance with the provisions of 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 amount as it would if it had been separated and independent company that performs the same or similar business activities under the same or similar conditions and independently carry out transactions with the company that it is a permanent establishment.
3. in determining the profits of a permanent representation in that Contracting State, are allowed to deduct the expenses (other than expenses which would not be deductible if the permanent establishment were a separate country of this Contracting Company), due to the needs of the permanent representation to the country or elsewhere, including operational and general administrative costs.
4. where a Contracting State the profits attributable to the permanent establishment shall be determined by dividing the company's total profit in proportion between its divisions, part 2 does not prohibit Contracting State as usual after this principle, determine the profit for tax purposes; However, the method of distribution must be such that the result matches the principles contained in this article.
5. On the permanent representation of the profits not only because it has purchased the goods or products for the company, which is the permanent representation.
6. for the purposes of applying the provisions of the preceding paragraph, the profits attributed to the permanent establishment shall be determined each year by the same method, except if there is sufficient reason to do otherwise.
7. If the profit is included in the other articles of this Convention see income separately, this article shall not affect the other provisions of this article.
Article 8 shipping and air TRANSPORT 1. Contracting State company profits gained from ships or aircraft in international traffic, the use of taxable only in that State.
2. The application of this article the company profit of ships or aircraft in international traffic shall include the use of: (a)) profit from ships or aircraft leasing, hiring them without crew and supply; and (b)) profit from containers (including trailers and related equipment for the transport of containers) use, maintenance or rental of goods or products;
If such lease or such use, maintenance or rental occurs in addition to the company's ships or aircraft for use in international traffic.
3. part 1 and 2 of the rules also apply to profits from the participation in a pool, joint business or international traffic transport agency.
Article 9 ASSOCIATED enterprises 1. If: (a) the Contracting State) directly or indirectly participating in the other Contracting State, the company's management or control or it owns part of the company's capital, or b) the same persons directly or indirectly participating in the enterprise of a Contracting State in the other Contracting State and the company's management or control or they own part of the company's capital, and in any of these cases, these two companies in commercial or financial relations are created or established by the rules different from those provisions that the force between two independent enterprises, then any profits which would, but for one of the companies affected by the above provisions did not have, can be included in the company's profits, and it may be appropriate to impose taxes.
2. where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on it, for the second State of the other Contracting State has been taxed, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two independent companies, the other country take appropriate adjustment for the size of the tax What are the gains of the other country. In determining this adjustment, take into consideration other provisions of this Convention and, if necessary, the competent authorities of the Contracting States for consultations.
Article 10 dividends

1. Dividends company-a resident of a Contracting State in the other Contracting State, the cost of the resident may be taxed in that other State taxes.
2. However, such dividends may also impose taxes under the national laws of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed 5 per cent of the gross amount of the dividends.
This part shall not affect the taxation of company profits from which dividends.
3. Apart from 1 and 2, part of the company-a resident of a Contracting State, paid dividends are not taxable in the Contracting State where the true owner of dividends is: (a)) of the other Contracting State Government or any article 4 in part 2 of the defined government body or other entity; or (b)) company (other than a partnership)-the other residents of a Contracting State, where the direct holding of at least 10 percent of the company capital, which paid dividends.
4. The term "dividends" in this article means income from shares, from the "jouissanc" shares (entitled to part of the property of the public in the event of liquidation) or "jouissanc" (right to participate in company profits, not on the obligations of response), from the mining company shares from the founders ' shares or other debt obligations not resulting from the right to participate in company profits, as well as income from other rights which, in accordance with its national laws and regulations where 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 of part will not apply, if the true owner of dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the dividends is resident in the firm's costly using existing permanent representation there, or give independent personal services in the other State through a permanent base located there, and where participation, which is paid out in dividends, is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14.
6. If company-a resident of a Contracting State derives profits or income in the other Contracting State, that other State may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other State, or if the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base in another country; nor does it impose a duty of retained earnings retained earnings of the company, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income.
Article 11 interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes.
2. However, such interest may also impose taxes according to relevant national laws in the Contracting State in which they arise, but, if the interest owner is implemented on the territory of the other Contracting State, a resident of the tax may not exceed 5 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of part 2, a interest arising in a Contracting State, the implementation of which owner is the Government of the other Contracting State or of any part of article 4 defined government body or other entity or interest arising in a Contracting State of any loans granted by the bank of the other Contracting State, the first State is exempt from taxation.
4. for the purposes of this article, the term "interest" means income from debt claims of every kind, whether or not secured by mortgage and whether or not they have the right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes, which belong to these securities, bonds or debentures, as well as income in accordance with the Contracting State in which it is achieved, the tax laws are subject to the same conditions of taxation as income from lending money. However, the term "interest" does not include income, which according to the provisions of article 10 are considered dividends. Interest received on payments made within that time, are not considered interest for the application of the provisions of this article.
5.1, 2 and 3 shall not apply if the interest owner, which is implemented by the Contracting State resident, doing business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located there, and if the claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14.
6. If the payer of the interest is a resident of a Contracting State, it is considered that the interest generated in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred debt obligations, on which the interest is paid, and if such interest is paid (bear) permanent establishment or a permanent basis, it is considered that this interest arises in the State in which the permanent establishment or fixed base.
7. If, on the basis of the special relationship between the payer and the interest percentage implemented owner or between both of them and some other person, the amount of interest that relate to debt claims, for which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest owner will, if implemented, they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the payment of the part which exceeds this amount, taxes are levied according to each Contracting State laws and regulations, taking into consideration other provisions of this Convention.
Article 12 ROYALTIES (1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes.
2. However, such royalties may also impose taxes according to national regulations of the Contracting State in which it arises, but if the true owner of the royalties is a resident of the other Contracting State, the tax shall not exceed 5 per cent of the total royalties.
3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work, including cinematograph films and films or recordings for radio and television broadcasting, any patent, trademark, design or model, plan, secret formula or process, or for the production, commercial, or scientific equipment, or for the right to use them , or for information concerning industrial, commercial or scientific experience.
4. parts 1 and 2 shall not apply if the rightful owner of the royalties, which is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located there, and if the right or property for which the royalties are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14.
5. If the payer of the royalties is a resident of a Contracting State, it is considered that the image occurs in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, due to which a duty to pay the royalties, and if the payment of the royalties (bear) the Permanent Mission or a permanent basis, it is considered that the royalties arise in the State in which the permanent establishment or fixed base.

6. If, on the basis of the special relationship between the payer of royalties and royalties shall implement the owner or between both of them and some other person, the amount of the royalties relating to the use, right or information for which it is paid, exceeds the amount of royalties that would have been able to implement a single payer and the owner if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the portion of the payment that exceeds this amount, is taxed in accordance with the national laws and regulations, taking into consideration other provisions of this Convention.
Article 13 capital gains 1. Capital gains, by a resident of a Contracting State derives, the disposal referred to in article 6, in the other Contracting State the existing real property, may be subject to taxes in the other country.
2. Capital gains, by a resident of a Contracting State derives, disposes of shares or comparable interests in any form more than 50 per cent of the value of the derived directly or indirectly from immovable property situated in the other Contracting State may be taxed in that other State taxes.
3. Capital gains that accrued, disposing of property, which is part of the company of a Contracting State to the permanent representation in business property in the other Contracting State, or disposing of property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, including capital gains from such permanent missions (alone or with the whole enterprise) or of such a permanent disposal base disposal can impose taxes in the other Contracting State.
4. Capital gains by the public company, which used the ships or aircraft in international traffic, shall forfeit the use in international traffic of ships or aircraft or disposing of the property, which belongs to the ship or aircraft, is taxed only in the country.
5. Capital gains generated by the disposal of any property that is not 1, 2, 3 and 4, the property is taxable only in the Contracting State of which the resident is the seizure of property.
Article 14 independent personal services 1. resident of a Contracting State-natural persons income, providing professional services or other independent activities are taxable only in the country, except if that person needs their activities using it regularly available permanent base the second Contracting State. If you are using such a permanent base, the income may be subject to taxes in the other country, but only to the extent that they apply to this permanent base.
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.
3. for the purposes of this Convention, the term "permanent base" includes a permanent place as an Office or room where the natural person who provides an independent individual services wholly or partly carried on.
Article 15 dependent personal services 1.16, 18 and article 19 of the regulations for the payment of wages and other similar remuneration, to which 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 the consideration that a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxable only in the first mentioned State if: (a) the beneficiary) is found in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxation year, and (b) the remuneration is paid), the employer that is not a resident of the other State, or the name of the employer, and c the remuneration is not paid) (bear) permanent representation or permanent base that the employer uses the second in the country.
3. Notwithstanding the previous paragraph of this article, remuneration terms, what gets paid for 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.
4. Ground personnel who perform management functions, and what work in the other Contracting State, the Contracting State has appointed a national air carrier's head office, the reward is exempted from taxation in the other Contracting State.
Article 16 DIRECTORS ' fees directors ' fees and other similar payments received by a resident of a Contracting State as the Board of directors or any other similar organ of a company that is a member of the other Contracting State, a resident may be taxed in that other State taxes.
Article 17 artists and athletes 1. articles 14 and 15 of the regulations to the income of a resident of a Contracting State as izpildītājmāksliniek, such as a theatre, film, radio or television artist, or a musician, or as an athlete for your individual activities in the other Contracting State may be taxed in that other State taxes.
2. If izpildītājmāksliniek or athlete's income on his individual 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 State of the individual actions carried out when this state visit is wholly or mainly supported on one or both of the Contracting States or municipalities. In this case, the income shall be taxable only in the Contracting State of which the resident is this izpildītājmāksliniek or athlete.
Article 18 pensions 1. in accordance with article 19 of part 2 of the regulations for pensions and other similar remuneration, by a resident of a Contracting State receives for previous paid employment are taxable only in that State.
2. Notwithstanding paragraph 1 and article 19 of part 2 of the part, retirement, and other similar remuneration, which is paid in accordance with the Contracting State social insurance system is taxed only in the country.
Article 19 government service 1 a) for salaries, fees and other similar remuneration, other than a pension, and a natural person the cost of Contracting State or a local government for this country 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: (1) is this country's nationals; or (2) did not become a resident of that State solely to provide these services.
2. (a) to any pension to which) of the natural person the cost of Contracting State or a local government, or who is paid from the funds set up for services provided by that person or Government, this country is taxable only in that State.
(b) However, such pension shall be) taxable only in the other Contracting State if the individual is a resident of this State and national.
3.15, 16, 17, and article 18 shall apply to salaries, wages, and other similar remuneration for retirement, which is paid for services rendered in connection with a Contracting State or of its local authorities carry out business.
Article 20 teachers and researchers 1. The revenue of the teaching or research work shall receive physical person entering Contracting State with a view to teach or engage in research at a University, college or other recognized that Contracting State educational or scientific institution and directly before the arrival of a Contracting State has or had in the other Contracting State, the first resident in that country are not taxed during the period not exceeding two years from the date on which that person first came for this purpose.
2. This article shall not apply to income from research if such research is undertaken not in the public interest but primarily a private person or persons of interest.
Article 21 students payments 1 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.

2. For payments that are not addressed in part 1, and with regard to remuneration for independent personal services rendered in the Studio or during the internship, the student, apprentice or trainee is entitled to the same income tax exemptions, incentives or reductions, which are available to residents of the Contracting State which he is visiting for the purpose of study or internship.
Article 22 other income 1. Other income of a resident of a Contracting State which are not specified in the preceding articles of the present Convention, irrespective of their sources are taxable only in that State.
2. the provisions of 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 23 capital 1. Capital, consisting of article 6 that a resident of a Contracting State of the real estate, which is situated in the other Contracting State may be taxed in that other State taxes.
2. Capital, which consists of movable property that is part of the company of a Contracting State to the permanent representation in business property in the other Contracting State or capital, which consists of movable property that belongs to a resident of a Contracting State, to the standing base of independent personal services in the other Contracting State may be taxed in that other State taxes.
3. Capital, formed by the ships and aircraft of a Contracting State of which the company used for international traffic, as well as movable property belonging to the ships, aircraft and trains, will be taxable only in that State.
4. all other Contracting State, a resident of the capital items are taxable only in that State.
Article 24 avoidance of double taxation 1. In Latvia, double taxation is avoided by the following: (a) where a resident of Latvia) derives income or owns capital which it in accordance with this Convention may impose taxes in Kuwait, then, unless national legislation is more favourable provisions, Latvia permit: (1) reduce the resident's income tax for an amount equal to the income tax paid in Kuwait;
(2) reduce the resident's capital tax on amount equal to the capital tax paid in Kuwait.
These reductions, however, in no case, exceed the income tax or capital tax, part of which is calculated in Latvia before the application of this reduction and, depending on the circumstances of which is attributable to the income or the capital which may be taxed taxes in Kuwait.
(b)) to apply a) point if the company resident in Latvia receives dividends from a resident company, Kuwait, in which it owns at least 10 percent of shares with full voting rights, the tax paid in Kuwait include 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. Kuwait double taxation is eliminated as follows: where a resident of Kuwait receives income or capital, which belongs to it in accordance with the provisions of this Convention may impose taxes in Latvia and Kuwait in Kuwait, then reduce this permission resident income tax for an amount equal to the income tax paid in Latvia, and to pay the resident tax on capital in the amount equal to the capital tax paid in Latvia.
These reductions, however, in no case, exceed the income or capital of the part of the tax, which is calculated before this fall and depending on the circumstances, which is attributable to the income or the capital which may impose tax in Latvia.
25. Article 1 of the Prevention of discrimination on the nationals of a Contracting State in the other Contracting State not subject to taxation or related requirements that are different or more burdensome than the taxation or the related requirements which, in the same circumstances, in particular in the context of residence applies or may apply to the nationals of the other.
2. The taxation of enterprise of a Contracting State to the permanent representation the other Contracting State may not be less favourable than the taxation that other residents of the country carrying out the same activity in the same circumstances. 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.
3. 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, in determining the taxable profit of the company is to report by the same rules as if they are paid to a resident of the first mentioned State. Similarly, the enterprise of a Contracting State in the other Contracting State debt residents, establishing this company's taxable capital, is to be deducted by the same rules as if they would apply to the first residents of that State.
4. Nothing in this article shall not be interpreted in such a way that it imposed on the Contracting State a legal obligation to extend to the other residents of a Contracting State benefits conferred by any procedure, benefits, or privileges that can be applied to any third country or its residents, in accordance with the Customs Union, economic Union, the establishment of a free trade area or any regional or sub-regional arrangements which are entirely or mainly associated with taxation or capital movements where one of the parties is the first in this country.
5. This article shall apply to taxes covered by this Convention.
Article 26 mutual conciliation procedure 1. If a person believes that one or both of the Contracting State party to a national action in relation to this person causes or will cause the taxation which does not comply with the provisions of this Convention, that person may, irrespective of the country in national legislation that remedies to submit complaints to the competent authority of the country of which the person is resident, or if the complaint refers to part 1 of article 25 of the -the Contracting State whose competent authority national is that person. The complaint shall be submitted for review within three years of the first notification of the action which led to the terms of this agreement without corresponding taxation.
2. If the competent authority deems the complaint to be justified and even fail to reach a satisfactory solution, it will endeavour to agree with the other competent authority of a Contracting State to this Convention shall not prevent the adequate taxation. Any such agreement is reached is due irrespective of the Contracting State, national laws and the time limits laid down.
3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise out of the interpretation or application of this Convention. They may also consult to avoid double taxation in cases not provided for in the Convention.
4. in order to reach agreement on these issues in the preceding subparagraph, the competent authorities of the Contracting States may communicate directly with one another, as well as following an exchange of views can take place with the competent authorities of the Contracting States, or their representatives in a joint Commission.
Article 27 Exchange of information 1. The competent authorities of the Contracting States shall exchange the information necessary for the carrying out of the provisions of this Convention or a Contracting State's national legislative requirements relating to taxes covered by the Convention, insofar as such taxation is not contrary to this Convention. Article 1 of the Convention does not restrict the exchange of information. Any information received by a Contracting State, should be considered as sensitive, as the information that is obtained in accordance with the laws of this State and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in this Convention included in the calculation of tax, in the collection, the use of coercive measures, trials or appeals related to these taxes. Those persons or institutions that information must be used only for the purposes mentioned above. They may disclose the information in public hearings or in judgements.

2. in no case shall the provisions of 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 business process, or to provide information, the disclosure of which would be contrary to public policy (ordre public).
Article 28 miscellaneous rules 1. the provisions of this Convention shall not be interpreted so that they in any way prejudice any exclusion, exemption, deduction, set-off or other benefit that is or may be granted in accordance with: (a) the Contracting State) laws of this State for the determination of the tax imposed on;
(b) any other special) agreement for the taxes associated with the cooperation of the Contracting States for economic or technical matters.
2. each Contracting State, the competent authorities may determine the procedures necessary for the carrying out of the provisions of this Convention.
Article 29 limitations preferential contracting company, firm or other entity may not be assigned to any of the relief set out in this Convention the duty reduction or exemption, if that company or entity, or create a main purpose for or one of the main goals has been to use benefits under this Convention, which it would not otherwise be available.
Article 30 diplomatic and consular personnel, nothing in this Convention shall affect the diplomatic missions or consular posts personnel fiscal privileges which international law granted the General provisions or special agreements.
Article 31 entry into force, 1 Contracting Governments shall notify each other through diplomatic channels in the form of written correspondence when they are fulfilled the constitutional requirements for the entry into force of this Convention.
2. the Convention shall enter into force with the last part 1 the date of the notification referred to in both contracting and its provisions are applied in the countries: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January or after the calendar year following the year in which the this Convention enters into force;
(b)) in the case of other income taxes and capital taxes-taxes payable for any taxation year that begins on the first day of January in the calendar year or after the following the year in which this Convention enters into force.
Article 32 termination This Convention is in force for five years and then remain in effect for a similar period or periods, except if one of the Contracting States shall notify each other through diplomatic channels by submitting a notice in writing at least six months before the original or any subsequent five-year period, of its intention to terminate the operation of this Convention. In this case the Convention in both Contracting States shall cease: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January or after the calendar year following the year in which the notice has been filed for dissolution;
(b)) in the case of other income taxes and capital taxes-taxes to be paid in any taxation year that begins on the first day of January or after the calendar year following the year in which the notice has been filed for dissolution.
In witness whereof, the parties to both the authorised, have signed this Convention.
The Convention is drawn up in duplicate in the year 1430 H Zulkid 21 day of the month corresponding to the 9 November 2009, Latvian, Arabic and English, in addition, all three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia in the Maris Riekstins Kuwaiti Foreign Minister on behalf of the Government of the country of Raudān a. Alraudān, Minister of Government and Foreign Minister p.i.
 
 
The Protocol Signed by the Government of the Republic of Latvia and the Government of the State of Kuwait to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as the Convention), the parties have agreed upon the following provisions which are an integral part of the Convention.
With regard to article 4, part 2, it is understood that, for the application of part 2, the Kuwait Investment Authority (including its foreign branches) is recognized as a government institution.
In witness whereof, the parties to both the authorised, have signed this Protocol.
Protocol is drawn up in two copies in the year 1430 H Zulkid 21 day of the month corresponding to the 9 November 2009, Latvian, Arabic and English, in addition, all three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia in the Maris Riekstins Kuwaiti Foreign Minister on behalf of the Government of the country of Raudān a. Alraudān, Minister of Government and Foreign Minister p.i.
 
 
CONVENTION BETWEEN the Government OF the REPUBLIC OF Latvia AND the Government OF the State OF Kuwait FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income AND ON CAPITAL the Government of the Republic of Latvia and the Government of the State of Kuwait, to promote their mutual (menu Rngton Line4) economic relations through the conclusions between them of a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, have agreed as follows: article 1 PERSONS COVERED this Convention shall apply to persons who are residents of one or both of the Contracting States.
Article 2 taxes COVERED 1. This Convention shall apply to taxes on income imposed on behalf of the Andean capital on (a) the Contracting State or of its local authorities, irrespectiv of the manner in which they are levied.
2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovabl property, as well as taxes on capital appreciation.
3. The existing taxes to which the Convention shall apply in particular to: (a)) in the United States: (1) the enterprise income tax (income tax of enterprises);
(2) the personal income tax (will tax revenue);
(3) the immovabl property tax (tax on immovable property);
(hereinafter referred to as "Latvian tax");
(b)) in Kuwait: (1) the corporate income tax;
(2) the contribution from the net profits of the shareholding companies payable to Kuwait to the Kuwait Foundation for advancement of Science (CF);
(3) the Zakat;
(4) the tax subjected according to the supporting of national employee law;
(hereinafter referred to as "the Kuwait 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 "Kuwait" means the territory of the State of Kuwait including any area beyond the territorial sea which in accordanc with international law has been or may hereafter be designated, under the laws of Kuwait, as an area over which Kuwait may exercise sovereign rights or jurisdiction;
(c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Kuwait, 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: (1) in Latvia, the Ministry of finance or its authorised representative;
 (2) in Kuwait, the Ministry of finance or an authorized representative of the Ministry of finance;
(I) the term "national"), in relations to a Contracting State, means: (1) any individual possessing the nationality of that Contracting State;
 (2) any legal person, partnership or association deriving its status as such from the law in force in that Contracting State;
j the term "tax") means Latvian tax or tax, as in Kuwait the context requires.

2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purpose of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.
Article 4 resident 1. For the purpose of this Convention, the term "resident of a Contracting State" means: (a) in Latvia: any person) who, under the laws of Latvia, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, but does not include any person who is liabl this tax in Latvia in respect only of income from sources in Latvia or capital situated therein;
(b)) in Kuwait: an individual who has his domicile in Kuwait and is a Kuwait national, and a company which is incorporated in Kuwait.
2. For the purpose of paragraph 1, a resident of a Contracting State shall include all of the following: a) the Government of any Contracting State and local authority thereof;
(b) any governmental institutions created in) that Contracting State under public law such as a corporation, Central Bank, fund, authority, foundation, agency, or other similar entity;
(c) any entity established in that) State, all the capital of which has been provided by the Government of that State or any local authority thereof or any governmental institutions as defined in subparagraph (b)), together with Governments of other States.
3. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests);
(b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national;
(d)) if his status cannot be determined under the provision of sub-paragraphs (a) to (c))), the competent authorities of the Contracting States shall settle the the question by mutual agreement.
4. Where by reason of the provision of paragraph 1 a person other than (a) and 2 an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the Contracting State where it was incorporated.
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 relating to the exploration, extraction or exploitation of natural resources.
3. A building site or a construction, assembly or installation project or a supervisory activity connected therewith, constitut a permanent establishment only if such site, project or activity lasts for a period of more than nine months.
4. The furnishings of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged by the enterprise for such purpose, a permanent establishment of the constitut but only where such activities continue in the territory of the other Contracting State for a period or periods exceeding in the aggregate six months within any twelve-month period.
5. Activities carried on offshore in a Contracting State in connection with the exploration or extraction from the sea bed and sub-soil of the natural resources situated in that State, a permanent establishment of the constitut but only where such activities are carried on for a period or periods exceeding in the aggregate 90 days in any twelve month period.
6. 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.
7. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 7 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 6 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.
8. 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.
9. 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 sea bed and sub-soil and their natural resources, including rights to interests in or to the benefit 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 profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment.
2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which It is a permanent establishment.
3. In determining the profits of a permanent establishment in a Contracting State, there shall be allowed as a deduction in "expense (other than expense of which would not be deductibl if that permanent establishment were a separate enterprise of that Contracting State) which are incurred for the purpose of the permanent establishment, including Executive and general administrative expense so incurred, whethers of in the State in which the permanent establishment is situated or elsewher.

4. Insofar as it has been customary in a Contracting State to determin the profits to be attributed to a permanent establishment on the basis of an apportionmen of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclud that Contracting State from determining the profits to be taxed by such an apportionmen as may be customary; the method of apportionmen, however, the adopted shall be such that the result shall be in accordanc with the principles led in this article.
5. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
6. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
7. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article.
Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State.
2. For the purpose of this article, profits of an enterprise from the operation of ships or aircraft in international traffic include: a) profits from the rental on a barebo basis of a ship or aircraft; and (b)) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise;
where such rental or such use, maintenance or rental, as the case may be, is it the operations of incidentals ships or aircraft by the enterprise in international traffic.
3. The provision of paragraphs 1 and 2 shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.
Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
2. Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other.
Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceeds 100 5 per cent of the gross amount of the dividends.
This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with.
3. Notwithstanding the provision of paragraph 1 and 2, the dividend paid by a company which is a resident of a Contracting State shall not be a Contracting taxabl in the State if the beneficial owner of the dividends is: a) the Government of the other Contracting State or any governmental institution or other entity thereof as defined in paragraph 2 of article 4; or (b)) (a) the company (other than a partnership) which is a resident of the other Contracting State that holds directly at least 10 per cent of the capital of the company paying the dividend.
4. The term "dividends" as used in this article means income from shares, "jouissanc", "jouissanc" shares or rights, mining shares, founder ' 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 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which it «arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 5 per cent of the gross amount of the interest.
3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State, derived and beneficially owned by the Government of the other Contracting State or any governmental institution or other entity thereof as defined in paragraph 2 of article 4, or interest arising in a Contracting State on any loan of whatever kind granted by a bank of the other Contracting State , shall be the main from tax in the first-mentioned State.
4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage, and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur, as well as income which is subjected to the same taxation treatment as income from money lent by the taxation law of the Contracting State in which the income «arise. However, the term "interest" shall not include any income which is treated as a dividend under the provision of article 10. Penalty charges for late payment shall not be regarded as interest for the purpose of this article.
5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply.
6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated.
7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention.
Article 12 the ROYALT

1. a Contracting State arising in a Royalt and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not exceeds 100 5 per cent of the gross amount of the royalt.
3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broad-casting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of , or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt «arise, through to a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment or with fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply.
5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base is situated.
6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention.
Article 13 CAPITAL gains 1. Gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State may be taxed in that other State.
2. Gains derived by a resident of a Contracting State from the alienation of shares or of a comparabl interest of any kind deriving more than 50 per cent of their value directly or indirectly from immovabl property situated in the other Contracting State may be taxed in that other State.
3. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.
4. Gains derived by an enterprise of a Contracting State operating ships or aircraft in international traffic from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be only in the taxabl you state.
5. Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxabl only in the Contracting State of which the alienator is a resident.
Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributabl to that fixed base.
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.
3. For the purpose of this Convention the term "fixed base" includes a fixed place such as an Office or room, through which the activity of an individual performing independent personal services is wholly or partly carried on.
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 183 days in the in any twelve month period commencing or ending in the fiscal year concerned , and;
(b) the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State.
3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
4. Ground staff performing functions of a managerial nature and appointed from the head office of national air carrier of a Contracting State to the other Contracting State shall be exempted from taxes levied on their remuneration in that other Contracting 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 SPORTSMEN 1. Notwithstanding the provision of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2. Where income in respect of personal activities exercised by an entertainer or a sportsman's in his capacity as such notes to the accru entertainer or sportsman's himself but to another person, that income may, notwithstanding the provision of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman's are exercised.
3. The provision of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by an entertainer or a sportsman's if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or local authorities thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsman's is a resident.
Article 18 PENSION 1. Subject to the provision of paragraph 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state.
2. Notwithstanding the provision of paragraph 1 of this article and paragraph 2 of article 19, and other similar remuneration paid at pension under the social security system of a Contracting State shall be only in the taxabl you state.
Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State 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: (1) is a national of that State; or (2) did not become a resident of that State solely for the purpose of rendering the services.
2. a Any pension paid by, or) out of funds created by, a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be only in the taxabl you state.
(b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State.

3. The provision of articles 15, 16, 17, and 18 shall apply to salar, WAGs, and other similar remuneration, and to pension, in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof.
Article 20 teachers AND RESEARCHER. An individual who visits a Contracting State generally for the purpose of teaching or carrying out research at the university, college or other recognised educational or scientific institution in that Contracting State and who is or was immediately before that visit a resident of the other Contracting State, shall be exempted from taxation in the first-mentioned Contracting State on remuneration for such teaching or research for a period not exceeding two years from the date of his first visit for that purpose.
2. The provision of this article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.
Article 21 STUDENTS payments which a 1 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.
2. In respect of the payments not covered by paragraph 1, and remuneration for personal services rendered dependent during such education or training, a student, an apprentice or a trainee shall be entitled to the same relief, exemption or reduction in respect of taxes on income as are available to residents of the Contracting State he is visiting.
Article 22 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl you state.
2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply.
Article 23 CAPITAL 1. Capital represented by immovabl property referred to in article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.
2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.
3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State and by movable property pertaining to the operation of such ships, aircraft and boats, shall be only in the taxabl you state.
4. All other elements of capital of a resident of a Contracting State shall be only in the taxabl you state.
Article 24 ELIMINATION OF double TAXATION 1. In Latvia shall be eliminated double taxation as follows: (a)) where a resident of Latvia or of deriv income own capital which, in accordanc with this Convention, may be taxed in Kuwait, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow: (1) as a marbles from the tax on the income of that resident, an amount equal to the income tax paid thereon in Kuwait;
(2) as a marbles from the tax on the capital of that resident, an amount equal to the capital tax paid thereon in Kuwait.
Such marbles in either case shall not, however, that about 12 of the income tax or capital tax in Latvia, as computed before the deduction in "is given, which is attributabl, as the case may be, to the income or the capital which may be taxed in Kuwait.
(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 Kuwait in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Kuwait 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 Kuwait, double taxation shall be eliminated as follows: where a resident of Kuwait or of deriv income own capital which, in accordanc with the provision of this Convention, may be taxed in both Kuwait and its affiliates shall allow as a deduction in "Kuwait from the tax on the income of that resident, an amount equal to the income tax paid in Latvia and a marbles from the tax on the capital of that resident an amount equal to the capital tax paid in Latvia.
Such marbles in either case shall not, however, that about 12 of the tax on income or on capital, as computed before the deduction in "is given, which is attributabl, as the case may be, to the income or the capital which may be taxed in the United Kingdom.
Article 25 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.
2. 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 the residents of that other State carrying on the same activities under the same circumstanc. 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.
3. Except where the provision of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursement royalt paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debt of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the capital of the taxabl such enterprise, be-deductibl under the same conditions as if they had been contracted to a resident of the first-mentioned State.
4. Nothing in this article shall be interpreted as imposing a legal obligation on a Contracting State to extend to the residents of the other Contracting State, the benefit of any treatment, preference or privilege which may be accorded to any third State or its residents by virtue of the formation of a customs union, economic union, a free trade area or any regional or sub-regional relating wholly or mainly to their through taxation or movement of the capital to which the the first-mentioned State may be a party.
5. The provision of this article shall apply to taxes covered by this Convention.
Article 26 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 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the Convention.
2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.
4. The competent authorities of the Contracting States the may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.
Article 27 Exchange OF INFORMATION

1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions.
2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State;
(b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State;
(c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
Article 28 miscellaneous rules 1. The provision of this Convention shall not be construed to restrict in any manner any exclusion, exemption, credit, or other allowance marbles now or hereafter accorded either: (a)) by the law of a Contracting State in the determination of the tax imposed by that State;
(b) by any other special) through one taxation in connection with the economic or technical cooperation between the Contracting States.
2. The competent authorities of the Contracting State may each of prescrib regulations not to carry out the cessary provision of this Convention.
Article 29 LIMITATIONS OF benefits the benefits of any reduction in or exemption from taxes provided for in this Convention may not be granted to a company or other entity of a Contracting State if the main purpose or one of the main purpose of the creation of such a company or existenc or entity was to obtain the benefits under this Convention that would not otherwise be available.
Article 30 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 31 ENTRY into force 1. The Governments of the Contracting States shall notify each other through diplomatic channels in the written correspondenc when the constitutional requirements for the entry into force of this Convention have been complied with.
2. The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force;
(b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the Convention enter into force.
Article 32 TERMINATION this Convention shall remain in force for a period of five years and shall continue in force thereafter for a similar period or periods unless either Contracting State to the other in the notifu writing through diplomatic channels, at least six months before the expiry of the initial or any subsequent period of five years, of its intention to terminate this Convention. In such event, the Convention shall cease to the have effect in both Contracting States: a in respect of taxes) withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given;
(b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given.
In witness whereof, the plenipotentiar to the respectiv of both Contracting States have signed this Convention.
Done at Dar es Salaam this week of the 21st Thulqid 1430 H òàæó to the 9th day of November 2009, in two originals, in the Latvian, Arabic and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation, the English text shall prevails.
For the Government of the Republic of Latvia Mr. Maris Riekstins. For the Government of the State of Kuwait Mr. Roudhan A.Al-Roudhan PROTOCOL At the signing of the Convention between the Government of the Republic of Latvia and the Government of the State of Kuwait for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as "the Convention"), the undersigned have agreed upon the following provision of which form an integral part of the Convention.
With reference to paragraph 2 of article 4, it is understood that the Kuwait Investment Authority (including its foreign branch) has been recognised as a governmental institution for the purpose of paragraph 2.
In witness whereof, the plenipotentiar to the respectiv of both Contracting States have signed this Protocol.
Done at Dar es Salaam this week of the 21st Thulqid 1430 H òàæó to the 9th day of November 2009, in two originals, in the Latvian, Arabic and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation, the English text shall prevails.
For the Government of the Republic of Latvia Mr. Maris Riekstins. For the Government of the State of Kuwait Mr. Roudhan A.Al-Roudhan