The Saeima has adopted and the President promulgated the following laws: The agreement on the Protocol on the privileges and immunities of the European communities in the Republic of Latvia for the fulfillment of article 1. The agreement on the Protocol on the privileges and immunities of the European communities for implementation in the Republic of Latvia (hereinafter contract) with this law is adopted and approved. 2. article. Contractual commitments coordinated by the Ministry of finance. 3. article. The agreement shall enter into force for the period specified in article 6 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 and shall apply from 1 May 2004. With the law put a contract in English and its translation into Latvian language. The law, adopted in 2004 the Saeima on 29 April. State v. President Vaira Vīķe-Freiberga in Riga 20 May 2004 of the agreement IMPLEMENTING the PROTOCOL ON the PRIVILEGES AND to the IMMUNIT OF the EUROPEAN communities IN the REPUBLIC OF Latvia, whereas pursuan to the Protocol on the Privileges and to the Immunit of the European Communities (hereafter "the Protocol") annexed to the Treaty establishing a single Council and a single Commission of the European communities, the institutions of the European communities with the required it to cooperate with the competent authorities of the Member States concerned by the application of the Protocol in question, the Republic of Latvia and the European communities agree on the following subject: article 1 Exten of exemption In accordanc with the second indent of article 3 of the Protocol, the authorities of the Republic of Latvia shall grant the European communities exemption from VAT and all other duties and taxes on the goods and services which the European communities acquir for their official use within the limits of article 2 and under the conditions established in article 3 article 2 volume of purchase 1. The authorities of the Republic of Latvia shall apply the exemption provided for above in article 1 within the limits set by the host Member State (the country in which the European Community institution acquiring the good or receiving the services is established). 2. Where the Republic of Latvia is the host Member State, exemption from tax on the supply of goods or services shall be granted, provided that the value of such goods or services of 125 including tax per 12 LVL invoice. Article 3 Exemption for local and intra-Community purchase of 1. In the case of local purchase of goods or services, the authorities of the Republic of Latvia shall give effect to the exemption provided for above in article 1 by reimbursing VAT and other indirect taxes charged to the European communities. To that end, requests for reimbursemen shall be be sent annually by the European communities to the Ministry of Foreign Affairs of the Republic of Latvia. The authorities of the Republic of Latvia shall ensur that reimbursemen is made within six months after receipt of the request. 2. In the case of VAT on intra-Community purchase of goods and services, the authorities of the Republic of Latvia shall grant the European communities direct exemption in accordanc with article 15 (10) of Council Directive 77/388/EEC1, provided that the supplier has obtained a form certifying exemption of the goods and services to be supplied duly endorsed by the competent, the authorities. 3. In the case of excise duty on intra-Community purchase of goods, the authorities of the Republic of Latvia shall grant the European communities direct exemption under article 23 of Directive 92/12/EEC2 and by applying the procedure provided for in Regulation (CE) from 31/96 of the Commission3. Article 4 Staff of the European communities Under article 13 (2) of the Protocol, the authorities of the Republic of Latvia shall grant exemption from national taxes to the person provided for in article 2 of Council Regulation From 260/684, who are subject to Community taxation on their WAGs, salar and emolument paid by the communities in the application of Council Regulation 259/685 From with respect to such of the WAGs , salar and emolument. Article 5 Amendments Any amendment to these shall require the provision of assen of both parties. Article 6 Entry into force provision of these shall enter into force on 1 May 2004. -The Republic of Latvia of the undertak introduce the cessary law it implementations that the above-mentioned exemption by that date. Done in duplicate. _____ _____ _____ _____ _____ _____ _____ 1 Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes-common system of value added tax: uniform basis of assessment, OJ L 145, 13.6.1977, p. 1 of as amended most recently by Council Directive 2003/92/EC of 7 October 2003, OJ L 260, p. 8.2 Council Directive 92/12/EEC of 25 February 1992 , on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products, as last amended by Council Directive 2000/47/EC of 20 July 2000 OJ L 193, 29.7.2000, p. 73.3 Commission Regulation (EC) Of 31 January 1996 of 10/96, on the excise duty exemption certificate, OJ L 8, 11.01.1996, p. 8.4 OJ L 56 , 04.03.1968, p. 8 last amended by Council Regulation (EC, Euratom) Of 1750/2002 of 30 September 2002, OJ L 264, p. 15.5 02.10.2002, O.J. L 56, 04.03.1968, p.1, last amended by Council Regulation (EC, ECSC, Euratom) From 628/2000 of 20 March 2000, O J L 076, 25.03.2000, p. 1.

For the Republic of Latvia For the Commission the agreement on the Protocol on the privileges and immunities of the European communities for IMPLEMENTATION in the Republic of Latvia on the basis that, in accordance with the Protocol on the privileges and immunities of the European Communities (hereinafter referred to as the Protocol), annexed to the Treaty, which created the European Community, the Council, the Commission and the institutions of the European communities should cooperate with the competent authorities of the Member States concerned to comply with the Protocol , The Republic of Latvia and the European Community agree as follows: article 1 the amount of the Exemption in accordance with article 3 of the Protocol, the second part, the Republic of Latvia authorities released the European Community from the value added tax and any other taxes and duties on goods and services purchased by the European Community to the needs of service laid down in article 2 to the extent and under the conditions laid down in article 3. Article 2 amount of Purchase 1. Latvian authorities apply the exemption referred to in article 1 to the extent fixed by the host Member State (the State in which it has established a European Community institution that acquires goods or services). 2. where the Republic of Latvia is the host country, the supply of goods and services are exempt from tax provided that one of such invoiced goods or services value greater than 125 LVL, including tax. Article 3 exemption for local and community purchases 1. Local purchases of goods and services, the Republic of Latvia authorities granted the relief referred to in article 1 of the European Community paid paid, value added and other indirect taxes. Each year the European communities sent to the Ministry of Foreign Affairs of the Republic of Latvia for the applications for repayment. Latvian authorities are obliged to provide such reimbursement within six months of receipt of the application. 2. When purchases of goods and services that are liable to value added tax in the territory of the community is conducted, the Republic of Latvia may apply directly to the institution of exemption in accordance with Council Directive 77/388/EEC Article 15 1 of the tenth paragraph, provided that the supplier has obtained the legally competent authorities confirm proof of exemption from the application of the goods and services procured. 3. as regards excise taxes on purchases of goods made in the territory of the community, the Republic of Latvia may apply to the institution of direct relief in accordance with the provisions of Directive 92/12/EEC 2 and article 23 of Commission Regulation (CE) No 31/96 of 3. Article 4 of the European Communities staff according to the Protocol, article 13, part 2, the Republic of Latvia authorities exempt from national taxation of persons referred to in Council Regulation No 260/68 article 2 4 and whose salaries, remuneration and the remuneration paid to them by the community, are subject to a Community tax, on the basis of Council Regulation No 259/68 5 in respect of such salaries, wages and benefits. Article 5 amendments to this article for the amendment of Any need consent of both parties. Article 6 entry into force this Agreement shall enter into force on 1 May 2004. The Republic of Latvia undertakes to draw up laws that are necessary for the implementation of the above exemption up to this date. Be drawn up in two copies. _____ _____ _____ _____ _____ _____ 1 17 May 1977, Council Directive 77/388/EEC on the harmonisation of the laws of the Member States relating to turnover taxes-common system of value added tax: uniform basis of assessment; amended by 7 October 2003 Council Directive 2003/92/EC. 2 of 25 February 1992, Council Directive 92/12/EEC on the General arrangements in respect of goods liable to excise duty and on the holding, movement and monitoring, with the 20 July 2000 Council Directive 2000/47/EC on the amendments made. 3. on 10 January 1996 the Commission Regulation (EC) No 31/96 on the excise duty exemption certificate. 4 To 30 September 2002, Council Regulation (EC, Euratom) no 1750/2002 make amendments. 5 To 20 March 2000 Council Regulation (EC, ECSC, Euratom) no 628/2000 amendments made.

On behalf of the Republic of Latvia, on behalf of the Commission,