For The Republic Of Latvia And The Kingdom Of Spain Of The Convention On The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income And Capital

Original Language Title: Par Latvijas Republikas un Spānijas Karalistes konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma un kapitāla nodokļiem

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The Saeima has adopted and the President promulgated the following laws: For the Republic of Latvia and the Kingdom of Spain of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital article 1. 2003 September 4, Riga, signed in the Republic of Latvia and the Kingdom of Spain of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital (hereinafter the Convention) and its 2003-4 September in Riga signed Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The Convention shall enter into force on the 29th for the period specified in article and in order, and the Ministry of Foreign Affairs shall notify the newspaper "journal". 3. article. The law shall enter into force on the date of its promulgation. With the law put the Convention and Protocol in English and Latvian. The law adopted by the Parliament in the January 29, 2004. The President of the Parliament instead of the President i. Otter Riga 2004, 18 February, the Republic of LATVIA and the Kingdom of Spain of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital of the Republic of Latvia and the Kingdom of Spain, the people's willingness to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, agree: chapter I scope of the Convention article 1 persons covered by the Convention, this Convention shall apply to persons of either Contracting State or resident of both Contracting States. Article 2 taxes covered by the Convention (1) this Convention shall apply to taxes on income and capital, charged by the Contracting State or of its political or administrative unit of local government in good regardless of the method of collecting the tax. 2. On the income and capital taxes, regarded all the taxes, which puts the total income total capital or income or capital, and tax, which taxed movable or immovable property alienation in earned income and capital appreciation. 3. The existing taxes to which this Convention applies, in particular, is: (a)) in Spain: (i) the individual income tax (impuesto sobre la Renta de las Personas (F) sic); (ii) the company tax (impuesto sobre la Renta de Sociedades); (iii) non-resident income tax (impuesto sobre la Renta de from Residents); (iv) the capital tax (impuesto sobre el Patrimoni); (v) local income and capital taxes (impuestos locales sobre la Renta y sobre el patrimoni); (hereinafter referred to as the Spanish tax); (b)): (i) corporate income tax; (ii) the individual income tax; (iii) tax on immovable property; (hereinafter referred to as the Latvian tax). 4. the Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention to supplement or replace the existing taxes. Both the competent authorities of the Contracting States inform each other of any significant amendments to the national tax legislation.
Chapter II definitions article 3 General definitions 1. If it is not apparent from the context, otherwise in this Convention: a the term "Spain") means, and the Kingdom of Spain, used in a geographical sense, it includes the land territory, internal waters and territorial sea, as well as marine areas outside the territorial sea of Spain, which, in accordance with international law, Spain, or you can implement your own jurisdiction and sovereign rights; (b)) the term "Latvia" means the Republic of Latvia, and, used in a geographical sense, it includes the land territory, internal waters and territorial sea, as well as marine areas outside the territorial sea of Latvia, which in accordance with international law, Latvia exercise or enforce its jurisdiction and sovereign rights; (c) the term "Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or Spain; (d) the term "person") means a natural person, company, or any other Association of persons; e the term "company") shall mean any corporate person, association or any entity, which, for the purposes of taxation is considered a corporate Association of persons; (f) the term "Contracting Government) of the enterprise" and "enterprise of the other Contracting State" mean respectively an enterprise run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; g) the term "international traffic" means any carriage by sea or air, by a company of a Contracting State, except when the sea or air transport to move only in the other Contracting State; h) the term "competent authority" means: (i) in Spain: the Minister of finance or his authorised representative; (ii) in Latvia, the Ministry of finance or its authorised representative; I) the term "national" means: (i) any natural person who has the nationality of a Contracting State; (ii) any legal person, partnership or association whose status stems from a Contracting State applicable regulatory enactments. 2. for the application of this Convention, a Contracting State will use any term which is not defined here, if not apparent from the context, otherwise only in the sense in which it is applied to these laws of a Contracting State concerning the taxes to which this Convention applies, in addition, any explanation of the term in accordance with applicable tax laws and regulations will have precedence over this explanation of the term under other laws of that State. Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means any person who, under the laws of this State is subject to taxation on the basis of the place of residence, residence, location management, place of incorporation (registration) or under any other criteria like this, and also includes that State, its political-administrative unit or municipality. However, this term does not include those individuals in this country is taxable only in relation to their income from this country to the existing sources of profits or capital located there. 2. Where, in accordance with the provisions of paragraph 1, a person is a resident of both Contracting States, its status will be determined as follows: (a)) this person will be considered a resident only of the State in which it has its habitual residence; If you are habitually resident in two countries, this person will be considered only for residents 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, that person will be considered only for residents of the State that it is customary in the home; c) if that person normally home in both countries or none of them, it will be considered only for residents of the country, of which this person; (d)) if that person is a national of both States or no citizen of this country, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of paragraph 1 a person other than a natural person, is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to resolve the matter by mutual agreement, taking into account the person's actual control of the location, the place where it is incorporated or formed, and any other relevant economic and material factors. In the absence of such agreement, the application of this Convention, that person will not be entitled to claim any tax relief or exemption from taxes, granted in accordance with this Convention. Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of 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) workshop; and (f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. A building site, a construction, Assembly or installation project or supervisory activities associated with them will be considered permanent representation only if these works, project or activity occurs for more than nine months. 4. Notwithstanding the preceding paragraphs of this article, the provisions of 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) permanent site for business purposes only and only for purchase of the goods or products or information gathering; e) permanent site designed solely to make business arrangements or any other ancillary; f) permanent site designed solely to deal with (a)) and (e)) in the following, in any combination thereof, if the total activity is preparatory or auxiliary character. 5. Notwithstanding points 1 and 2 of the regulations, if a person who is not referred to in point 6 of the status of independent agent, running your business, and it is empowered to enter into contracts on behalf of the company, and the State typically used these powers, then it is considered that this company used permanent representation in that Contracting State in respect of any of the person's business activities, except where that person is carrying out activities referred to in paragraph 4 of that is, a permanent place of business cannot be regarded as permanent representations in accordance with the provisions of paragraph 4. 6. it will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, only through brokers, sales agent or any other agent of an independent status, provided that such persons perform their normal business activities. 7. the fact that the company is a resident of a Contracting State-controlled company that is a resident of the other Contracting State, or which carries on business in that other State through a permanent establishment or in any other way, or is subject to the control of such undertaking itself does not turn into one of those companies on the other company's permanent representation.
Chapter III taxation of income 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 taxing in that other country. 2. the term "immovable property" have the meaning it has its laws and regulations of a Contracting State in which the property is located. In any case, this concept includes property which belongs to real estate property, livestock and equipment used in agriculture and forestry, rights to which the land property law general provisions, the laws of real estate uzufrukt and rights to variable or fixed payments for the right to use valid, natural mineral deposits and other natural resources, or for their use. For real estate will not be considered to be vessels and aircraft. 3. the provisions of paragraph 1 shall be applied in respect of income from real estate direct use, letting or use in any other way. 4. If the company's shares or other corporate rights give the holder the right to public use of the property, the income from the direct use, letting or use in any other way can be taxing in the Contracting State in which the immovable property is situated. 5.1, 3, and 4. the provisions of paragraph 1 shall be applied in respect of 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 will be taxed 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 can be taxing in the other country, but only the profit that can be attributed to the permanent establishment. 2. in accordance with the provisions of paragraph 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 amount of profit, it would benefit if the individual is clearly the company that performs the same or similar business activities under the same or similar conditions and acts completely independently of the undertaking, which uses the permanent representations. 3. in determining the profits of a permanent representation in that Contracting State be allowed permanent representation expenses, including representation of operational and general administrative costs incurred by the country in which the permanent establishment or elsewhere, the deduction of the amount of taxable, except for the expenses that would not be deductible if that permanent establishment were a separate enterprise of that Contracting State. 4. the permanent representation will not be applied the earnings of the mere fact that this representation has purchased the goods or products to your company's needs. 5. for the purposes of applying the provisions of the preceding paragraph, the profits attributed to the permanent representations, each year is determined by the same method, except if there is sufficient reason to do otherwise. 6. 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 from the sea or air transport use in international traffic will be taxed only in the country. 2. paragraph 1 shall also apply to profits from the participation in a pool, joint business or international traffic transport agency. Article 9 Associated enterprises 1. If: (a) the Contracting State) directly or indirectly 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 management company of a Contracting State or control or they own in the company's capital and at the same time they are directly or indirectly participating in the other Contracting State, the company's management or control or they own part of the company's other national capital and in any of these cases the company commercial and financial relationships are created or established by the rules, which differ from those which would be in force between the two independent enterprises, then any profits which arise for one of the companies, but the above provisions do not affect the established, can be included in the company's earnings and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State (and accordingly taxable) profit for which other country in the territory of the other Contracting State has been charged with duties, and this included the profit is the profit that would have been the first public company, if the relationship between the two companies would have been as exist between two independent companies, the other countries have to make appropriate corrective tax size that is taxed in the other State of this profit. In determining this corrective, account must be taken of other provisions of this Convention and, if necessary, shall be held by the competent authorities of the Contracting States for consultations. Article 10 dividends 1-dividends, a company of a Contracting State a resident of the other Contracting State paid to a resident, can be taxing in that other country. 2. However, such dividends may also be taxing under the national laws of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total, if real owner of dividends is a company (other than a partnership) that are at least 25 percent of the company capital that paid dividends; (b) 10 per cent of the dividend) total in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares, "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), mining shares, founders ' shares or other rights to participate in profits, not claims, as well as income from other corporate rights which, in accordance with its national laws and regulations where the resident is a company that carries out the distribution of profits, is subject to the same taxation as income from the shares. 4. paragraphs 1 and 2 will not apply, if the true owner of dividends, which is a resident of a Contracting State, carries on business in the other Contracting State of which the resident is a company that paid dividends, with the existing permanent representation there, or give independent individual services in that other State through a permanent base located there, and where participation, which is paid out in dividends, is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the company — a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be nor to any tax dividends paid to this company, except where the dividends are paid out in the other State resident or participation, which is paid out in dividends, is actually related to the permanent representation or permanent base, located in the other State; nor to retained earnings in the company's undistributed profits, 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 taxing in that other country. 2. However, such interest may also be taxing in accordance with national laws or regulations of the Contracting State in which they arise, but, if the interest owner is implemented on the territory of the other Contracting State, a resident of the tax must not exceed 10 percent of the total amount of interest. 3. Notwithstanding the provisions of paragraph 2: (a)) percent, which occurs in one Contracting State and where the recipient and the true owner is the Government of the other Contracting State, including any political and administrative units and local governments, the central bank or any of this Government completely owned by financial institutions, as well as the interest that is paid on these government units, local government or any public body which works in the field of export promotion that is mutually agreed upon by the competent authorities of the Contracting States, guaranteed loans will not be taxed in the first State; (b)) percent, which occurs in one Contracting State shall not be taxed in that State, if the interest owner is implemented on the territory of the other Contracting State and the interest is paid on the debt obligations that were created when the second State company sells the former State company on credit any goods or manufacturing, commercial or scientific equipment, except when such sales or debt obligations is developed between the related parties. 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 other types of income that, in accordance with its national tax laws and regulations, in which the income arises, will be treated as income from cash loans. However, the term "interest" does not include income that is treated as a dividend under the provisions of article 10. Interest received on payments made during, not be regarded as interest for the application of the provisions of this article. 5.1, 2 and 3 shall not be applied, if the true owner of the interest, which is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located therein, and of claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 6. If the payer of the interest is a resident of a Contracting State, it will be deemed 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, for which you pay interest, and this interest is paid (bear) permanent establishment or fixed base, will be considered that the interest incurred 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 of implementing the owner or between both of them and some other person, the amount of interest that relate to debt claims, on the basis of 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, then the provisions of this article shall be applied only to the last-mentioned amount. The remaining part of the payment is tax deductible according to each Contracting State laws, provided that you comply with the 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 taxing in that other country. 2. However, such royalties may also be taxing in accordance with national laws or 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: a 5 per cent of the royalties) the total volume of production, commercial or scientific equipment; (b) 10 per cent of the royalties) total in all other cases. 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, or other image or sound reproduction means the radio or television broadcasting, any patent, trademark, design or model, plan, secret formula or process, or production , commercial or scientific equipment, or for the right to use them, or for information concerning industrial, commercial or scientific experience. 4. paragraphs 1 and 2 shall not be applied, if the true owner of the royalties, which is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located there, and if the right or property in respect of 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 will be considered that the royalties arise 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, which committed to pay the royalties, and the royalties paid to (bear) permanent establishment or fixed base, will be 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, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the part of the payment that exceeds this amount, you will be taxed according to each Contracting State laws, provided that you comply with the 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 estate or shares of one company, the property of which consist mainly of such property can be taxing in that other country. 2. Capital gains earned on the property, which is an enterprise of a Contracting State in the other Contracting standing representative offices in the country to be used in business ownership, disposal or on property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, the disposal of assets, including capital gains from such permanent missions (alone or with the whole enterprise) or of such a permanent disposal base disposal can be taxing in the other Contracting State. 3. Capital increase by the company of a Contracting State in international traffic, which uses the sea or air transport, making international traffic used for sea or air transport or disposal of this marine or air transport use of movable property belonging to the forfeiture, will be subject to tax only in the country. 4. Capital gain that accrued, disposes of any property which is different from 1, 2, and 3. the property referred to in paragraph 1 will be subject to tax only in that Contracting State, a resident of which have this property the seizure. Article 14 independent personal services 1. Contracting State residents — physical persons income earned by providing professional services or other independent activities, will be taxed only in the country, except if that person needs their activities using it regularly available permanent base in the other State. If you are using the following permanent base, income can be taxing in the other country, but only to the extent that they apply to this permanent base. The application of this article, if a resident of a Contracting State: a natural person resident in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any 12-month period that begins or ends in the tax year concerned, shall be considered that this person uses regular access to permanent base in the other Contracting State and the income that accrued on the second country made the above actions will be applied to this permanent base. 2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18, 19 and 20 article, salaries, wages and other similar remuneration which a resident of a Contracting State receives for gainful employment, will be taxed only in the country, if one 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 be taxing in that other country. 2. Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxed in the first only in that country, provided that: (a)) is a beneficiary in another country for a period or periods not exceeding in the aggregate 183 days in any 12-month period that begins or ends in the tax year; and (b) the remuneration is paid) an employer who is not a resident of the other State, or the name of the employer; and (c) the remuneration is not paid) (bear) permanent representation or permanent base, used by the employer in the other country. 3. Notwithstanding the preceding paragraphs of this article, the rules of remuneration received for paid work that is being done to a company of a Contracting State in international traffic used for sea or air transport, can be taxing in that Contracting State. Article 16 Directors ' fees directors ' fees and other similar remuneration received by a resident of a Contracting State as the Board of directors or other similar institutions in society, which is a member of the other residents of a Contracting State, may be taxing in that other country. Article 17 artists and athletes 1. articles 14 and 15 of the rules of income for the residents of a Contracting State as izpildītājmāksliniek, such as theatre, film, radio or television, an actor, a musician, or as an athlete on their individual activities in the other Contracting State, may be taxing in that other country. 2. If an artist or athlete's income on his individual activity in the area in question is paid not the artist or athlete but to another person, that income regardless of the 7, 14 and 15 article can be taxing the Contracting State to which the izpildītājmāksliniek or athletes. Article 18 pensions in accordance with article 19, paragraph 2 of the pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment will be taxed only in the country. Article 19 government service 1 a) wages, earnings, and other similar remuneration, other than a pension, which is paid to a natural person contracting State, a political or administrative unit of local government for that State or entity or Government services will be taxed only in the country. (b)) However, this income, earnings, and other similar remuneration will be taxed only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely to provide these services. 2. a pension by) any physical person in the Contracting State the cost or political administrative unit or municipality or who is paid from the funds set up for services provided by that person or entity for this country, or the municipality, will be taxed only in the country. (b)) However, this pension will be taxed only in the other Contracting State if the individual is a resident of that other State and the citizen. 3. This Convention 15, 16, 17, and article 18 shall apply to remuneration, earnings, other similar remuneration and pensions that are paid for services provided in respect of the Contracting State or a political or administrative units of the local business. Article 20 students a Student, apprentice or trainee, who arrived only in the Contracting State in order to pursue studies or internship, and who is or was immediately before the arrival of the other residents of a Contracting State, the first in that country will be exempt from taxation in respect of payments which the person receives a residence, study or internship needs from outside that country first hand sources. Article 21 Offshore Activities in zone 1. The provisions of this article shall apply irrespective of the Convention article 4 to 20. 2. In this article the term "offshore area" means any party to the action shelf area associated with the sea and subsoils and there existing natural resource exploration or exploitation. 3. persons — residents of a Contracting State operating area of the ice shelf which is performed in the other Contracting State, ice area, in accordance with paragraph 4 shall be considered to be a business that is carried on in the other Contracting State through a permanent establishment there existing or permanent base. 4. paragraph 3 shall not apply if the action is carried out in the area of the shelf during a period or periods not exceeding in the aggregate 30 days in any twelve month period. The application of this paragraph: (a) the shelf zone) the activities carried out by a person who is related to another person, this will be seen as another person to take action, if this action is essentially the same as its first performed by that person, other than a first-person action that is carried out simultaneously with the other activities of the person; (b)) a person shall be deemed to be associated with another person if one of them directly or indirectly controls the other or a third person or third party directly or indirectly controls both parties. 5. the wages, earnings, and other similar remuneration received by a resident of a Contracting State for gainful work associated with the activity zone the second shelf of the Contracting State may taxing in the other State to the extent that work has been done in this country to the other shelf area. However, such remuneration will be taxed only in the first country, where paid work has been made in favour of the employer who is not a resident of the other State, and if the duration of a maximum 30-day period or periods in any twelve month period. 6. income which a resident of a Contracting State derives, to: (a) the disposal or use of the research); or (b)) property, which hosted the second Contracting State and used in connection with the operation of the ice shelf area in the other country; or (c)), which shares your values or values most directly or indirectly derived from the above rights or property, or the rights and property of these together, this can be taxing in the other country. In this paragraph, the term "research or exploitation rights" means the right to property, which can be generated by activities in the other Contracting State, or ice the right to participation in the ownership or profit to be gained in this property. Article 22 other income 1. other previous articles of this Convention shall not featured residents of a Contracting State income types regardless of their sources will be taxed only in the country. 2. paragraph 1 shall not apply to income, other than income from article 6, paragraph 2, certain real estate, 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 linked to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14.
Chapter IV taxation of capital article 23 capital 1. capital represented in article 6 that a resident of a Contracting State of the real estate, which is situated in the other Contracting State, may be taxing in that other country. 2. capital represented by movable property, as part of the Contracting State in the other Contracting State, the existing company's permanent representation in business-use property or capital represented by movable property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which is used for independent personal services, may be taxing in that other country. 3. Capital represented by marine or air transport means that a company of a Contracting State in international traffic are used, as well as movable property belonging to the maritime or air transport use will be subject to tax only in the country. 4. All the other Contracting State, a resident of the capital items will be taxed only in the country.
Chapter v PREVENTION of double taxation article 24 methods of double taxation the double taxation will be avoided as follows: 1. In Spain: in accordance with the laws of Spain the terms and subject to the limits laid down therein: (a) where a resident of Spain) derives income or owns capital which, in accordance with the provisions of this Convention may be taxed in Latvia, then Spain permission: (i) reduce the resident's income tax on the taxable portion of that is equal to the income tax paid in Latvia; (ii) reduce the capital residents a tax on that portion of the tax is equal to the capital tax paid in Latvia on the same capital; (iii) in accordance with the Spanish laws reduce the resident's tax on company level paid corporate tax. These reductions must not exceed the income tax or capital tax, part of which is calculated before the application of that reduction, which depending on the circumstances, is attributable to the income or capital of the same elements that can be taxing in Latvia. (b)) If, in accordance with any of the provisions of this Convention a resident of Spain earned his income or capital are exempt from taxation in Spain, the Spain can take into account the exempted income or capital, in calculating the amount of tax on the remaining income or capital of that resident. 2. If a resident of Latvia derives income or owns capital which, in accordance with the provisions of this Convention can be taxing in Spain, and if one Latvian domestic laws do not provide more favourable provisions permit: (a) Latvia) reduce the resident's income tax on the portion of the tax is equal to the income tax paid in Spain; (b) the resident's capital) to reduce the tax on that portion of the tax is equal to the capital tax paid in Spain. These reductions are not in one of the situations referred to above must not 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 can be taxing in Spain.
Chapter VI special provisions article 25 elimination of discrimination 1. nationals of a Contracting State in the other Contracting State shall not be subject to any taxation or any requirements connected with them, which is different from taxation or related requirements, which are or may be exposed to the other citizens of the country in the same circumstances, in particular with respect to residence, or which is more burdensome. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not party to one or both of the Contracting States of the residents. 2. a Contracting State a permanent establishment, the representative which it uses in the other Contracting State may not be taxing in that other country less favourably than would be taxed in the other State companies that do the same type of action. This provision shall not be interpreted so that it would impose a Contracting State the obligation to grant the other Contracting State, a resident of any personal allowances, reliefs and reductions for taxation, as this country give its residents, in the light of their civil status or family responsibilities. 3. Except where the applicable paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident by establishing this company's taxable profits, must be deducted from the profit upon the same terms as if they were to be paid to the first residents of that 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. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more of the other Contracting State residents or which they directly or indirectly control, the first in that country may not be subject to any taxation or any requirements connected with them, which is different from the taxation and related requirements, which are or may be exposed to similar to the former State enterprises, or which are more onerous. 5. The provisions of this article independently of the provisions of article 2, apply to taxes of every kind and name. Article 26 mutual conciliation procedure 1. If a person believes that one or both of the Contracting States party to the cause or may cause that person such taxation, which does not comply with the provisions of this Convention, that person may, irrespective of the country of domestic regulatory provisions which provide to eliminate such taxation, to submit complaints to the competent authorities of the country of which that person is resident, or if the complaint relates to article 25 (1) of the by the competent authorities of the country of which that person is. The complaint shall be submitted for review within three years of the first notification of the action which led to the provisions of this Convention an inappropriate taxation. 2. the competent authorities are obliged to seek to resolve this issue, if it considers that the complaint is justified, and if this institution fail to reach a satisfactory solution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities in order to prevent this Convention without the appropriate taxation. Any such agreement is reached is due irrespective of the Contracting State of the domestic laws and the established time limits. 3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise in 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 previous paragraphs, 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 of the representatives of the 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 of the Contracting States domestic legislative requirements on taxes covered by this Convention, in so far as these regulations do not conflict with the provisions of this Convention. Article 1 of the Convention does not restrict the exchange of information. Any information received by a Contracting State, should be treated as sensitive as information that is obtained in accordance with the laws of this State, and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the tax to which this Convention applies, in the calculation of the charging, prosecution, legal liability, or in the application of coercive measures in appeals in respect of those taxes. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public court proceedings or in judgements. 2. the provisions of paragraph 1 may not be explained so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to provide information that is not available under one or the other national legislation or administrative practice generally applicable; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to the public interest (ordre public). Article 28 diplomatic and consular personnel, nothing in this Convention shall affect the diplomatic missions or consular posts personnel fiscal privileges which it granted to international law General provisions or special agreements. Article 29 entry into force 1. Contracting Governments shall notify each other that have met the national law prescribed internal procedures necessary for the entry into force of this Convention. 2. this Convention shall enter into force by 1 in the last paragraph, the date of receipt of the notification, and its provisions in both Contracting States shall apply: (a)) in respect of taxes withheld at the time cost, income that accrued in January of the calendar year or after the first day of the calendar year following the year in which this Convention enters into force; (b)) in the case of other income taxes and capital taxes, taxes to be paid in any taxation year that begins January of the calendar year or after the first day of the calendar year following the year in which this Convention enters into force. Article 30 termination this Convention shall remain valid as long as the one Contracting State it shall be terminated. Each Contracting State may terminate this Convention, diplomatic channels by giving written notice of termination at least six months before any end of the calendar year. In this case the Convention in both Contracting States shall cease: (a)) in respect of taxes withheld at the time cost, starting with income earned in January of the calendar year or after the first day of the calendar year following the year in which the notice of termination; (b)) in the case of other income taxes and capital taxes, starting with taxes payable in any tax year, which begins in January of the calendar year or after the first day of the calendar year following the year in which the notice of termination. In witness thereof, the undersigned, being duly authorised, have signed this Convention of the following persons. The Convention is drawn up in two copies in the 2003 4 September Latvian, Spanish and English, in addition, all three texts being equally authentic. The text is decisive in the event of differences between the English version of the text.

On behalf of the Republic of Latvia, on behalf of the Kingdom of Spain, Maris Riekstins Ramon de Miguel Protocol of Latvian Republic and the Kingdom of Spain of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital signed at the time the parties have agreed on the following provisions which are an integral part of this Convention. I. in relation to article 2, paragraph 2 it is understood that the tax, which taxed the company paid total wages or pay, will also be treated as income taxes, but the social insurance contributions and any similar payments will not be treated as income taxes. II. As regards article 2, paragraph 4 it is understood that if Latvia will introduce a local tax, the provisions of the Convention apply also for this tax. III. With regard to article 4, paragraph 3, it is understood that the provisions of paragraph 3 are applicable as long as Latvia in their domestic legislation for determining the residence criterion does not consider the actual location of the control. Once such a criterion is introduced, the competent authorities of Latvia shall inform the competent authorities of Spain, and in the shortest possible time, which will be agreed between the competent authorities of the Contracting States, the current wording of paragraph 3 shall be applied in place of the following provisions: "3. If, in accordance with the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be considered that this person is a resident of the State in which its place of effective management." IV. With regard to article 5 (3) if in any Convention for the avoidance of double taxation, which, at the date of signature of this Convention, Latvia signed with a third country, which at the time of signature of this Convention is the Organization for economic cooperation and development Member, Latvia agrees that the time period longer than nine months, or a definition that provides the same amount of time as in paragraph 3, but there is no reference to Assembly projects then, starting from the date of entry into force of the Convention with a third State or this Convention, depending on which of these conventions shall enter into force on the later of the time period, or the definition is to be applied as it would be determined in paragraph 3 respectively. V. with regard to article 6 paragraph 2 it is understood that the term "real property" includes options (agreements, without imposing any obligations, granted the right to buy or sell real estate for a set price for a specified period). Vi. With regard to article 6, paragraph 3, it is understood that all income and capital gains that accrued from article 6 of the said immovable property situated in the Contracting State, seizures, may be taxed in that State under the provisions of article 13. VII. For 10, 11, 12 and 13 of article a) irrespective of the provisions of this Convention, the public contracting State in which the resident persons not resident in that State, directly or indirectly more than 50% of the share capital, is not entitled to the benefits provided by the Convention in respect of dividends, interest, royalties and capital gains arising in the other Contracting State. This does not apply to companies who in the Contracting State where they are resident, established the essential, not only for the shares or property management; (b)), to the public in accordance with the preceding paragraph, is not entitled to the benefits provided for in the Convention in respect of the above income may nevertheless be granted such relief, if both competent authorities of the Contracting States in accordance with article 26 of the Convention agreed that the society and its activities based on the good faith of business and such, and the main reason for the action is not to obtain these benefits. VIII. With respect to article 11, paragraph 2 and 3 If in any Convention for the avoidance of double taxation, which, at the date of signature of this Convention, Latvia signed with a third country, which at the time of signature of this Convention is the Organization for economic cooperation and development Member, Latvia agrees to exempt from taxation the interest other than interest referred to in paragraph 3 and which arises in Latvia, or to apply the tax rate that is lower than that prescribed in paragraph 2, then from the date of entry into force of the Convention with a third State or this Convention, depending on which of these conventions shall enter into force on the later, this exemption or reduced rate is to be applied as though it were set out in paragraph 2 or 3. IX. In relation to article 12, paragraph 2 and 3 If in any Convention for the avoidance of double taxation, which, at the date of signature of this Convention, Latvia signed with a third country, which at the time of signature of this Convention is the Organization for economic cooperation and development Member, Latvia agrees with the definition of royalties, which does not include any right referred to in paragraph 3, or other property, or agrees to release the taxes, royalties arising in Latvia, or to apply rates that are lower than those set out in paragraph 2, then, starting from the date of entry into force of the Convention with a third State or this Convention, depending on which of these conventions shall enter into force on the later, this definition, exemption or reduced rate is to be applied as though it were set out in paragraph 2 or 3. With respect to x. Article 13, paragraph 1 of this article is understood that public property does not include real estate, in which the company conducts its business, except for real estate that the company hires. In witness thereof, the undersigned, being duly authorised, have signed this Protocol on that person. The Protocol is drawn up in two copies in the 2003 4 September Latvian, Spanish and English, in addition, all three texts being equally authentic. The text is decisive in the event of differences between the English version of the text.

On behalf of the Republic of Latvia, on behalf of the Kingdom of Spain, Maris Riekstins Ramon de Miguel CONVENTION BETWEEN the REPUBLIC OF Latvia AND the KINGDOM OF SPAIN FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income AND ON CAPITAL the Republic of Latvia and the Kingdom of Spain, the conclud a Convention (menu rngton Line4) 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: Chapter I scope OF the CONVENTION 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 political subdivisions or local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovabl property, as well as taxes on capital appreciation. 3. The existing taxes to which the Convention shall apply in particular to: (a)) in Spain: (i) the income tax on individual (impuesto sobre la Renta de las Personas (F) sic); (ii) the corporation tax (impuesto sobre la Renta de Sociedades); (iii) the income tax on non residents (impuesto sobre la Renta de from Residents); (iv) the capital tax (impuesto sobre el Patrimoni); (v) local taxes on income and on capital (impuestos locales sobre la Renta y sobre el patrimoni); (hereinafter referred to as "the Spanish tax"); (b)) in the United Kingdom: (i) the enterprise income tax (corporate income tax); (ii) the personal income tax (individual income tax); (iii) the immovabl property tax (estate tax); (hereinafter referred to as "Latvian 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.
Chapter II DEFINITION of article 3 GENERAL DEFINITION 1. For the purpose of this Convention, unless the context otherwise requires: a the term "Spain") means the Kingdom of Spain and, when used in the sense of location, compris the land territory, inland waters and the territorial sea, as well as maritime areas outside the territorial sea of Spain over which, in accordanc with International law , they exercise and/or may exercise jurisdiction and sovereign rights; (b)) the term "United States" means the Republic of Latvia and, when used in the sense of location, compris the land territory, inland waters and the territorial sea, as well as maritime areas outside the territorial sea of the United Kingdom over which, in accordanc with International law, they exercise and/or may exercise jurisdiction and sovereign rights; c) c) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Spain, 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 which is treated as a body corporate for tax purpose; (f) the term ") enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h) the term "competent authority" means: (i) in Spain, the Minister of finance or his authorised representative; (ii) in Latvia, the Ministry of finance or its authorised representative; (I) the term "national") means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the law in force in a Contracting State. 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purpose of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4 resident 1. For the purpose of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liabl to tax in that State in respect only of income from sources in that State or capital situated therein. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question it by mutual agreement, having regard to the person's place of effective management, the place where it is incorporated or constituted, and any other relevant economic and material factors. In the absence of such agreement, for the purpose of the Convention, the person shall not be entitled to claim any benefits provided by this Convention. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e a workshop, and f)) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. A building site, a construction, assembly or installation project or a supervisory activity connected therewith constitut a permanent establishment only if such site, project or activity lasts for a period of more than nine months. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d)) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other.
Chapter III TAXATION OF income 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. Ships and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. Where the ownership of shares or other corporate rights in a company the owner of entitl such shares or corporate rights to the enjoymen of immovabl property held by the company, the income from the direct use, letting, or use in any other form of such right to the enjoymen a may be taxed in the Contracting State in which the immovabl property is situated. 5. The provision of paragraphs 1, 3 and 4 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. 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. 5. 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. 6. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State — and taxes accordingly — profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not (a) 12:5 per cent) of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividend; b) 10 per cent of the gross amount of the dividends in all other cases. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares, "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 corporate 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. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other State. Article 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it «arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2: (a) interest arising in a Contracting) State, derived and beneficially owned by the Government of the other Contracting State, including political subdivisions and local authorities thereof, the Central Bank or any financial institution wholly owned by that Government, or interest paid in respect of a loan guaranteed by that Government, subdivision or authority or a public institution acting within the framework of the promotion of the export and which is agreed upon by the mutual agreement of the competent authorities of the Contracting States, shall the be main from tax in the first-mentioned State; (b) interest arising in a Contracting) the State shall be the main from tax in that State if the beneficial owner of the interest is an enterprise of the other Contracting State, and the interest is paid with respect to an indebtednes of the consequences arising as of the sale on credit by an enterprise of that other State of any merchandise or industrial , commercial or scientific equipment to an enterprise of the first-mentioned State, except where the sale or indebtednes is between related persons. 4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur, as well as all other income assimilated to income from money lent by the taxation laws of the other State in which 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 to 1 to ROYALT Royalt arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not (a) 12:5 per cent) of the gross amount of the paid for the USA to royalt of industrial , commercial or scientific equipment; b) 10 per cent of the gross amount of the stay in all other cases 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 and other means of image or sound reproduction for radio or television broad-casting, any patent, trade mark, design or model , plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt «arise, through to a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment or with fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 13 CAPITAL gains 1. Gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State or shares in a company the assets of which mainly of such property be consis may be taxed in that other State. 2. 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. 3. 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. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be only in the taxabl Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve month period commencing in or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18, 19 and 20, 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. Article 16 directors ' fees directors ' fees and other similar remuneration 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. Article 18 PENSION 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. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such, salar) WAGs and other similar remuneration shall be taxabl only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. 2. a Any pension paid by, or) out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16, 17, and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 20 students payments which a student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. Article 21 offshore activities 1. The provision of this article shall apply notwithstanding the provision of Article 4 of the 20 of this Convention. 2. For the purpose of this article, the term "offshore activities" means activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated in that State. 3. A person who is a resident of a Contracting State and carr to on offshore activities in the other Contracting State shall, subject to paragraph 4, be deemed to be carrying on business in that other State through a permanent establishment situated therein or a fixed base. 4. The provision of paragraph 3 shall not apply where the offshore activities are carried on for a period or periods not exceeding in the aggregate 30 days in any twelve month period. For the purpose of this paragraph: a activities carried on offshore) by a person who is associated with another person shall be deemed to be carried on by the other person if the activities in question are substantially the same as those carried on by the first-mentioned person, except to the exten to that those activities are carried on at the same time as its own activities; (b) a person shall be deemed) to be associated with another person if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third person or third persons. 5. Salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment connected with offshore activities in the other Contracting State may, to the the exten that the duties are performed offshore in that other State, be taxed in that other State. However, such remuneration shall be taxabl only in the first-mentioned State if the employment is carried on for an employer who is not a resident of the other State for a period or periods and not exceeding in the aggregate 30 days in any twelve month period. 6. Gains derived by a resident of a Contracting State from the alienation of: (a) exploration or exploitation rights;) or b property situated in the other) Contracting State which is used in connection with the offshore activities carried on in that other State; or c shares deriving their value) or the greater part of their value directly or indirectly from such rights or such property or from such rights and such property taken together; may be taxed in that other State. In this paragraph the term "exploration or exploitation rights" means rights to assets to be produced by offshore activities carried on in the other Contracting State, or their interests in or to the benefit of such assets. 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.
Chapter IV TAXATION OF CAPITAL 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. the Capital of an enterprise of a Contracting State represented by ships and aircraft operated in international traffic by that enterprise and by movable property pertaining to the operation of such ships and aircraft, shall be only in the taxabl you state. 4. All other elements of capital of a resident of a Contracting State shall be only in the taxabl you state.
Chapter V methods FOR ELIMINATION OF double TAXATION article 24 ELIMINATION OF double TAXATION double taxation shall be avoided as follows: 1. In Spain: In accordanc with the provision and subject to the limitations of the law of Spain: a) where a resident of Spain's income or own deriv element of capital which, in accordanc with the provision of this Convention , may be taxed in Latvia, Spain shall allow: (i) as a deduction in "from the tax on the income of that resident, an amount equal to the income tax paid in Latvia; (ii) as a deduction in "from the tax on the capital of that resident, an amount equal to the tax paid in Latvia on the same elements of capital; (iii) the marbles of the underlying corporation tax shall be given in accordanc with the internal legislation of Spain. Such notes shall, however, exceeds 100 Marbles that part of the income tax or capital tax, as computed before the deduction in "is given, which is attributabl, as the case may be, to the income or the same elements of capital which may be taxed in the United Kingdom. (b)) where in accordanc with any provision of the Convention income derived or capital owned by a resident of Spain is the main tax in Spain, from Spain may not vertheles, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital. 2. In Latvia: a where a resident of Latvia or of deriv income own capital which, in accordanc with this Convention, may be taxed in Spain, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow: a as a deduction in ") from the tax on the income of that resident, an amount equal to the income tax paid thereon in Spain; (b) as from the marbles) tax on the capital of that resident, an amount equal to the capital tax paid thereon in a bucket. 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 Spain.
Chapter VI SPECIAL PROVISION of 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. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of the of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. 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. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned State may be subjected to or. 5. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description. 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 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.
Chapter VII FINAL PROVISION article 29 ENTRY into force 1. The Governments of the Contracting States shall notify each other that the internal procedures required by the law of each Contracting State for the entry into force of this Convention have been complied with. 2. The Convention shall enter into force on the date of receipt 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 30 TERMINATION this Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to the have effect in both Contracting States: a in respect of taxes) withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given; (b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done in duplicate in Riga this 4th day of September 2003, in the Latvian, Spanish and English languages, all three texts being equally authentic. In the case of divergenc between any of the texts, the English text shall prevails.

For the Republic of Latvia For the Kingdom of Spain Maris Riekstins Ramon de Miguel PROTOCOL At the moment of signing the Convention between the Republic of Latvia and the Kingdom of Spain for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed upon the following provision which shall be of an integral part of the Convention. I. Ad article 2, paragraph 2 It is understood that tax on the total of WAGs or non salar to paid by enterprises shall also be regarded as taxes on income, but social security charges or any other similar charges shall not be regarded as taxes on income. II. Ad article 2, paragraph 4 It is understood that in the case of introduction of a local tax in Latvia is the provision of the Convention shall also apply to such tax. III. Ad article 4, paragraph 3 It is understood that the provision of paragraph 3 with the applicable as long as the place of effective management criterion for the determination of residence is not used under the domestic legislation of Latvia. In the case of implementation of such criterion the competent authorities of Latvia shall be notified to the competent authorities of the Bucket as soon as such criteria is implemented, and the following shall be applicable instead of the provision of the provision of paragraph 3 from the earlies to possible data as determined by the competent authorities of the Contracting States: "Mayweather 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States , then it shall be deemed to be a resident of the State in which its place of effective management is situated. " IV. Ad article 5, paragraph 3, If in any Convention for the avoidance of double taxation signed after the date of signature of this Convention by the United Kingdom and a third State which is a member of the Organisation for Economic Co-operation and development at the date of signature of this Convention, Latvia (a) the duration of the period agree more than nine months, or a definition without reference to assembly projects for the same duration period set out in the said paragraph, such period shall automatically apply the duration or definition under this Convention as if they were specified respectively in paragraph 3 with effect from the date on which the provision of that Convention, or of this Convention, whichever is the later, become effective. V. Ad article 6, paragraph 2 It is understood that the term "immovabl property" includes options (agreements granting a right, without imposing any obligation to purchase or sell, the immovabl property for a specified period of determined price within time). Vi. Ad article 6, paragraph 3 It is understood that all income and gains from the alienation of property referred to immovabl in article 6 and situated in a Contracting State, may be taxed in that State in accordanc with the provision of article 13. Vii. Ad articles 10, 11, 12 and 13 (a) Notwithstanding the provision of) of this Convention, a company resident in a Contracting State in which persons who are not residents of that State to hold directly or indirectly, (a), participation of more than 50 per cent of the share capital, shall not be entitled to the relief provided for by the Convention in respect of dividends, interest, and capital gains arising royalt in the other Contracting State. This provision shall not apply where the said company is engaged in substantive business operations, other than the mere holding of shares or property, in the Contracting State of which it is a resident. (b)) A company which under the preceding subparagraph would not be entitled to the benefits of the Convention in respect of the aforementioned items of income, could still be granted such benefits if the competent authorities of the Contracting States the agree under article 26 of the Convention that the establishment of the company and the conduct of its operations are founded on sound business reasons and that the do not have as its primary purpose the obtaining of such benefits. VIII. Ad article 11, paragraphs 2 and 3 If in any Convention for the avoidance of double taxation signed after the date of signature of this Convention by the United Kingdom and a third State which is a member of the Organisation for Economic Co-operation and development at the date of signature of this Convention, Latvia's main interest to be agreat arising in Latvia, other than mentioned in paragraph 3, the interest or the lower rate of tax on interest than that provided for in paragraph 2, then such exemption or lower rate shall automatically apply under this Convention as if they were specified in paragraph 3 or paragraph 2 respectively with effect from the date on which the provision of that Convention, or of this Convention, whichever is the later, become effective. IX. Ad article 12, paragraphs 2 and 3 If in any Convention for the avoidance of double taxation signed after the date of signature of this Convention by the United Kingdom and a third State which is a member of the Organisation for Economic Co-operation and development at the date of signature of this Convention, to a definition of its affiliates agree to exclude any of the royalt which rights or other property referred to in paragraph 3 or in the main the Corporation arising from the royalt Latvian tax on the lower rates to royalt or of tax than those provided for in paragraph 2, such definition, the lower rates exemption, or shall automatically apply under this Convention as if they were specified in paragraph 3 or paragraph 2 respectively with effect from the date on which the provision of that Convention, or of this Convention, whichever is the later to become effective. X. Ad article 13, paragraph 1 It is understood that for the purpose of this paragraph, the assets of the company shall not include a immovabl property in which the business of the company is carried on, except the rental property. In witness whereof the undersigned, duly authorised, have signed theret this Protocol. Done in duplicate in Riga this 4th day of September 2003, in the Latvian, Spanish and English languages, all three texts being equally authentic. In the case of divergenc between any of the texts, the English text shall prevails.

For the Republic of Latvia For the Kingdom of Spain Maris Riekstins Ramon de Miguel




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