The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Swiss Federal Council Convention on the avoidance of double taxation with respect to taxes on income and capital and its Protocol article 1. 2002 January 31 in Bern in the Government of the Republic of Latvia signed and the Swiss Federal Council, the Convention on the Elimination of double taxation with respect to taxes on income and capital (hereinafter the Convention) and its 2002 January 31 in Berne signed the Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. 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. 3. article. The Convention and the Protocol shall enter into force in article 28 of the Convention within the time and in order, and the Ministry of Foreign Affairs shall notify the newspaper "journal". The Parliament adopted the law of 13 June 2002. State v. President Vaira Vīķe-Freiberga in Riga on 21 June 2002, the Government of the Republic of Latvia and the Swiss Federal Council, the Convention on the Elimination of double taxation with respect to taxes on income and on capital the Government of the Republic of Latvia and the Swiss Federal Council, reaffirming willingness to conclude a Convention for the avoidance of double taxation with respect to taxes on income and capital, agree on the following: article 1 persons covered this Convention shall apply to persons Convention that is one or both of the Contracting States residents.  Article 2 taxes covered by the Convention (1) this Convention shall apply to taxes on income and capital, which is imposed on the Contracting State or of its political or administrative units, the municipal well, regardless of the type of taxation. 2. On the income and capital taxes, regarded all taxes imposed on total income, total capital or income or capital, including taxes on the capital gains of the moveable and immovable property seizures, and taxes on capital appreciation. 3. The existing taxes to which this Convention applies, in particular, is: (a)): (i) corporate income tax;     (ii) the individual income tax;     (iii) tax on immovable property; (hereinafter referred to as the Latvian tax); (b)) in Switzerland: Federal, cantonal and communal taxes;     (i) the tax on income (total income, income, income from capital, industrial and commercial profits, capital gains and other income);     (ii) capital (total property, movable and real estate, business property, used in the paid-up capital and reserves, and other forms of capital); (hereinafter Swiss taxes). 4. This Convention shall apply also to any identical or substantially similar taxes which, supplementing or replacing the existing taxes will be introduced in a Contracting State after the date of signature of this Convention. Both the competent authorities of the Contracting States inform each other of any substantial amendments to this country in the relevant tax legislation. 5. the Convention does not apply to taxes that are withheld from winnings paid at the time of the lottery and gambling.  Article 3 General definitions 1. If the context does not otherwise specified, then this risk‐adjusted Convention: a) the term "Latvia" means the Republic of Latvia; (b)), the term "Switzerland" means the Swiss Confederation; (c) the terms "a Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or Switzerland; (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 for taxation purposes is considered a corporate Association of persons; (f) the terms ") of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise company, run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; (g)) the term "international traffic" means any carriage by sea or air, by a company of a Contracting State, except for the cases when the sea or air transport to move only in the other Contracting State; h) the term "competent authority" means: (i) in Latvia: the Ministry of finance or its authorised representative;     (ii) Switzerland, the Federal Tax Administration Director or his authorized 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 the existing Contracting State legislation. 2. a Contracting State at any time pursuant to this Convention, all terms not defined herein have the meanings in which they state the contracting legislation at that time used due to the taxes covered by the Convention, unless the context is otherwise, and the risk‐adjusted national tax legislation intended meaning prevails over other legislation that State the intended meaning.   Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means any person who, under the national provisions imposing taxes based on their place of residence, residence, location management, place of incorporation (registration) or any other similarly criteria, and also includes the respective country, its political-administrative unit or municipality. However, this term does not include those individuals in that State taxes are imposed only in respect of their income from this country to the existing sources of profit or the capital. 2. Where, in accordance with the provisions of paragraph 1 an individual is a resident of both Contracting States, its status would be as follows: (a)) will be considered as the person only as a resident of the State in which they habitually resident; 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 a resident of the country only, which is its usual 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 an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to resolve the matter by mutual agreement and determine the arrangements for the application of this Convention to such person.  Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of the company, which is wholly or partly carried on business. 2. The term "permanent establishment" includes: (a) the management of the company); b) branch; c) Office; (d) a factory;) e) 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, projects or activities take longer than nine months. 4. Notwithstanding the preceding paragraphs of this article, the rules, the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. (d) the specific site) designed exclusively for the purchase of goods or products or information collection needs; e) specific action site intended solely for advertising, information gathering, research, or a similar preparation or carrying out ancillary activities for your business; f) specific action site intended only to deal with a) to (e)) the following, in any combination thereof, if the combination of the action are generally preparatory or auxiliary character. 5. Notwithstanding 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 constantly use this power, then in all activities carried out by such person for your business, it is considered that the company has a permanent establishment in the country concerned, unless such person shall make only those provided for in paragraph 4, the activities that perform certain actions in the Instead, this particular site in accordance with this paragraph shall not be treated as a permanent establishment. 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. However, if such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an agent of an independent status at this point in that sense. 7. the fact that the company is a resident of a Contracting State-controlled company, which is a resident of the other Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way), or is subject to the control of such undertaking in itself does not mean that any of these companies is the second permanent representation of society.   Article 6 Income from real property 1. income which a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State taxes. 2. The term "immovable property" have the meaning it has in its legislation of a Contracting State in which the property concerned is located. In any case, this term covers property which belongs to real estate property, livestock and equipment used in agriculture and forestry, rights to which the land property law general rules, any purchase of real property rights of use or similar right to acquire real estate, uzufrukt real estate and rights to variable or fixed payments as consideration for the mineral deposits, natural ore and other natural resources, or the right to use them. For real estate will not be regarded as sea and air transport. 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. 4.1 and paragraph 3 shall be applied also with regard to the income from immovable property of the company, as well as income from real property used for independent individual services.  Article 7 business profits 1. Contracting State company profits will be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits may impose taxes in the other country, but only to the profit, which can be attributed to the permanent establishment. 2. in accordance with the provisions of 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 a similar business in the same or similar conditions independently and make trades with a company whose permanent establishment it is. 3. in determining the profits of a permanent representation, will be allowed to deduct the expenses related to the permanent representation and due to the location of the permanent representation in the country or elsewhere, including operational and general administrative costs. 4. where a Contracting State the profits attributable to the permanent establishment shall be determined by dividing the company's total profit in proportion between its departments, paragraph 2 does not preclude the contracting country as usual after this principle to determine profit, subject to taxes; However, the method of distribution must be such that the result matches the principles contained in this article. 5. On the permanent representation will not be applied the earnings just because it has purchased the goods or products to your company's needs. 6. for the purposes of applying the provisions of the preceding paragraph, the profits attributed to the permanent establishment shall be determined each year by the same method, except if there is sufficient reason to do otherwise. 7. If the profit is included in the other articles of this Convention see income separately, this article shall not affect the other provisions of this article.   Article 8 shipping and air transport 1. Contracting State company profits from sea or air transport use in international traffic will put taxes only in this 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 enterprise of a Contracting State in the other Contracting State and the company's management or control or they own part of the company's capital, and in any of these cases, these two companies in commercial or financial relations are created or established by the rules different from those provisions that the force between two independent (non-related) companies, then any profits which would, but for one of the companies affected by the above provisions did not have, can be included in the company's profits, and it may be appropriate to impose taxes. 2. If a Contracting State company profits, which in this country is taxed, are also included in the territory of the other Contracting State the profits and taxable and accordingly if this included profit is the profit that would have been the territory of the other Contracting State, between the two companies when applying the rules, which would be in force between independent enterprises, then the competent authorities of the Contracting States may consult in order to agree on the adjustment of profits of one or both of the Contracting States.   Article 10 dividends 1. Dividends by the company — a resident of a Contracting State in the other Contracting State, the cost of the resident may be taxed in that other State taxes. 2. However, such dividends may also impose taxes under the national law of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total, if real owner of dividends is a company (other than a partnership) which are at least 20 percent of the company capital, which paid dividends; b) 15 per cent of the total of dividends in all other cases. This paragraph shall not affect the taxation of company profits from which dividends. 3. The term "dividends" in this article means income from shares or other rights to participate in profits, not claims, as well as income from other rights which, in accordance with its national legislation, which the resident is a company that carries out the distribution of profits, subject to the same taxation treatment as income from shares. 4. paragraphs 1 and 2 will not apply, if the true owner of dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the 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 in the other Contracting State, that other State may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other State, or if the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base in another country, nor to impose a tax on retained earnings retained earnings of the company even If the dividends paid or retained earnings consists in whole or in part from the other country of profit or income.  Article 11 interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes. 2. However, such interest may also impose taxes according to national law 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 arise in the Contracting State and is paid to a resident of the other Contracting State who is the true owner of the taxes will put only the second country, if they are paid in relation to the first-mentioned State, its political and administrative units or municipal bonds, promissory notes or similar obligations; (b)) percent, which arise in the Contracting State and is paid to the other Contracting State, its political and administrative unit or municipality, or another Central Bank of the country, taxes will put only the second country; c) percent resulting in a Contracting State and paid to a resident of the other Contracting State on a loan guaranteed by, or insure a second country, its political and administrative unit or municipality, or any institution that works in the second country, its political and administrative units or authorities and agreed to by the competent authorities of the Contracting States, taxes will put only the second country; (d)) percent, which occurs in one Contracting State is taxed only in the other Contracting State if: (i) the beneficiary is of interest this residents of the other State, and (ii) the beneficiary is the other State enterprises and the interest owner will exercise; and (iii) the interest is paid on the debt obligations that emerged the second State company sold to credit the former State company 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. 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 there, and if the claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 6. If the payer of the interest is a resident of a Contracting State, it 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, in respect of which the debt obligations incurred for which the interest is paid, and if such 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 percentage implemented owner or between both of them and some other person, the amount of interest that relate to debt claims, for which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest owner will, if implemented, they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the payment of the part which exceeds this amount, taxes are levied in accordance with legislation of a Contracting State, in the light of 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 taxed in that other State taxes. 2. However, such royalties may also impose taxes under the national legislation 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 total of the royalties 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 of radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the production, commercial, or scientific equipment, or for the right to use them , or for information concerning industrial, commercial or scientific experience. 4. 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 for which the royalties are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the payer of the royalties is a resident of a Contracting State, it 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, in connection with which the liability to pay the royalties have occurred, and if the payment of the royalties (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 portion of the payment that exceeds this amount, you will be taxed according to each Contracting State legislation in the light of the other provisions of this Convention.  Article 13 capital gains 1. Capital gains or income which a resident of a Contracting State derives, the disposal referred to in article 6, in the other Contracting State the existing real property, may be subject to taxes in the other country. 2. Capital gains that accrued, disposing of property, which is part of the property which the Contracting State a permanent establishment in the other Contracting State used in business, or disposing of property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, including capital gains from such permanent missions (alone or with the whole enterprise) or of such a permanent disposal base disposal can impose taxes in the other Contracting State. 3. Capital gains by the public enterprise, the disposal of sea or air transport means that this company used for international traffic, or disposes of property that belongs to the marine or air transport means will be taxable only in that State. 4. Capital gains, by a resident of a Contracting State derives, disposes of shares or similar rights in a society where property is completely or predominantly referred to in article 6 and the second Contracting State an existing real property, may be subject to taxes in the other country. 5. Capital gains generated by the disposal of any property that is not 1, 2, 3 and 4, paragraph property will be taxable only in the Contracting State of which the resident is the seizure of property.  Article 14 independent personal services 1. resident of a Contracting State, of a natural person income, providing professional services or other independent activities, will be taxable only in that State except in the following circumstances, when such income may be subject to taxes in the other Contracting State: a) if that person the pursuit of its activities shall have regular access to a permanent base in the other Contracting State; in this case, the other Contracting State taxes may be imposed only to the part of income attributable to the permanent base; or (b)) If this a 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; in this case, the other Contracting State taxes can be imposed only part of the income it derives from that person's activities in the country. 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 and article 19 of the regulations for the payment of wages and other remuneration, similar to what a resident of a Contracting State receives for paid employment, be taxable only in that State unless the paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can impose taxes in the other country. 2. Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxable only in the first mentioned State if: (a) the beneficiary) is found in the other State for a period or periods not exceeding in the aggregate 183 days in any 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 that the employer uses the second in the 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 the sea or air vehicles used in international traffic, may be taxed in the Contracting State tax.  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 Contracting State, a resident may be taxed in that other State taxes.  Article 17 artists and athletes 1. articles 14 and 15 of the regulations to the income of a resident of a Contracting State as izpildītājmāksliniek, such as theatre, film, radio or television artist, musician, or as an athlete, for your individual activities in the other Contracting State may be taxed in that other State taxes. 2. If izpildītājmāksliniek or athlete's income on his individual activity in the area in question is paid rather than izpildītājmāksliniek or athlete himself but to another person, to the following income regardless of the 7, 14 and 15 the provisions of article 1 may be subject to taxes in the Contracting State in which the activity or sports izpildītājmāksliniek. 3. paragraphs 1 and 2 shall not be applied in respect of income which benefit izpildītājmāksliniek or athletes, if this income is direct or indirect are gained primarily from one or both of the Contracting States, the political and administrative entity or municipal public funds.  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, be taxable only in that State.  Article 19 government service 1 a) for salaries, fees and other similar remuneration, other than a pension, which is paid to a natural person contracting State, its political and administrative unit or municipality of this State, unit, or for the services provided to the municipality will be taxable only in that State. (b) However, such salaries), fees and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that 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) to any pension to which) natural person the cost of Contracting State, its political and administrative unit or municipality or who is paid from the funds set up for services provided by that person in that State, unit, or the municipality will be taxable only in that State. (b) However, such pension) will be taxable only in the other Contracting State if the individual is a resident of that other State and the citizen. 3.15, 16, 17 and 18, the provisions of the article apply to wages, salaries, other remuneration and pensions similar to that paid for services provided in respect of the Contracting State, its political and administrative units, or the business of the municipality.  Article 20 students payments which a residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the Contracting State had the other Contracting State and who was the first resident in that country have come only for the purpose of study or internship, this country will not be taxed if such payments are from sources that are not in the country.  Article 21 other income 1. Other previous articles of this Convention for the Contracting State not specified the types of income of a resident, irrespective of their sources will be taxable only in that State. 2. paragraph 1 shall not apply to income, other than income from article 6 paragraph 2 defines the immovable property, if the income beneficiary who is a resident of a Contracting State, carries on business in the other Contracting State through a permanent representation of the existing there, or give independent personal services in the other State through a permanent base located there, and if the rights or property of which you receive this income is actually linked to the permanent representations, or permanent base. In this case, depending on the circumstances of this Convention article 7 or 14.  Article 22 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 taxed in that other State taxes. 2. Capital represented by movable property forming part of the estate which the Contracting State the company's permanent representation used in business, 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 taxed in that other State taxes. 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 means will be taxable only in that State. 4. all other Contracting State, a resident of the capital items will be taxable only in that State.  Article 23 avoidance of double taxation 1. In Latvia, double taxation shall be avoided as follows: (a) Where a resident of Latvia) derives income or owns capital which it in accordance with this Convention may impose taxes in Switzerland, then if one Latvian domestic legislation is not in Latvia more favourable provisions permit: (i) reduce the resident's income tax for an amount equal to the income tax paid in Switzerland;     (ii) reduce the resident's capital tax on amount equal to the capital tax paid in Switzerland. These reductions, however, in no case, exceed the income tax or capital tax, part of which is calculated in Latvia before the application of this reduction and, depending on the circumstances of which is attributable to the income or the capital which may be taxed taxes in Switzerland; (b)) (a) for the application of this section, if the company) — a resident of Latvia receives a dividend from a company resident of Switzerland, in which it owns at least 10 percent of shares with full voting rights, the tax paid in Switzerland will contain not only the tax paid on the dividend, but also the appropriate portion of the tax paid on the profits of the company out of which the dividend was paid. 2. Switzerland double taxation will be avoided as follows: a where a resident of Switzerland) derives income or owns capital which it in accordance with this Convention may impose taxes in Latvia, then Switzerland in accordance with this paragraph (b)) this income or capital gains from taxation, but when calculating tax on the remaining income of a resident or the capital, may be made subject to the tax rate applicable to the If the income or the capital would not be exempt from taxation. (b) Where a resident of Switzerland) to receive dividends, interest or royalties which, in accordance with the 10, 11 or 12 the provisions of article 1 may be subject to taxes in Latvia, then apply this upon request, Switzerland resident tax rebate. This discount may consist of: (i) the resident income tax reduction by an amount equal to the tax paid in Latvia, under 10, 11 and 12; such reduction may not, however, exceed that part of the Swiss tax that is calculated before this and the application of the reduction is attributable to the income which may be taxed taxes in Latvia; or (ii) a one-off reduction of the Swiss tax on a specific amount; or (iii) the dividends, interest or royalties for a partial exemption from Swiss tax, which in any case will be at least the amount of the tax reduction, which in Latvia cost of this dividend, interest or royalties for the total. Switzerland will determine the applicable tax rebate and regulate its application procedures, in accordance with the Swiss rules on how to apply the Swiss Confederation concluded the International Convention on the Elimination of double taxation. (c) a resident of Switzerland) society, which receives dividends from the company — resident of Latvia is entitled to receive a dividend in respect of those same Swiss tax credit, which would be granted to this company, if the company that pays dividends, would be a Swiss resident.  24. Article 1 of the prevention of Discrimination To nationals of a Contracting State in the other Contracting State shall not be subject to taxation or related requirements that are different or more burdensome than the taxation or the related requirements which, in the same circumstances, in particular in the context of residence applies or may apply to other citizens of this country. 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. The taxation of enterprise of a Contracting State to the permanent representation the other Contracting State may not be less favourable than those of other taxation public companies which perform the same operation. This provision should not be interpreted that it imposes on the Contracting State the obligation to grant the other Contracting State any personal relief to residents, discount and reduction in relation to taxation, which this country give its residents, in the light of their civil status or family responsibilities. 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 profits, which are taxed, must report in accordance with the same rules as if they are paid to a resident of the first mentioned State. Similarly, the enterprise of a Contracting State in the other Contracting State debt residents, establishing this company's taxable capital, is required to report under the same conditions 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 associated with it, which is different from the taxation and related requirements, which are or may be exposed to similar to the former State enterprises, or which are more onerous. 5. The provisions of this article independently of the provisions of article 2, apply to taxes of every kind and name.  25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting State party to a national action in relation to this person causes or may cause the taxation which does not comply with the provisions of this Convention, that person may, irrespective of the domestic legislation of these countries provided remedies to submit complaints to the competent authority of the country of which the person is resident, or if the complaint relates to article 24, paragraph 1 of the Member State, the competent authority of which is this person. The complaint shall be submitted for review within three years of the first notification of the action which caused by taxation, which does not comply with the provisions of this Convention. 2. If the competent authority deems the complaint to be justified and even fail to reach a satisfactory solution, it must seek to resolve the matter by mutual agreement with the other competent authority of a Contracting State, to avoid taxation which is not in conformity with this Convention. 3. the national competent authorities should seek mutual agreement resolve any problems or prevent the doubt which may arise in the interpretation (translating the) 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, including through the competent authorities or their representatives in the Joint Commission.  Article 26 exchange of information 1. The competent authorities of the Contracting States shall exchange information (the information at their disposal in accordance with the applicable tax legislation and generally applicable administrative practices), which is necessary for the carrying out of the provisions of this Convention relating to taxes to which this Convention applies. Any information obtained in this Exchange, will be treated as confidential and will not be disclosed to persons other than the person dealing with the calculation and collection of the tax, to which this Convention applies. Will not run any exchange of information that could disclose the business, banking, production, or trade secret or trade process. 2. in no case shall the provisions of this article shall not be interpreted that they impose on the Contracting State the obligation to carry out administrative measures which do not comply with one or other of the contracting national regulations and practices or which are contrary to its sovereignty, security or public order (ordre public), or to provide information which is not obtainable under the legislation of that State or its national legislation, which seeks to provide information.  Article 27 diplomatic missions and members of consular representations 1. Nothing in this Convention shall not affect the diplomatic missions or consular posts of the members of the fiscal privileges that apply to them in accordance with international law or special agreements. 2. Notwithstanding the provisions of article 4, a natural person who is a party to the diplomatic mission, consular or Permanent Mission of a member of the other Contracting State or in a third country, under this Convention will be considered a resident of the sending State if: (a)) in accordance with international law, that person is not the subject of the requested Contracting State taxation of income from outside this country, existing sources or to capital situated outside that State; and (b)) due to taxes from total income or capital of that person in the country of dispatch has the same responsibility, as a resident of this State. 3. This Convention shall not apply to international organizations, it departments or employees, as well as to persons who are third-country diplomatic mission, consular or Permanent Mission, the members of which are resident in the Contracting State and with respect to taxes on income and capital in one of the Contracting States are not considered residents.   Article 28 entry into force 1. Contracting Governments shall notify each other that the countries have met the constitutional requirements necessary to give effect to this Convention. 2. this Convention shall enter into force referred to in paragraph 1 the last statement date, and its provisions both of the Contracting States shall apply: (a)) in respect of taxes withheld at the time the cost-income accruing on the first day of January in the calendar year following the year in which this Convention enters into force, or after that date; (b)) in the case of other income taxes and capital taxes – for any taxation year that begins on the first day of January in the calendar year following the year in which this Convention enters into force, or after that date.  This Convention is in force as long as 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 not apply: (a)) in respect of taxes withheld at the time the cost to income accruing on the first day of January in the calendar year following the year in which the Declaration for winding up, or after that date; (b)) in the case of other income taxes and capital taxes-for any taxation year that begins on the first day of January in the calendar year following the year in which the notice of termination, or after that date. In witness thereof, the undersigned, being duly authorised, have signed this Convention. The Bern Convention is drawn up in duplicate in the 2002 January 31 Latvian, German and English, in addition, all three texts being equally authentic. Different case is decisive for the interpretation of the text in English language.

The Government of the Republic of Latvia in the Swiss Federal Council Parker Smith Joseph Deis Protocol by the Government of the Republic of Latvia and the Swiss Federal Council, the signing of the Convention on the Elimination of double taxation with respect to taxes on income and on capital, have agreed upon the following provisions, which are an integral part of this Convention. 1. with regard to article 3, paragraph 1 (a)): to be understood that the term "Latvia" does not include any other Latvian territorial waters adjacent to the territories in which, in accordance with Latvian law and international law, can be implemented in Latvia of rights on land and sea depths and there existing natural resources. 2. in relation to article 4 (3) be understood that as soon as both of the Contracting States in their domestic legislation will introduce the actual control's location as a criterion for the determination of residence, article 4, paragraph 3, the text will be replaced with the text by the following: "3. If, in accordance with the provisions of paragraph 1 a person other than a natural person is resident of both Contracting States, then this person will be considered a resident of the State where the actual place of management. " 3. with regard to article 6, if the company's shares or other corporate rights give the holder the right to public use of the property, then you will understand that the income from the direct use, letting or use in any other way is considered to be income from property. 4. with regard to paragraph 3 of article 7 is to be understood that the term "permanent representation costs" means those costs to be deducted, which is directly related to the business of the permanent missions. 5. with regard to article 11 in relation to article 11, paragraph 2 and 3, the Contracting States agree that, if a Convention for the avoidance of double taxation that the signing of this Convention is signed between Latvia and a third country which, at the date of signature of this Convention is the Organisation for economic cooperation and development (OECD) Member, or in the appendices to the Convention Latvia agrees to exempt from taxation the interest who pays for any kind of loans granted by the bank or to exempt from taxation the interest that is paid on debt obligations, which are created when a company sells on credit any goods or manufacturing, commercial or scientific equipment to another company who is associated with the first mentioned company or set the following percent tax rate, which is lower than the article 11, paragraph 2 of the rate laid down such an exemption or reduced-tax rate will be automatically applied , as specified in article 11 of this Convention, and of the date of entry into force of the Convention concerned or either its additions, or this Convention, depending on which shall enter into force on the last. 6. with regard to article 12, if a Convention on avoidance of double taxation that the signing of this Convention is signed between Latvia and a third country which, at the date of signature of this Convention is the Organisation for economic cooperation and development (OECD) Member, or in the appendices to the Convention Latvia agrees the image definition that does not include any right or property referred to in paragraph 3, or agrees to release the royalty tax , royalties arising in Latvia, or to apply the tax rate, which is lower than that prescribed in paragraph 2, such a narrow definition, exemption or reduced rate of tax will automatically be applied, as specified in article 12 of this Convention. 2 or 3, and from the date of entry into force of the Convention concerned or either its additions, or this Convention, depending on which shall enter into force on the last. 7. understand that a resident of a Contracting State, under its domestic law are not entitled to use the facilities set out in the Convention on the Elimination of double taxation, may not require them to apply not the facilities granted in accordance with this Convention with respect to the second Contracting State tax exemptions, nor require, in accordance with the provisions of article 23 to apply any tax reduction or exemption from taxes in relation to their country of residence, payable taxes. The Protocol is drawn up in duplicate in the Bern 2002 January 31 Latvian, German and English, in addition, all texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia in the Swiss Federal Council Parker Smith Joseph Deis CONVENTION BETWEEN the Government OF the REPUBLIC OF Latvia AND the Swiss FEDERAL COUNCIL FOR the avoidance OF double TAXATION WITH RESPECT TO taxes ON income AND ON CAPITAL the Government of the Republic of Latvia and the Swiss Federal Council (menu Rngton Line4) to conclud a Convention for the avoidance of double taxation with respect to taxes on income and on capital , Have agreed as follows: article 1 Persons covered this Convention shall apply to persons who are residents of one or both of the Contracting States.  Article 2 taxes covered 1. This Convention shall apply to taxes on income imposed on behalf of the Andean capital on (a) the Contracting State or of its 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 the United Kingdom: (i) the enterprise income tax (income tax of enterprises);     (ii) the personal income tax (will tax revenue);     (iii) the immovabl property tax (tax on immovable property); (hereinafter referred to as "Latvian tax"); (b)) in Switzerland: the federal, cantonal and communal tax;     (i) on income (total income, earned income, income from capital, industrial and commercial profits, capital gains, and other items of income);     (ii) on capital (total property, movable and immovabl property, business assets, paid-up capital and reserve, and other items of capital); (hereinafter referred to as "Swiss 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 in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any substantial changes to each which have been made in their taxation laws of respectiv. 5. The Convention shall not apply to taxes withheld at the source on winning from gambling and lotter.  Article 3 General definition 1. For the purpose of this Convention, unless the context otherwise requires: a the term) "Corporation" means the Republic of Latvia; (b)) the term "Switzerland" means the Swiss Confederations; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Switzerland, 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 Latvia, the Ministry of finance or its authorised representative;     (ii) in Switzerland, the Director of the Federal Tax Administration or his 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 by their mutual agreement and determin the mode of application of the Convention to such person.  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 advertising, for the supply of information, for scientific research or for similar activities which have a features or auxiliary character, for the enterprise; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, and where the conditions between the agent and the enterprise differ from those which would be made between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this paragraph. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other.  Article 6 income from immovabl property 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovabl property, livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, any option or similar right to the immovabl property, usufruc acquir 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. The provision of paragraphs 1 and 3 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services.  Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein , there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as a deduction in "of which the expense incurred for the purpose of the permanent establishment, including Executive and general administrative expense so incurred, whethers of in the State in which the permanent establishment is situated or elsewher. 4. Insofar as it has been customary in a Contracting State to determin the profits to be attributed to a permanent establishment on the basis of an apportionmen of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclud that Contracting State from determining the profits to be taxed by such an apportionmen as may be customary; the method of apportionmen, however, the adopted shall be such that the result shall be in accordanc with the principles led in this article. 5. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article.  Article 8 Shipping and air transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. The 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 profits on which an enterprise of a Contracting State has been charged to tax in that State are also included in the profits of an enterprise of the other Contracting State and taxed accordingly, and the profits so included are profits which would have accrued to that enterprise of the other State, if the conditions made between the enterprises had been those which would have been made between independent enterprises, then the competent authorities of the Contracting States the may consult together with a view to reach an agreement on the adjustments of profits in one or both Contracting States.  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 20 per cent of the capital of the company paying the dividend; b) 15 per cent of the gross amount of the dividends in all other cases. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other 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 and paid to a resident of the other Contracting State who is the beneficial owner thereof shall be only in the taxabl you other State if it is paid in respect of a bond, debentur or other similar obligation of the first-mentioned State or of a political subdivision or local authority thereof; (b) interest arising in a Contracting) State and paid to the other Contracting State or a political subdivision or local authority thereof, or to the Central Bank of that other State, shall be only in the taxabl you others State; (c) interest arising in a Contracting) State and paid to a resident of the other Contracting State, with respect to a loan made, guaranteed or insured by that other State, a political subdivision or local authority thereof, or any institution acting on behalf of that other State, subdivision or authority agreed upon by the competent authorities of the Contracting States, the IR beam only in that others taxabl State; (d) interest arising in a Contracting) the State shall be the taxabl only in the other Contracting State if: i) the recipient is a resident of that other State, and ii such recipient is an) enterprise of that other State and is the beneficial owner of the interest, and (iii) the interest is paid) with respect to the indebtednes arising on the sale on credit , by that enterprise, 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. 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 for radio or television broadcasting, 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 or income derived by a resident of a Contracting State from the alienation of immovabl property referred to in article 6 and situated in the other Contracting State 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 from the alienation of ships or aircraft operated in international traffic by that enterprise or movable property pertaining to the operation of such ships or aircraft, shall be only in the taxabl you state. 4. Gains derived by a resident of a Contracting State from the alienation of shares or comparabl rights in a company, the assets of which the wholly or principally of consis immovabl property as referred to in article 6 and situated in the other Contracting State may be taxed in that other State. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxabl only in the Contracting State of which the alienator is a resident.  Article 14 independent personal services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State except in the following circumstanc, when such income may also be taxed in the other Contracting State: a if he has a fixed) base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributabl to that fixed base may be taxed in that other Contracting State; or b if his stay) in the other Contracting State is for a period or periods exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.  Article 15 dependent personal services 1-subject to the provision of articles 16, 18 and 19, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 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 Director's fees Director's 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. 3. Paragraphs 1 and 2 shall not apply to income from activities performed by entertainer or sportsmen if such income is derived directly or indirectly in a substantial manner from public funds of one or both of the Contracting States, their political subdivisions or local authorities.  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 Other income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl you state. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply.  Article 22 Capital 1. Capital represented by immovabl property referred to in article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State. 3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State and by movable property pertaining to the operation of such ships 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.  Article 23 Elimination of double taxation 1. In the case of Latvia, double taxation shall be avoided as follows: (a)) where a resident of Latvia or of deriv income own capital which, in accordanc with this Convention, may be taxed in Switzerland, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow: (i) as a deduction in "from the tax on the income of that resident , an amount equal to the income tax paid thereon in Switzerland;     (ii) as a deduction in "from the tax on the capital of that resident, an amount equal to the capital tax paid thereon in Switzerland. 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 Switzerland. (b)) For the the purpose of sub-paragraph (a)), where a company that is a resident of Latvia receive a dividend from a company that is a resident of Switzerland in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Switzerland shall include not only the tax paid on the dividend, but also the appropriate portions of the tax paid on the underlying profits of the company out of which the dividend was paid. 2. In the case of Switzerland, the double taxation shall be avoided as follows: (a)) where a resident of Switzerland or of deriv income own capital which, in accordanc with the provision of this Convention, may be taxed in Latvia, Switzerland shall, subject to subparagraph (b) of the provision of) such income or capital to the main from tax but may, in calculating tax on the remaining income or capital of that resident , apply the rate of tax which would have been applicable if the exempted income or capital had not been so exempted. b) where a resident of Switzerland of dividend, interest deriv or royalt to which, in accordanc with the provision of article 10, 11 or 12, may be taxed in Latvia, Switzerland shall allow, upon request, a relief to such resident. The relief may be consis of: (i) (a) the marbles from the tax on the income of that resident an amount equal to the of the tax levied in Latvia in accordanc with the provision of articles 10, 11 and 12; such notes shall, however, exceeds 100 Marbles that on of the Swiss tax, as computed before the deduction in "is given, which is appropriate to the income which may be taxed in Latvia; or (ii) a sum reduction of the waded Swiss tax; or (iii) a partial exemption of such dividends, interest or to from Swiss tax, royalt in any case consisting at least of the marbles of the tax levied in Latvia from the gross amount of the dividends, interest or royalt. Switzerland shall determin the applicable relief and regulat the procedure in accordanc with the provision relating to the Swiss in the carrying out of the international convention of the Swiss Confederations for the avoidance of double taxation. (c) A company which is a resident) of Switzerland and which of the dividend from a deriv company which is a resident of Latvia shall be entitled, for the purpose of Swiss tax with respect to such dividend, the same relief which would be granted to the company if the company paying the dividends is a resident of Switzerland were.  Article 24 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 25 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 24, 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. 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 26 exchange of information 1. The competent authorities of the Contracting the States shall exchange such information (being information which is at their disposal under their respectiv of taxation laws in the normal course of administration) as is not cessary for carrying out the provision of this Convention in the relations it taxes which are the subject of this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject to this Convention. Of information as aforesaid shall be exchanged which would disclos any trade, business, banking, industrial or professional secret or trade process. 2. In no case shall the provision of of this article be construed as imposing upon either Contracting State the obligation to carry out administrative measure's at variance with the regulations and practice of either Contracting State or which would be contrary to its sovereignty, security or public policy (ordre public) or to supply a particular which are not under its own law of procurabl or those of the State making the application.  Article 27 members of diplomatic missions and consular posts 1. 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. 2. Notwithstanding the provision of article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State which is situated in the other Contracting State or in a third State shall be deemed, for the purpose of this Convention, to be a resident of the sending State if: (a)) in accordanc with international law he is not liabl to tax in the receiving Contracting State in respect of income from sources outside that State or on capital situated outside that State and (b)) he is liabl in the sending State to the same obligations in relations to tax on his total income or on capital as are residents of that State. 3. The Convention shall not apply to international organisations, to organs or officials thereof and to persons who are members of a diplomatic mission, consular post or permanent mission of a third State, being present in a Contracting State and not treated in either Contracting State as residents in respect of taxes on income or on capital.  Article 28 Entry into force 1. The Governments of the Contracting States shall notify each other when the constitutional requirements for the entry into force of this Convention have been complied with. 2. The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (b)) in respect of other taxes on income and taxes on capital, for any fiscal year beginning on or after the first day of January in the calendar year next following the year in which the Convention enter into force.  Article 29 Termination this Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to 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 any fiscal year beginning on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done in duplicate at Bern this 31st day of January 2002, in the Latvian, German and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.

For the Government of the Republic of Latvia For the Swiss Federal Council Parker Smith Joseph Deis Protocol the Government of the Republic of Latvia and the Swiss Federal Council have agreed at the signing of the Convention for the avoidance of double taxation with respect to taxes on income and on capital upon the following provision which shall form an integral part of the United Nations Convention. 1. ad article 3 paragraph 1 (a)) It is understood that the term "Corporation" shall not include any area adjacent to the territorial waters of the Republic of Latvia, within which, under the laws of Latvia and in accordanc with international law, the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources. 2. ad article 4 paragraph 3 It is understood that, as soon as both Contracting States have introduced in their domestic legislation of the place of effective management as a criterion for the residence, then the wording of paragraph 3 of article 4 shall be replaced by the following provision: "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 only of the State in which its place of effective management is situated. " 3. ad article 6 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, it is understood that income from the direct use, letting or use in any other form of such rights to be enjoymen of income from immovabl constitut property. 4. ad article 7 paragraph 3 It is understood that the term "expense which is incurred by the Council for the purpose of the permanent establishment" means those relating directly to the expense of deductibl the business of the permanent establishment. 5. ad article 11 In respect of paragraphs 2 and 3 of article 11, if in any Convention for the avoidance of double taxation — or in any amendment to such Convention, signed after the date of signature of this Convention between 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 The main Corporation, agree to be paid interest on any loan of whatever kind granted by a bank or to their main interest paid with respect to the indebtednes arising on the sale on credit, by an enterprise, of any merchandise or industrial, commercial or scientific equipment to another enterprise which is related to the first-mentioned enterprise or to a lower rate of tax on such interest than the rate provided for in paragraph 2 of article 11 , then such exemption or lower rate shall automatically apply under this Convention as if it were specified in article 11 with effect from the date on which the provision of that Convention or amendment, as the case may be, or of this Convention, whichever is the later, become effective. 6. ad article 12 If in any Convention for the avoidance of double taxation — or in any amendment to such Convention, signed after the date of signature of this Convention between 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 royalt arising in Latvia from Latvian tax on the lower rates to royalt or of tax than the rates provided for in paragraph 2, then such exemption, or narrower definition, the lower rates under this Convention shall automatically apply 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 amendment , as the case may be, or of this Convention, whichever is the later, become effective. 7. It is understood that a resident of a Contracting State who is, under the law of that State, not entitled to the benefits of a Convention for the avoidance of double taxation, may not claim any ither relief provided for in this Convention with respect to taxes levied in the other Contracting State, nor to article 23 pursuan of this Convention , any exemption from, or marbles of the taxes of the State of which he is a resident. Done in duplicate at Bern this 31st day of January 2002, in the Latvian, German and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.

For the Government of the Republic of Latvia For the Swiss Federal Council Joseph Deis will Parker Smith