The Government Of The Republic Of Latvia And The Government Of Malta Convention For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income

Original Language Title: Par Latvijas Republikas valdības un Maltas valdības konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma nodokļiem

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The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of Malta Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes article 1. 22 May 2000 in Riga, Latvia signed, and the Government of the Republic of Malta the Government of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Convention) and its 22 May 2000 in Riga, 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 the Convention article 29 within the time and in order, and the Ministry of Foreign Affairs shall notify the newspaper "journal". The Parliament adopted the law on 5 October 2000. The President of the Parliament instead of the President j. stream year 2000 in Riga on October 19, the Government of the Republic of Latvia and the Government of Malta Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income the Government of the Republic of Latvia and the Government of Malta, reaffirming willingness to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed that: article 1 persons covered this Convention shall apply to persons Convention that is one or both of the Contracting State party to the country resident. Article 2 taxes covered by the Convention (1) this Convention shall apply to taxes levied by the Contracting State or of its local authorities, irrespective of the good this tax collection. 2. income taxes deemed all taxes that total income or taxable income, also part of the tax, which taxed movable or immovable property alienation in earned income. 3. The existing taxes to which this Convention applies, in particular, is: (a)): (i) corporate income tax; (ii) the individual income tax; (hereinafter referred to as the Latvian tax); (b)) in Malta: the income tax; (hereinafter referred to as the Maltese tax). 4. this Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Convention is to supplement or replace the existing taxes. Both the competent authorities of the Contracting States inform each other of any significant amendments to the national legislation of the relevant tax legislation. Article 3 General definitions 1. If it is not apparent from the context, otherwise in this Convention: a the term "Latvia") means the Republic of Latvia and, used in a geographical sense, represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the legislation of Latvia and international law can be implemented in Latvia of rights on land and sea depths and natural resources contained therein; (b)) the term "Malta" means the Republic of Malta and, used in a geographical sense, represents the island of Malta, Gozo and the other islands of the Maltese archipelago, including territorial waters, as well as any territorial waters and adjacent sea area of subsoils and above its waters, which the Republic of Malta shall exercise their sovereign rights, jurisdiction or control in accordance with international law and domestic legislation, including legislation relating to the continental shelf exploration and there current utilisation of natural resources; (c) the term "Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or Malta; (d) the term "person") means a natural person, company, or any other Association of persons; e the term "company") shall mean any corporate person, association or any entity, which, for the purposes of taxation is considered a corporate Association of persons; (f) the term "Contracting Government) of the enterprise" and "enterprise of the other Contracting State" mean respectively an enterprise run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; g) the term "international traffic" means any carriage by sea or air, by the company of a Contracting State, if 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) in Malta, the Minister responsible for finance or his authorised representative; I) the term "national" means: (i) natural persons who are nationals of a Contracting State; (ii) any legal person, partnership or association whose status stems from State legislation in force. 2. for the application of this Convention at any time Contracting State will use any term which is not defined here, only in the sense that if it is not apparent from the context in which it is otherwise in use at the time the legislation of a Contracting State concerning the taxes to which this Convention applies, in addition, any explanation of the term in accordance with the applicable tax law will have precedence over this explanation of the term under other law of this State. Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means any person who, in accordance with the national legislation is subject to taxation on the basis of the place of residence, residence, location management, place of incorporation (registration) or under any other criteria like this, and also includes that State and local governments. However, this term does not include those individuals in this country is taxable only in relation to their income from this country to the existing sources of profit. 2. Where, in accordance with the provisions of paragraph 1 an individual is a resident of both Contracting States, its status will be determined as follows: (a)) this person will be treated as a resident only 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 only for residents of the country where it is common in the home; c) if that person normally home in both countries or none of them, it will be considered only for residents of the country, of which this person; (d)) if that person is a national of both States or no citizen of this country, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States trying to resolve the matter by mutual agreement. In the absence of such agreement, the application of this Convention, that person will not be entitled to claim any tax relief or exemption from taxes, granted in accordance with this Convention. Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of which is wholly or partly carried on business. 2. The term "permanent establishment" includes: (a) the management of the company); b) branch; c) Office; (d) a factory;) e) workshop; and (f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. The term "permanent establishment" likewise encompasses: a a building site, construction), Assembly or installation project or supervisory activities associated with it, but only if these works, project or activity take longer than six months; b) Contracting State organization or another Contracting State to the personnel of the company services, including consultancy services, but only if such activities of the other Contracting State in the territory lasts for the time period or periods exceeding in the aggregate six months within any twelve-month period. 4. Notwithstanding the preceding paragraphs of this article, the provisions of the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. d) permanent site designed exclusively for the purchase of goods or products or information collection needs; e) permanent site designed solely to make any other arrangements or ancillary businesses; f) permanent site designed solely to deal with (a)) and (e)) the following, in any combination thereof, if the common type of activity is the preparation or ancillary nature. 5. Notwithstanding points 1 and 2 of the regulations, if a person who is not referred to in point 6 of the status of independent agent, running your business, and it is empowered to enter into contracts on behalf of the company, and the State typically used these powers, then it is considered that this company used permanent representation in that Contracting State in respect of any of the person's business activities, except where that person is carrying out activities referred to in paragraph 4 of that is, a permanent place of business cannot be regarded as permanent representations in accordance with the provisions of paragraph 4. 6. it will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, only through brokers, sales agent or any other agent of an independent status, provided that such persons perform their normal business activities. However, if such an agent is completely or almost completely business is carried out, these agents cannot be considered an independent agent in the sense referred to in this paragraph. 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 itself does not turn into one of those companies on the other company's permanent representation. Article 6 Income from real property 1. income which a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State, may be taxing in that other country. 2. the term "immovable property" have the meaning it has in its legislation of a Contracting State in which the property is located. In any case, this concept includes property which belongs to real estate property, livestock and equipment used in agriculture and forestry, rights to which the General legislative acts are attributable to the ground attached to the property, any property purchase right of use or similar right to acquire real estate, uzufrukt real estate and rights to variable or fixed payments for the right to use valid, natural mineral deposits and other natural resources, or for their use. For real estate will not be considered to be ships, barges and aircraft. 3. the provisions of paragraph 1 shall be applied in respect of income from real estate direct use, letting or use in any other way, as well as income from the alienation of immovable property. 4. If the company's shares or other corporate rights give the holder the right to public use of the property, the income from the direct use, letting or use in any other way can be taxing in the Contracting State in which the immovable property is situated. 5.1, 3, and 4. the provisions of paragraph 1 shall be applied in respect of income from the company's real estate, as well as income from real property used for independent individual services. Article 7 business profits 1. Contracting State company profits will be taxed only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits can be taxing in the other country, but only the profit that can be attributed to the permanent establishment. 2. in accordance with the provisions of paragraph 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the amount of profit, it would benefit if the individual is clearly the company that performs the same or similar business activities under the same or similar conditions and acts completely independently of the undertaking, which uses the permanent representations. 3. in determining the profits of a permanent representation in that Contracting State be allowed permanent representation expenses, including representation of operational and general administrative costs incurred by the country in which the permanent establishment or elsewhere, the deduction of the amount of taxable. 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 to determine the taxable profit by this principle; However, this distribution method is applied to the result match the principles contained in this article. 5. On the permanent representation will not be applied the earnings just because it has purchased your business goods or articles. 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 the sea or air transport use in international traffic will be taxed only in the country. 2. paragraph 1 shall also apply to profits from the participation in a pool, joint business or international traffic transport agency. Article 9 Associated enterprises 1. If: (a) the Contracting State) directly or indirectly participating in the other Contracting State, the company's management or control or it owns part of the company's capital, or b) the same persons directly or indirectly participating in the management company of a Contracting State or control or they own in the company's capital and at the same time they are directly or indirectly participating in the other Contracting State, the company's management or control or they own part of the company of the other country and in any of these cases, the two companies ' commercial or financial relations are created or established by rules different from those provisions that the force between two independent (non-related) companies, then any profit that the formation of one of the companies, but the above provisions do not affect the established, can be included in the company's earnings and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State (and accordingly taxable) profit for which other country in the territory of the other Contracting State has been charged with duties, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two independent companies, the other country take appropriate corrective for the size of the tax that is taxed in the other State of this profit. In determining this corrective, take into account the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States for consultations. Article 10 dividends 1-dividends, a company of a Contracting State a resident of the other Contracting State paid to a resident, can be taxing in that other country. 2. However, such dividends may also be taxing in accordance with the national law of the Contracting State of which the resident is a company that pays dividends, but (a) if the dividend paid) a company which is a resident of Latvia, and the recipient is a resident of Malta who is the rightful owner of the dividends, the tax due in Latvia may not exceed: (i) 5 percent of the total amount of dividends if the dividends the company owner is implemented that is not a limited partnership and managed by at least 25 percent of the company capital, which paid dividends; (ii) 10 per cent of the aggregate amount of the dividends in all other cases; (b) if those dividends paid) a company which is a resident of Malta, and the recipient is a resident of Latvia, which is the true owner of the dividends, the tax due in Malta, which taxed the amount of the dividends shall not exceed the duty with which the public is taxed profits from which dividends are paid. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares or other rights to participate in profits, which is not a debt, 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, is subject to the same taxation as income from the shares. 4. paragraphs 1 and 2 will not apply, if the true owner of dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company is resident in the cost dividends using the existing permanent representation there, or give independent individual services in that other State through a permanent base located there, and where participation, which is paid out in dividends, is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the company — a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be nor to any tax dividends paid to this company, except where the dividends are paid to a resident of the other State or participation, which is paid out in dividends, is actually related to the permanent representation or permanent base, located in the other State; nor to retained earnings in the company's undistributed profits, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. Article 11 interest 1. interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxing in that other country. 2. However, such interest may also be taxing 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, interest arising in a Contracting State and one where the recipient and the rightful owner is the territory of the other Contracting State Government, local governments, the central bank or any other this Government fully-owned financial institutions, as well as the interest received on the other State loans guaranteed by the Government, will not be taxed in the first country. 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. The term "interest" does not include any income which is treated as a dividend under the provisions of article 10. Interest received on payments made during, not be regarded as interest for the application of the provisions of this article. 5.1, 2 and 3 shall not be applied, if the true owner of the interest, which is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located therein, and of claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 6. If the payer of the interest is a resident of a Contracting State, it will be deemed that the interest generated in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred the debt that pays interest, and this interest is paid (bear) permanent establishment or fixed base, will be considered that the interest incurred in the State in which the permanent establishment or fixed base. 7. If, on the basis of the special relationship between the payer and the interest percentage implemented owner or between both of them and some other person, the amount of interest that relate to debt claims, on the basis of which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest owner will, if implemented, they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. The remaining part of the payment is tax deductible according to each Contracting State law provided that you comply with the other provisions of this Convention. Article 12 royalties 1. Royalties arising in a Contracting State and is paid to residents of the other Contracting State, may be taxing in that other country. 2. However, such royalties may also be taxing in accordance with national law 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 10 per cent of the total royalties. 3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work (including cinematograph films and films or records, or other image or sound reproduction means the radio or television broadcasting), any patent, trademark, design or model, plan, secret formula or process, or for the production , commercial or scientific equipment, or for the right to use them, or for information concerning industrial, commercial or scientific experience. 4. paragraphs 1 and 2 shall not be applied, if the true owner of the royalties, which is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located there, and if the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the payer of the royalties is a resident of a Contracting State, it will be considered that the royalties arise in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which committed to pay the royalties, and the royalties paid to (bear) permanent establishment or fixed base, will be considered that the royalties arise in the State in which the permanent establishment or fixed base. 6. If, on the basis of the special relationship between the payer of royalties and royalties shall implement the owner or between both of them and some other person, the amount of the royalties relating to the use, right or information for which the royalties are 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 payment of the part that exceeds this amount, you will be taxed according to each Contracting State law provided that you comply with the other provisions of this Convention. Article 13 expropriation 1. income or capital growth, by a resident of a Contracting State derives, the disposal referred to in article 6, in the other Contracting State the existing real estate or shares, or other similar forms of participation in society, which are mainly the property directly or indirectly consists of such real estate, can be taxing in that other country. 2. Capital gains earned on the property, which is an enterprise of a Contracting State in the other Contracting standing representative offices in the country to be used in business ownership, disposal or on property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, the disposal of assets, including capital gains from such permanent missions (alone or with the whole enterprise) or of such a permanent disposal base disposal can be taxing in the other Contracting State. 3. Capital increase by the company of a Contracting State in international traffic, which uses the sea or air transport, making international traffic used for sea or air transport or disposal of this marine or air transport use of movable property belonging to the forfeiture, will be subject to tax only in the country. 4. Capital gains earned on the disposal of any property, which is different from 1, 2, and 3. the property referred to in paragraph 1 will be subject to tax only in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. Contracting State residents — physical persons income earned by providing professional services or other independent activities, will be taxed only in the country, except if that person your actions It uses regular access to permanent base the second Contracting State. If you are using the following permanent base, income can be taxing in the other country, but only to the extent that they apply to this permanent base. If a resident of a Contracting State: the natural person does not use such a permanent base, but staying in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any twelve month period commencing or ending in the taxation year will be considered that this person uses regular access to permanent base the second Contracting State and the income that accrued on the second country made the above actions will be applied to this permanent base. 2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18 and the provisions of article 19 salaries, wages and other similar remuneration which a resident of a Contracting State receives for gainful employment, will be taxed only in the country, if one paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can be taxing in that other country. 2. Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxed in the first only in that country, provided that: (a)) is a beneficiary in another country for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxation year; and (b) the remuneration is paid) an employer who is not a resident of the other State, or the name of the employer; and (c) the remuneration is not paid) (bear) permanent representation or permanent base, used by the employer in the other country. 3. Notwithstanding the preceding paragraphs of this article, the rules of remuneration received for paid work that is being done to a company of a Contracting State in international traffic used for sea or air transport, can be taxing in that Contracting State. Article 16 Directors ' fees directors ' fees and other similar remuneration received by a resident of a Contracting State as the Board of directors or other similar institutions in society, which is a member of the other residents of a Contracting State, may be taxing in that other country. Article 17 artists and athletes 1. articles 14 and 15 of the rules of income for the residents of a Contracting State as izpildītājmāksliniek, such as theatre, film, radio or television, an actor, a musician, or as an athlete on their individual activities in the other Contracting State, may be taxing in that other country. 2. If an artist or athlete's income on his individual activity in the area in question is paid not the artist or athlete but to another person, that income regardless of the 7, 14 and 15 article can be taxing the Contracting State to which the izpildītājmāksliniek or athletes. 3.1 and paragraph 2 shall not apply to income derived from activities performed by a Contracting State or an athlete, an artist if the visit to that State is wholly or mainly supported on one or both of the Contracting States or of their local public funds. In this case the income is liable to tax only in the Contracting State of which the resident is the artist or athlete. Article 18 pensions 1. in accordance with article 19, paragraph 2 of the pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment will be taxed only in the country where residents have a pension or a beneficiary. 2. Notwithstanding the provisions of paragraph 1, pensions and other similar payments which are paid in accordance with national social security legislation, will be taxed only in the country. Article 19 government service 1 a) wages, earnings, and other similar remuneration, other than a pension, and a natural person the cost of Contracting State or its municipalities on State or local services to be taxed only in the country. (b)) However, this income, earnings, and other similar remuneration will be taxed only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely to provide these services. 2. a pension by) any natural person the cost of Contracting State or of its local authorities or who are paid out of the funds set up for services provided by that person or the municipality, this country will be taxed only in the country. (b)) However, this pension will be taxed only in the other Contracting State if the individual is a resident of that other State and the citizen. 3. This Convention 15, 16 and article 18 shall apply to remuneration, earnings, other similar remuneration and pensions that are paid for services provided in respect of the Contracting State or of its local authorities carry out business. Article 20 students, apprentices and trainees a Student, apprentice or trainee, who arrived only in the Contracting State in order to pursue studies or internship, and who is or was immediately before the arrival of the other residents of a Contracting State, the first in that country will be exempt from taxation in respect of payments which the person receives a residence, study or internship needs from outside that country first hand sources. Article 21 Offshore Activities in zone 1. The provisions of this article shall apply irrespective of the Convention article 4 to 20. 2. In this article the term "offshore area" means any party to the action shelf area associated with the sea and subsoils and keep the existing natural resources exploration and exploitation. 3. persons — residents of a Contracting State operating area of the ice shelf which is performed in the other Contracting State, ice area, in accordance with the provisions of paragraph 4, will be treated as a business that is carried on in the other Contracting State through a permanent establishment there existing or permanent base. 4. paragraph 3 shall not apply if the action shelf area will be carried out during a period or periods not exceeding in the aggregate 30 days in any twelve month period. The application of this paragraph: (a) the shelf zone) the activities carried out by a person who is related to another person, this will be seen as another person to take action, if this action is essentially the same as its first performed by that person, other than a first-person action that is carried out simultaneously with the other activities of the person; (b)) a person shall be deemed to be associated with another person if one of them directly or indirectly controls the other or a third person or third party directly or indirectly controls both parties. 5. the wages, earnings, and other similar remuneration received by a resident of a Contracting State for gainful work associated with the activity of the other contracting country of the shelf area, can be taxing in that other State to the extent that work has been done in this country to the other shelf area. However, such remuneration will be taxed only in the first country, where paid work has been made in favour of the employer who is not a resident of the other State, and if the duration of a maximum 30-day period or periods in any twelve month period. 6. income which a resident of a Contracting State derives, to: (a) the disposal or use of the research); or (b)) property, which hosted the second Contracting State and used in connection with the operation of the ice shelf area in the other country; or (c)), which shares your values or values most directly or indirectly derived from the above rights or property, or the rights and property of these together; can be taxing in that other country. In this paragraph, the term "research or exploitation rights" means the right to property, which can be generated by activities in the other Contracting State, or ice the right to participation in the ownership or profit to be gained in this property. Article 22 other income 1. other previous articles of this Convention shall not featured residents of a Contracting State income types regardless of their sources will be taxed only in the country. However, the types of income arising in the other Contracting State, may be taxed in that other 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 the property on which you receive this income is actually linked to the permanent representations, or permanent base. In this case, depending on the circumstances, apply the Convention in article 7 or 14. Article 23 avoidance of double taxation with respect to 1 the residents of Latvia, double taxation shall be avoided as follows: where a resident of Latvia derives income which, in accordance with this Convention, may be taxed in Malta, taxes unless domestic legislation of Latvia is more favourable provisions, Latvia should be permitted to deduct from this income tax resident the amount equal to the tax paid in Malta. This deduction shall not, however, exceed that part of Latvian income tax, which is calculated before the deduction of which is attributable to the income that can be taxing in Malta. 2. for residents of Malta, double taxation shall be avoided as follows: a in accordance with Maltese law provisions on paid abroad tax deduction from tax payable in Malta: If, in accordance with the provisions of this Convention income in Latvia is included in taxable income in Malta, for the income tax paid in Latvia will be allowed to deduct from the tax payable in Malta. 3. paragraphs 1 and 2 of the application for the first five years from the commencement of the application of this Convention to be considered that the term "Malta tax paid" and "tax paid in Latvia" within the Malta tax or duty of Latvia, someone would have had to pay, but which is reduced or in respect of which it is granted exemption under Maltese or Latvian legislative provisions for relief, established to promote economic development. The above applies only to the extent that the tax reduction or exemption is granted on income from production, agriculture, fisheries or tourism, provided that the application of paragraph 1 in the case of actions for which the income has been achieved, carried out in Malta and the application of paragraph 2 in the case of Latvia. Article 24 non-discrimination 1. prevent nationals of a Contracting State in the other Contracting State shall not be subject to any taxation or any requirements connected with them, which is different from taxation or related requirements, which are or may be exposed to the other citizens of the country in the same circumstances, or which is more burdensome, in particular with respect to residence. 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. Stateless persons who are residents of a Contracting State, any of the Contracting States shall not be subject to taxation or any related requirements, which differ from the taxation or related requirements, which are or may be exposed to nationals in the same circumstances, or which is more burdensome, in particular with respect to residence. 3. a Contracting State a permanent establishment of the representation used in the other Contracting State may not be taxing in that other country less favourably than would be taxed in the other State companies that do the same type of action. This provision shall not be interpreted so that it would impose a Contracting State the obligation to grant the other Contracting State, a resident of any personal allowances, reliefs and reductions for taxation, as this country give its residents, in the light of their civil status or family responsibilities. 4. Except where the applicable paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident by establishing this company's taxable profits, must be deducted from the profits subject to the same provisions as if they were to be paid to the first residents of that State. 5. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more of the other Contracting State residents or which they directly or indirectly control, the first in that country may not be subject to any taxation or any requirements connected with them, which is different from the taxation and related requirements, which are or may be exposed to similar to the former State enterprises, or which are more onerous. 25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting States party to the cause or may cause that person such taxation, which does not comply with the provisions of this Convention, that person may, irrespective of the national legislative provisions which provide to eliminate such taxation, to submit complaints to the competent authorities of the country of which that person is resident, or if the complaint relates to article 24, paragraph 1 by the competent authorities of the country of which that person is. The complaint must be submitted for review within three years from the first notification of the action that caused the taxation not in accordance with the provisions of this Convention. 2. the competent authorities are obliged to seek to resolve this issue, if it considers that the complaint is justified, and if this institution fail to reach a satisfactory solution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities in order to prevent this Convention without the appropriate taxation. Any such agreement is reached is due irrespective of the Contracting State of the domestic laws of the time limits laid down. 3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise in the interpretation or application of this Convention. They may also consult to avoid double taxation in cases not provided for in the Convention. 4. in order to reach agreement on these issues in the previous paragraphs, the competent authorities of the Contracting States may communicate directly with one another, as well as following an exchange of views can take place with the competent authorities of the Contracting States of the representatives of the Commission. Article 26 exchange of information 1. National authorities should exchange information necessary for the carrying out of the provisions of this Convention or of the domestic legislation of the Contracting States for enforcement of legislation on taxes covered by this Convention, in so far as such legislation is not contrary to this Convention. Article 1 of the Convention does not restrict the exchange of information. Any information received by a Contracting State, should be treated as sensitive as information that is obtained in accordance with the national legislation and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the tax to which this Convention applies, in the calculation of the charging, prosecution, legal liability, or in the application of coercive measures in appeals in respect of those taxes. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public court proceedings or in judgements. 2. the provisions of paragraph 1 shall not be interpreted so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to provide information that is not available under one or other of the Contracting State legislation or administrative practice generally applicable; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to the public interest (ordre public). Article 27 limitation of Benefits 1. If, in accordance with any provisions of this Convention in respect of income tax relief is granted in the Contracting State and according to the other Contracting State the applicable law any person in that other State in respect of this income is subject to taxation to the extent that this income is transferred to the other country or have received a second, but this country is not subject to taxation in respect of the total amount of this income in this Convention, the tax relief provided for in the first Contracting State will be applied only to the extent that this income is exempt from taxes in the other country. 2. the provisions of this Convention will not be applied in respect of the persons referred to in the Protocol, which is granted special tax treatment under any law of a Contracting State legislation or administrative practice. Similarly, the provisions of the Convention will not be applied in relation to a resident of the other Contracting State the income from these persons, as well as other State residents for belonging to that person shares or other forms of participation in them. 3. Notwithstanding any provisions of this Convention to a resident of a Contracting State does not receive any tax relief or exemption from taxes, which, in accordance with this Convention can be assigned to the other Contracting State if the resident or the resident persons linked with the creation or existence of the main purpose has been to use this Convention benefits, which would not otherwise apply. Article 28 diplomatic and consular personnel, nothing in this Convention shall not affect the diplomatic missions or consular posts personnel fiscal privileges which it applied in accordance with international law or special agreements. Article 29 entry into force 1. Contracting Governments shall inform the diplomatic path of each other that have met the national legal requirements necessary for the entry into force of the Convention. 2. this Convention shall enter into force referred to in paragraph 1 the last statement date, and its provisions will be applied: (a)): (i) in respect of taxes withheld at the time cost, starting with income earned in January of the calendar year or after the first day of the calendar year following the year in which this Convention enters into force; (ii) in respect of other taxes, starting with taxes payable in any tax year, which begins in January of the calendar year or after the first day of the calendar year following the year in which this Convention enters into force; b) Malta: in respect of income taxes, starting with income earned in any calendar year or accounting period, which begins its January monthly or after the first day following the date on which this Convention enters into force. Article 30 termination this Convention shall remain valid as long as the one Contracting State it shall be terminated. Each Contracting State may terminate this Convention, diplomatic channels by giving written notice of termination at least six months before any end of the calendar year. In this case the Convention shall cease: (a)): (i) in respect of taxes withheld at the time cost, starting with income earned in January of the calendar year or after the first day of the calendar year following the year in which the notice of termination; (ii) in respect of other taxes, starting with taxes payable in any tax year, which begins in January of the calendar year or after the first day of the calendar year following the year in which the notice of termination; b) Malta: in respect of income taxes, starting with income earned in any calendar year or accounting period, which begins its January monthly or after the first day following the date on which the notification is submitted to terminate. In witness thereof, the undersigned, being duly authorised, have signed this Convention. The Convention is drawn up in two copies of 22 May 2000 in Latvian and English, both texts being equally authentic. Different case is decisive for the interpretation of the text in English.

The Government of the Republic of Latvia, the Government of Malta, Gundars Berzins John Dalli Protocol Signed by the Government of the Republic of Latvia and the Government of Malta Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Convention), the two parties have agreed upon the following provisions, which are an integral part of this Convention. 1. in relation to article 4, paragraph 3 it is understood that, in accordance with Latvian law company is considered resident for taxation only if it is incorporated (registered) in Latvia. If these provisions will be amended and will be intended that residence taxation needs to be based on the actual management of the public location, where the company will be considered a resident of both Contracting States, it is decided that it should be considered only as a resident of the State in which its place of effective management. This provision shall apply from the date on which the entry into force of the above amendments to the Latvian legislation. 2. with regard to article 7, paragraph 1 it is understood that the Contracting State of which the company's profits gained on the sale of goods or products in the other Contracting State who is subject to the same or similar to the goods or products that are sold through the permanent representation in the country, or the other Contracting State the profits gained on the other second country made the business that is the same or similar to What is done through the permanent representation in the other country, can be considered to be attributable to the permanent representations, if it is established that the sale or the business is organized in such a way as to avoid paying taxes in the other country. 3. with regard to article 7, paragraph 3, it is understood that the expenses that Contracting State permission to deduct from the amount to be taxed, include only expenses that are deductible under the domestic laws of that State. 4. with regard to article 27 (2): (a) be understood) in Latvia is not legislation or administrative practice, according to which persons are entitled to use the special tax regime; b) Malta special tax regime are entitled to use: (i) a person who uses special tax incentives in accordance with Maltese law on the 1994 financial services center, except those who have chosen to work in accordance with the income tax Act (Cap. 123) and the 1994 income tax Management Act General regulations; or (ii) persons who, in accordance with the 1974 Law on commercial shipping is exempt from taxation in respect of the profits gained by the use of ships in international traffic, to the extent those persons are exempt from taxation; or (iii) a person who uses any special tax benefits in respect of trust income distribution on the basis of the provisions of the Act, the trust provided that trust in accordance with that law is not a legal personality and hence this trust cannot use any relief under this Convention; (c) if any of the) Contracting States are introduced legislation, which is similar to this point (b)), and both referred to the competent authorities of the Contracting States agree that, subject to article 27, paragraph 2, any person who is entitled to use any special tax incentives in accordance with these legislative acts, are excluded from the scope of this Convention. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies of 22 May 2000 in Latvian and English, both texts being equally authentic. Different case is decisive for the interpretation of the text in English.

The Government of the Republic of Latvia, the Government of Malta, Gundars Berzins John Dalli Convention between the Government of the Republic of Latvia and the Government of Malta for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income the Government of the Republic of Latvia and the Government of Malta, to conclud a Convention (menu Rngton Line4) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income , 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 a Contracting State or of its local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovabl property. 3. The existing taxes to which the Convention shall apply in particular to: (a)) in the United Kingdom: (i) the enterprise income tax (corporate income tax); (ii) the personal income tax (individual income tax); (hereinafter referred to as "Latvian tax"); (b)) in Malta: the income tax; (hereinafter referred to as "Malta 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 each significant changes which have been made in their taxation laws of respectiv. Article 3 GENERAL DEFINITION 1. For the purpose of this Convention, unless the context otherwise requires: a the term) "Corporation" means the Republic of Latvia and, when used in the sense of location, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which under the law of Latvia and in accordanc with international law the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (b) the term "Malta") means the Republic of Malta and, when used in a location sense, means the Island of Malta, the Island of Gozo and the other islands of the Maltese archipelag of including the territorial waters thereof, as well as any area of the sea bed and its sub soil,-the superjacen the water column adjacent to the territorial waters, wherein the Republic of Malta exercises sovereign rights, jurisdiction, or control in accordanc with international law and its national law , including its legislation relating to the exploration of the continental shelf and exploitation of its natural resources; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Malta, 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 Malta, the Minister responsible for finance 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 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. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question it by mutual agreement. In the absence of such agreement, for the purpose of the Convention, the person shall not be entitled to claim any benefits provided by this Convention. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e a workshop, and f)) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. The term "permanent establishment" of a likewis: encompass) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than six months; (b)) the furnishings of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue for a period or periods aggregating more than six months within any twelve-month period. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d)) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will 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 , or to explore for, mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. Where the ownership of shares or other corporate rights in a company the owner of entitl such shares or corporate rights to the enjoymen of immovabl property held by the company, the income from the direct use, letting, or use in any other form of such right may be taxed to the enjoymen in the Contracting State in which the immovabl property is situated. 5. The provision of paragraphs 1, 3 and 4 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services. Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, 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 a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but: (a)) where the dividend paid by a company with which is a resident of Latvia to a resident of Malta who is the beneficial owner thereof, the tax so charged shall not exceeds 100 Latvian : (i) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividend; (ii) 10 per cent of the gross amount of the dividends in all other cases; (b)) where the dividend paid by a company with which is a resident of Malta to a resident of the United States who is the beneficial owner thereof, Malta tax on the gross amount of the dividends shall not exceeds 100 in that chargeabl on the profits out of which the dividend is paid with. 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, interest arising in a Contracting State, derived and beneficially owned by the Government of the other Contracting State, including local authorities, though the Central Bank or any financial institution wholly owned by that Government, or interest derived on loans guaranteed by that Government shall be main from tax in the first-mentioned State. 4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage, and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur. The term "interest" shall not include any income which is treated as a dividend under the provision of article 10. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 12 to 1 to ROYALT Royalt arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes and other means of image or sound reproduction 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 ALIENATION OF PROPERTY 1. Income or gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State or shares or interests in a company a comparabl the assets directly or indirectly be consis of which mainly of such property may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State operating ships or aircraft in international traffic from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be only in the taxabl you state. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be the taxabl only in the Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributabl to that fixed base. If an individual who is a resident of a Contracting State has from such a fixed base, but he stay in the other Contracting State 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, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that the performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18 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 directors ' fees directors ' fees and other similar remuneration derived by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 artistes AND SPORTSMEN 1. Notwithstanding the provision of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman's in his capacity as such notes to the accru entertainer or sportsman's himself but to another person, that income may, notwithstanding the provision of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman's are exercised. 3. The provision of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by an entertainer or a sportsman's if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or local authorities thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsman's is a resident. Article 18 PENSION AND SOCIAL SECURITY payments 1. Subject to the provision of paragraph 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. 2. Notwithstanding the provision of paragraph 1, the pension paid and others payments made under the social security legislation of a Contracting State shall be only in the taxabl you state. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be only in the taxabl you state. (b) However, such, salar) WAGs and other similar remuneration shall be taxabl only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (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 local authority thereof to an individual in respect of services rendered to that State or authority shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16, 17 and 18 shall apply to salar, 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 local authority thereof. Article 20 STUDENTS A student, an apprentice or a trainee who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State shall be the main from tax in the first-mentioned State on payments received from outside that first-mentioned State for the purpose of his maintenance, education or training. Article 21 offshore activities 1. The provision of this article shall apply notwithstanding the provision of Article 4 of the 20 of this Convention. 2. For the purpose of this article, the term "offshore activities" means activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated in that State. 3. A person who is a resident of a Contracting State and carr to on offshore activities in the other Contracting State shall, subject to paragraph 4, be deemed to be carrying on business in that other State through a permanent establishment situated therein or a fixed base. 4. The provision of paragraph 3 shall not apply where the offshore activities are carried on for a period or periods not exceeding in the aggregate 30 days in any twelve month period. For the purpose of this paragraph: a activities carried on offshore) by a person who is associated with another person shall be deemed to be carried on by the other person if the activities in question are substantially the same as those carried on by the first-mentioned person, except when those activities are carried on at the same time as its own activities; (b) a person shall be deemed) to be associated with another person if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third person or third persons. 5. Salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment connected with offshore activities in the other Contracting State may, to the the exten that the duties are performed offshore in that other State, be taxed in that other State. However, such remuneration shall be taxabl only in the first-mentioned State if the employment is carried on for an employer who is not a resident of the other State for a period or periods and not exceeding in the aggregate 30 days in any twelve month period. 6. Gains derived by a resident of a Contracting State from the alienation of: (a) exploration or exploitation rights;) or b property situated in the other) Contracting State which is used in connection with the offshore activities carried on in that other State; or c shares deriving their value) or the greater part of their value directly or indirectly from such rights or such property or from such rights and such property taken together; may be taxed in that other State. In this paragraph the term "exploration or exploitation rights" means rights to assets to be produced by offshore activities carried on in the other Contracting State, or their interests in or to the benefit of such assets. Article 22 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl you state. However, such items of income, arising in the Contracting State, the other may also be taxed in that other State. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. Article 23 ELIMINATION OF double TAXATION 1. In the case of a resident of Latvia, double taxation shall be eliminated as follows: where a resident of Latvia's income which, deriv in accordanc with this Convention, may be taxed in Malta, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow as a deduction in "from the tax on the income of that resident an amount equal to the income tax paid thereon in Malta. Such notes shall, however, exceeds 100 Marbles that part of the income tax in Latvia, as computed before the deduction in "is given, which is attributabl to the income which may be taxed in Malta. 2. In the case of a resident of Malta, double taxation shall be eliminated as follows: subject to the provision of the Malta law regarding the allowance of a credit against Malta tax in respect of foreign tax, where, in accordanc with the provision of this Convention, there is included in a Malta assessment income from sources within Latvia, the Latvian tax on such income shall be allowed as a credit against the relative Malta tax the payable thereon. 3. For the purpose of paragraphs 1 and 2 of the terms "income tax paid thereon in Malta" and "the Latvian tax on such income" shall for the first five years during which this Convention is applicable, be deemed to include the tax in Malta or the Latvian tax which would have been paid but which has been reduced or waived under incentive provision of the law of Malta or the Latvian law designed to promote economic development to the exten that the reduction or exemption is granted for profits from industrial or manufacturing activities or from agriculture, fishing or tourism provided that in the case of application of paragraph 1, the activities are carried out within Malta and in the case of application of paragraph 2 the activities carried out within the Corporation. 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. a person who with Stateles of residents of a Contracting State shall not be subjected in either 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 the State concerned in the same, in particular with circumstanc respect their residence, may be subjected to or. 3. 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. 4. 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. 5. 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. 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. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States the may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 26 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. 2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 27 LIMITATIONS OF benefits where under any provision 1 of this Convention any income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State, (a) the person, in respect of that income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof , then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much of the income as is taxed in the other Contracting State. 2. The provision of this Convention shall not apply to persons enjoying a special fiscal treatment by virtue of the laws or the administrative practice of either one of the Contracting States which are identified in a Protocol to this Convention. They shall not apply to ither income derived from such person by a resident of the other Contracting State, nor to shares or other rights owned by such persons in such a resident. 3. Notwithstanding any other provision of this Convention, a resident of a Contracting State shall not receive the benefit of any reduction in or exemption from taxes provided for in this Convention by the other Contracting State if the main purpose or one of the main purpose of the creation or of the existenc of such resident or any person connected with such resident was to obtain the benefits under this Convention that would not otherwise be available. Article 28 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this Convention shall be affec the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 29 ENTRY into force 1. The Governments of the Contracting States shall notify each other, through diplomatic channels, that the legal 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 in shall have effect: (a)) in the United Kingdom: (i) 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; (ii) in respect of other taxes on income, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (b)) in Malta: in respect of taxes on income derived during any calendar year or accounting period, as the case may be, beginning on or after the first day of January immediately following the date on which the Convention enter into force. Article 30 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 the have effect: (a)) in the United Kingdom: (i) 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; (ii) in respect of other taxes on income, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given; (b)) in Malta: in respect of taxes on income derived during any calendar year or accounting period, as the case may be, beginning on or after the first day of January immediately following the date on which the notice is given. In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done in duplicate at Riga this 22 day of May 2000, in the Latvian and English languages, both 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 Government of Malta Gundars Berzins John Dalli PROTOCOL At the signing of the Convention between the Government of the Republic of Latvia and the Government of Malta for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as "the Convention"), the undersigned have agreed upon the following provision which will form an integral part of the Convention. 1. With reference to paragraph 3 of article 4 It is understood that under the domestic legislation in the United States, a company may only be considered resident for tax purpose if it is incorporated in the United States. Should such legislation be changed to provide for tax residence to be established also on the basis of the place of effective management of a company, then the company is where a considered to be a resident of both Contracting States, it shall be deemed to be a resident only of the Contracting State in which its place of effective management is situated. This provision shall be applicable from the date from which the said change in legislation shall have effect. 2. With reference to paragraph 1 of article 7 It is understood that the profits of an enterprise of a Contracting State derived from the sale of goods or merchandise in the other Contracting State of the same or similar kind as those sold, or from other business activities carried on in the other Contracting State of the same or similar kind as those effected , through a permanent establishment situated in that other State may be considered attributabl to that permanent establishment if it is established that such sales or activities were structured in a manner intended to avoid taxation in that other State. 3. With reference to paragraph 3 of article 7 It is understood that the expense to be allowed as deduction in "by a Contracting State shall include only expense the are under the domestic law of deductibl of that State. 4. With reference to paragraph 2 of article 27 it is understood that: (a)) in the case of Latvia, there is no legislation or administrative practice under which a person may enjoy the special fiscal treatment; (b)) in the case of Malta, the people who enjoy a special fiscal treatment with the following: (i) a person is entitled to a special tax benefit under the Malta Financial Services Centre Act, 1994, except for those persons who opt to be subject to the normal provision of the Income Tax Act (Cap. 123) and of the Income Tax Management Act, 1994; or (ii) a person who and to the exten to which under the provision of the Merchant Shipping Act, 1973 are not subject to tax on the profits derived from the operation of ships in international traffic; or (iii) persons entitled to any special tax benefit in respect of distribution by a trust subject to the provision of the Act given that trusts a trust put down in the axis that the Act is not vested with legal personality and therefore cannot benefit under the this Convention in its own right; (c) if any law substantially similar to) those indicated in sub-paragraph (b) of this paragraph) is enacted by either Contracting State and it is agreed by the competent authorities of the Contracting States that the it be included within the terms of paragraph 2 of article 27, entitled to any special tax for personal benefit thereunder shall likewis be excluded from the provision of this Convention. In witness whereof, the undersigned, duly authorised the theret, have signed this Protocol. Done in duplicate at Riga this 22 day of May 2000, in the Latvian and English languages, both 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 Government of Malta Gundars Berzins John Dalli



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