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

Original Language Title: Par Latvijas Republikas valdības un Singapūras Republikas valdības līgumu 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 the Republic of Singapore Treaty on avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes article 1. 1999 October 6, Singapore signed by the Government of the Republic of Latvia and the Government of the Republic of Singapore Treaty on avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Treaty) and its 1999 October 6, signed a Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The law shall enter into force on the day following its promulgation. To put the contract in law and Protocol Latvian and English. 3. article. The agreement and the Protocol shall enter into force article 28 of the Treaty within the prescribed time and manner, and the Ministry of Foreign Affairs shall notify the newspaper "journal". The law, adopted in 1999 the Saeima on 9 December. State v. President Vaira Vīķe-Freiberga in Riga on 29 December 1999 in the Government of the Republic of Latvia and the Government of the Republic of Singapore Treaty on 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 the Republic of Singapore, reaffirming willingness to conclude an agreement on 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 Agreement shall apply to persons Contract that is one or both of the Contracting State party to the country resident. Article 2 taxes covered by the Agreement. This agreement applies to income taxes levied by the Contracting State or of its local authorities, irrespective of the good way of charging it. 2. income taxes deemed all taxes that total income or taxable income, also part of the tax, which taxed movable or immovable property, the proceeds of disposal of earned income. 3. The existing taxes to which this agreement applies, in particular, is: (a)): (i) corporate income tax; (ii) the individual income tax; (hereinafter referred to as the Latvian tax); b) in Singapore: the income tax (Singapore taxes). 4. This agreement will be applied also to any identical or substantially similar taxes which are imposed after the date of signature of this agreement, supplementing or replacing the existing taxes. Of both national authorities are required to inform each other about all 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 agreement: (a) the term "Latvia") means the Republic of Latvia, and, used in a geographical sense, it represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the 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 concept of "Singapore" means the territory of the Republic of Singapore, Singapore's territorial waters and the territorial sea and land of the sea depths, and used in a geographical sense includes any area outside the territorial waters of Singapore, as well as any of the following areas of sea and Earth, which is or may be determined in accordance with Singapore law and international law as an area where Singapore has the sovereign right to live or not live in natural resource exploration or production; (c) the term "Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or Singapore; (d) the term "person") means a natural person, company, or any other Association of persons; e the term "company") shall mean any corporate person, association or any entity, which, for the purposes of taxation is considered a corporate Association of persons; (f) the term "Contracting Government) of the enterprise" and "enterprise of the other Contracting State" mean respectively an enterprise run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; g) the term "international traffic" means any carriage by sea or air, by a company of a Contracting State, except for the cases when the sea or air transport to move only in the other Contracting State; h) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) Finance Ministers in Singapore, or his authorized 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 agreement at any time Contracting State will use any term which is not defined here, only in the sense that if one 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 agreement applies in addition to any notion of explanation in accordance with applicable tax law will have precedence over this concept of explanations under other law of this State. Article 4 resident 1. in this Agreement, the term "resident of a Contracting State" means any person who is a national of a Contracting State, a resident of that Contracting State for the purposes of taxation. 2. Where, in accordance with the provisions of paragraph 1 an individual is a resident of both Contracting States, its status will be determined in the following manner: (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 the resident status) cannot be determined in accordance with (a)) to c), the Contracting State the competent authorities of this issue must be resolved in 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 contracting authorities should seek to resolve the matter by mutual agreement and determine the mode of application of this agreement to such person. In the absence of such agreement, then that person will not be regarded as resident in one of the Contracting States of this Treaty relief application. Article 5 permanent establishment 1. in this Agreement, 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 a workshop, and f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. A building site, a construction, Assembly or installation project or a supervisory or related advisory activities would be regarded as a permanent establishment only if these works, projects or activities take longer than nine months. 4. Notwithstanding the preceding paragraphs of this article, the provisions of the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. d) permanent site designed exclusively for the purchase of goods or products or information collection needs; e) permanent site designed exclusively for making business arrangements or any other ancillary; f) permanent site designed solely to deal with (a)) and (e)) the following, in any combination thereof, provided that the overall activity is preparatory or ancillary activities. 5. Notwithstanding points 1 and 2 of the regulations, if a person who is not in this article 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 when he is carrying out the activities referred to in paragraph 4, which, in the event of a permanent place of business cannot be regarded as permanent representations in accordance with this paragraph 4 of the rules. 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, when the activities of such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an independent agent in the sense referred to in this paragraph. In this case, you must apply the provisions of paragraph 5. 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 for the 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 real estate purchase and sales rights or similar right to acquire real estate, uzufrukt real estate and rights to variable or fixed payments for the right to use valid minerals , natural deposits and other natural resources, or for their use. For real estate will not be considered to be vessels and aircraft. 3. paragraph 1 of this article, the rules will be applied in respect of income from real estate direct use, letting or use in any other way. 4. If the company's shares or other corporate rights give the holder the right to public use of the property, the income from the direct use, letting or use in any other way can be taxing in the Contracting State in which the immovable property is situated. 5. the following article 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 property that is 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 the permanent representation will be made permanent representation expenses, including the 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 method of distribution must be applied so that the result matches the principles contained in this article. 5. On the permanent representation will not be applied the earnings just because it has purchased your business goods or articles. 6. for the purposes of applying the provisions of the preceding paragraph, the profits attributed to the permanent representations, each year must be determined by the same method, except when there is sufficient reason to do otherwise. 7. If the profit is included in the other articles of this agreement are considered separate income type, 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. for the purposes of the application of this article, the profits of the company to benefit from the use of vessels or aircraft in international traffic include profits from: (a)) or aircraft without crew and equipment rental (bērboutčarter); and (b)) of the goods or return of the product used for the transport of containers (including trailers and related equipment for the transport of containers) use, maintenance or rental, depending on your situation, if such use, maintenance or rental or leasing company in addition to sea or air transport for use in international traffic. 3. paragraph 1 of this article, the rules also apply to profits from the participation in a pool, joint business or international traffic transport agency. Article 9 Associated enterprises where: 1 a) Contracting State the company 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 the following the cases of these two companies in commercial and financial relationships are created or established by rules different from those provisions that the force between two independent (non-related) companies, then any profit that is made for one of the companies, but the above provisions do not affect the established, can be included in the company's earnings and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State (and accordingly taxable) profit, which the company of the other Contracting State has been charged to tax in that other State, and if the other Contracting State, the competent authority agrees, that all this included in earnings or a part of it is profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been the What would be between two independent companies, the other countries have to make appropriate corrective tax, which taxed the earnings of the other country. In determining this corrective, account must be taken of other provisions of this agreement and, if necessary, shall be held by the competent authorities of the Contracting States for mutual consultation. 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 if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total, if real owner of dividends is a company (other than a partnership) that are at least 25 percent of the company capital that paid dividends; b) 10 per cent of the total dividends in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. Notwithstanding the provisions of paragraph 2, the Contracting Government of the country will be exempted from taxation in the other Contracting State with respect to dividends on shares of companies which are residents of this State, of the other shares. However, such exemption shall in no case be applicable to dividends on shares that are not held in public. 4. paragraph 3 of this article, for the purposes of the application of the concept of "Government": a) in Singapore the Singapore Government means and includes: (i) monetary authorities of Singapore (Monetary Authority of Singapore) and currency board (Board of Commissioners of Currency); (ii) the Government of Singapore Investment Corporation (the Government of Singapore Investment Corporation Pte Ltd); (iii) establish by law society or the Government of a wholly owned Singapore institutions, for which, in any case, the relevant time period is agreed by the competent authorities of the Contracting States to the agreement; (b)) means the Government of Latvia in Latvia and includes: (i) the Bank of Latvia; (ii) established by the law society or the Government of Latvia fully-owned institution, for which, in any case, the relevant time period is agreed by the competent authorities of the Contracting States to the agreement. 5. The term "dividends" in this article means income from shares or other rights to participate in profits, not claims, as well as income from other rights which, in accordance with the Contracting State whose resident's income distribution, the company sponsoring the legislation are subject to taxes in the same way as income from the shares. 6. This article and the provisions of paragraph 2 shall not be applied where the real owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the resident is a company that paid dividends, with the existing permanent representation there, or give this second country independent personal services 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 of this agreement are to be applied to the article 7 or 14. 7. in the event that 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 duty of the dividends paid by the company, except when dividends are paid to a resident of the other State, or when the participation of 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 paid to the Government of the other Contracting State who is the owner of the interest in this exercise, will be exempt from taxation in the first Contracting State. 4. paragraph 3 of this article, for the purposes of the application of the concept of "Government" have the same meaning, depending on the circumstances of what is defined in the paragraph 4 of article 10. 5. in 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. 6. This article and the provisions of paragraph 2 shall not be applied, if the interest owner will exercise, being 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 provide this second country independent personal services 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 of the Treaty are to be applied to article 7 or 14. 7. 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. 8. If, due to 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 relating 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. In this case, the remaining part of the payment is taxed in accordance with the national provisions, provided that you comply with the other provisions of this agreement. 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 may not exceed 7.5% of the total royalties. 3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work (including cinematograph films, and films or recordings of radio or television broadcasting), any patent, computer software, trademark, design or model, plan, secret formula or process, or for the industrial, commercial or scientific equipment, or for the right to use them , or for information concerning industrial, commercial or scientific experience. 4. the following article 1 and 2 of the terms will not apply, if the true owner of the royalties, being 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 of the Treaty are to be applied to 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 due to 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 agreement. Article 13 capital gains 1. Capital gains, the resident of a Contracting State alienates a referred to in article 6, in the other Contracting State the existing real estate, can be taxing in that other country. 2. Capital gains, the resident of a Contracting State alienates a shares, except in officially recognized stock exchange quoted shares, which at least 50 per cent of their value directly or indirectly from the other Contracting State the existing real estate, can be taxing in that other country. 3. 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 the business part of the property, or of the disposal of the property, which belongs to the Contracting State the permanent base of a resident in the other Contracting State, which created the independent personal services, including disposal gains (capital) of the following permanent missions (alone or with the whole enterprise) or of such a disposal base, standing the seizures can be taxing in the other Contracting State. 4. Capital increase the company of a Contracting State for that company's use in international traffic, maritime 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. 5. Capital gains earned on the disposal of any property, which is different from 1, 2, 3 and 4 above, 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 when this person your actions, uses it regularly available permanent base in the other State. If you are using the following permanent base, income can be taxing in the other country, but only to the extent that they apply to this permanent base. The application of this article where a resident of a Contracting State: a natural person resident in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any 12-month period 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 12-month period; 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, use of sea or air transport, will be taxed only in the country. However, if the remuneration received by the other residents of a Contracting State, may be taxed in that other State also. 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. the following article 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 provide support from one or both of the Contracting States or local public funds or companies created by the law. 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 in accordance with paragraph 2 of article 19, pensions and other similar remuneration for the previous paid employment received by a resident of a Contracting State will be taxed only in the country. Article 19 government service 1 a) salary, wages and other similar remuneration, other than a pension, and a natural person the cost of Contracting State, the authorities or by law established the society of that State, municipality or public services will be taxed only in the country. (b)) However, this salary, wages 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 for the purposes of providing the services. 2. a pension by) any natural person the cost of Contracting State, the authorities or established by law or by the company, the cost of that Contracting State, the authorities or society to create funds for services provided by that person in that State, municipality or company 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. Salary, pay, other similar remuneration and pensions received for services provided in respect of the Contracting State, the authorities or established by the law society, the business must apply to the 15, 16, 17 and 18, the provisions of the article. Article 20 students 1. Charges for residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the Contracting State had the other resident of a Contracting State and situated in the first mentioned State solely for the purpose of study or placement period, will not be taxed in that State, if such payments arise outside that State. 2. with regard to the provisions of paragraph 1, the trainees will be applied only in respect of payments for education or training period that does not exceed 12 months from the date of first arrival for this purpose in the first country. Article 21 other income 1. other previous articles of this contract not featured a resident of a Contracting State shall, whatever their income sources will be taxed only in the country. 2. paragraph 1 of this article shall not apply to income, other than income from article 6 paragraph 2 defines the immovable property, if the recipient of the income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment there, existing or in that other State independent personal services from a permanent base located there, and if the rights or property of which you receive this income is actually linked to the permanent representations, or permanent base. In this case, depending on the circumstances of the Treaty are to be applied to article 7 or 14. 3. Notwithstanding paragraphs 1 and 2, other provisions of this agreement, previous articles not featured a resident of a Contracting State income arising in the other Contracting State, may be taxed in that other State also. Article 22 limitation of Benefits 1. where this agreement specifies (with or without other conditions) that occurred in Latvia will be exempt from income taxation in Latvia or in Latvia will be taxed at a reduced rate, and in accordance with current legislation of Singapore in Singapore are the income subject to taxation to the extent that it is remitted to or received in Singapore Singapore but are not subject to taxation in respect of the total amount of the income, then the specified in this agreement, a tax exemption or tax reduction in Latvia will be suitable only for the portion of income that is transferred to Singapore or received in Singapore. 2. However, this restriction will not be applied in respect of income which benefit the Singapore Government or any Singapore approved by the competent authorities of the person for the purposes of the application of this paragraph. The term "Singapore Government" include its agencies or by law to build society. 3. The Person — A resident of a Contracting State derives income which, in the other Contracting State, shall not be eligible for this tax deduction laid down in the Treaty, in the event of any person that is associated with this income creation or transfer, the main purpose or one of the main purposes is to use the advantages provided for in this Treaty. 4. the finding referred to in paragraph 3, the relevant competent authority or authorities in addition to the other factors must be taken into account in the amount and type of income, the circumstances in which this income is gained, the intention of the parties in relation to the transaction and the person who is legally or in fact, directly or indirectly: (i) control this income or income in this implementation is the owner, or (ii) controlled by persons who have one or both of the Contracting States residents and are associated with this income paid or received or is this person put the owner, identity and residence. Article 23 avoidance of double taxation 1. In Latvia, double taxation will be avoided in the following manner: (a)) in case a resident of Latvia receives income which, in accordance with this agreement may be subject to taxes in Singapore, if the domestic legislation of Latvia is more favourable provisions, Latvia should be permitted to deduct from this income tax resident an amount equal to the income tax paid in Singapore. However, this deduction may in no case exceed the income tax part of Latvia, as computed before the deduction is made that this is attributable to the income which may be taxed taxes in Singapore; (b)) (a) of this paragraph) in the case of the application of a company which is a resident of Latvia receives a dividend from a company that is a resident of Singapore, and the public — Latvian resident owns at least 10 percent of its shares with full voting rights, the tax paid in Singapore will include not only the tax that taxed dividends, but also tax, which taxed the public profits from which dividends are paid the part corresponding to these dividends. 2. In Singapore double taxation will be avoided in the following way: If a resident of Singapore derives income in Latvia, which in accordance with the terms of this agreement may be subject to tax in Latvia, Singapore under its provisions relating to the granting of relief on taxes paid in any country other than Singapore, allow to deduct from the residents in Singapore tax tax paid in Latvia, regardless of whether this tax in Latvia this resident has paid the same whether tax has been withheld on income paid. If that income is a dividend paid by a company resident in Latvia — the public — a resident of Singapore, which owns not less than 10 percent of the share capital of the first company in determining the deductible amount, it will include the company's — Latvian residents, the tax paid in Latvia on the profit from which the dividends are paid. 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. a Contracting State, the permanent representation of the company, which the company 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 business. 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 private discounts, exemptions and reductions for taxation granted by the State to its residents, in the light of their civil status or family responsibilities. 3. Nothing in this article may not be interpreted in such a way that it would impose a Contracting State the obligation to grant the other Contracting State, such private citizens discounts, exemptions and reductions for taxation which that country grants its citizens who are not residents of this State, or other people who may be especially certain that national tax legislation. 4. Except where the applicable paragraph 1 of article 9, paragraph 8 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, in determining the taxable profit of the company, 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 is wholly or partly 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. 6. If a Contracting State grants tax incentives for its citizens to foster economic and social development in accordance with national policies and criteria, these benefits cannot be considered discriminatory, in accordance with the provisions of this article. 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 terms of this agreement, 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 terms of this agreement. 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 the contract inappropriate 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 agreement. They may also consult to avoid double taxation in cases not provided for in any agreement. 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 Commission, which consists of the competent authorities of the Contracting States ' representatives. Article 26 exchange of information 1. National authorities should exchange information necessary for the carrying out of this contract or Contracting State the domestic law concerning taxes covered by this agreement, the requirements to the extent that those provisions are not inconsistent with this agreement. Any information received by a Contracting State, should be treated as sensitive, as the 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 covered by this agreement, the calculation, collection, the application of coercive measures, the prosecution of legal liability, or in the 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. in no case shall 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 to provide information the disclosure of which would be contrary to the public interest (ordre public). Article 27 diplomatic and consular personnel, nothing in this Agreement shall not affect the diplomatic missions or consular posts personnel fiscal privileges which it applied in accordance with international law or special agreements. Article 28 entry into force 1. Contracting Governments should inform each other that the constitutional requirements of these countries needed to take effect, the Treaty is fulfilled. 2. this Treaty 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 agreement 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 agreement enters into force. b) in Singapore: in respect of taxes payable for any tax year beginning with the second calendar year of January 1 or January 1 following the year in which the entry into force of this Treaty. Article 29 termination this Agreement shall remain in force as long as one Contracting State it shall be terminated. Each Contracting State may terminate the operation of this Agreement shall be submitted to the diplomatic path, in the written notice of termination at least six months before any end of the calendar year. In this case, the contract will be terminated: (a)): (i) in respect of taxes that are withheld income costs time, 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 has been filed; (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 has been filed. b) in Singapore: in respect of taxes payable for any tax year beginning with the second calendar year of January 1 or January 1 following the year in which the notice has been filed. In witness thereof, the undersigned, being duly authorised, have signed this agreement. The agreement is drawn up in two copies in Singapore in 1999 October 6, 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 Republic of Singapore Government, Anatoli Gorbunov John Chen Protocol by the Government of the Republic of Latvia and the Government of the Republic of Singapore signed a 1999 in Singapore on October 6, the transnational agreement on bilateral double taxation and the prevention of fiscal evasion with respect to income taxes, agreed that the following provisions of the said agreement are an integral part of: 1. Article 7: paragraph 3 of this article, for the purposes of the application it is understood that the concept of "permanent representation expenses" means expenses which could be deducted if the permanent establishment were a separate enterprise of the Contracting State in which the permanent establishment is located, and who is reasonably attributable to the permanent establishment. 2. with respect to article 10 (a)) in accordance with the existing case law in Singapore, where the firm-Singapore resident dividends to a company — resident of Latvia, which is the true owner of the dividends, the tax does not exist in Singapore, which in addition to the tax, which is levied on company profits or income, taxed dividends. (b)) this article and paragraph 3 will apply to dividends paid to a company — resident of Singapore if Singapore after this date of signature of the Treaty will introduce a tax that will exempt dividends in addition to the tax, which is paid on income or profits of the company. 3. with regard to article 6 and 13: the Contracting States understand that all income and capital gains that accrued on a Contracting State the existing disposal of immovable property may be taxed in that Contracting State tax in accordance with article 13 of this agreement. 4. with regard to article 17: This application of article "the 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" shall also apply to the income that sustains any person as an artist or sportsman. 5. in relation to article 24: a) stateless persons who are residents of a Contracting State, any of the Contracting States shall not be subject to taxation or any requirements associated with them that are different or more burdensome than those which are or may be exposed to nationals in the same circumstances, in particular with respect to residence. (b)) this application of article will understand that to allow to deduct payments to non-residents, nothing in this paragraph shall not be interpreted as restricting the right of a Contracting State to determine the income of the paying agent to pay a withholding tax from such payments at the time of the costs. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies in Singapore in 1999 October 6, 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 Republic of Singapore Government, Anatoli Gorbunov John Chen of the agreement between the Government of the Republic of Latvia and the Government of the Republic of Singapore 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 the Republic of Singapore , An agreement the conclud (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 Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This agreement 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 agreement shall apply are in particular: (a) in the United Kingdom: (i) the enterprise income tax (income tax of enterprises); (ii) the personal income tax (will tax revenue); (hereinafter referred to as "Latvian tax"); (b) in Singapore: the income tax (hereinafter referred to as "Singapore tax"). 4. The agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the agreement 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 agreement, unless the context otherwise requires: (a) the term "United States" 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 "Singapore" means the territories of the Republic of Singapore, the territorial waters of Singapore and the sea bed and sub-soil of the territorial waters, and when used in a location sense includes any area extending beyond the limits of the territorial waters of Singapore, and the sea bed and sub-soil of any such area, which has been or may hereafter be designated under the laws of Singapore and in accordanc with international law as an area over which Singapore has sovereign rights for the purpose of exploring and exploiting the natural resources, whethers living or non-living; (c) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Singapore 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 terms "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 Singapore, the Minister 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 agreement 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 agreement 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 agreement, the term "resident of a Contracting State" means any person who is a resident in a Contracting State for tax purpose of that Contracting 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 the status of a resident cannot be determined according to the sub-paragraphs (a) to (c), the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question by their mutual agreement and determin the mode of application of the agreement to such person. In the absence of such agreement, such person shall not be considered to be a resident of either Contracting State for the purpose of enjoying benefits under the agreement. Article 5 permanent establishment 1. For the purpose of this agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: (a) a place of management; (b) a branch; (c) an Office; (d) a factory; (e) a workshop; and (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. A building site, a construction, assembly or installation project or a supervisory activity connected therewith or consultancy constitut a permanent establishment only if such site, project or activity lasts for a period of more than nine months; 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraph (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, if the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise and the condition between the agent and the enterprise differ from those which would be made between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this paragraph. In such case the provision of paragraph 5 shall apply. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other. Article 6 income FROM IMMOVABL PROPERTY 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovabl property, livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, any option or similar right to the immovabl property, usufruc acquir of immovabl property and rights to variable or fixed payments as considerations for the working of, or the right to work , mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. 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 business 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 business 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 Agreement, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. For the purpose of this article, profits of an enterprise from the operation of ships or aircraft in international traffic shall include: (a) profits from the rental on a barebo basis of a ship or aircraft; and (b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is it the operations of incidentals ships or aircraft by the enterprise in international traffic. 3. The provision of 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 the directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or (b) the same person is directly or indirectly to 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 where the competent authority of the other Contracting State or of that all agree on of 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 agreement and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not (a) 12:5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividend; (b) 10 per cent of the gross amount of the dividends in all other cases. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. Notwithstanding the provision of paragraph 2, the Government of a Contracting State shall be the main from tax in the other Contracting State with respect to dividends on shares in joint stock companies which are residents of that other State. However, such exemption shall be given in the case of with respect to shares held other than for public purpose. 4. For the purpose of paragraph 3, the term "Government": (a) in the case of Singapore means the Government of Singapore, and shall include: (i) the Monetary Authority of Singapore and the Board of Commissioners of Currency; (ii) the Government of Singapore Investment Corporation Pte Ltd; (iii) a statutory body or institution wholly owned by the any the Government of Singapore, and in either case as may be agreed from time to time between the competent authorities of the Contracting to States. (b) in the case of a Corporation means the Government of Latvia, and shall include: (i) the Bank of Latvia; (ii) a statutory body or institution wholly owned by the any the Government of Latvia, and in either case as may be agreed from time to time between the competent authorities of the Contracting to States. 5. 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. 6. The provision of paragraphs l 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. 7. 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 and paid to the Government of the other Contracting State who is the beneficial owner of such interest shall be main from tax in the first-mentioned Contracting State. 4. For the purpose of paragraph 3, the term "Government" shall have the same meaning as the term "Government" in paragraph 4 of article 10, as the case may be. 5. 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. 6. The provision of paragraphs 1 and 2 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. 7. 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. 8. 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 agreement. 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 7.5 per cent of the gross amount of the royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broad-casting, any computer software, 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 a 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 agreement. Article 13 CAPITAL gains 1. Gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State may be taxed in that other State. 2. Gains derived by a resident of a Contracting State from the alienation of shares, other than shares quoted on a recognised Stock Exchange, deriving at least 50 per cent of their value directly or indirectly from immovabl property situated in the other Contracting State may be taxed in that other State. 3. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 4. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic by that enterprise or movable property pertaining to the operation of such ships or aircraft, shall be only in the taxabl you state. 5. Gains from the alienation of any property other than that referred to in paragraphs l, 2, 3 and 4, shall be taxabl only in the Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve-month period, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18 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 , 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 shall be only in the taxabl you state. However, if the remuneration is derived by a resident of the other Contracting State, may be taxed in the it also that other 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 or statutory bodies 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 subject to the provision of paragraph 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. Article 19 government service 1 (a), and others of the Salar WAGs similar remuneration, other than a pension, paid by a Contracting State or a local authority or a statutory body thereof to an individual in respect of services rendered to that State or authority or body 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 or a statutory body thereof to an individual in respect of services rendered to that State or authority or body 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 or a statutory body thereof. Article 20 STUDENTS payments which a 1 student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. 2. In the case of a trainee, the provision of paragraph 1 shall apply only in respect of payments for a period of not exceeding 12 months, or education training from the date of his first arrival in the first-mentioned State for such purpose. Article 21 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Agreement shall be only in the taxabl you state. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State to one business in carr 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. 3. Notwithstanding the provision of paragraph 1 and 2, items of income of a resident of a Contracting State not deal with in the foregoing articles of this agreement and arising in the other Contracting State may be taxed in that also the other State. Article 22 LIMITATIONS OF benefit 1. Where this agreement provides (with or without other conditions) that income from sources in the United States shall be the main tax, or taxed at a from a reduced rate, in Latvia and under the law in force in Singapore the said income is subject to tax by reference to the amount thereof which is remitted to or received in Singapore and not by reference to the full amount thereof , then the exemption or reduction of tax to be allowed under this Agreement shall apply in Latvia only to so much of the income as is remitted to or received in Singapore. 2. However, this limitations does not apply to income derived by the Government of Singapore or any person approved by the competent authority of Singapore for the purpose of this paragraph. The term "Government of Singapore" shall include its agencies and statutory bodies. 3. A person that is a resident of a Contracting State and the income from the deriv the other Contracting State shall not be entitled to relief from taxation otherwise provided for in this agreement if it was the main purpose or one of the main purpose of any person concerned with the creation or assignment of such items of income to take advantage of the provision of this agreement. 4. In making a determination under paragraph 3, the appropriate competent authority or authorities shall be entitled to consider, among others factors, the amount and nature of the income, in which the income of circumstanc was derived, the stated intention of the parties to the transaction, and the identity and residence of the persons who in law or in fact, directly or indirectly , control or beneficially own (i) the income or (ii) the persons who are the resident (s) of the Contracting State (s) and who is concerned with the payment or receipt of such income. Article 23 ELIMINATION OF double TAXATION 1. In the case of Latvia, double taxation shall be avoided as follows: (a) where a resident of Latvia's income which, deriv in accordanc with this agreement, may be taxed in Singapore, 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 Singapore. 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 Singapore. (b) For the purpose of sub-paragraph (a), where a company that is a resident of Latvia receive a dividend from a company that is a resident of Singapore in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Singapore shall include not only the tax paid on the dividend, but also the appropriate portions of the tax paid on the underlying profits of the company out of which the dividend was paid. 2. In the case of Singapore, double taxation shall be avoided as follows: where a resident of Singapore's income from deriv Corporation which, in accordanc with the provision of this agreement, may be taxed in the United Kingdom, Singapore shall, subject to its laws regarding the allowance as a credit against Singapore tax of tax payable in any country other than Singapore, allow the Latvian tax paid , whethers directly or by deduction in ", as a credit against the Singapore tax payable on the income of that resident. Where such income is a dividend paid by a company which is a resident of Latvia to a resident of Singapore which is a company owning directly or indirectly not less than 10 per cent of the share capital of the first-mentioned company, the credit shall take into account the Latvian tax paid by that company on the portions of it profits out of which the dividend is paid. Article 24 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of the of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. 3. Nothing in this article shall be construed as obliging a Contracting State to grant to nationals of the other Contracting State those personal allowance, relief and reduction for tax purpose for which it will own national gravel to it who are not residents of that State or to such other person as may be specified in the taxation law of that State. 4. Except where the provision of paragraph 1 of article 9, paragraph 8 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursemen the 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. 6. Where a Contracting State grants tax incentives to its designed to promote national economic or social development in accordanc with its national policy and criteria, it shall not be construed as discrimination under this article. 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 agreement, 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 agreement. 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 agreement. 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 agreement. They may also consult together for the elimination of double taxation in cases not provided for in the agreement. 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 agreement or of the domestic laws of the Contracting States concerning taxes covered by the agreement insofar as the taxation thereunder is not contrary to the agreement. 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 the appeal in their relations, the taxes covered by the agreement. 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's 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 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this Agreement shall be affec the fiscal privilege of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 28 ENTRY into force 1. The Governments of the Contracting States shall notify each other when the constitutional requirements for the entry into force of this agreement have been complied with. 2. The agreement 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 agreement 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 agreement enter into force. (b) in Singapore: in respect of tax chargeabl for any year of assessment beginning on or after 1 January in the second calendar year following the year in which the agreement enter into force. Article 29 TERMINATION this Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the agreement, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such event, the agreement shall cease to 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 Singapore: in respect of tax chargeabl for any year of assessment beginning on or after 1 January in the second calendar year following the year in which the notice is given. In WITNESS WHEREOF the undersigned, duly authorised, have signed theret this agreement. Done in duplicate at this 6th day of Singapore October, 1999 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 the Republic of Singapore Anatoli Gorbunov John Chen PROTOCOL the Government of the Republic of Latvia and the Government of the Republic of Singapore have agreed that the apor at the signing at Singapore on 6th of October 1999 of the agreement between the two States for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income the following provision shall, to form an integral part of the said agreement: 1. With reference to article: For the purpose of paragraph 3, it is understood that the term "expense which is incurred by the Council for the purpose of the permanent establishment" means the expense which would be deductibl if the permanent establishment were an independent enterprise of the Contracting State in which the permanent establishment is situated , and which are reasonably allocabl to the permanent establishment. menu. 2. With reference to article 10: (a) Under the current Singapore laws, where dividends paid by a company with which is a resident of Singapore to a resident of the United States who is the beneficial owner of such dividends, there is no tax in Singapore which is chargeabl on dividend in addition to this tax chargeabl in respect of the profits or income of the company. (b) the provision of paragraph 2 and 3 shall apply to a dividend paid by a company which is a resident of Singapore if Singapore, subsequent to the date of signature of this agreement, a tax on dividend to impost in addition to this tax chargeabl in respect of the profits or income of the company. 3. With reference to articles 6 and 13: the Contracting States understand that all income and gains arising from the alienation of property situated in a Contracting immovabl State may be taxed in that Contracting State in accordanc with article 13 of this agreement. 4. With reference to article 17: For the purpose of paragraph 2, "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" refer to income derived by also by any person from providing the services of entertainer or sportsmen. smena. 5. With reference to article 24: (a) a person who by 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 of 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. (b) For the purpose of paragraph 4, it is understood that, for the purpose of allowing marbles of a payment of expense to a non-resident, nothing in this paragraph shall be construed as said preventing a Contracting State from imposing any obligation the withholding tax from such payments. In WITNESS WHEREOF the undersigned, duly authorised, have signed theret this Protocol. Done in duplicate at this 6th day of Singapore October, 1999 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 the Republic of Singapore Anatoli Gorbunov John Chen



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