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 Turkey, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes article 1. 3 June 1999 in Ankara signed in the Government of the Republic of Latvia and the Government of the Republic of Turkey, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Treaty) and 3 June 1999 it signed in the Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The law shall enter into force on the date of its promulgation. To put the contract in law and Protocol Latvian and English. 3. article. The agreement and the Protocol shall enter into force the Treaty article 27 for the period specified in the order, and the Ministry of Foreign Affairs and notify the newspaper "journal". The law adopted by the Parliament in 1999 on September 23. State v. President Vaira Vīķe-Freiberga in Riga in 1999 on October 5, the Government of the Republic of Latvia and the Government of the Republic of Turkey, the agreement on 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 Turkey, 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 Turkey: (i) income tax (Gelir Vergis); (ii) corporate tax (Kurumlar Vergis); (iii) fee that charges income tax and corporate tax (Gelir uzerinden ve Kurumlar Vergis, Vergis alinan background pay); (hereinafter referred to as the Turkish 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 term "Turkey") means the Turkish territory, the territorial sea, as well as the maritime areas under international law within its jurisdiction or in respect of which, in accordance with international law, it has a sovereign right to take natural resources prospecting, extraction or preservation; (c) the term "Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or Turkey; (d) the term "person") means a natural person, the company and any other body of persons; e the term "company") means any United formations or to any entity which, for the purposes of taxation is considered as a United entity; (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 Turkey — or his authorized representative. I) the term "national" means all natural persons who are nationals of a Contracting State, and 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, in accordance with the national legislation is subject to taxation on the basis of the place of residence, residence, place of management, the official seat of management, place of incorporation (registration) or any other criterion of a similar nature, as well as the State and its municipalities. However, this term does not include those individuals in this country is taxable only in relation to their income from existing sources in that country. 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 does not have a permanent place of residence in one of the two countries, that person will be considered only for residents of the country where it is common in the home; c) if that person normally home in both countries or none of them, it will be considered only for residents of the country, of which this person; (d)) if that person is a national of both States or no citizen of this country, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent contracting authorities should seek to resolve the matter by mutual agreement and to 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 supervisory activities associated with them will be treated 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)) — e) activities referred to 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 considered permanent representation in accordance with paragraph 4 of this article. 6. Will be considered that the Contracting State does not have permanent representation in the other Contracting State if the enterprise carries on business in that other State through a broker, only a sales agent or any other agent of an independent status, provided that such persons perform their normal business activities. However, if such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an 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 under the law of the Contracting State in which the property is located. In any case, this concept will be used to refer to real estate property belonging to property, livestock and equipment used in agriculture and forestry, rights to which the provisions of the general terms and conditions on the ground attached to the real estate, uzufrukt real estate and rights to variable or fixed payments for the right to use valid minerals, sources and other natural resources. For real estate will not be considered to be ships, barges, and air transportation. 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. However, the profit gained by the sale of goods or products that are the same or similar to the goods or products that are sold through the permanent representation, or profit that is being made about the other business, which is the same or is similar to what is done through permanent representations, can be considered to be attributable to the permanent representations, if it is established that the sale or business have been organized in such a way as to avoid paying taxes in the country in which the permanent establishment is situated. 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. the permanent representation will not be applied the earnings just because it has purchased your business goods or articles. 5. If the profit is included in the income or capital gains which are dealt with separately in other articles of this agreement, then the provisions of this article shall not affect the other provisions of this article. Article 8 shipping and air transport 1. Contracting State company profits from the sea or air transport use in international traffic will be taxed only in the country. 2. paragraph 1 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 second state capital of the company, and in any of these cases, the two companies ' commercial and financial relationships are created or established by the 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 the profits are included in the profit that would have been the first company of a Contracting State, if the relationship between the two enterprises had been those which would have been between two totally independent companies, then the other must be made for appropriate corrective tax size that is taxed in the other State of this profit, if the other country considers that this is a reasonable remedy. In determining this corrective, need to take into account the 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 10 per cent of the gross amount of the dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares, "jouissanc" shares (entitled to part of the property of the public in the event of liquidation) or "jouissanc" (right to participate in company profits, not on the obligations of response), the founder of the 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 is a company that made income distribution When legislation is considered to be income from the shares. 4. Society — a resident of a Contracting State, established in the other Contracting State through a permanent representation of the existing there, after it has been taxed in accordance with the provisions of article 7, may be taxed in that other State in respect of the remaining profit and in accordance with paragraph 2 of this article. 5. the following article 1 and 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 there existing permanent representations, or, in the case of a resident of Turkey gave Latvia an independent personal services through a permanent base located in Latvia, and where participation, which is paid out in dividends, is practically related to the permanent establishment or permanent base. In this case, depending on the circumstances, have to apply article 7 of this agreement or the provisions of article 14. 6. in accordance with paragraph 4 of this article, when a company — 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 total or the second part consists of a State 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 may not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in: a) in Latvia and is paid to the Government of the Republic of Turkey, the Turkish Central bank (Cumhuriyet Merkez Bankas is Super) will be exempt from tax in Latvia; (b)) in Turkey and is paid to the Government of the Republic of Latvia, the Bank of Latvia will be exempt from Turkish tax. 4. for the purposes of this article, the term "interest" means income from any type of debt obligations, 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, income from bonds or debentures, including premiums and prizes, which belong to these securities, bonds or debentures. Interest received on payments made during, not be regarded as interest for the application of the provisions of this article. 5. the following article 1, paragraph 2 and 3 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, in the case of a resident of Turkey gave Latvia an independent personal services through a permanent base located in Latvia, 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 article 14. 6. If the payer of the interest is a resident of a Contracting State, it will be deemed that the interest generated in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred the debt that pays interest, and this interest is borne by the permanent establishment or fixed base, will be considered that the interest incurred in the State in which the permanent establishment or fixed base. 7. If, 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 shall not exceed: a 5 per cent of the royalties) the total volume of production, trade or scientific equipment; b) 10 per cent of the total of the royalties in all other cases. 3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work (including cinematograph films, and films or other records in radio or television broadcasting), any patent, 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, in the case of a resident of Turkey gave Latvia an independent personal services through a permanent base located in Latvia, 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 article 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 royalties and the royalties are borne by the 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 it is paid, exceeds the amount of royalties that would have been able to implement a single payer and the owner if they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the payment of the part that exceeds this amount, you will be taxed according to each Contracting State law provided that, subject to the other provisions of this agreement. Article 13 expropriation 1. income or capital growth, the resident of a Contracting State for Article 6 of the Convention, referred to in the real property situated in the other Contracting State, or of shares of one company, the share capital of which its value most is derived from such property, forfeiture, can be taxing in that other country. 2. Capital gains that accrued, disposing of property, which is the permanent representation in that country of a contracting entity uses the second Contracting State, part of the business property, or capital gains that accrued, disposing of property, which belong to a resident of a Contracting State independent personal services in the other Contracting State created permanent database, including capital gains, earned in the permanent representation of such disposal (alone or with the whole enterprise) or of such a standing base can be taxing in the other country. 3. Capital increase for the company of a Contracting State alienates the company used in international traffic, marine or air transport or disposal of movable property belonging to the maritime or air transport use, shall be taxable only in that State. 4. the capital gains gained from disposing of any property, which is different from this article mentioned in the previous paragraphs, shall be taxable only in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. Income gained by the natural person who is a resident of a Contracting State, providing professional services or other activities of an independent nature, will be taxed only in the country, except when this person the pursuit of its activities shall use the regular access to permanent base in the other Contracting State. If you are using the following permanent base, income can be taxing in the other Contracting State but only to the extent that they apply to this permanent base. In this regard will be considered that the natural person who is a resident of a Contracting State, uses regular access to permanent base in the other Contracting State if it is resident in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any 12-month period that begins or ends in the tax year, and income earned in the other country carried out the above actions will be applied to this permanent base. 2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18, 19 and 20 article salary, earnings, and other similar remuneration which a resident of a Contracting State receives for gainful employment, will be taxed only in the country, if one paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can be taxing in that other country. 2. Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxed in the first only in that country, provided that: (a)) is a beneficiary in another country for a period or periods not exceeding in the aggregate 183 days in any 12-month period that begins or ends in the tax year; and (b) the remuneration is paid) an employer who is not a resident of the other State, or the name of the employer; and (c) the remuneration is not paid) (bear) permanent representation or permanent base, used by the employer in the other country. 3. Notwithstanding the preceding paragraphs of this article, the rules of remuneration received for paid work that is being done to a company of a Contracting State in international traffic used for sea or air transport, can be taxing in that Contracting State. Article 16 Directors ' fees directors ' fees and other similar remuneration received by a resident of a Contracting State as the Board of directors or the supervisory board member of the society, which is the territory of the other Contracting State, a resident can be taxing in that other country. Article 17 artists and athletes 1. articles 14 and 15 of the rules of income, the resident of a Contracting State as izpildītājmāksliniek, such as theatre, film, radio or television actor or a musician, or as an athlete for your 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 are 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. 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 and annual fees 1. in accordance with article 19, paragraph 1, the provisions of the pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment will be taxed only in the country where residents have a pension or a beneficiary. This provision shall also apply in relation to annuities where the recipient is a resident of a Contracting State. 2. The term "annual fees" means a certain amount of that natural person is paid periodically at certain periods throughout their lives, or specific, or determinable period of time under an obligation to make payments against previously received adequate and full consideration in money or money's worth of stuff. Article 19 government service 1. Salary, earnings, and other similar remuneration, including pensions, paid by a natural person contracting State or a local government for this country or municipality services will be taxed only in the country. 2. This Convention 15, 16 and article 18 provisions must apply to wages, earnings, other similar remuneration and pensions that are paid for services provided in respect of the Contracting State or local business or made in connection with that State or municipality wholly-owned company of the business. Article 20 students, professors and researchers 1. Charges for residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the State was of the other Contracting State and who is a resident of the first-mentioned State solely for the purpose of study or placement period, will not be taxed in that State provided that such payments arise outside that State. 2. income, on teaching or research work shall receive physical person entering Contracting State with a view to teach or engage in research at a University, college or other recognized in the Contracting State in which the educational institution and is, or immediately before the arrival of the State was the territory of the other Contracting State, a resident will not be taxed in the State in the first two years from the date on which that person first arrived in the State for that purpose, , provided that such payments arise outside that State. 3. paragraph 2 of this article shall not be applied to the income generated for research if the research work has been carried out, rather than public interests, but mostly a private person or persons of interest. Article 21 other income 1. other previous articles of this contract will see income types that implement owner is a resident of a Contracting State, irrespective of their 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 article 14. Article 22 the avoidance of double taxation 1. In Latvia, double taxation will be avoided in the following manner: (a)) in case the resident of Latvia receives income which, in accordance with this agreement may be taxed in Turkey with its domestic law, unless legislation is more favourable provisions, Latvia should be permitted to deduct from this income tax residents of size equal to the income tax paid in Turkey. These reductions in no case, however, exceed that part of the Latvian income tax that is calculated before the application of this reduction, which is attributable to the income which may be taxed taxes in Turkey; (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 Turkey and the public — Latvian resident owns at least 10% of the shares with full voting rights, the tax paid in Turkey be included not only tax that taxed dividends, but also tax, which taxed the public profits from which dividends are paid, some corresponding to these dividends. 2. Turkey, double taxation will be avoided in the following manner: (a)) in case the Turkish residents receive income (except (b) of this paragraph) income referred to), who under this contract may be subject to tax in Latvia, Turkey will release this income from taxation, however, calculating tax in respect of the person's other income, Turkey may apply the tax rate, which would have been applicable if the exempted income from taxation would not have been released; (b) in the case of Turkey) the resident receives the income which, in accordance with this contract, 10, 11 and article 12 of the rules may be subject to tax in Latvia, Turkey will be deducted from the person's income tax an amount equal to the amount of tax paid in Latvia. However, this deductible amount may not exceed the part of the tax, which is calculated before the deduction of any of this and is attributable to the income which may be taxed by duties in Latvia. Article 23 elimination of discrimination 1. nationals of a Contracting State in the other Contracting State shall not be subject to any taxation or any requirements connected with them, which is different from taxation or related requirements, which are or may be exposed to the other citizens of the country in the same circumstances, or which is more burdensome, in particular with respect to residence. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not party to one or both of the Contracting States of the residents. 2. Stateless persons who are residents of a Contracting State, any of the Contracting States shall not be subject to taxation or any related requirements, which differ from the taxation or related requirements, which are or may be exposed to nationals in the same circumstances, or which is more burdensome, in particular with respect to residence. 3. in accordance with paragraph 4 of article 10 provisions of the Contracting State in which the Permanent Mission, it is used in the other Contracting State may not be taxing in the 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. 4. Except where the applicable paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident, 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. Enterprise of a Contracting State, the capital of which 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. The provisions of this article must be applied to taxes covered by this agreement. Article 24 mutual conciliation procedure 1. If a person believes that one or both of the Contracting States party to the cause or may cause that person such taxation, which does not comply with the terms of this agreement, that person may, irrespective of the national legislative provisions which provide to eliminate such taxation, submit your question for consideration by the competent authorities of the country of which that person is resident, or If the question relates to paragraph 1 of article 23, of the Contracting State, the competent authorities of which are this person. The question to 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 25 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. Article 1 of the agreement shall not preclude the exchange of information. Any information received by a Contracting State, should be treated as sensitive as information that is obtained in accordance with the national legislation and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the tax 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 information, the disclosure of which would be contrary to the public interest (ordre public). Article 26 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 27 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 in both Contracting States shall be applied: (a)) in respect of taxes withheld at the time cost, beginning with the amounts paid or credited in the calendar year of January or after the first day of the calendar year following the year in which the entry into force of this Treaty; (b) 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. Article 28 termination this Agreement shall remain in force as long as one Contracting State it shall be terminated. Each Contracting State may terminate this contract, diplomatic channels by submitting written notification of termination at least six months before any end of the calendar year. In this case, the agreement of both Contracting States will end: a) in respect of taxes that are withheld income costs time, beginning with the amounts paid or credited in the calendar year of January or after the first day of the calendar year following the year in which the notice is submitted to the above; (b) 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 notification is submitted. In witness thereof, the undersigned, being duly authorised, have signed this agreement. The agreement is drawn up in two copies in Ankara 1999 3 June, Latvian, Turkish and English, in addition, all three 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 Turkey, on behalf of the Government of Maris Riekstins Erdogan, ONERA, the Protocol Signed by the Government of the Republic of Latvia and the Government of the Republic of Turkey, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as "the agreement"), the parties have agreed upon the following provisions, which is to form an integral part of this agreement. 1. with regard to article 6 and article 13 it is understood that income or capital gain that accrued on options (agreement, which gives the right to purchase real estate) or similar rights to purchase real estate, which has closed or assigned by the property owner, you may be subject to taxation in the country where the immovable property is located, provided that this income or capital growth, directly or indirectly, receives the property owner. 2. with regard to article 7, paragraph 3, it is understood that the expenditure is allowed to deduct the Contracting State shall include only expenses that are directly attributable to permanent representation in business. 3. in relation to article 8 (1) of This article the Contracting States for the purposes of the company's profits from the sea or air transport use in international traffic include profits from the use or rental of containers in cases where such profits are earned in addition to the profits in respect of which paragraph 1 shall apply. 4. with regard to article 24, paragraph 2 it is understood that in the case of Turkey, the taxpayer tax refund based on mutual consultation procedures, must be claimed within one year after the date on which the tax authorities informed the taxpayer as the result of mutual consultation procedures. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies in Ankara 1999 3 June, Latvian, Turkish and English, in addition, all three 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 Turkey, on behalf of the Government of Maris Riekstins Erdogan, ONERA, agreement between the Government of the Republic of Latvia and the Government of the Republic of Turkey 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 Turkey , 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 in particular to: (a)) in the United Kingdom: (i) the enterprise income tax (corporate income tax); (ii) the personal income tax (individual income tax); (hereinafter referred to as "Latvian tax"); (b)) in Turkey: (i) the income tax (Gelir Vergis); (ii) the corporation tax (Kurumlar Vergis); (iii) the levy imposed on the income tax and the corporation tax (Gelir uzerinden ve Kurumlar Vergis, Vergis alinan background pay); (hereinafter referred to as "Turkish 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) "Corporation" means the Republic of Latvia and, when used in the sense of location, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which under the law of Latvia and in accordanc with international law the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (b) the term "Turkey") means the Turkish territory, territorial sea, as well as the maritime areas over which it has jurisdiction or sovereign rights for the purpose of exploration, exploitation and conservation of natural resources, to international law pursuan; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Turkey, as the context requires; (d) the term "person") includes an individual, a company and any other body of persons; e the term "company") means any body corporate or any entity which is treated as a body corporate for tax purpose; (f) the term ") enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) in Turkey, the Minister of finance or his authorised representative; (I) the term "national") means any individual possessing the nationality of a Contracting State; and 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 which 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, under the law of that State, is liabl to tax therein by reason of his domicile, residence, place of management, legal head office, place of incorporation or any other criterion of a similar nature, and also includes that State and any local authority thereof. This term, however, does not include any person who is liabl to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question 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 constitut a permanent establishment only if such site, project or activity lasts for a period of more than nine months. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d)) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it to one business in the carr are others State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise and where the conditions between the agent and the enterprise differ from those which would be made between independent persons, such agent will 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, usufruc of immovabl property and rights to variable or fixed payments as considerations for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. Where the ownership of shares or other corporate rights in a company the owner of entitl such shares or corporate rights to the enjoymen of immovabl property held by the company, the income from the direct use, letting, or use in any other form of such right may be taxed to the enjoymen in the Contracting State in which the immovabl property is situated. 5. The provision of paragraphs 1, 3 and 4 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services. Article 7 business profits 1. The 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 profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. However, profits derived from the sale of goods or merchandise of the same or similar kind as those sold, or from other business activities of the same or similar kind as those effected, through that permanent establishment may be considered attributabl to that permanent establishment if it is established that such sales or activities were structured in a manner intended to avoid taxation in the State where the permanent establishment is situated. 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. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. 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. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State — and taxes accordingly — profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are by the first-mentioned State claimed to be 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, where that other State consider the adjustment justified. 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 exceeds 100 10 per cent of the gross amount of the dividends. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares, "jouissanc", "jouissanc" shares or rights, founder ' shares or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. Profits of a company which is a resident of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may, after having been taxed under article 7, be taxed on the remaining amount in the Contracting State in which the permanent establishment is situated and in accordanc with the provision of paragraph 2 of this article. 5. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or, in the case of a resident of Turkey, perform in Latvia independent personal services from a fixed base situated in the United Kingdom , 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. 6. Subject to the provision of paragraph 4 of this article, 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 (a) or a fixed base situated in that other State, nor subject the company's undistributed profits the 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) Latvia and paid to the Government of the Republic of Turkey or to the Central Bank of Turkey (Cumhuriyet Merkez Bankas is Super) shall be the main from Latvian tax; b Turkey and paid it) the Government of the Republic of Latvia or to the Bank of Latvia (Latvijas Banka) shall be the main from Turkish tax. 4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or, in the case of Turkey, perform in Latvia independent personal services from a fixed base situated in the United Kingdom , and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this 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 (a) 12:5 per cent) of the gross amount of royalt for the use of industrial , commercial or scientific equipment, b) 10 per cent of the gross amount of the stay in all other cases royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broad-casting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of , or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt «arise, through to a permanent establishment situated therein, or, in the case of a resident of Turkey, perform in Latvia independent personal services from a fixed base situated in the United Kingdom , and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this agreement. Article 13 ALIENATION OF PROPERTY 1. Income or gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State or shares of the capital stock of a company the value of which is derived principally from such property may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic by that enterprise or movable property pertaining to the operation of such ships or aircraft shall be only in the taxabl you state. 4. Gains from the alienation of any property other than that referred it in paragraph 1, 2 and 3, shall be only in the taxabl Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributabl to that fixed base. If an individual who is a resident of a Contracting State has from such a fixed base, but he stay in the other Contracting State for a period or periods exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that the performed in that other State shall be deemed attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18, 19 and 20, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned , and b the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provision of this article remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State. Article 16 directors ' fees directors ' fees and other similar remuneration derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 artistes AND SPORTSMEN 1. Notwithstanding the provision of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman's in his capacity as such notes to the accru entertainer or sportsman's himself but to another person, that income may, notwithstanding the provision of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman's are exercised. 3. The provision of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by an entertainer or a sportsman's if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or local authorities thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsman's is a resident. Article 18 PENSION 1. Subject to the provision of paragraph 1 of article 19 and other similar remuneration, pension paid to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. This provision shall also apply to the paid to a resident annuit of a Contracting State. 2. The term "annuity" means a stated sum payable to an individual periodically at stated times during his life or during a specified period of time or ascertainabl is under an obligation to make the payments in return for adequat and full considerations in money or money's worth. Article 19 government service 1. Salar, WAGs and other similar remuneration, including pension paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority thereof shall be only in the taxabl you state. 2. The provision of articles 15, 16, 17, and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof. Article 20 STUDENTS, PROFESSOR AND RESEARCHER 1. Payments which a student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. 2. An individual who at it a Contracting State for the purpose of teaching or carrying out research at a university, college or other recognized educational institution in that Contracting State and who is or was immediately before that visit a resident of the other Contracting State, shall be exempted from taxation in the first-mentioned State on remuneration for such teaching or research for a period not exceeding two years from the date of his first visit for that purpose , provided that such remuneration «arise from sources outside that State. 3. The provision of paragraph 2 shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. Article 21 OTHER income 1-items of income beneficially. owned by 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, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. Article 22 ELIMINATION OF double TAXATION 1. In the case of a resident 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 Turkey, 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 Turkey. 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 Turkey. (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 Turkey in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Turkey 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 a resident of Turkey double taxation shall be avoided as follows: (a)) where a resident of Turkey's income which, deriv exclusive of income covered by paragraph (b)), hereinafter, in accordanc with the provision of this agreement, may be taxed in the United Kingdom, Turkey shall be such main income from tax but may, in calculating tax on the remaining income of that person , apply the rate of tax which would have been applicable if the exempted income had not been exempted. b) where a resident of Turkey's income, which, deriv in accordanc with the provision of articles 10, 11 and 12 of this agreement, may be taxed in the United Kingdom, Turkey shall allow as a deduction in "from the tax on the income of that person, an amount equal to the tax paid in Latvia. Such will shall not, however, marbles 12 that about of the tax, as computed before the deduction in "is given, which is appropriate to the income which may be taxed in the United Kingdom. Article 23 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. a person who with Stateles of residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of the State concerned in the same, in particular with circumstanc respect their residence, may be subjected to or. 3. Subject to the provision of paragraph 4 of article 10, the taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of the of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. 4. Except where the provision of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursement royalt paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned State may be subjected to or. 6. The provision of this article shall apply to the taxes which are the subject of this agreement. Article 24 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 23, 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 25 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. The exchange of information is not restricted by article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to, the taxes covered by the 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 the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 26 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 27 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 shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income paid or credited 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 respect of other taxes, 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. Article 28 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 in both Contracting States: a in respect of taxes) withheld at source, on income paid or credited on or after the first day of January in the calendar year next following the year in which the notice has been given; (b)) in respect of other taxes, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this agreement. Done in duplicate at Ankara this 3 day of June 1999, in the Latvian, Turkish and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government For the Government of the Republic of Latvia of the Republic of Turkey of Erdogan, ONERA Riekstin Maris PROTOCOL At the signing of the agreement between the Government of the Republic of Latvia and the Government of the Republic of Turkey for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as "the agreement"), the undersigned have agreed upon the following provision which will form an integral part of the agreement. 1. With reference to article 6 or article 13 It is understood that income or gains from options or similar right is issued to acquir immovabl property or granted by the owner of that property may be taxed in the Contracting State in which the property is situated, if immovabl that income or gains derived directly or indirectly by the by the owner of that property. 2. With reference to paragraph 3 of article 7 It is understood that the expense to be allowed as deduction in "by a Contracting State shall include only those directly relating to the expense of deductibl the business of the permanent establishment. 3. With reference to paragraph 1 of article 8 For the purpose of this article, profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall also include profits derived from the use or rental of containers, if such profits are the incidentals to the profits to which the provision of paragraph 1 apply. 4. With reference to paragraph 2 of article 24 It is understood that the taxpayer must in the case of Turkey claim the refund resulting from such mutual agreement within a period of one year after the tax administration has notified the taxpayer of the result of the mutual agreement. In witness whereof, the undersigned, duly authorised the theret, have signed this Protocol. Done in duplicate at Ankara this 3 day of June 1999, in the Latvian, Turkish and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government For the Government of the Republic of Latvia of the Republic of Turkey of Erdogan, ONERA, Maris Riekstin