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

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

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The Saeima has adopted and the President promulgated the following laws: For the Republic of Latvia and the Convention of the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes article 1. 1999. on 21 April, the Brussels signed in the Republic of Latvia and the Convention of the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Convention) and its 1999 21 April in Brussels signed the Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The law shall enter into force on the date of its promulgation. With the law put the Convention and Protocol in English and Latvian. 3. article. The Convention and the Protocol shall enter into force the Convention article 30 within the time and in order, and shall notify the Ministry of Foreign Affairs Gazette "journal". The Parliament adopted the law of September 2, 1999. State v. President Vaira Vīķe-Freiberga in Riga in 1999 on September 17, the Republic of Latvia and the Convention of the Kingdom of Belgium 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 Kingdom of Belgium, the people's willingness to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed that: (I) section. The scope of the Convention article 1 persons covered this Convention shall apply to persons Convention, one or both of the Contracting State party to the country resident. Article 2 taxes covered by the Convention (1) this Convention applies to income taxes, levied by Contracting State, its political entity or local authority right regardless of their collection. 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 as well as capital appreciation. 3. The existing taxes to which this Convention applies, in particular, is: (a)): (i) corporate income tax; (ii) the individual income tax; (hereinafter-the Latvian tax); b) Belgium: (i) the individual income tax; (ii) the corporate income tax; (iii) the legal entity income tax; (iv) non-resident income tax; (v) additional fee; a crisis situation including advance payments, fee for these taxes and advances, as well as income tax increases; (hereinafter-the Belgian taxes). 4. this Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Convention, 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. CHAPTER II. Definitions article 3 General definitions 1. If it is not apparent from the context, otherwise in this Convention: a the term "Latvia") means the Republic of Latvia, and, used in a geographical sense, 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 "Belgium") means the Kingdom of Belgium, and, used in a geographical sense, it represents the territory of the Kingdom of Belgium, including its territorial sea and any other sea or air area, in which, in accordance with international law, the Kingdom of Belgium shall exercise their sovereign rights or jurisdiction; (c) the term "Contracting State)" and "the other Contracting State" mean depending on the context of Latvia or Belgium; (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 United formations of the Contracting State of which the company is resident; (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) the Minister of finance in Belgium or his authorized representative; I) the term "national" means: (i) any natural person who is a citizen of a Contracting State; (ii) any legal person, partnership or association, which obtained the status of State legislation in force. 2. for the application of this Convention at any time Contracting State will use any term which is not defined here, only in the sense (if not apparent from the context otherwise) in which it is applied at the time the legislation of a Contracting State concerning the taxes to which this Convention applies. In addition, any explanation of the term in accordance with the applicable tax law will have precedence over this concept of explanations under other law of this State. Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means any person who, in accordance with the national legislation is subject to taxation on the basis of the place of residence, residence, location management, place of incorporation (registration) or any other similar criteria in nature. This concept also includes the own country, its political and administrative units and municipalities. However, this term does not include those individuals in this country is taxable only in relation to their income from this country to the existing sources of profit. 2. Where, in accordance with the provisions of paragraph 1 an individual is a resident of both Contracting States, its status will be determined 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 those residents of the country, 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. In the absence of such agreement, then that person will not be regarded as resident in one of the Contracting States to this Convention for the application of the relief. Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of which is wholly or partly carried on business. 2. The term "permanent establishment" includes: (a) the management of the company); b) branch; c) Office; (d) a factory;) e a workshop, and f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. A building site, a construction, Assembly or installation project or a supervisory or related advisory activities would be regarded as a permanent establishment only if these works, projects or activities take longer than nine months. 4. Notwithstanding the preceding paragraphs of this article, the provisions of the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. d) permanent site designed exclusively for the purchase of goods or products or information collection needs; e) permanent site designed exclusively for making business arrangements or any other ancillary; f) permanent site designed solely to deal with (a)) — 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 has a permanent establishment in a 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. it will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, only through brokers, sales agent or any other agent of an independent status, provided that such persons perform their normal business activities. However, if such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an 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-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. CHAPTER III. Taxation of income 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, rights to variable or fixed payments for the right to use valid, natural mineral deposits and other natural resources, or about their use and any right to buy real estate or similar right to acquire real estate. 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 allow the owner to use the company's real estate, 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 to the profit which is attributable to that permanent establishment. 2. in accordance with the provisions of paragraph 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the amount of profit, it would benefit if the individual is clearly the company that performs the same or similar business activities under the same or similar conditions and works independently from this company. 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, but such expenditure does not include any expenses that the State company cannot deduct in accordance with the national legislation. 4. where a Contracting State the profits attributable to the permanent establishment shall be determined by dividing the company's total profit in proportion between its departments, paragraph 2 does not preclude the contracting country as usual to determine the taxable profit by this principle, however, this method of distribution must be used so that the results match the principles contained in this article. 5. On the permanent representation will not be applied the earnings just because it has purchased your business goods or articles. 6. for the purposes of the application of the previous paragraph, the profits attributed to the permanent representations, each year must be determined by the same method, except when there is sufficient reason to act otherwise. 7. If the profit includes income type, which are dealt with separately in other articles of this Convention, 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 company of the other country and in any of these cases, the two companies ' commercial and financial relationships are created or established by the rules that are different from the rules, which will be in force between the two independent (non-related) companies, then any profit that the formation of one of the companies, but the above provisions do not affect the established, can be included in the company's earnings and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State (and accordingly taxable) profit for which other country in the territory of the other Contracting State has been charged with duties, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two independent companies, the other countries have to make appropriate corrective tax size that is taxed in the other State of this profit. In determining this corrective, account must be taken of other provisions of this Convention, and, if necessary, shall be held by the competent authorities of the Contracting States for consultations. Article 10 dividends 1. Dividends by the company-a resident of a Contracting State-paid the other Contracting State, a resident can be taxing in that other country. 2. However, such dividends may also be taxing in accordance with the national law of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total, if the true owner of the dividends is a company that directly at least 25 per cent of the capital of the company, which pays dividends; b) 15 per cent of the total of dividends in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares, "jouissanc" shares (entitled to part of the property of the public in the event of liquidation) or "jouissanc" (right to participate in company profits, not on the obligations of response), mining shares, founders ' shares or other rights to participate in profits, not claims, as well as income from other corporate rights which, in accordance with the State's residents is the company carrying out the distribution of profits, the law is subject to the same taxation as income from the shares. 4. 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 the existing permanent representation there, or provide other Contracting State independent personal services through this country situated in other permanent bases, 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 of this Convention is to be applied or article 14 7. 5. If company-a resident of a Contracting State-profit or income from the other Contracting State, that other State may not be nor to any tax dividends paid by the company, except when dividends are paid to a resident of the other State, or when the participation are paid in dividends is actually related to the permanent representation or permanent base, located in the other State; nor to retained earnings in the company's undistributed profits, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. Article 11 interest 1. interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxing in that other country. 2. However, such interest may also be taxing according to national law the Contracting State in which they arise, but, if the interest owner is implemented on the territory of the other Contracting State, a resident of the tax must not exceed 10 percent of the total amount of interest. 3. Notwithstanding the provisions of paragraph 2: (a)) percent, which arise in the Contracting State of which the making and implementation of which owner is the Government of the other Contracting State, including its political and administrative units, local authorities, Central Bank, or any of this Government completely owned financial institutions, or the interest that is paid on the Government, administrative units, municipalities, or any public body which works in the field of export promotion, which is mutually agreed between the Contracting State the competent authorities of the guaranteed or insured loans, will be exempt from tax in the first State; b a) interest arising in a Contracting State will be exempt from tax in that State, if the interest owner is implemented on the territory of the other Contracting State and the interest is paid on debt obligations which formed the second national company selling the former State company on credit any goods or manufacturing, commercial or scientific equipment, except when such a sale is made or the obligation is created between the related parties. 4. for the purposes of this article, the term "interest" means income from debt claims of every kind, whether or not secured by mortgage and whether or not they have the right to participate in the debtor's profits, and in particular, income from government securities, income from bonds or debentures, including premiums and prizes, which belong to these securities, bonds or debentures. However, the term "interest" for the application of the provisions of this article do not include interest received on payments made during, or interest, which are treated as dividends article 10 the application of the provisions. 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 provide other Contracting State independent personal services from 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, have to apply the Convention's article 7 or 14. 6. If the payer of the interest is a resident of a Contracting State, it will be deemed that the interest generated in this country. If, however, the person paying the interest, (regardless of whether that person is a resident of a Contracting State or not) used in the Contracting State of the existing permanent representation or permanent base located there, which incurred debt obligation, for which the interest is paid, and such interest is borne by a permanent establishment or fixed base, will be considered that the interest arising in the country in which the permanent establishment is located or a permanent 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 Convention. Article 12 Royalties (1) royalties arising in a Contracting State and is paid to residents of the other Contracting State, may be taxing in that other country. 2. However, such royalties may also be taxing in accordance with national law of the Contracting State in which it arises, but if the true owner of the royalties is a resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the royalties), a total that is paid for the production, commercial or scientific equipment; (b) 10 per cent of the royalties) total in all other cases. 3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work (including cinematograph films, and films or other records in radio or television broadcasting), any patent, trademark, design or model, plan, secret formula or process, for production, commercial or scientific equipment, or for the right to use them as well as information relating to the production, 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 provide this second country independent personal services through a permanent base located there, and if the right or property for which the royalties are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, have to apply the Convention's article 7 or 14. 5. If the payer of the royalties is a resident of a Contracting State, it will be considered that the royalties arise in the country. If, however, the person paying the royalties, (regardless of whether this 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 is located or a permanent 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 Convention. Article 13 capital gains 1. Capital gains, the resident of a Contracting State alienates a of the Convention referred to in article 6 of the real estate, which is located in the other Contracting State, may be taxing in that other country. 2. Capital gains, the resident of a Contracting State of which the company actively wholly or mainly consists of article 6 the second Contracting State to an existing real estate, stock transfer, can be taxing in that other country. 3. Capital gains that accrued, disposing of property, which is the permanent missions (which one Contracting State company uses the second Contracting State) part of the business property, or capital gains that accrued, disposing of property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, including capital gains, 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. 4. 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. 5. 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 provided a. professional services or other activities of an independent nature has made a natural person who is a resident of a Contracting State will be taxed only in the country, except when this person the pursuit of its activities shall use it regularly available permanent base the second Contracting State. If you are using the following permanent base, income can be taxing in the other Contracting State, but only so far as they apply to this permanent base. In this context, where the natural person who is a resident of a Contracting State, a resident in the Contracting State in the other period or periods which generally exceed 183 days in any 12-month period commencing or ending in the taxation year will be considered that this person uses it regularly available permanent base in the other Contracting State in this tax year and the income earned on the second country made the above activities will be applied to this permanent base. 2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18 and article 19 rules pay, 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 consecutive 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 1 other similar payments received by a resident of a Contracting State as the Board of directors or a similar organ of a company which is a member of the other residents of a Contracting State, may be taxing in the other country. 2. However, where such remuneration people receive for the transaction of any other quality, depending on the circumstances can be taxing in accordance with article 14 or 15 of the provisions of 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 as a musician or athlete on their individual activities in the other Contracting State can 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 in the Contracting State in which izpildītājmāksliniek is being performed or an athlete's performance. 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, the political and administrative entity or municipal public funds. In this case the income is liable to tax only in the Contracting State of which the resident is the artist or athlete. Article 18 pensions 1. in accordance with article 19, paragraph 2 of the pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment will be taxed only in the country where residents have a pension or a beneficiary. 2. However, the pensions and other benefits, periodic or lump sum that is paid in accordance with national social security legislation, may be taxed in that State. This rule also applies to pensions and benefits, which are paid on the basis of the State party to create a public social welfare scheme. Article 19 government service 1 a) wages, earnings, and other similar remuneration, other than a pension, and a natural person the cost of Contracting State, a political or administrative unit of local government for this country, unit, or for the services provided to the municipality, will be taxed only in the country. (b)) However, this income, earnings, and other similar remuneration will be taxed only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of providing these services. 2. a pension by) any natural person the cost of Contracting State, a political or administrative unit of local government or which is paid from the funds set up for services provided by that person in that State, or local government entity will be taxed only in the country; (b)) However, this pension will be taxed only in the other Contracting State if the individual is a resident of that other State and the citizen. 3. This Convention 15, 16 and article 18 provisions must apply for pay, earnings, other similar remuneration and pensions that are paid for services provided in respect of the Contracting State, a political or administrative unit of local business. Article 20 students payments which a residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the State was the territory 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. Article 21 Offshore Activities in zone 1, this article should be applied independently from the 4th to the Convention the provisions of article 20. 2. In this article the term "offshore area" means any party to the action shelf area associated with the sea and subsoils and keep the existing natural resources exploration and exploitation. 3. persons — residents of a Contracting State activity that is performed in the other Contracting State, ice area, in accordance with paragraph 4 of this article, the rules will be treated as a business that is carried on in the other Contracting State through a permanent establishment there existing or permanent base. 4. paragraph 3 of this article shall not be applied, if the action is carried out in the area of the shelf during the period or periods not exceeding in the aggregate 30 days in any 12 consecutive month period that begins or ends in the tax year concerned. The above 30 day period for calculation: a) If a person who is a resident of a Contracting State is associated with another person in the other Contracting State, shelf area carried out activities similar in nature, the two person operation time will be counted together, except for the time when the first-person action is performed simultaneously with the other activities of the person; (b)) a person shall be deemed to be associated with another person if one of them directly or indirectly participating in the second person, controls or owns it part of its capital, or if a third party or a third party directly or indirectly participating in both of the above parties, controls or owns part of both of them the above person. 5. profit, the resident of a Contracting State for supplies or personnel transport to the site, or between sites, where the transaction is carried out in the area of the shelf in the other Contracting State, or of another ship or tugboat services provided in addition to the following, will be taxed only in the first country. 6. the wages, earnings, and other similar remuneration received by a resident of a Contracting State for gainful work associated with the activity of the other contracting country of the shelf area, can be taxing in that other State to the extent that work has been done in this country to the other shelf area. However, such remuneration will be taxed only in the first country, where paid work has been made in favour of the employer who is not a resident of the other State, and if the duration of the second State of the shelf area as a whole, does not exceed the 30-day period or periods in any 12 consecutive month period that begins or ends in the tax year concerned. 7. income which a resident of a Contracting State alienates a benefit: (a)) or use the right to study; or (b)) property, which hosted the second Contracting State and used in connection with the sea and subsoils and keep the existing natural resources exploration and exploitation in the other country; or (c)), which shares your values or values most directly or indirectly derived from the above rights or property, or the rights and property of these together; can be taxing in that other country. In this paragraph, the term "research or exploitation rights" means the right to property, which can be generated by activities in the other Contracting State, or a shelf right to ownership or profit participation that may result in this property. Article 22 other income 1. other previous articles of this Convention shall not featured residents of a Contracting State income types, regardless of their off site 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, have to apply the Convention's article 7 or 14. 3. Notwithstanding paragraphs 1 and 2 of the rules of this Convention to other previous articles not featured a resident of a Contracting State, the income from the other Contracting State, may be taxed in that other State. CHAPTER IV. PREVENTION of double taxation article 23 methods for 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 Convention, may be taxed in Belgium tax unless its domestic legislation did not include more favourable provisions, Latvia should be permitted to deduct from this income tax residents of size equal to the income tax paid in Belgium. 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 Belgium; (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 Belgium, and in which the community-residents of Latvia-holds at least 10 percent of its shares with full voting rights, the tax paid in Belgium will be included not only tax that taxed dividends, but also tax, which taxed the public profits from which dividends are paid the part corresponding to these dividends. 2. Belgium double taxation will be avoided in the following manner: (a)) in case the Belgian resident receives income, which in accordance with the provisions of this Convention, except for paragraph 2 of article 10, article 11, paragraph 2 and 7, and article 12, paragraph 2 and 6, are subject to tax in Latvia, Belgium should be released this income from taxation, but when calculating the size of the tax on the income of other resident Belgium will apply the tax to the rate which would apply if this income is exempt from taxation; (b)) under the Belgian legislation on the provisions relating to the deduction of taxes paid abroad from tax in Belgium, when Belgian resident derives the common types of income as dividends, which are taxed in accordance with paragraph 2 of article 10 and that are not exempt from taxation, the Belgian tax in accordance with this paragraph (c)), percentages that are taxed in accordance with article 11, paragraph 2 and 7 or royalties that is taxed in accordance with article 12 (2) and (6), the Belgian tax calculation purposes, the Belgian tax that is applied to the income in question was allowed to cut the tax on this income with which has been taxed in Latvia. c) article 10, paragraph 3 of the dividends that benefit society-a resident of Belgium-from companies which are residents of Latvia, will be exempt from taxation of corporate income tax in Belgium under Belgian legislation on the rules and restrictions therein; (d)) If, in accordance with Belgian legislation the provisions of the Belgian permanent representation of Latvia residents losses actually have been deducted from this income statement to its residents the taxable income in Belgium, a) tax exemption referred to in Belgium will not be suitable for permanent representation in different taxation period earnings, to the extent that this profit in Latvia is exempted from taxes in order to offset the losses referred to above. CHAPTER V. Special provisions article 24 non-discrimination 1. prevent nationals of a Contracting State in the other Contracting State shall not be subject to any taxation or any requirements connected with them, which is different from taxation or related requirements, which are or may be exposed to the other citizens of the country in the same circumstances, or which is more burdensome, especially with regard 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, especially with regard to residence. 3. a Contracting State a permanent establishment of the representation used in the other Contracting State may not be taxing in that other country less favourably than would be taxed in the other State companies that do the same type of action. This provision shall not be interpreted so that it would impose a Contracting State the obligation to grant the other Contracting State, a resident of any private discounts, exemptions and reductions for taxation, as this country give its residents, in the light of their civil status or family responsibilities. 4. Except where the applicable paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident by establishing this company's taxable profits, must be deducted from the profits subject to the same provisions as if they were to be paid to the first residents of that State. 5. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more of the other Contracting State residents or which they directly or indirectly control, the first in that country may not be subjected to any taxation or any related requirements, which differ 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 independently of the provisions of article 2, apply to taxes of every kind and name. 25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting States party to the cause or may cause that person such taxation, which does not comply with the provisions of this Convention, that person may, irrespective of the national legislative provisions which provide to eliminate such taxation, submit your question for consideration by the competent authorities of the country of which that person is resident, or If the question relates to article 24, paragraph 1, the competent authorities of the country of which that person is a national. 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 provisions of this Convention. 2. the competent authorities are obliged to seek to resolve this issue, if it considers that the complaint is justified, and if this institution fail to reach a satisfactory solution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities in order to prevent this Convention without the appropriate taxation. Any such agreement is reached is due irrespective of the Contracting State of the domestic laws of the time limits laid down. 3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise in the interpretation or application of this Convention. 4. A Contracting State competent authorities are to agree on administrative arrangements for the application of the provisions of this Convention and in particular in relation to the evidence that must be submitted to any of the residents of a Contracting State in the other country to receive tax relief under the Convention or reductions. 5. 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. Article 26 exchange of information 1. National authorities should exchange information necessary for the carrying out of the provisions of this Convention or of the domestic legislation of the Contracting States for enforcement of legislation on taxes covered by this Convention, in so far as such legislation is not contrary to this Convention. Article 1 of the Convention does not restrict the exchange of information. Any information received by a Contracting State, should be treated as sensitive as information that is obtained in accordance with the national legislation and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the tax to which this Convention applies, in the calculation of the charging, prosecution, legal responsibility, coercive measures, or in appeals in respect of those taxes. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public court proceedings or in judgements. 2. 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 law and generally applicable administrative practices; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to the public interest (ordre public). Article 27 assistance in tax collection 1. the Contracting States undertake to provide each other assistance the taxpayer nodded in the collection of duties to the extent that it relates to the amount finally determined, calculated in accordance with the Contracting State which turns for help, law. 2. If you have received a request of a Contracting State to provide assistance in the collection of taxes in the other Contracting State, that other State such taxes will be collected in accordance with its provisions, which are applicable to these other State taxes and in a way, as if they had this other State taxes; However, the following requirements to levy taxes in the other Contracting State shall not be given any priority. 3. Any request of a Contracting State to provide assistance in the collection of duties in accordance with the national legislative requirements must be accompanied by a certificate stating that the tax has been made that is owed to the taxpayer, the final calculation. 4. in the event that the tax claim of a Contracting State is not definitively stated due to the fact that it has brought the appeal or it is covered in another process in this country to protect its revenues, request the other Contracting State of its right to the temporary conservation measures, the application of which is possible in accordance with the legislation of the other State. If the other Contracting State shall accept such a request, the following provisional measures should be taken, as this tax debt first to that country, would be the tax debt owed to that other State. 5.3 or 4 of this article. the request referred to in paragraph 1, the Contracting State may submit only to the extent that it is not available to the taxpayer, who has a tax debt, the property of this country, which can be used to cover the tax debt. 6. the Contracting State in which the tax is levied in accordance with the provisions of this article shall immediately transmit the amount of the tax charged on the Contracting State for which the tax is charged, if necessary report the b 7) these extra costs in the amount of money spent. 7. It is understood that, unless both the competent authorities of the Contracting States do not agree on other provisions: (a) the Contracting State) common costs, incurred in connection with the provision of assistance, should be borne by that State; b) Contracting State unexpected costs incurred in connection with the provision of assistance to other countries, are to be borne by the other State, and they have to pay no matter how large the tax amount in the other country have been levied in the first country. As soon as a Contracting State anticipates that it may encounter unforeseen expenses, it must be notified to the other Contracting State and indicate the possible amount of this expenditure. 8. In this article the term "taxation" means the taxes to which this Convention applies and includes any interest and penalties due to these taxes. 9. Article 26 of the Convention paragraph 1 of the rules regarding the confidentiality of the information received and its use will be applied also with regard to any information in accordance with the provisions of this article are provided in a Contracting State competent authorities. Article 28 diplomatic and consular personnel, nothing in this Convention shall not affect the diplomatic missions or consular posts personnel fiscal privileges that this personnel in accordance with applicable international law, the General rules or special contracts. Article 29 advantages limitation of a Person who is a resident of a Contracting State derives income which, in the other Contracting State, shall not be entitled to receive this tax relief under the Convention, in the event of any person that is associated with this income creation or transfer, the main purpose or one of the main purposes is to use the provisions of the Convention in certain benefits. In making the judgement under this article, the competent authority or authorities in addition to the other factors must be taken into account in the amount and type of income, the circumstances in which this income is gained, the true intention of the parties in relation to the transaction and the person who is legally or in fact, directly or indirectly: (i) control this income or is this income owners implemented, or (ii) controlled by persons who have one or both of the Contracting States residents and are associated with this income paid or received or is this person put owners, identity and residence. CHAPTER VI. Final provisions article 30 entry into force 1. Contracting Governments should inform each other that the constitutional requirements of these countries, which are required for the Convention to enter into force have been met. 2. this Convention shall enter into force with the last referred to in paragraph 1 of the notice in the filing date, and its provisions both of the Contracting States shall be applied: (a)) in respect of taxes withheld at the time cost, starting with the amounts, which are learned in January of the calendar year or after the first day of the calendar year following the year in which this Convention enters into force; (b) in respect of other taxes), starting with taxes paid on income in any taxation year that begins January of the calendar year or after the first day of the calendar year following the year in which this Convention enters into force. Article 31 termination This Convention is in force as long as one Contracting State it shall be terminated. Each Contracting State may terminate this Convention, through diplomatic channels, submit written notice of termination at least six months before any end of the calendar year. In this case the Convention in both Contracting States will end: a) in respect of taxes that are withheld income costs time, starting with the amounts, which is learned in January of the calendar year 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 paid on income in any taxation year that begins January of the calendar year or after the first day of the calendar year following the year in which the above-mentioned statements. In witness thereof, the undersigned, being duly authorised, have signed this Convention. The Convention is drawn up in two copies in 1999 in Brussels, 21 April, Latvian, Flemish, French and English, in addition, all four texts being equally authentic. Different case is decisive for the interpretation of the text in English.

The Republic of Latvia, on behalf of the Government of Belgium on behalf of the Government of the Kingdom of Vilis krištopans, Jean-Luc Dehan, Prime Minister Prime Minister signing the Protocol signed today, the Republic of Latvia and the Convention of the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes, the parties have agreed upon the following provisions, which are an integral part of this Convention. 1. in relation to article 4, paragraph 3 it is understood that the second sentence of paragraph 3 will not be interpreted in such a way that it prohibits the Contracting State to eliminate double taxation under article 23 in respect of article 4, paragraph 3. 2. with regard to article 6 paragraph 2 it is understood that the term "variable or fixed payments for the right to use valid, natural mineral deposits and other natural resources" also includes payments relating to the production of these valid, natural mineral deposits and other natural resources. 3. with regard to article 6, paragraph 3, and article 13, paragraph 1 it is understood that income or capital gains earned on the disposal of immovable property, may be subject to taxes, the Contracting State in which the real property is located. 4. with regard to article 7, paragraph 1 and 2 in the case of a Contracting State in the second Contracting State sells goods or articles or take there business using this second permanent representation located in the country, the permanent representation of the income will be based on the total amount received by the company, but they will be fixed only on the basis of the income attributable to the permanent missions of the activities actually carried out in respect of the sale or establishment. However, the income which is made on the same or a similar type of sale of goods or products or for another of the same or similar in nature to the establishment, which is carried out through the permanent representation, this might be considered applicable to the permanent representations, if it is established that the sale or establishment is organized with a view to evading the payment of taxes in the State where the permanent establishment is situated. 5. with regard to paragraph 3 of article 10. The term "dividends" also includes the income (even if it is paid as a percentage) who, in accordance with its national legislation, which is the resident company, which pays the income shall be considered as income from the shares. 6. with regard to article 12, paragraph 2 and 3 If in any Convention for the avoidance of double taxation, which, at the date of signature of this Convention, Latvia signed with a third country, which is the Organization for economic cooperation and development (OECD) Member States at the time of signature of this Convention, Latvia agrees the image definition that does not include any right referred to in paragraph 3 or the estate, or agrees to release the taxes, royalties arising in Latvia, or to apply rates that are lower than those set out in paragraph 2, the following definition of an exemption or a reduced rate will be applied automatically as it should fixed in paragraph 3 or 2. 7. with regard to paragraph 3 of article 12 it is understood that the concept of "information concerning industrial, commercial or scientific experience" will be interpreted in accordance with the OECD Model Tax Convention on income and capital in the comment to article 12. 8. with regard to article 13, paragraph 2 of that article 2 for the purposes of the application of paragraph is understood that capital gains from stock sales will be subject to tax in the Contracting State only this value of shares they directly or indirectly derived from this country real estate. 9. with regard to article 15, paragraph 2, it is understood that remuneration, the resident of a Contracting State for his activities as an individual, other than a company with share capital, which is the territory of the other Contracting State, a resident of a member, may be taxed in accordance with the provisions of article 15, in a way, as this would be a consideration of remuneration, which is paid work is received and its workers as references to the "employer" would be referring to this society. 10. with regard to article 21, paragraph 7, it is understood that the capital increase, the resident of a Contracting State from point 7 c) referred to in the disposition of the shares may be subject to tax in the other Contracting State only to the extent of the value of the shares they directly or indirectly derived from paragraph 7 c) those rights or property. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies in 1999 in Brussels, 21 April, Latvian, Flemish, French and English, in addition, all four texts being equally authentic. Different case is decisive for the interpretation of the text in English.

The Republic of Latvia, on behalf of the Government of Belgium on behalf of the Government of the Kingdom of Vilis krištopans, Jean-Luc Dehan, Prime Minister Prime Minister Convention between the Republic of Latvia and the Kingdom of Belgium 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 Kingdom of Belgium, to conclud a Convention (menu Rngton Line4) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows: CHAPTER I-scope OF the CONVENTION article 1 PERSONAL scope this Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or 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, as well as taxes on capital appreciation. 3. The existing taxes to which the Convention shall apply in particular to: (a)) in the case of Latvia: (i) the enterprise income tax (corporate income tax); (ii) the personal income tax (individual income tax); (hereinafter referred to as "Latvian tax"); (b)) in the case of Belgium: (i) the individual income tax; (ii) the corporate income tax; (iii) the income tax on legal entities; (iv) the income tax on non-residents; (v) the supplementary crisis contribution; including the prepayment, the surcharg on these taxes and prepayment, and the supplements to the individual income tax; (hereinafter referred to as "Belgian tax"). 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes which have been made in their taxation laws of respectiv. CHAPTER II. — the DEFINITION of article 3 GENERAL DEFINITION m ' means the Kingdom of Belgium; used in a sense, it means location the territory of the Kingdom of Belgium, including the territorial sea and any other area in the sea and in the air within which the Kingdom of Belgium, in accordanc with international law, exercises sovereign rights or jurisdiction in; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Belgium, 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 in the Contracting State of which it is a resident; (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 the case of Latvia, the Ministry of finance or its authorised representative; (ii) in the case of Belgium, the Minister of finance or his authorised representative; (I) the term "national") means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the law in force in a Contracting State. 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State for the purpose of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4 resident 1. For the purpose of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature. The term also includes that State itself, its political subdivisions and local authorities. But this term does not include any person who is liabl to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question it by mutual agreement. In the absence of such agreement, such person shall not be considered to be a resident of either Contracting State for the purpose of enjoying benefits under the Convention. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e a workshop, and f)) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. A building site, a construction, assembly or installation project or a supervisory activity connected therewith or consultancy constitut a permanent establishment only if such site, project or activity lasts for a period of more than nine months. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d)) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, where the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise and where the conditions between the agent and the enterprise differ from those which would be made between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this paragraph. 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. CHAPTER II. — TAXATION OF income article 6 income FROM IMMOVABL PROPERTY 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovabl property, livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, usufruc of immovabl property, rights to variable or fixed payments as considerations for the working of, or the right to work, mineral deposits, sources and other natural resources and any option or similar right to acquir-immovabl property. 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 of the owner of such entitl shares or corporate rights to the enjoymen of immovabl property held by the company, the income from the direct use, letting, or use in any other form of such right may be taxed to the enjoymen in the Contracting State in which the immovabl property is situated. 5. The provision of paragraphs 1, 3 and 4 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services. Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently. 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, but this does not include any expense for which under the law of that State would not be allowed to be deducted by an enterprise of that State. 4. Insofar as it has been customary in a Contracting State to determin the profits to be attributed to a permanent establishment on the basis of an apportionmen of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclud that Contracting State from determining the profits to be taxed by such an apportionmen as may be customary; the method of apportionmen, however, the adopted shall be such that the result shall be in accordanc with the principles led in this article. 5. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State — and taxes accordingly — profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State the tax so charged shall not (a) 12:5 per cent) of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 25 per cent of the capital of the company paying the dividend; b) 15 per cent of the gross amount of the dividends in all other cases. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares, "jouissanc", "jouissanc" shares or rights, mining shares, founder's shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as the such a dividend is paid to a resident of the of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in (a) 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: (a) interest arising in a Contracting) State, derived and beneficially owned by the Government of the other Contracting State, including political subdivisions and local authorities thereof, the Central Bank or any financial institution wholly owned by that Government, or interest paid in respect of a loan guaranteed or insured by that Government, subdivision or authority or a public institution acting within the framework of the promotion of the export and which is agreed upon by the mutual agreement of the competent authorities of the Contracting States, shall the be main from tax in the first-mentioned State; (b) interest arising in a Contracting) the State shall be the main from tax in that State if the beneficial owner of the interest is an enterprise of the other Contracting State, and the interest is paid with respect to an indebtednes of the consequences arising as of the sale on credit by an enterprise of that other State of any merchandise or industrial , commercial or scientific equipment to an enterprise of the first-mentioned State, except where the sale or indebtednes is between related persons. 4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur. However, the term "interest" shall not include for the purpose of this article penalty charges for late payment or interest treated as dividends for the purpose of article 10.5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 12 to 1 to ROYALT Royalt arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not (a) 12:5 per cent) of the gross amount of the paid for the USA to royalt of industrial , commercial or scientific equipment; b) 10 per cent of the gross amount of the stay in all other cases royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of , or the right to use industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt «arise, through to a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment or with fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 13 CAPITAL gains 1. Gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State, may be taxed in that other State. 2. Gains derived by a resident of a Contracting State from the alienation of shares in a company the assets of which the wholly or principally consis of immovabl property, referred to in article 6, situated in the other Contracting State, may be taxed in that other State. 3. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 4. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic by that enterprise or movable property pertaining to the operation of such ships or aircraft, shall be only in the taxabl you state. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxabl only in the Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any period of twelve consecutive in the months 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 for such fiscal year and the income that is derived from his activities referred to above that the performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18 and 19, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any period of twelve consecutive months of 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 1 and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. 2. However, the remuneration received by the persons concerned in any other capacity may be taxed, as the case may be, in accordanc with the provision of article 14 or article 15 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 political subdivisions 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 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. 2. However, the pension and allowance, periodic or other non periodic, paid under the social security legislation of a Contracting State may be taxed in that State. This provision also applies to pension and allowance of paid under a public scheme organised by a Contracting State for social welfare purpose. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such, salar) WAGs and others similar remuneration shall only be taxabl in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. 2. a Any pension paid by, or) out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16 and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 20 students payments which a student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. Article 21 offshore activities 1. The provision of this article shall apply notwithstanding the provision of Article 4 of the 20 of this Convention. 2. For the purpose of this article, the term "offshore activities" means any activity carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated therein. 3. A person who is a resident of a Contracting State and carr to on offshore activities in the other Contracting State shall, subject to paragraph 4, be deemed to be carrying on business in that other State through a permanent establishment situated therein or a fixed base. 4. The provision of paragraph 3 shall not apply where the offshore activities are carried on for a period or periods not exceeding in the aggregate 30 days within any period of twelve consecutive months of commencing or ending in the fiscal year concerned. For the purpose of computing the above-mentioned limit of 30 days: (a) where a person) which is a resident of a Contracting State carrying on offshore activities in the other Contracting State is associated with another person carrying on substantially similar offshore activities there, the duration of the activities of both persons shall be taken into account together, except to the exten to that those activities are carried on at the same time; (b) a person shall be regarded as) associated with another person if one of the directly or indirectly participat in the management, control or capital of the other or if a third person or third persons directly or indirectly the participat in the management, control or capital of both the first-mentioned person and the second-mentioned person. 5. Profits derived by a resident of a Contracting State from the transportation of supplies or personnel to a location, or between locations, where offshore activities are being carried on in the other Contracting State, or from the operation of a vessel for the tugboat and others auxiliary activities shall be the taxabl such, only in the first-mentioned State. 6. Salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment connected with offshore activities in the other Contracting State may, to the the exten that the duties are performed offshore in that other State, be taxed in that other State. However, such remuneration shall be taxabl only in the first-mentioned State if the employment is carried on for an employer who is not a resident of the other State for a period or periods and not exceeding in the aggregate 30 days in any period of twelve consecutive months of commencing or ending in the fiscal year concerned. 7. Gains derived by a resident of a Contracting State from the alienation of: (a) exploration or exploitation rights;) or b property situated in the other) Contracting State and used in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated in that other State; or c shares deriving their value) or the greater part of their value directly or indirectly from such rights or such property or from such rights and such property taken together; may be taxed in that other State. In this paragraph the term "exploration or exploitation rights" means rights to assets to be produced by offshore activities carried on in the other Contracting State, or their interests in or to the benefit of such assets. Article 22 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl you state. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 3. Notwithstanding the provision of paragraph 1 and 2, items of income of a resident of a Contracting State not deal with in the foregoing articles of this Convention and arising in the other Contracting State may be taxed in that also the other State. CHAPTER IV methods FOR ELIMINATION OF — double TAXATION article 23 ELIMINATION OF double TAXATION 1. In the case of Latvia, double taxation shall be avoided as follows: (a)) where a resident of Latvia's income which, deriv in accordanc with this Convention, may be taxed in Belgium, 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 Belgium; 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 Belgium. (b)) For the purpose of subparagraph (a)), where a company that is a resident of Latvia receive a dividend from a company that is a resident of Belgium in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Belgium 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 Belgium, double taxation shall be avoided as follows: (a)) where a resident of Belgium's income which is taxed deriv in Latvia in accordanc with the provision of this Convention, other than those of paragraph 2 of article 10, paragraphs 2 and 7 of article 11 and of paragraphs 2 and 6 of article 12, of Belgium shall be such main income from tax but may , in calculating the amount of tax on the remaining income of that resident, apply the rate of tax which would have been applicable if such income had not been exempted. (b) subject to the provision) of Belgian law regarding the marbles from Belgian tax of taxes paid abroad, where a resident of Belgium's items of deriv his aggregate income for Belgian tax purpose of which the dividend of the taxabl in accordanc with paragraph 2 of article 10, and note main from Belgian tax according to subparagraph (c)), hereinafter the taxabl interest in accordanc with paragraph 2 or 7 of article 11 , or the taxabl royalt in accordanc with paragraph 2 or 6 of article 12, the Latvian tax levied on that income shall be allowed as a credit against Belgian tax relating to such income. (c)) within the meaning of Dividends in paragraph 3 of article 10, derived by a company which is a resident of Belgium from a company which is a resident of Latvia, shall be the main from the corporate income tax in Belgium under the conditions and within the limits provided for in the Belgian law. (d)) where, in accordanc with Belgian law, the loss incurred by an enterprise carried on by a resident of Belgium in a permanent establishment situated in the United Kingdom, have been effectively deducted from the profits of that enterprise for its taxation in Belgium, the exemption provided for in paragraph (a) shall not sub) apply in Belgium to the profits of others in the period attributabl to taxabl that establishment to the exten to that those profits have also been exempted from tax in Latvia by reason of compensation for the said loss. CHAPTER v. the SPECIAL PROVISION of article 24 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. a person who with Stateles of residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of the State concerned in the same, in particular with circumstanc respect their residence, may be subjected to or. 3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of the of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. 4. Except where the provision of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursement royalt paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned State may be subjected to or. 6. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description. Article 25 MUTUAL agreement procedure 1-where a person consider. that the actions of one or both of the Contracting States result or will result for him in taxation not in accordanc with the provision of this Convention, he may, irrespectiv of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or , if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the Convention. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the Convention. 4. The competent authorities of the Contracting States shall agree the one administrative measure cessary to carry out not the provision of the Convention and particularly on the proof to be furnished by residents of either Contracting State in order to benefit in the other State from the exemption or reduction in tax provided for in the Convention. 5. The competent authorities of the Contracting States the may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 26 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Any information received by a Contracting State shall be treated as secret in the the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of the appeal in their relations, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. 2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (order public). Article 27 AIDS IN RECOVERY 1. The Contracting States to lend assistance to undertak each others in the collection of the taxes owed table by (a) a taxpayer to the exten that the amount thereof has been finally determined according to the law of the Contracting State making the request for assistance. 2. In the case of a request by a Contracting State for the collection of tax by the other Contracting State, such taxes shall be collected by that other State in accordanc with the laws applicable to the collection of its own taxes and as if the taxes to be collected were its own SOS taxes; such tax claims, however, shall not have any priority in the other Contracting State. 3. Any request for collection by a Contracting State shall be accompanied by such certificate as is required by the law of that State to establish that the taxes owed table by the taxpayer have been finally determined. 4. Where the tax claim of a Contracting State has not been finally determined by reason of it being subject to appeal or other proceedings, that State may, in order to protect its revenues, request the other Contracting State to take such interim measure on its behalf for the conservancy with available axis to the other State under the law of that other State. If such request is accepted by the other State, such interim measure shall be taken by that of the other State as if the taxes owed table to the first-mentioned State were the own taxes of that other State. 5. A request under paragraphs 3 or 4 shall only be made by a Contracting State to the exten to that sufficient property of the taxpayer, the tax of the Owings is not available in that State for recovery of the taxes owed table. 6. The Contracting State in which the tax is recovered in accordanc with the provision of this article shall forthwith remi to the Contracting State on behalf of which the tax was collected the amount so recovered minus, where appropriate, the amount of extraordinary costs referred to in sub-paragraph 7 (b)). 7. It is understood that unless otherwise agreed to by the competent authorities of the Contracting States, a) both ordinary costs incurred by a Contracting State in providing assistance shall be borne by that State; (b) extraordinary costs incurred by a) Contracting State in providing assistance shall be borne by the other State and shall be payable regardless_of of the amount collected on its behalf by that other State. As soon as a Contracting State of that anticipate extraordinary costs may be incurred, it shall so advise the other Contracting State and indicates the estimated amount of such costs. 8. In this article, the term "tax" means the taxes to which the Convention applies and includes any interest and penalties relating theret. 9. The provision of paragraph 1 of article 26 concerning secrecy and use of the information exchanged shall also apply to any information which, by virtue of this article, is supplied to the competent authority of a Contracting State. Article 28 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this Convention shall be affec the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 29 LIMITATIONS OF benefits A person that is a resident of a Contracting State and the income from the deriv the other Contracting State shall not be entitled to relief from taxation otherwise provided for in this Convention if it was the main purpose or one of the main purpose of any person concerned with the creation or assignment of such item of income to take advantage of the provision of this Convention. In making a determination under this article, the appropriate competent authority or authorities shall be entitled to consider, among others factors, the amount and nature of the income, in which the income of circumstanc was derived, the real intention of the parties to the transaction, and the identity and residence of the persons who in law or in fact, directly or indirectly , control or beneficially own (i) the income or (ii) the persons who are the resident (s) of the Contracting State (s) and who is concerned with the payment or receipt of such income. CHAPTER VI. FINAL PROVISION article 30 ENTRY into force 1. The Governments of the Contracting States shall notify each other when the constitutional requirements for the entry into force of this Convention have been complied with. 2. The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (b)) in respect of other taxes charged on income of any fiscal year beginning on or after the first day of January in the calendar year next following the year in which the Convention enter into force. Article 31 TERMINATION this Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to the have effect in both Contracting States: a in respect of taxes) withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given; (b)) in respect of other taxes charged on income of any fiscal year beginning on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done in duplicate at Brussels this 21st day of April 1999, in the Latvian, Dutch, French and English languages, all four texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government of the Republic of Latvia For the Government of the Kingdom of Belgium Will have Jean-Luc Dehaene Kristopan Prime Minister Prime Minister PROTOCOL At the moment of signing the Convention between the Republic of Latvia and the Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provision which shall form an integral part of the United Nations Convention. 1. Ad article 4, paragraph 3 It is understood that the second line of paragraph 3 shall not be interpreted as prohibiting (a) the Contracting State to eliminat double taxation in accordanc with article 23 in respect of persons mentioned in paragraph 3 of article 4 Ad article 2, paragraph 2 It is understood 6 that the term "variable or fixed payments as considerations for the working of , or the right to work, mineral deposits, sources and other natural resources "also includes payments relating to the production from such resources. 3. Ad article 6, paragraph 3 and article 13, paragraph 1 It is understood that all income and gains from the alienation of property immovabl may be taxed in the Contracting State in which the immovabl property is situated. 4. Ad article 7, paragraphs 1 and 2 where an enterprise of a Contracting State sells goods or merchandise or to one business in carr the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but only on the basis of the remuneration which is attributabl to the actual activity of the permanent establishment for such sales or business. 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 nature as those effected, through that permanent establishment may be considered attributabl to that permanent establishment if it is proved that the sale or activities were structured in a manner intended to avoid taxation in the State where the permanent establishment is situated. 5. Ad article 10, paragraph 3, the term "dividends" also includes income – even paid in the form of interest, which is treated as income from shares by the laws of the State of which the paying company is a resident. 6. Ad article 12, paragraphs 2 and 3 If in any convention for the avoidance of double taxation concluded by Latvia with a third State, being a member of the Organisation for Economic Co-operation and development (OECD) at the date of signature of this Convention, Latvia after that date would agree to exclude any kind of rights or property from the definition in paragraph 3 or the main led royalt to Latvian tax arising in Latvia from on to it or royalt limit the rate of tax provided in paragraph 2, such exemption or lower rate definition, or shall automatically apply as if it had been specified in paragraph 3 or paragraph 2 respectively. 7. Ad article 12, paragraph 3 It is understood that the term "information concerning industrial, commercial or scientific experience" is to be interpreted according to the Commentary on paragraph 2 of article 12 of the OECD Model Tax Convention on the income and on Capital. 8. Ad article 13, paragraph 2 For the purpose of paragraph 2, it is understood that gains from the alienation of shares shall be in a Contracting State taxabl only to the exten of the value of such shares derived directly or indirectly from immovabl property situated in that State. 9. Ad article 15, paragraph 2 It is understood that remuneration derived by a resident of a Contracting State in respect of his personal activity as a partner of a company, other than a company with share capital, which is a resident of the other Contracting State, may be taxed in accordanc with the provision of article 15, as if such remuneration were remuneration derived by an employee in respect of an employment and as if the reference to "the employer" were the reference to the company. 10. Ad article 21, paragraph 7, It is understood that gains derived by a resident of a Contracting State from the alienation of shares referred to in paragraph 7 (c)) may be taxed in the other Contracting State to the exten of the value of such shares derived directly or indirectly from the rights mentioned in paragraph 7 or property as c). In witness whereof, the undersigned, duly authorised the theret, have signed this Protocol. Done in duplicate at Brussels this 21st day of April 1999, in the Latvian, Dutch, French and English languages, all four texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government of the Republic of Latvia For the Government of the Kingdom of Belgium Will have Jean-Luc Dehaene Kristopan Prime Minister Prime Minister