The Saeima has adopted and the President promulgated the following laws: For the Republic of Latvia and the Slovak Republic to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital article 1. on March 11, 1999 in Bratislava signed in the Republic of Latvia and the Slovak Republic to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital (hereinafter the Convention) and its 11 March 1999 in Bratislava 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 day following its promulgation. With the law put the Convention and Protocol in English and Latvian. 3. article. The Convention and the Protocol shall enter into force in article 28 of the Convention within the time and in order, and shall notify the Ministry of Foreign Affairs Gazette "journal". The Parliament adopted the law of 20 May 1999. The President g. Ulmanis in Riga on 9 June 1999, the Republic of Latvia and the Slovak Republic to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital of the Republic of Latvia and the Slovak Republic, reaffirming willingness to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, agree: article 1 persons covered this Convention shall apply to persons Convention that is one or both of the Contracting State party to the country resident. Article 2 taxes covered by the Convention (1) this Convention shall apply to taxes on income and on capital, irrespective of their method of collecting levies a Contracting State or of its political or administrative units of local government. 2. On the income and capital taxes, regarded as all taxes, which puts the total income total capital or income or capital, the tax shall be levied with movable or immovable property, the proceeds of disposal of earned income and capital appreciation. 3. the taxes to which this Convention applies, in particular, are the following: (a)): (i) corporate income tax; (ii) the individual income tax; (iii) tax on immovable property; (hereinafter referred to as the Latvian tax). b) Slovakia: (i) the individual income tax; (ii) the legal entity income tax; (iii) tax on immovable property; (hereinafter referred to as the Slovak tax); 4. this Convention shall apply also to any identical or substantially similar taxes, which will be implemented by the Contracting State after the date of signature of this Convention, supplementing or replacing the existing taxes. Of both national authorities are required to inform each other of any significant amendments to the national legislation of the relevant tax legislation. Article 3 General definitions 1. If it is not apparent from the context, otherwise in this Convention: a the term "Latvia") means the Republic of Latvia, and, used in a geographical sense, 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 "Slovakia") means the Slovak Republic, and, used in a geographical sense, it represents the territory of Slovakia, in which, in accordance with the rules of international law in the Slovak Republic in the exercise of their sovereign rights and jurisdiction. (c) the term "Contracting State)" and "the other Contracting State" depending on the context of Latvia or Slovakia represents; (d) the term "person") denotes a physical person, the company and any other body of persons; e the term "company") represents any United formations or to any entity which, for the purposes of taxation is considered as a United entity; (f) the term "Contracting Government) of the enterprise" and "enterprise of the other Contracting State" represents the company, run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; g) the term "international traffic" means any carriage by sea or air, by a company of a Contracting State, except for the cases when the sea or air transport to move only in the other Contracting State; h) the concepts of "competent authorities" shall mean: (i) in Latvia: the Ministry of finance or its authorised representative; (ii) the Minister of Finance of the Slovak, or his authorised representative; I) the concepts of "citizen" means: (i) any natural person who is a citizen of a Contracting State; (ii) any legal person, partnership or association whose status stems from State legislation in force. 2. for the application of this Convention at any time Contracting State will use any term which is not defined here, only in the sense that if one is not apparent from the context in which it is otherwise in use at the time the legislation of a Contracting State concerning the taxes to which this Convention applies, in addition to any notion of explanation in accordance with applicable tax law will have precedence over this concept of explanations under other law of this State. Article 4 resident 1. In this 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 of the actual management, place of incorporation (registration) or any other similar criteria and also includes the nature of this country, its political and administrative units and municipalities. This concept does not, however, include persons who are taxed in that State in respect only of income from sources in that State or capital deployed. 2. Where, in accordance with the provisions of paragraph 1 an individual is a resident of both Contracting States, its status will be determined in the following manner: (a)) this person will be treated as a resident only of the State in which they habitually resident; If you are habitually resident in two countries, this person will be considered only for residents of the State with which it has the closest personal or 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, this a 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 citizen of both States or of neither of them, 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 Contracting State the competent authorities shall endeavour to resolve this issue, savstarpčj agreement and determine the mode of application of this Convention to such person. If such an agreement has not been reached, such person shall not be regarded as not a single resident of a Contracting State who might enjoy the benefits of this Convention. Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of which is wholly or partly carried on business. 2. The term "permanent establishment" includes: (a) the management of the company); b) branch; c) Office; (d) a factory;) e) workshop; f) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. The term "permanent establishment" likewise encompasses: a a building site or construction) or installation project only if it lasts more than nine months; b) Contracting State organization or other party to this end the company employed the services of the staff, including consultancy and management services, but only where such practices of the other Contracting State in the territory lasts for the time period or periods exceeding in the aggregate six months within any twelve-month period. 4. Notwithstanding the preceding paragraphs of this article, the provisions of the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. d) permanent site designed exclusively for the purchase of goods or products or information collection needs; e) permanent site designed exclusively for making business arrangements or any other ancillary; f) permanent site designed exclusively for making this point from "a" through "e" the actions referred to in any combination, provided that the overall activity of the preparatory or ancillary nature is. 5. Notwithstanding points 1 and 2, when the person is not subject to paragraph 6, the independent agent status, running the business and typically uses its powers to conclude a Convention for this company on behalf of a Contracting State, shall be considered that this company has a permanent establishment in that State in respect of any the person's business activities in that State, except when the permanent site used by this person, doing the activities referred to in paragraph 4 may not be considered a permanent establishment under the provisions of paragraph 4. 6. it will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, through intermediaries only, sales agent or any other agent of an independent, provided that such persons perform their normal business activities. 7. the fact that the company is a resident of a Contracting State-controlled company, which is a resident of the other Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way), or is subject to the control of such undertaking itself does not turn into one of those companies on the other company's permanent representation. Article 6 Income from real property 1. Income for the resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State, may be taxing in that other country. 2. the term "immovable property" have the meaning it has in its legislation of a Contracting State in which the property is located. In any case, this term means property which belongs to real estate property, livestock and equipment used in agriculture and forestry, rights to which the General provisions apply to property that is on the ground, any real estate purchase and sales rights of use, or similar right to acquire real estate, uzufrukt real estate and rights to variable or fixed payments for the right to use valid minerals , sources and other natural resources, or for their use. For real estate will not be considered to be ships, barges and aircraft. 3. paragraph 1 of this article, the rules will be applied in respect of income from real estate direct use, letting or use in any other way. 4. If the company's shares or other rights gives its owner the right to public use of the property, the income from the direct use, letting or use in any other way can be taxing in the Contracting State in which the immovable property is situated. 5. the following article 1, 3, and 4. the provisions of paragraph 1 shall be applied in respect of income from the company's real estate, as well as income from property that is used for independent individual services. Article 7 business profits 1. Contracting State company profits will be taxed only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits can be taxing in the other country, but only the profit relating to the permanent representations. 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, the existing Each Contracting State to the permanent representations should the profit that this representation could 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 expense deduction from amounts taxable. These expenses may be representations of operational and general administrative expenses incurred by the country in which the permanent establishment or elsewhere. 4. where a Contracting State the profits attributable to the permanent establishment shall be determined by the joint company profits apportioned 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 applying the provisions of the preceding paragraph, the profits attributed to the permanent representations, each year must be determined by the same method, except when there are sufficient grounds to act otherwise. 7. If the profit is included in the other articles of this Convention see income separately, this article shall not affect the other provisions of this article. Article 8 of sea and air transport, 1. Contracting State company profits from the sea and air transport, the use of the resources of the 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 1. If: (a) the Contracting State) directly or indirectly participating in the other Contracting State, the company's management or control or it owns part of the company's capital; or (b)) the same persons directly or indirectly participating in the management company of a Contracting State or control or they own in the company's capital and at the same time in another Contracting State and the two companies in the commercial and financial relations are created or established by rules different from those provisions that the force between two independent (non-related) companies, 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, where the taxable profit, in respect of which the company of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two totally independent companies country, then the other must be the appropriate corrective for the size of the tax, which taxed the earnings of the other country. 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. 3. paragraph 2 of this article shall not be applied to the prevention of fraud, deliberate default and gross negligence. Article 10 dividends 1-dividends, a company of a Contracting State a resident of the other Contracting State paid to a resident, can be taxing in that other country. 2. However, such dividends may also be taxing in accordance with the national law of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed 10 per cent of the gross amount of the dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares or of any other such right to participate in profits, not claims, as well as income from other corporate rights which, in accordance with its national legislation, which the resident is a company that performs the distribution is subject to the same taxation procedure, as the income from the shares. The term "dividends" also includes the income of the various arrangements, including debt obligations, which gives the right to participate in profits to the extent that it is established in the Contracting State in which the income of this legislation. 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 through a permanent establishment there, existing, or provide other State independent personal services from a permanent base located there, where the company that pays dividends, is the other State residents and where participation, which is paid out in dividends, is actually related to the permanent representation or permanent base. In this case in accordance with the conditions applicable in article 7 or 14. 5. If the company — a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be put to any tax dividends paid by the company, except when dividends are paid to a resident of the other State, or when the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base, located in the other country, nor to retained earnings in the company's retained earnings 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; If the interest owner is implemented on the territory of the other Contracting State, a resident of the tax must not exceed 10 percent of the total amount of interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State of which the beneficiary is the owner of and implement in the other Contracting State, the Government, the central bank or any other this Government fully-owned financial institutions, as well as the interest received on the loans guaranteed by the Government, will not be taxed in the first country. 4. for the purposes of this article, the term "interest" means income from debt claims of any type, irrespective of whether or not they are secured by mortgages and under paragraph 3 of article 10, whether they are or are not eligible to participate in the debtor's profits, and in particular includes the income from government securities and income from bonds, promissory notes, including bonuses and awards for these securities, bonds or debentures. Interest received on payments made within that time will not be considered interest covered by this article. 5. the following article 1, paragraph 2 and 3 shall not be applied if the person put in the owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or provide this second country independent personal services through a permanent base located there, and the claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case in accordance with the conditions applicable in article 7 or 14. 6. If the payer of the interest is a resident of that State, be considered that interest arises in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which is formed of the indebtedness on which the interest is paid, and this interest is paid (bear) permanent establishment or fixed base, will be considered that the interest incurred in the State in which the permanent establishment or fixed base. 7. If, due to the special relationship between the payer and the interest percentage implemented owner or between both of them and a third person interest amount, 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 be taxing in accordance with national law of the Contracting State in which it arises. If implemented, this royalty owner is a resident of the other Contracting State, the tax shall not exceed 10 per cent of the total royalties. 3. The term "royalties" in this article means payments of any kind received as a consideration for the use of any copyright or rights to use the copyright for literary, artistic or scientific work, including cinematograph films and films or recordings, radio and television broadcasts, as well as other visual image and sound reproduction features to any patent, trade mark, design or model, plan, secret formula or process whether for industrial, commercial or scientific equipment, or for the right to use it, or for information concerning industrial, commercial or scientific activity and experience. 4. the following article 1 and 2 of the terms will not be applied when implementing the owner, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, or in the other State independent personal services from a permanent base located there, and if the rights or property of, subject to royalty payments, is actually related to the permanent representations, or permanent base. In this case in accordance with the conditions applicable in article 7 or 14. 5. If the payer of the royalties is a resident of a Contracting State, it will be considered that the royalties arise in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which committed to pay the royalties, and the royalties paid to (bear) permanent establishment or fixed base, will be considered that the royalties arise in the State in which the permanent establishment or fixed base. 6. If due to the special relationship between the payer of royalties and royalties shall implement the owner or between both of them and a third person the amount of the royalties relating to the rights of use or information 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 exceeding this amount are taxed according to each Contracting State law provided that you comply with the other provisions of this Convention. Article 13 capital gains 1. income for the resident of a Contracting State alienates a referred to in article 6, in the other Contracting State the existing real estate, can be taxing in that other country. 2. Capital gains, the resident of a Contracting State alienates the public shares, which consists mainly of assets, direct or indirect, of the article 6 the second Contracting State to an existing property, can be taxing in that other country. 3. Capital gains earned on the property, which is an enterprise of a Contracting State in the other Contracting standing representative offices in the country in business a portion of the property to be used in the disposal or on property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, including disposal gains (capital) of the following permanent missions (alone or with the whole enterprise) or of such a disposal of the seizures, the standing base can be taxing in the other Contracting State. 4. Capital increase the company of a Contracting State for that company's use in international traffic, maritime or air transport or disposal of this marine or air transport use of movable property belonging to the forfeiture, will be subject to tax only in the country. 5. Capital gains earned on the disposal of any property, which is different from 1, 2, 3 and 4 above, will be subject to tax only in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. Contracting State residents — physical persons income earned by providing professional services or other independent activities, will be taxed only in the country, except when this person your actions, uses it regularly available permanent base in the other State. If you are using the following permanent base, income can be taxing in the other country, but only to the extent that they apply to this permanent base. The application of this article where a resident of a Contracting State: a natural person resident in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any 12-month period that begins or ends in the tax year concerned, shall be considered that this person uses regular access to permanent base the second Contracting State and the income that accrued on the second country made the above actions will be applied to this permanent base. 2. The term "professional services" means the independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18 and the provisions of article 19 salaries, wages and other similar remuneration received by a resident of a Contracting State in his work, will be taxed only in the country, if one paid work is not performed in the other Contracting State. If a paid 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 not more than 183 days in any 12-month period that begins or ends in the tax year; and (b) the remuneration is paid) an employer who is not a resident of the other State, or the name of the employer; and c the remuneration is not paid) permanent establishment or fixed base which the employer has in the other State is used. 3. Notwithstanding the foregoing provisions of this article remuneration for work carried out by working on the enterprise of a Contracting State sea or air means of transport in international traffic, may be to tax in this country. Article 16 Directors ' fees directors ' fees and other similar remuneration received by a resident of a Contracting State as a company that is a resident of the other Contracting State, the Board of directors or other similar institutions in the Member States, can be taxing in the other Contracting State. 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 well as a musician or an athlete for your individual activities in the other Contracting State, may be taxing in that other country. 2. If an artist or athlete's income on his individual activity in the area in question are paid not the artist or athlete but to another person, that income regardless of the 7, 14 and 15 article can be taxing the Contracting State to which the izpildītājmāksliniek or athletes. 3.1 and 2 of this article, the provisions will not be applied in respect of income which the Contracting State making izpildītājmāksliniek or athlete, if his performance in this country are entirely or mainly financed from one or both of the Contracting States, the political and administrative entity or municipal public funds or this step entirely or mainly financed by one or both of the Contracting States, their political and administrative unit or municipality. In this case, the income will be taxed taxes only in the Contracting State of which the resident is the artist or athlete. Article 18 pensions in accordance with paragraph 2 of article 19, pensions and other similar remuneration for the previous paid employment received by a resident of a Contracting State will be taxed only in the country. Article 19 government service 1 a) salary, wages and other similar remuneration, other than a pension, and a natural person the cost of Contracting State, its political and administrative unit or municipality of this State, unit, or for the services provided to the municipality, will be taxed only in the country. (b)) However, this salary, wages and other similar remuneration will be taxed only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purposes of providing the services. 2. a pension by) any natural person the cost of Contracting State, its political and administrative unit or municipality, or what the cost of that Contracting State, a political or administrative units of the local Government set up funds 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 the other State and citizen. 3. Salary, pay, other similar remuneration and pensions received for services provided in respect of the Contracting State, its political and administrative units or local authorities, the business must apply to the 15, 16, 17 and 18, the provisions of the article. Article 20 students payments which a residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the Contracting State had the other resident of a Contracting State and situated in the first mentioned State solely for the purpose of study or placement period, will not be taxed in that State, if such payments arise outside that State. Article 21 other income 1. Previous articles not featured resident of a Contracting State in the other income regardless of their sources will be taxed only in the country. However, the income from the other Contracting State as winnings gained from gambling and lotteries, taxing can also in this other 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 related to the permanent representations, or permanent base. In this case in accordance with the conditions applicable in article 7 or 14. Article 22 capital 1. capital represented in article 6 that a resident of a Contracting State of the real estate, which is situated in the other Contracting State, may be taxing in that other country. 2. capital represented by movable property forming part of the other Contracting State, the Contracting State the company's permanent representation in business-use property or capital represented by movable property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which is used for independent personal services, may be taxing in that other country. 3. Capital represented by marine or air transport means that a company of a Contracting State in international traffic are used, as well as movable property belonging to the maritime or air transport use will be subject to tax only in the country. 4. All the other Contracting State, a resident of the capital items will be taxed only in the country. Article 23 avoidance of double taxation 1. In Latvia, double taxation will be avoided in the following manner: (a)) in case the resident of Latvia derives income or owns capital which, in accordance with the provisions of this Convention may be taxing, unless the internal legislation of Latvia do not provide more favourable provisions, Latvia must permit: (i) reduce the resident's income tax on the portion of the tax is equal to the income tax paid in Slovakia; (ii) reduce the capital residents a tax on that portion of the tax is equal to the capital tax paid in Slovakia. These reductions, however, in no case, exceed the income tax or capital tax, part of which is calculated in Latvia before the application of this reduction depending on the circumstances, which is attributable to the income or the capital which can be taxing in Slovakia; (b)) (a) for the application of this section, if the company) — a resident of Latvia receives a dividend from a company — and residents of Slovakia in this community for residents of Latvia to hold at least 10 percent of the shares with voting rights, full paid tax in Slovakia 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. In Slovakia, double taxation shall be avoided as follows: Slovakia, taxing its residents, may include in the tax base on which the tax is calculated as income or capital which, in accordance with the provisions of this Convention can be taxing in Latvia, but also Slovakia will deduct from the total calculated in this way, the amount of tax that is equal to the amount of tax paid in Latvia. Such deduction shall not, however, exceed that part of the Slovak tax which is computed before the deduction is made, and is applicable to income or capital which, in accordance with the provisions of this Convention can be taxing in Latvia. 3. where in accordance with any provisions of this Convention, the resident of a Contracting State is exempt from tax in that State, then despite the fact, that State may take into account the exempted income, in calculating the amount of tax that is applicable to the rest of the person's income. Article 24 non-discrimination 1. prevent nationals of a Contracting State in the other Contracting State shall not be subject to taxation or any requirements connected therewith which differs from taxation or the related requirements which are or may be exposed to the other citizens of the country in the same circumstances, or which is more burdensome, in particular with respect to residence. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not party to one or both of the Contracting States of the residents. 2. Stateless persons who are residents of a Contracting State, any of the Contracting States shall not be subject to taxation or any related requirements that are more onerous than the otherwise or which is or may be exposed to nationals in the same circumstances, in particular with respect to residence. 3. a Contracting State a permanent establishment of the representation used in the other Contracting State may not be taxing in that other country less favourably than would be taxed in the other State companies that do the same type of action. This provision shall not be interpreted so that it would impose a Contracting State the obligation to grant the other Contracting State, a resident of any personal allowances, reliefs or reductions in respect of taxation, which this country give their residents given their civil status or family commitment. 4. except where this Convention apply paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident, in determining the taxable profit of the company, must be deducted from the profit upon the same terms as if they were to be paid to the first residents of that State. Similarly, the enterprise of a Contracting State in the other Contracting State debt residents, establishing this company's taxable capital, is to be deducted by the same rules as if they would apply to the first residents of that State. 5. the Contracting State whose capital is wholly or partly belongs to one or more of the other Contracting State residents or that these residents are directly or indirectly controlled by, the first in that country may not be subject to taxation or any requirements connected therewith 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 the person's taxation, which does not comply with the provisions of this Convention, that person may, irrespective of the country in the internal legislation, which sets 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 matter relates to article 24 of this Convention 1. of the Member State the competent authorities of which are this person. The question to be submitted for review within three years from the first notification of the action that caused the taxation not in accordance with the 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. Each such agreement is reached must be met regardless of the contracting domestic legislative deadlines. 3. the national competent authorities should seek mutual consent in the course of resolving any problems or to prevent doubts which may arise in the interpretation or application of this Convention. They may also consult to resolve double taxation cases which are not provided for in this Convention. 4. The competent authorities of the Contracting States may communicate directly with one another, as well as following an exchange of views can take place with the Commission, which consists of the competent authorities of the Contracting States, in order to reach agreement on these issues in the previous paragraphs. 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 Contracting States of internal legislation on taxes covered by this Convention, the requirements to the extent that those provisions do not conflict with the provisions of 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 the information that is obtained in accordance with the national legislation and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the taxes to which this Convention applies, in the calculation of the collection, the use of coercive measures, the prosecution of legal liability, or in the appeals in respect of those taxes. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public court proceedings or in judicial decisions. 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 match with the one or the other national legislation or administrative practice; (b)) to provide information that is not available under one or other of the Contracting State legislation or administrative practice generally applicable; (c)) to provide information that can reveal any trade, business, commercial, industrial or professional secret or trade process, or information, the disclosure of which would be contrary to the public interest (ordre public). Article 27 diplomatic and consular personnel, nothing in this Convention shall not affect the diplomatic missions or consular posts personnel fiscal privileges which it applied in accordance with international law or special agreements. Article 28 entry into force 1 this Convention shall be subject to ratification, and the exchange of instruments of ratification of the article must be carried out as quickly as possible. 2. this Convention shall enter into force with the exchange of instruments of ratification of the article for a while, and its provisions in both Contracting States shall be applied: (a)) in respect of taxes withheld at the time cost, starting with income for the first day of January or after the first day of January in the calendar year following the year in which this Convention enters into force; (b)) in the case of other income taxes and capital taxes, starting with taxes paid in any taxation year that begins on the first day of January, or after the first day of January in the calendar year following the year in which this Convention enters into force. Article 29 termination this Convention shall remain valid as long as the contracting party terminates its activities. Each Contracting State may terminate this Convention, diplomatic way by submitting a written note about the termination at least six months before any end of the calendar year following that in which the five-year long period of time, starting from the date of entry into force of the Convention. In this case the Convention in both Contracting States will end: a) in respect of taxes withheld at the time cost, starting with income for the first day of January or after the first day of January in the calendar year following the year in which the relevant note on the winding; (b)) in the case of other income taxes and capital taxes, starting with taxes paid in any taxation year that begins on the first day of January or after the first day of January in the calendar year following the year in which the relevant note on the winding. This, the undersigned, being duly authorized, have signed the Convention. The Convention was drawn up in Bratislava on March 11, 1999, in two copies, each of them Latvian, Slovak and English. All three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
On behalf of the Republic of Latvia, on behalf of the Slovak Republic Valdis Birkavs Eduard Kukan in the Republic of Latvia and the Slovak Republic to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital signed the Protocol of the Republic of Latvia and the Slovak Republic to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as "the Convention"), the undersigned have agreed upon the following provisions, forming an integral part of this Convention. I. in relation to article 6 and 13 rules: it is understood that all income and capital gains from that in article 6 real estate located in the other Contracting State, the seizures can be taxing in accordance with the provisions of article 13. II. With regard to paragraph 3 of article 7: it is understood that the expenditure is allowed to deduct the Contracting State shall include only expenses that are directly attributable to permanent representation in business. III. The Contracting States are unifying, that independently from the 4th to the Convention article 20 provisions concerning the operation of the shelf area is applicable in the following terms: 1. The term "shelf zone" means the contracting country shelf area perform the action associated with this national sea and subsoils and keep the existing natural resources exploration and exploitation. 2. 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. 3. paragraph 2 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-month period that begins or ends in the tax year concerned. The application of this paragraph: (a) the shelf zone), a person is associated with another person, be deemed to be the person to take action, if this action is essentially the same as its first performed by that person, other than a first-person action that is carried out simultaneously with the other activities of the person; (b)) a person shall be deemed to be associated with another person if one of them directly or indirectly controls the other or a third person or third party directly or indirectly controls both parties. 4. 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 the 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 it is made during a period or periods not exceeding in the aggregate 30 days in any twelve-month period that begins or ends in the tax year concerned. 5. 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 second shelf of this state of the activities in the area; or (c)), which shares your values or values most directly or indirectly derived from the above rights or property or the rights or property of these together, this can be taxing in the other country. In this article, the term "exploration 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. This, the undersigned, being duly authorized, have signed the Protocol. Protocol, drawn up in Bratislava on March 11, 1999, in two copies, each of them Latvian, Slovak and English. All three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
On behalf of the Republic of Latvia, on behalf of the Slovak Republic Valdis Birkavs Eduard Kukan Convention between the Republic of Latvia and the Slovak Republic for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on Capital the Republic of Latvia and the Slovak Republic 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 and on capital , Have agreed as follows: article 1 PERSONS COVERED this Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This Convention shall apply to taxes on income imposed on behalf of the Andean capital on (a) the Contracting State or of its political subdivisions or local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovabl property, as well as taxes on capital appreciation. 3. The existing taxes to which the Convention shall apply in particular to: (a)) in the United Kingdom: (i) the enterprise income tax (income tax of enterprises); (ii) the personal income tax (will tax revenue); (iii) the immovabl property tax (tax on immovable property); (hereinafter referred to as "Latvian tax"); (b)) in Slovakia: (i) the tax on the income of the individual (dan z prijmov fyzickych osob); (ii) the tax on income of legal persons (dan z prijmov pravnickych osob); (iii) the tax on property immovabl (dan z not hnutelnost); (hereinafter referred to as "Slovak tax"). 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes which have been made in their taxation laws of respectiv. Article 3 GENERAL DEFINITION 1. For the purpose of this Convention, unless the context otherwise requires: a the term) "Corporation" means the Republic of Latvia and, when used in the sense of location, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which under the law of Latvia and in accordanc with international law the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (b)), the term "Slovakia", means the Slovak Republic and, when used in a sense, it means location of territory, within which the Slovak Republic exercises its sovereign rights and jurisdiction, in accordanc with the rules of international law; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or Slovakia, as the context requires; (d) the term "person") includes an individual, a company and any other body of persons; e the term "company") means any body corporate or any entity which is treated as a body corporate for tax purpose; (f) the term ") enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h) the term "competent authority" means: (i) in Latvia, the Ministry of finance or its authorised representative; (ii) in Slovakia, 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 that it has at that time under the law of that State for the purpose of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4 resident 1. For the purpose of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State and any political subdivision or any authority thereof and local. This term, however, does not include any person who is liabl to tax in that State in respect only of income from sources in that State or capital situated therein. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question by their mutual agreement and determin the mode of application of the Convention to such person. 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. The term "permanent establishment of likewis: a) encompass a building site or construction or installation project if it lasts more than nine months; (b)) the furnishings of services, including consultancy and managerial services, by an enterprise of a Contracting State through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue in the territory of the other Contracting State for a period or periods exceeding in the aggregate six months within any twelve-month period. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d)) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other. Article 6 income FROM IMMOVABL PROPERTY 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovabl property, livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, any option or similar right to the immovabl property, usufruc acquir of immovabl property and rights to variable or fixed payments as considerations for the working of, or the right to work , mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. Where the ownership of shares or other corporate rights in a company the owner of entitl such shares or corporate rights to the enjoymen of immovabl property held by the company, the income from the direct use, letting, or use in any other form of such right may be taxed to the enjoymen in the Contracting State in which the immovabl property is situated. 5. The provision of paragraphs 1, 3 and 4 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services. Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which It is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as a deduction in "of which the expense incurred for the purpose of the permanent establishment, including Executive and general administrative expense so incurred, whethers of in the State in which the permanent establishment is situated or elsewher. 4. Insofar as it has been customary in a Contracting State to determin the profits to be attributed to a permanent establishment on the basis of an apportionmen of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclud that Contracting State from determining the profits to be taxed by such an apportionmen as may be customary; the method of apportionmen, however, the adopted shall be such that the result shall be in accordanc with the principles led in this article. 5. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. 3. The provision of paragraph 2 shall not apply in the case of fraud or wilful default or not glec. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the dividends. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares or other rights of any description, 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. The term "dividends" also includes income from arrangements, including debt obligations, carrying the right to participat in profits, to the exten so characterized under the law of the Contracting State in which the income «arise. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other State. Article 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it «arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State, derived and beneficially owned by the Government of the other Contracting State, the Central Bank or any financial institution wholly owned by that Government, or interest derived on loans guaranteed by that Government shall be main from tax in the first-mentioned State. 4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage and, subject to paragraph 3 of article 10, whethers or not carrying a right to participat in the debtor, and in particular the profits, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities , bond or debentur. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this Convention. Article 12 to 1 to ROYALT Royalt arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the royalt to is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broad-casting and other means of image or sound reproduction, 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, directly or indirectly, to mainly consis of immovabl property referred to in article 6 and 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 State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve-month period in commencing or ending in the tax year concerned, shall be deemed to have heâ a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18 and 19, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in-the tax year concerned , and b the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State. Article 16 directors ' fees directors ' fees and other similar remuneration derived by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 artistes AND SPORTSMEN 1. Notwithstanding the provision of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman's in his capacity as such notes to the accru entertainer or sportsman's himself but to another person, that income may, notwithstanding the provision of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman's are exercised. 3. The provision of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by an entertainer or a sportsman's if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or 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 subject to the provision of paragraph 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such, salar) WAGs and other similar remuneration shall be taxabl only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. 2. a Any pension paid by, or) out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16, 17, and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 20 students payments which a student, a business apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. Article 21 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Convention shall be only in the taxabl you state. However, income in the form of winning from gaming and lotter, arising in the other Contracting State, may be taxed in that also the other State. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. Article 22 CAPITAL 1. Capital represented by immovabl property referred to in article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State. 3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State and by movable property pertaining to the operation of such ships and aircraft, shall be only in the taxabl you state. 4. All other elements of capital of a resident of a Contracting State shall be only in the taxabl you state. Article 23 ELIMINATION OF double TAXATION 1. In Latvia, double taxation shall be eliminated as follows: a where a resident of) Corporation's deriv income or own capital which, in accordanc with this Convention, may be taxed in Slovakia, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow: (i) as a deduction in "from the tax on the income of that resident, an amount equal to the income tax paid thereon in Slovakia; (ii) as a deduction in "from the tax on the capital of that resident, an amount equal to the capital tax paid thereon in Slovakia. Such marbles in either case shall not, however, that about 12 of the income tax or capital tax in Latvia, as computed before the deduction in "is given, which is attributabl, as the case may be, to the income or the capital which may be taxed in Slovakia. (b)) For the purpose of sub-paragraph (a)), where a company that is a resident of Latvia receive a dividend from a company that is a resident of Slovakia in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Slovakia 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 Slovakia, double taxation shall be eliminated as follows: Slovakia, when imposing tax on its residents, may include in the tax base upon which such taxes are imposed the items of income or capital which according to the provision of this Convention may be taxed in Latvia also, but shall allow as a deduction in "from the amount of tax computed on such a base an amount equal to the tax paid in Latvia. Such notes shall, however, exceeds 100 Marbles that on of the Slovak tax, as computed before the deduction in "is given, which is attributabl to the income or the capital which, in accordanc with the provision of this Convention, may be taxed in the United Kingdom. 3. Where in accordanc with any provision of the Convention income derived by a resident of a Contracting State is a tax in the main from a State, such State may not vertheles, in calculating the amount of the tax on the remaining income of such person, take into account the exempted income. 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 circumstanc particular with respect to residence, are or may be subjected. 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. Similarly, any debt of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the capital of the taxabl such enterprise, be-deductibl under the same conditions as if they had been contracted to a resident of the first-mentioned State. 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. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States the may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 26 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. 2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 27 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 28 ENTRY into force 1 this Convention shall be ratified. and the instruments of ratification shall be exchanged as soon as possible. 2. The Convention shall enter into force upon the exchange of instruments of ratification and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (b)) in respect of other taxes on income and taxes on capital, for taxes chargeabl for any tax year beginning on or after the first day of January in the calendar year next following the year in which the Convention enter into force. Article 29 TERMINATION this Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the The Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year following after the period of the next five years from the date on which the Convention enter into force. 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 of termination has been given; (b)) in respect of other taxes on income and taxes on capital, for taxes chargeabl for any tax year beginning on or after the first day of January in the calendar year next following the year in which the notice of termination has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done in duplicate at Bratislava this 11th day of March 1999, in the Latvian, Slovak and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.

For the Republic of Latvia For the Slovak Republic Valdis Birkavs Eduard Kukan Protocol to the Convention between the Republic of Latvia and the Slovak Republic for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on Capital At the signing of the Convention between the Republic of Latvia and the Slovak Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (hereinafter referred to as "the Convention"), the undersigned have agreed upon the following provision which shall form an integral part of the United Nations Convention. I. With reference to article 6 and article 13 It is understood that all income and gains from the alienation of property referred to immovabl in article 6 and situated in a Contracting State may be taxed in accordanc with the provision of article 13. II. With reference to paragraph 3 of article 7 It is understood that the expense to be allowed as deduction in "by a Contracting State shall include only those directly relating to the expense of deductibl the business of the permanent establishment. III. The Contracting States agree that notwithstanding the provision of Article 4 of the 20 of the Convention in relations to offshore activities the following provision shall apply to: 1. The term "offshore activities" means activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources situated in that State. 2. 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 3, be deemed to be carrying on business in that other State through a permanent establishment situated therein or a fixed base. 3. The provision of paragraph 2 shall not apply where the offshore activities are carried on for a period or periods not exceeding in the aggregate 30 days in any twelve month period. For the purpose of this paragraph: a activities carried on offshore) by a person who is associated with another person shall be deemed to be carried on by the other person if the activities in question are substantially the same as those carried on by the first-mentioned person, except to the exten to that those activities are carried on at the same time as its own activities; (b) a person shall be deemed) to be associated with another person if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third person or third persons. 4. Salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment connected with offshore activities in the other Contracting State may, to the the exten that the duties are performed offshore in that other State, be taxed in that other State. However, such remuneration shall be taxabl only in the first-mentioned State if the employment is carried on for an employer who is not a resident of the other State for a period or periods and not exceeding in the aggregate 30 days in any twelve month period. 5. Gains derived by a resident of a Contracting State from the alienation of: (a) exploration or exploitation rights;) or b property situated in the other) Contracting State which is used in connection with the offshore activities carried on in that other State; or c shares deriving their value) or the greater part of their value directly or indirectly from such rights or such property or from such rights and such property taken together; may be taxed in that other State. In this paragraph the term "exploration or exploitation rights" means rights to assets to be produced by offshore activities carried on in the other Contracting State, or their interests in or to the benefit of such assets. In witness whereof, the undersigned, being duly authorised the theret, have signed this Protocol. Done in duplicate at Bratislava this 11th day of March 1999, in the Latvian, Slovak and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.

For the Republic of Latvia For the Slovak Republic Valdis Birkavs Eduard Kukan