The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of the Republic of Moldova Treaty on avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital article 1. 1998. February 25, Riga, signed by the Government of the Republic of Latvia and the Government of the Republic of Moldova, the agreement 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 Treaty) this law is adopted and approved. 2. article. The law shall enter into force on the date of its promulgation. To put the contract in law Latvian and English. 3. article. The agreement shall enter into force for the period specified in article 28 and the order, and shall notify the Ministry of Foreign Affairs Gazette "journal". The law adopted by the Parliament of 14 May 1998. The President g. Ulmanis in Riga on 27 May 1998, the Government of the Republic of Latvia and the Government of the Republic of Moldova, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital the Government of the Republic of Latvia and the Government of the Republic of Moldova, reaffirming willingness to conclude an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, agree: article 1 scope of the agreement this Agreement shall apply to persons that is one or both of the Contracting State party to the country resident. Article 2 taxes covered by the Agreement. This Agreement 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 existing taxes to which this agreement applies, in particular, are the following: (a)) in the Republic of Moldova: (i) the corporate income tax; (ii) the individual income tax; (iii) tax on immovable property; (hereinafter referred to as the Moldovan tax);
(b)): (i) corporate income tax; (ii) the individual income tax; (iii) the property tax; (hereinafter referred to as the Latvian tax).
4. this Agreement will apply to all identical or substantially similar taxes, which will be implemented in a Contracting State after the date of signature of this agreement, supplementing or replacing the existing taxes. Of both national authorities are required to inform each other of any substantial amendments to the tax legislation of these countries. Article 3 General definitions 1. If it is not apparent from the context, otherwise in this agreement: (a)) the concept of the "Republic of Moldova" means the Republic of Moldova and, used in a geographical sense, it represents the territory of Moldova, which includes domestic airspace, in which, in accordance with the international law of the Republic of Moldova exercises its sovereign right to develop mineral and natural resources; (b)) 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; (c) the term "Contracting State)" and "the other Contracting State" depending on the context, represents Latvia or the Republic of Moldova; (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 air performed by Contracting State enterprise, except for the cases when the air transport vehicles move only in the other Contracting State; h) the term "competent authority" means: (i) the Republic of Moldova, the Minister of finance or his authorised representative; (ii) in Latvia, the Minister of finance or his authorised representative;
I) the concept of "citizen" represents: (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 purposes of this agreement, the Contracting Party 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 used in that Contracting State legislative acts concerning taxes covered by this agreement. Article 4 resident 1. in this Agreement, the term "resident of a Contracting State" means any person who, in accordance with the national legislation is subject to taxation on the basis of the place of residence, residence, location of the actual management, place of incorporation (registration) or any other similar criteria in nature. The concept also includes the Government of this country, its political and administrative units and municipalities. But this term does not include persons who are taxed in this country only for u z it income from existing sources in that State or capital deployed. 2. Where, in accordance with paragraph 1 of this article, the provisions of the natural person is a resident of both Contracting States, its status will be determined in the following manner: (a)) this person will be deemed to be resident in the country where the permanent place of residence; If you are habitually resident in two countries, this person will be considered a resident of the State with which it has the closest personal or economic relations (vital interests); (b)) if it is not possible to determine the country in which that person is a vibrant centre of interests, or if it does not have a permanent place of residence in one of the two countries, that person will be considered a resident of the State that it is customary in the home; c) if that person normally home in both countries, or is not one of them, it will be considered a resident of the State of which a citizen is a 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 paragraph 1 of this article, the conditions for a person who is not a natural person, is a resident of both Contracting States, the Contracting State the competent authorities shall endeavour to resolve the matter by mutual agreement and determine the mode of application of this agreement 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 agreement. Article 5 permanent establishment 1. in this Agreement, the term "permanent establishment" means a fixed place of business of which is wholly or partly carried on business. 2. The term "permanent establishment" includes: (a) the management of the company); b) branch; c) Office; (d) a factory;) e) workshop; f) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. a building site or Assembly or) installation project will be considered a permanent establishment only if it lasts more than six months; (b) Contracting State) shelf area associated with this national sea and subsoils and there existing natural resource exploration and exploitation, will be considered an activity carried out in that country by using the existing permanent representations, if such activities exceeds a period, or periods, a total of 30 days in any 12-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 paragraph 1 and the provisions of paragraph 2, where a person, which is not the subject of this article in the independent agent status, running the business and typically uses its powers to enter into contracts on behalf of the Contracting States, shall be considered, the 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, making this article a, paragraph 4, should not be considered permanent representation in accordance with paragraph 4 of this article. 6. it will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, 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 law applicable to property on the ground, any real estate purchase and sales rights of use, v (a) (i) similar rights to acquire real estate, uzufrukt real estate and rights to variable or fixed payments for the right to use or the , source and other exploitation of natural resources, the right to property, which can be r, making the sea a knit and subsoils and there existing natural resource exploration and exploitation, including the right to participation in the ownership or profit, you can get this property. For real estate will not be considered 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, as well as income from the disposal of real estate. 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 paragraph 3 of this article, when a company of a Contracting State carries on business in the other Contracting State through a permanent establishment there, existing in 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. However, this deduction will not be allowed on payments paid to the permanent representation (which is different than the actual reimbursement) the company or any part thereof, as royalties, fees or other similar payments for patents or other rights, or as a Commission on the provision of special services or management services company — or, except bank interest payments of the sums of money that have lent the permanent representation of the company. 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 of this article shall 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 application of the preceding paragraph of this article, 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 agreement are considered separate income type, this article shall not affect the other provisions of this article. 8. Article 1 of air transport enterprise of a Contracting State to profit from the use of air transport 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 transportation company. Article 9 Associated enterprises where: 1 a) Contracting State the company directly or indirectly participating in the other Contracting State, the company's management or control or it owns part of the company's capital; or (b)) the same persons directly or indirectly participating in the management company of a Contracting State or control or they own in the company's capital and at the same time in another Contracting State in the other, and these 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, may be included in this corporate t 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 agreement and, if necessary, shall be held by the competent authorities of the Contracting States for consultations. Article 10 dividends 1-dividends, a company of a Contracting State a resident of the other Contracting State paid to a resident, can be taxing in that other country. 2. However, such dividends may also be taxing in accordance with the national law of the Contracting State of which the resident is a company that pays dividends, but if the dividend recipient is the true owner of the dividends, the tax may not exceed 10% 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 other rights to participate in profits, which is not a debt, as well as income from other corporate rights which is subjected to the same taxation as income for the procedure of shares in accordance with the national provisions, which the resident is a company that performs this distribution. 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, according to the conditions applicable to this contract, or article 14 7. 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 undistributed profits, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. Article 11 interest 1. interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxing in that other country. 2. However, such interest may also be taxing according to national law the Contracting State in which they arise; If interest is the interest of the beneficiary in the true owner, tax shall not exceed 10 per cent of the gross amount of the interest. 3. paragraph 2 of this article shall not be applied where the interest arising in a Contracting State, one receives the other Contracting Government, as well as its political and administrative units and local governments, the Central (national) bank or any other this Government completely owned financial institution which is in the interest of the owner, or to pursue 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 any type of indebtedness, regardless of their security guarantees, in particular 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 indebtedness on which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, according to the conditions applicable to this contract, or article 14 7. 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 incurred the debt for which interest is paid, and the interest shall be paid to the permanent establishment or fixed base, will be considered that the interest incurred in the State in which the permanent establishment or fixed base. 7. If, due to the special relationship between the payer and the interest percentage implemented owner or between both of them and a third person interest amount relating to indebtedness 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 portion of m u pay is taxed according to each Contracting State law provided that you comply with the other provisions of this agreement. Article 12 Royalties (1) royalties arising in a Contracting State and is paid to residents of the other Contracting State, may be taxing in that other country. 2. However, such royalties may be taxing in accordance with national law of the Contracting State in which it arises. If the beneficiary is the royalties royalties put owner, 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 broadcasting, any patent, trademark, design or model, plan, secret formula or process, or for the industrial, commercial or scientific equipment, or for the right to use 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 another country provides independent personal services through 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, according to the conditions applicable to this contract, or article 14 7. 5. If the payer of the royalties is a resident of a Contracting State, it will be considered that the royalties arise in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which committed to pay royalties and the royalties paid to the permanent establishment or fixed base, will be considered that the royalties arise in the State in which the permanent establishment or fixed base. 6. If due to the special relationship between the payer of royalties and royalties shall implement the owner or between both of them and 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 agreement. Article 13 capital gains 1. income for the resident of a Contracting State alienates this contract referred to in article 6, in the other Contracting State the existing real estate or shares of one company, which actively consist mainly of such property can be taxing in that other country. 2. Increases (capital) gained on the property, which is an enterprise of a Contracting State a permanent missions in the Contracting State in the other part of commercial units, or disposal of property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, which created the independent personal services, including disposal gains (capital) of the following permanent missions (alone or with the whole enterprise) or of such a permanent disposal base disposal can be taxing in the other Contracting State. 3. Capital increase the company of a Contracting State, for the use in international traffic by the air transport, disposal of or for the use of air transport in the property belonging to the forfeiture, will be subject to tax only in the country. 4. Capital gains earned on the disposal of any property that differs from the 1, 2, and 3. the property referred to in paragraph 1 will be subject to tax only in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. Contracting State residents — physical persons income earned by providing professional services or other independent activities, will be taxed only in the country, except when this person your actions, uses it regularly available permanent base the second Contracting State. If you are using the following permanent base, income tax may put a r in the other Contracting State 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 commencing or ending in the fiscal year, then will be considered that this person uses regular access to permanent base in the other 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. in accordance with this agreement. 19.16 in favour, and the provisions of article salary, 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 paragraph 1 of this article, the provisions of 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 relevant financial 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 in the air means of transport in international traffic, may be to tax in this country. Article 16 Directors ' fees directors ' fees and other similar payments to residents of a Contracting State receives as a society, which is the territory of the other Contracting State, a resident of 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 1.14 and 15 of this agreement, the provisions of article 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 this Treaty, articles 14 and 15 of the regulations 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, their political and administrative units or local public funds, or the operation 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 article 19 of this agreement, 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, earnings, 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, earnings, and other similar remuneration will be taxed only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the 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 that other State and the citizen. 3. Salary, earnings, other similar remuneration and pensions received for services rendered in connection with a Contracting State or of its local authorities, the establishment of this agreement are to be applied to 15, 16 and article 18. Article 20 students payments which a residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the State was the territory of the other Contracting State, a resident of and located 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. this contract the previous articles not featured resident of a Contracting State in the other income regardless of their sources will be taxed only in the country. 2. paragraph 1 of this article shall not apply to income, other than income from this Treaty 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, according to the conditions applicable to this contract, or article 14 7. Article 22 capital 1. Capital represented by the Contract referred to in article 6 of the contracting Countries resident in real property 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 of the permanent representation of the company 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 the air transport means that a company of a Contracting State in international traffic are used, as well as movable property that belong to the air transport features, 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. for residents of the Republic of Moldova, double taxation shall be avoided as follows: where a resident of the Republic of Moldova derives income or owns capital which, in accordance with the terms of this agreement can be taxing in Latvia, the Republic of Moldova be permitted: (a) the resident's) reduce income tax on that portion of the tax is equal to the income tax paid in Latvia; (b) the resident's capital) to reduce the tax on that portion of the tax is equal to the capital tax paid in Latvia. These reductions, however, shall in no case exceed the income tax or capital tax, which is calculated on the part of the Republic of Moldova before the application of this reduction depending on the circumstances, which is attributable to the income or the capital which can be taxing in Latvia; 2. for residents of 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 terms of this agreement can be taxing in the Republic of Moldova, the Republic of Latvia unless the internal legislation does not provide more favourable provisions, the Republic of Latvia shall allow: (i) reduce the resident's income tax on the portion of the tax is equal to the Republic of Moldova paid income tax; (ii) reduce the capital residents a tax on that portion of the tax is equal to the Republic of Moldova paid capital duty.
These reductions, however, shall in no case exceed the income tax or capital tax, which is calculated on the part of the Republic of 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 the Republic of Moldova; (b)) (a) for the application of this section, if the company) — a resident of Latvia receives a dividend from a company — a resident of the Republic of Moldova and the Republic of Latvia in a community resident owns at least 10 percent of shares with full voting rights, the tax paid in the Republic of Moldova were included not only tax that taxed dividends, but also tax, which taxed the public profits from which dividends are paid. Article 24 non-discrimination 1. prevent nationals of a Contracting State in the other Contracting State shall not be subject to taxation with taxes or any of the related requirements, in particular with respect to residence, which differs from taxation or the related requirements which are to be subject to v or other nationals in the same circumstances, or which is more burdensome. This provision does not depend on this agreement, 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. 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 discounts, exemptions or reductions for taxation (a) r duty which this country give their residents given their civil status or family responsibilities. 4. except where applicable to this contract, 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 is more burdensome. 6. The provisions of this article independently of this Agreement the provisions of article 2, apply to taxes of every kind. 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 terms of this agreement, that person may, irrespective of the internal legislation of these countries the rules governing to prevent 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 agreement 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 terms of this agreement. 2. the competent authorities are obliged to seek to resolve this issue, if it considers that the complaint is justified, and if this institution fail to reach a satisfactory solution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities in order to prevent the contract inappropriate taxation. 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 prevent the doubts that may arise in the interpretation or application of this agreement. They may also consult to avoid double taxation in cases not provided for in any agreement. 4. The competent authorities of the Contracting States may communicate directly with one another 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 this contract or with taxes covered by this agreement, the Contracting States related internal legislation requirements in so far as these laws are not inconsistent with this agreement. Article 1 of the agreement shall not preclude the exchange of information. Any information received by a Contracting State, should be treated as sensitive as information that is obtained in accordance with the national legislation and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the tax covered by this agreement, the calculation, collection, the use of coercive measures or indictments, trials or appeals. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose this information in a lawsuit or court decisions. 2. in no case shall the provisions of paragraph 1 of article may 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 the other national legislation or administrative practice; (c)) to provide information that can reveal any trade, 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 Agreement shall not affect the diplomatic missions or consular posts personnel fiscal privileges which the then applicable under international law or treaties. Article 28 entry into force 1. Contracting States diplomatic note Exchange must notify the other that those countries are fulfilled the constitutional requirements for the entry into force of this agreement. 2. this Treaty shall enter into force with this article in the first paragraph of that last statement date, and the 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 agreement enters into force; (b)) in respect of other taxes on income and capital, starting with taxes payable in any fiscal year, which begins on the first day of January, or after the first day of January in the calendar year following the year in which this agreement enters into force. Article 29 termination This Agreement shall remain in force so long as the contracting party terminates its operations. Each Contracting State may terminate the operation of this agreement, a diplomatic way by submitting a written note about the termination at least six months before any end of the calendar year. In this case, the agreement of both Contracting States will end: a) in respect of taxes levied at the time of the 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 notes in question; (b)) in respect of other taxes on income and capital, starting with taxes payable in any fiscal year, which 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. This, the undersigned, being duly authorised, have signed this agreement. Contract in 1998 25 February, two copies, each of them Latvian, Moldovan and English languages. All three texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia, the Republic of Moldova on behalf of the Government of Valdis Birkavs ion Lešan, Ambassador of the Republic of Moldova, the Republic of Latvia agreement between the Government of the Republic of Latvia and the Government of the Republic of Moldova for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on Capital the Government of the Republic of Latvia and the Government of the Republic of Moldova , An agreement the conclud (menu Rngton Line4) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, have agreed as follows: article 1 PERSONAL scope this Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This agreement shall apply to taxes on income imposed on behalf of 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 agreement shall apply in particular to: (a)) in the Republic of Moldova: (i) the income tax on enterprises (impozitul pe beneficiul (venitul) intreprinderilor); (ii) the income tax on individual (impozitul pe venitul persoanelor fizic); (iii) the tax on immovabl property (impozitul pe proprietat in imobiliar); (hereinafter referred to as "Moldovan tax");
(b)) in the United Kingdom: (i) the enterprise income tax (income tax of enterprises); (ii) the personal income tax (will tax revenue); (iii) the property tax (property tax); (hereinafter referred to as "Latvian tax").
4. This agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes which have been made in their taxation laws of respectiv. Article 3 GENERAL DEFINITION 1. For the purpose of this agreement, unless the context otherwise requires: a the term) "Republic of Moldova" means the Republic of Moldova and, when used in the sense of location, means the territory of Moldova including the internal waters, aerial space over which the Republic of Moldova exercises sovereign rights to work mineral and natural resources in accordanc to the norms of international law; (b)) the term "United States" means the Republic of Latvia and, when used in the sense of location, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which under the law of Latvia and in accordanc with international law, the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (c)) the terms "a Contracting State" and "the other Contracting State" mean Latvia or the Republic of Moldova, 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 an aircraft operated by an enterprise of a Contracting State, except when the aircraft is operated solely between places in the other Contracting State; h) the term "competent authority" means: (i) in the Republic of Moldova, the Minister of finance or his authorised representative; (ii) in Latvia, 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 this agreement by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that Contracting State concerning the taxes to which this agreement applies. Article 4 resident 1. For the purpose of this agreement, the term "resident of a Contracting State" means any person who, under the law of that State, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature. The term also includes the Government of that State itself, its political subdivisions and local authorities. But this term does not include any person who is liabl to tax in that State in respect only of income from sources in that State or capital situated therein. 2. Where by reason of the provision of paragraph 1 of this article 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 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 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 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 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 of this article a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question by their mutual agreement and determin the mode of application of the agreement to such person. In the absence of such agreement, such person shall not be considered to be a resident of either Contracting State for enjoying benefits under the agreement. Article 5 permanent establishment 1. For the purpose of this agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e a workshop, and f)) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. (a) A building site or construction) or installation project constitut a permanent establishment only if it lasts more than six months; b) 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 shall be deemed to be carried on through a permanent establishment situated in that State, if such activities are carried on for a period or periods exceeding in the aggregate 30 days in 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))) of this paragraph, 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 of this article, where a person-other than an agent of an independent status to whom paragraph 6 of this article applies on behalf of the United Nations, is acting 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 of this article 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 care to on business in that 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, the rights the assets to be produced by the exploration or exploitation of the sea bed and sub-soil and their natural resources, including rights to interests in or to the benefit of such assets. Aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 of this article shall apply to income derived from the direct use, letting, or use in any other form of immovabl property, as well as income from the alienation of property immovabl. 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 of this article 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 of this article, 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 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. However, no such deduction in "shall be allowed in respect of non, if any, paid (otherwise than towards reimbursemen of actual expense) by the permanent establishment to the enterprise or any of its offices, by way of the royalt, fe or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management , or, except in the case of a banking enterprise, by way of interest on money lent to the permanent establishment by the enterprise. 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 of this article 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 of this article, 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, with the deal with separately in other articles of this agreement, then the provision of those articles shall not be affected by the provision of this article. Article 8 AIR transport 1. Profits of an enterprise of a Contracting State from the operation of aircraft in international traffic shall be taxabl only in that State. 2. The provision of paragraph 1 of this article 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 agreement and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall be the 10 per cent exceeds 100 notes 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, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provision of paragraphs 1 and 2 of this article 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 of this agreement, 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 undistributed profits of companyķ 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 recipient is the beneficial owner of the interest the tax so charged shall be the 10 per cent exceeds 100 notes of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2 of this article interest arising in a Contracting State, derived and beneficially owned by the Government of the other Contracting State, including political subdivisions and local authorities thereof, the Central (National) 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 in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1, 2 and 3 of this article 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-claims 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 of this agreement, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this agreement. Article 12 to 1 to ROYALT Royalt arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the recipient is the beneficial owner of the royalt, 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, 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 of this article 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 a fixed base. In such case the provision of article 7 or article 14 of this agreement, as the case may be, shall apply. 5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this agreement. Article 13 CAPITAL gains 1. Gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 of this agreement and situated in the other Contracting State or shares in a company the assets of which mainly of such property be consis may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State from the alienation of aircraft operated in international traffic by that enterprise or movable property pertaining to the operation of such aircraft, shall be only in the taxabl you state. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 of this article, shall be the taxabl only in the Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve-month period in commencing or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that 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 of this agreement, you, and others of the salar WAGs 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 of this article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned , and b the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard an 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 payments 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 of this agreement, 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 of this agreement, 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 of this article 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 their 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 of this agreement, the pension and other similar remuneration paid 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 the respect of services rendered to that State, 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, subdivision or authority shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16 and 18 of this Agreement shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 20 students payments which a student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. Article 21 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Agreement shall be only in the taxabl you state. 2. The provision of paragraph 1 of this article shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6 of this agreement, 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 of this agreement, as the case may be, shall apply. Article 22 CAPITAL 1. Capital represented by immovabl property referred to in article 6 of this agreement, 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 aircraft operated in international traffic by an enterprise of a Contracting State and by movable property pertaining to the operation of such 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 the case of a resident of the Republic of Moldova shall be avoided double taxation as follows: a where a resident of the Republic of Moldova of the income or of deriv own capital, which in accordanc with the provision of this agreement, may be taxed in the United Kingdom, the Republic of Moldova shall allow: a as a deduction in ") from the tax on the income of that resident , an amount equal to the income tax paid in Latvia; (b) as from the marbles) tax on the capital of that resident, an amount equal to the capital tax paid in Latvia. Such marbles, in either case shall not, however, that about 12 of the income tax or capital tax in the Republic of Moldova, 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 the United Kingdom. 2. In the case of resident of Latvia, double taxation shall be avoided as follows: (a)) where a resident of Latvia or of deriv income own capital which, in accordanc with this agreement, may be taxed in the Republic of Moldova, 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 the Republic of Moldova; (ii) as a deduction in "from the tax on the capital of that resident, an amount equal to the capital tax paid thereon in the Republic of Moldova.
Such marbles in either case shall not, however, that about 12 of the income 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 the Republic of Moldova. (b)) For the purpose of subparagraph (a)) of this paragraph, where a company that is a resident of Latvia receive a dividend from a company that is a resident of the Republic of Moldova in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in the Republic of Moldova shall include not only the tax paid on the dividend , but also the tax paid on the underlying profits of the company out of which the dividend was paid. Article 24 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1 of this agreement, 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 circumstanc with or may be subjected. 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 of this agreement, 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 of this agreement, 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 agreement, he may, irrespectiv of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or , if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the agreement. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of this agreement. They may also consult together for the elimination of double taxation in cases not provided for in the agreement. 4. The competent authorities of the Contracting States the may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. Article 26 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this agreement or of the domestic laws of the Contracting States concerning taxes covered by the agreement insofar as the taxation thereunder is not contrary to the agreement. 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) involved in the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to, the taxes covered by the agreement. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. 2. In no case shall the provision of of paragraph 1 of this article 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 Agreement shall be affec the fiscal privilege of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 28 ENTRY into force 1. The Contracting States shall notify each other through diplomatic channels that their constitutional requirements for the entry into force of this agreement have been complied with. 2. This agreement shall enter into force on the date of the later of the notifications referred to in paragraph 1 of this article 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 agreement enter into force; (b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the agreement enter into force. Article 29 TERMINATION this Agreement shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the agreement, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such event, the agreement shall cease to have effect in both Contracting States: a in respect of taxes) withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given; (b)) in respect of other taxes on income and taxes on capital, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this agreement. Done in duplicate at Riga this 25th day of February 1998, in the Latvian, Moldovan and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation the English text shall prevails.
For the Government For the Government of the Republic of Latvia of the Republic of Moldova Ion Valdis Birkavs of Leshan