The Government Of The Republic Of Latvia And The Government Of Ireland To The Convention On The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Income And Capital Gains Taxes

Original Language Title: Par Latvijas Republikas valdības un Īrijas valdības konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu attiecībā uz ienākuma un kapitāla pieauguma nodokļiem

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The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of Ireland to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to income and capital gains taxes article 1. 13 November 1997 in Riga in Latvia was signed by the Government of the Republic of Ireland and the Government of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to income and capital gains tax (hereinafter referred to as the Convention) and its 13 November 1997 in Riga, signed the additional Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The law shall enter into force on the date of its promulgation. With the law put the Convention and Protocol in English and Latvian. 3. article. The Convention and the Protocol shall enter into force in article 28 of the Convention within the time and in order, and shall notify the Ministry of Foreign Affairs Gazette "journal". The law adopted in 1998 the Saeima on 29 January. The President g. Ulmanis in Riga in 1998 on February 12 in Latvia | The Government of the Republic of Ireland and the Government of the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to income and capital gains taxes, the Government of the Republic of Latvia and the Government of Ireland, accepting his willingness to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to income and capital gains taxes, agree: article 1 persons covered this Convention shall apply to persons Convention, one or both of the Contracting State party to the country resident. Article 2 taxes covered by the Convention (1) this Convention applies to income and capital gains taxes, levied by Contracting State or of its local authorities, irrespective of the good way of charging it. 2. On the income and capital gains taxes, all taxes, considered that the total income or taxable income, also part of the tax, which taxed movable or immovable property, the proceeds of disposal of earned income. 3. The existing taxes to which this Convention applies, in particular, is: (a)) in Ireland: (i) income tax; (ii) corporate tax; (iii) the capital gains tax; (hereinafter referred to as the Irish taxes);
(b)): (i) corporate income tax; (ii) the individual income tax; (hereinafter-the Latvian tax).
4. this Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Convention, supplementing or replacing the existing taxes. Of both national authorities are required to inform each other of all significant amendments to the national legislation of the relevant tax legislation. Article 3 General definitions 1. If it is not apparent from the context, otherwise in this Convention: a the term "Ireland") includes any area outside the territorial waters of Ireland which, in accordance with international law and based on the Irish legislation on the continental shelf, or continue to be recognized as an area in which Ireland may exercise their rights to the land and sea depths and natural resources contained therein; (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" mean depending on the context of Latvia or Ireland; the term "Contracting States" means Latvia and Ireland; (d) the term "person") means a natural person, society, trust or any other person as a whole; e the term "company") means any United formations or to any entity which, for the purposes of taxation is considered as a United entity; (f) the term "Contracting Government) of the enterprise" and "enterprise of the other Contracting State" mean respectively an enterprise run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; g) the term "international traffic" means any carriage by sea or air, by a company of a Contracting State, except for the cases when the sea or air transport to move only in the other Contracting State; h) the term "competent authority" means: (i) Ireland-revenue service proxies or their authorised representative; (ii) in Latvia, the Ministry of finance or its-authorised representative.
I) the term "national" means: (i) in relation to Ireland-any citizen of Ireland and any legal person, partnership, association or other entity, the status of which derives from the Irish legislation in force; (ii) in the case of Latvia-all natural persons who are nationals of Latvia and any legal person, partnership or association, which stems from the status of Latvia's existing legislation.
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. Article 4 resident 1. In this Convention, the term "resident of a Contracting State" means any person who, in accordance with the national legislation is subject to taxation on the basis of the place of residence, residence, location management, place of incorporation (registration) or any other criterion of a similar nature, as well as the State and its municipalities. But this term does not include those individuals in this country is taxable only in relation to their income from existing sources in that country. 2. Where, in accordance with the provisions of paragraph 1 an individual is a resident of both Contracting States, its status will be determined in the following manner: (a)) this person will be treated as a resident only of the State in which they habitually resident; If you are habitually resident in two countries, this person will be considered a resident of the State with which it has a deeper personal and economic relations (Centre of vital interests); (b)) if it is not possible to determine the country in which that person is a vibrant centre of interests, or if it does not have a permanent place of residence in one of the two countries, that person will be considered only for residents of the country where it is common in the home; c) if that person normally home in both countries or none of them, it will be considered only for residents of the country, of which this person; (d)) if that person is a national of both States or no citizen of this country, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3. Where, in accordance with the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent contracting authorities should seek to resolve the matter by mutual agreement. In the absence of such agreement, the application of this Convention, that person will not be entitled to claim any tax relief or exemption from taxes, granted in accordance with 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 a workshop, and f)) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources.
3. A building site, a construction, Assembly or installation project will be considered a permanent establishment only if such work or the project takes longer than six months. 4. Notwithstanding the preceding paragraphs of this article, the provisions of the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b) goods belonging to the company) or article items intended solely for storage, demonstration or delivery; (c) the goods belonging to the company) or article items intended exclusively for processing in the other company. d) permanent site designed exclusively for the purchase of goods or products or information collection, the company's needs; e) permanent site designed exclusively for making business arrangements or any other ancillary; f) permanent site designed solely to deal with (a))-e) activities referred to in any combination thereof, provided that the overall activity is preparatory or ancillary activities.
5. Notwithstanding points 1 and 2 of the regulations, if a person who is not in this article the status of independent agent, running your business, and it is empowered to enter into contracts on behalf of the company, and the State typically used these powers, then it is considered that this company used permanent representations in Contracting State for any of the person's business activities, except when he is carrying out the activities referred to in paragraph 4, which, in the event of a permanent place of business cannot be considered permanent representation in accordance with paragraph 4 of this article. 6. it will be considered that the company does not have permanent representation in the other Contracting State if the enterprise carries on business in that other country, only through brokers, sales agent or any other agent of an independent status, provided that such persons perform their normal business activities. However, if such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an independent agent in the sense referred to in this paragraph. In this case, you must apply the provisions of paragraph 5. 7. the fact that the company is a resident of a Contracting State-controlled company, which is a resident of the other Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way), or is subject to the control of such undertaking itself does not turn into one of those companies on the other company's permanent representation. Article 6 Income from real property 1. Income for the resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State, may be taxing in that other country. 2. the term "immovable property" have the meaning it has under the law of the Contracting State in which the property is located. In any case, this concept will be used to refer to real estate property belonging to property, livestock and equipment used in agriculture and forestry, rights to which the provisions of the general terms and conditions on the ground attached to the immovable property, any rights to use the rights in respect of immovable property or similar rights 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. For real estate will not be considered to be ships, barges, and air transportation. 3. paragraph 1 of this article, the rules will be applied in respect of income from real estate direct use, letting or use in any other way. 4. If the company's shares or other corporate rights give the holder the right to public use of the property, the income from the direct use, letting or use in any other way can be taxing in the Contracting State in which the immovable property is situated. 5. the following article 1, 3, and 4. the provisions of paragraph 1 shall be applied in respect of income from the company's real estate, as well as income from property that is used for independent individual services. Article 7 business profits 1. Contracting State company profits will be taxed only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits can be taxing in the other country, but only the profit that can be attributed to the permanent establishment. 2. in accordance with the provisions of paragraph 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the amount of profit, it would benefit if the individual is clearly the company that performs the same or similar business activities under the same or similar conditions and acts completely independently of the undertaking, which uses the permanent representations. 3. in determining the profits of the permanent representation will be made permanent representation expense deduction of the amount of taxable, including representations of operational and general administrative costs 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 components, paragraph 2 does not preclude the contracting country as usual to determine the taxable profit by this principle, however, this method of distribution must be used so that the results match the principles contained in this article. 5. On the permanent representation will not be applied the earnings just because it has purchased your business goods or articles. 6. for the purposes of the application of the previous paragraph, the profits attributed to the permanent representations, each year must be determined by the same method, except when there are sufficient grounds to act otherwise. 7. If the profit is included in the income or capital gains which are dealt with separately in other articles of this Convention, then the provisions of this article shall not affect the other provisions of this article. Article 8 shipping and air transport 1. Contracting State company profits from the sea or air transport use in international traffic will be taxed only in the country. 2. paragraph 1 of this article, the rules also apply to profits derived from the rental of ships or aircraft, hiring them without crew and supply (bērboutčarter), where the following occurs in addition to the rental company of sea or air transport for use in international traffic. 3. paragraph 1 of this article, the rules also apply to profits from the participation in a pool, joint business or international traffic 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 they are directly or indirectly participating in the other Contracting State, the company's management or control or they own part of the second state capital of the company, and in any of these cases, the two companies ' commercial and financial relationships are created or established by the rules different from those provisions that the force between two independent (non-related) companies, then any profit that is made for one of the companies, but the above provisions do not affect the established developed, can be included in the company's earnings and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State (and accordingly taxable) profit, which the company of the other Contracting State has been charged to tax in that other State and the profits are included in the profit that would have been the first company of a Contracting State, if the relationship between the two enterprises had been those which would have been between two totally independent companies, then the other must be made for appropriate corrective tax size that is taxed in the other State of this profit. In determining this corrective, need to take into account the other provisions of this Convention, and, if necessary, shall be held by the competent authorities of the Contracting States for mutual consultation. Article 10 dividends 1-dividends, a company of a Contracting State a resident of the other Contracting State paid to a resident, can be taxing in that other country. 2. However, such dividends may also be taxing in accordance with the national law of the Contracting State of which the resident is a company that pays dividends, but if this true owner of dividends is resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the dividend) total dividend, if the owner is a real company, not a partnership, that directly at least 25 per cent of the voting rights in society that paid dividends; b) 15 per cent of the total of dividends in all other cases.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares or other rights, not claims, to participate in profits, and includes any income or profits distributed in accordance with the Contracting State whose resident is a company that pays dividends or make distributions legislation is comparable to the income from the shares. 4. the following article 1 and paragraph 2 shall not be applied where the real owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the resident is a company that paid dividends, with the existing permanent representation there, or provide other State independent personal services through a permanent situated there base, and where participation, which is paid out in dividends, is practically related to the permanent establishment or permanent base. In this case, depending on the circumstances, have to apply article 7 of this Convention or of the provisions of article 14. 5. If company-a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be nor to any duty of the dividends paid by the company, except when dividends are paid to a resident of the other State, or when the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base, located in the other State; nor to retained earnings in the company's undistributed profits, even if the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. Article 11 interest 1. interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxing in that other country. 2. However, such interest may also be taxing according to national law the Contracting State in which they arise, but, if the interest owner is implemented on the territory of the other Contracting State, a resident of the tax may not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and paid to a resident of the other Contracting State who is the rightful owner of that interest will be taxed only in that other State if the payer or the recipient of the interest is the Government of a Contracting State, a local government or any Government or municipal authority, the Central Bank or any of this Government-owned financial institutions fully, or if the interest is paid on the contracting of loans guaranteed by the Government of the country. 4. for the purposes of this article, the term "interest" means income from any type of debt obligations, whether or not secured by mortgage, and in particular, income from government securities, income from bonds or debentures, including premiums and prizes, which belong to these securities, bonds or debentures, as well as other forms of income which, in accordance with its national tax legislation, in which experiencing this income , will be treated as income from loans of money, but it does not include any income which is treated as a dividend under article 10 of this Convention. Interest received on payments made during, not be regarded as interest for the application of the provisions of this article. 5. the following article 1, paragraph 2 and 3 shall not be applied, if the interest owner will exercise, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or 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, depending on the circumstances, have to apply the Convention's article 7 or article 14. 6. If the payer of the interest is a resident of a Contracting State, it will be deemed that the interest generated in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred the debt that pays interest, and this interest is borne by the permanent establishment or fixed base, will be considered that the interest incurred in the State in which the permanent establishment or fixed base. 7. If, due to the special relationship between the payer and the interest percentage implemented owner or between both of them and some other person, the amount of interest relating to debt claims, on the basis of which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest owner will, if implemented, they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the remaining part of the payment is taxed in accordance with the national provisions, provided that you comply with the other provisions of this 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, royalties can be taxing in accordance with national law of the Contracting State in which it arises, but if the true owner of the royalties is a resident of the other Contracting State, the tax shall not exceed: a 5 per cent of the royalties) the total volume of production, trade or scientific equipment; b) 10 per cent of the total of the royalties in all other cases.
3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use any copyright on literary, artistic or scientific work (including cinematograph films, or films, videos or other recordings of radio or television broadcasts or other means of transmission or reproduction), any patent, trademark, design or model, plan, secret formula or process whether for industrial, commercial or scientific equipment, or for the right to use them, or for information concerning industrial, commercial or scientific experience. 4. the following article 1 and 2 of the terms will not apply, if the true owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent representation of the existing there, or in another country provides independent personal services through a permanent base located there, and if the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, have to apply the Convention's article 7 or article 14. 5. If the payer of the royalties is a resident of a Contracting State, it will be considered that the royalties arise in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which committed to pay royalties and the royalties are borne by the permanent establishment or fixed base, will be considered that the royalties arise in the State in which the permanent establishment or fixed base. 6. If due to the special relationship between the payer of royalties and royalties shall implement the owner or between both of them and some other person, the amount of the royalties relating to the use, right or information for which it is paid, exceeds the amount of royalties that would have been able to implement a single payer and the owner if they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the payment of the part that exceeds this amount, you will be taxed according to each Contracting State law provided that, subject to the other provisions of this Convention. Article 13 capital gains 1. Capital gains, the resident of a Contracting State to this Convention, referred to in article 6 of the real estate, situated in the other Contracting State, alienation, taxing can in the other country. 2. paragraph 1 of this article, the application of the capital gains that accrued on article 6 of the said immovable property situated in the other Contracting State, alienation, also include capital gains earned by the companies or other legal persons whose property is mainly, directly or indirectly, in the second consists of the Contracting State of the immovable property or any other rights belonging to the following real estate property, shares or other rights, or of the disposal of a participation in a partnership or trust the that property is mainly, directly or indirectly, in the second consists of the Contracting State of the immovable property or any other rights belonging to the following real estate property for forfeiture. 3. Capital gains that accrued, disposing of property, which is the permanent representation in that country of a contracting entity uses the second Contracting State, part of the business property, or capital gains that accrued, disposing of property that belongs to a resident of a Contracting State independent personal services in the other Contracting State created permanent database, including capital gains, earned in the permanent representation of such disposal (alone or with the whole enterprise) or of such a standing base can be taxing in the other country. 4. Capital gains for the company of a Contracting State alienates the company used in international traffic, marine or air transport or disposal of movable property belonging to the maritime or air transport use, shall be taxable only in that State. 5. the capital gains gained from disposing of any property, which is different from this article mentioned in the previous paragraphs, shall be taxable only in the Contracting State of which the resident is the seizure of property. 6. This article shall not affect the right of a Contracting State in accordance with its legislation taxing capital gains taxes capital gains arising on the disposition of any property and received an individual who is a resident of the other Contracting State and who has been the first resident of that State at any time during the three years period immediately preceding this expropriation, provided that this property already owned by that person, before the person became a resident of the other Contracting State. Article 14 independent personal services 1. Income gained by the natural person who is a resident of a Contracting State, providing professional services or other activities of an independent nature, will be taxed only in the country, except when this person the pursuit of its activities shall use the regular access to permanent base in the other Contracting State. If you are using the following permanent base, income can be taxing in the other Contracting State but only to the extent that they apply to this permanent base. In this regard will be considered that the natural person who is a resident of a Contracting State, uses regular access to permanent base in the other Contracting State if it is resident in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any 12-month period that begins or ends in the tax year, and income earned in the other country carried out the above actions will be applied to this permanent base. 2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18 and article 19 of the rules of the salary, earnings, and other similar remuneration which a resident of a Contracting State receives for gainful employment, will be taxed only in the country, if one paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can be taxing in that other country. 2. Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxed in the first only in that country, provided that: (a)) is a beneficiary in another country for a period or periods not exceeding in the aggregate 183 days in any 12-month period that begins or ends in the tax year; and (b) the remuneration is paid) an employer who is not a resident of the other State, or the name of the employer; and (c) the remuneration is not paid) (bear) permanent representation or permanent base, used by the employer in the other country. 3. Notwithstanding the preceding paragraphs of this article, the rules of remuneration received for paid work that is being done to a company of a Contracting State in international traffic used for sea or air transport, can be taxing in that Contracting State. Article 16 Directors ' fees directors ' fees and other similar remuneration received by a resident of a Contracting State as the Board of directors or other similar institutions in society, which is a member of the other residents of a Contracting State, may be taxing in that other country. Article 17 artists and athletes 1. articles 14 and 15 of the rules of income, the resident of a Contracting State as izpildītājmāksliniek, such as theatre, film, radio or television actor or a musician, or as an athlete for your individual activities in the other Contracting State, may be taxing in that other country. 2. If an artist or athlete's income on his individual activity in the area in question are paid not the artist or athlete but to another person, that income regardless of the 7, 14 and 15 article can be taxing the Contracting State to which the izpildītājmāksliniek or athletes. 3. the following article 1 and paragraph 2 shall not apply to income derived from activities performed by a Contracting State or an athlete, an artist if the visit to that State is wholly or mainly provide support from one or both of the Contracting States or local public funds. In this case the income is liable to tax only in the Contracting State of which the resident is the artist or athlete. Article 18 pensions and annual fees 1. in accordance with article 19, paragraph 2 of the pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment, as well as such residents received annual payments will be taxed only in the country where residents have pension or annuity where the recipient. 2. The term "annual fees" means a specified amount charged periodically by certain deadlines throughout the lifetime of a certain or determinable period of time under an obligation to make payments against previously received adequate and full consideration in money or money's worth of stuff. Article 19 government service 1 a) salary, earnings, and other similar remuneration, other than a pension, and a natural person contracting costs the State or local government for this country or municipality services 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;     (ii) did not become a resident of that State solely for the purpose of providing these services.
2. a pension by) any natural person contracting costs the State or municipality, or which is paid from the funds set up for services provided by that person or the municipality, this country will be taxed only in the country.             (b)) However, this pension will be taxed only in the other Contracting State if the individual is a resident of that other State and the citizen. 3. This Convention 15, 16 and article 18, rules have to be applied to salary, earnings, other similar remuneration and pensions that are paid for services provided in respect of the Contracting State or local business or made in connection with that State or municipality wholly-owned company of the business. Article 20 students 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 of the other Contracting State and who is a resident of the first-mentioned State solely for the purpose of study or placement period, will not be taxed in that State provided that such payments arise outside that State. Article 21 other income 1. other previous articles of this Convention shall not featured a resident of a Contracting State income regardless of where they occurred, will be taxed only in the country. However, the following types of income arising in the other Contracting State may also be taxed in that other State. 2. paragraph 1 of this article shall not apply to income, other than income from article 6 paragraph 2 defines the immovable property, if the recipient of the income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment there, existing or in that other State independent personal services from a permanent base located there, and if the rights or property of which you receive this income is actually linked to the permanent representations, or permanent base. In this case, depending on the circumstances, have to apply the Convention's article 7 or article 14. Article 22 miscellaneous provisions relating to certain activities in the offshore area 1. The provisions of this article must be applied regardless of any other provisions of this Convention. 2. In this article the term "offshore area" means any party to the action shelf area associated with the sea and subsoils and keep the existing natural resources exploration and exploitation. 3. Person-resident of a Contracting State action 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 the permanent base. 4. paragraph 3 of this article shall not be applied if the shelf area is made using the existing permanent missions there 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: (a) of this paragraph) if the person carrying out the operation of the other Contracting State, the area is linked to ice with another person, who carries out activities similar to those of the substance of the other Contracting State, be shelf believed that the first person that performs all of the second person's activities, except to the extent these activities are carried out at the same time as the other persons independently of the action taken; (b)) a person shall be deemed to be associated with another person if one of them directly or indirectly participating in the second person, control or it owns part of the company's capital, or if a third party or a third party directly or indirectly participating in both of the above parties, controls or owns part of both of them the above person.
5. the wages, earnings, and other similar remuneration received by a resident of a Contracting State for gainful work associated with the activity of the other contracting country of the shelf area, can be taxing in that other State to the extent that work has been done in this country to the other shelf area. However, such remuneration will be taxed only in the first country, where paid work has been made in favour of the employer who is not a resident of the other State, and 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. 6. 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 and property of these together;
can be taxing in that 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. Article 23 avoidance of double taxation 1. Under Irish law the provisions on tax paid outside of the territory of Ireland, from Ireland's tax deduction (without affecting the underlying principle of these regulations): a) the Latvian taxes that are paid in accordance with Latvian law and with this Convention, regardless of whether they are paid, or deducted directly from profits, income or capital gains the territory of Latvia (the exception is in the case of dividends tax, which taxed profits from which dividends are paid) will be allowed to deduct from any Irish tax, calculated in relation to the same profits, income or capital gains, which is calculated in the Latvian tax; (b)) in relation to dividends paid to a company which is a resident of Latvia, and to which the recipient is a company which is a resident of Ireland and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividends, setting the amount to be deducted, must be taken into account (additional to any Latvian tax that is deductible under this paragraph (a))), the tax paid in Latvia, which taxed the company's profit from which the dividend is paid. 2. a) in the case where a resident of Latvia receives income or capital gains which, in accordance with this Convention, may be taxed in Ireland with its domestic law, unless legislation is more favourable provisions, Latvia should be permitted to deduct from this income tax residents of size equal to the Irish Ireland paid in income tax or capital gains tax. These reductions in no case, however, exceed that part of the Latvian income tax that is calculated before the application of this reduction, which is attributable to the income or capital gains which may be taxed taxes in Ireland. (b)) (a) of this paragraph) in the case of the application of a company which is a resident of Latvia receives a dividend from a company that is resident in Ireland and in which the public-Latvian resident owns at least 10% of the shares with full voting rights, the tax paid in Ireland be included not only tax that taxed dividends, but also tax, which taxed the company's profits from which dividends are paid.
3. paragraphs 1 and 2 of the application, a resident of a Contracting State, the profit and capital gains income, which in accordance with this Convention, may be taxed in the other tax in the Contracting State, be deemed to arise in that other Contracting State. 4. where in accordance with any provisions of this Convention, the resident of a Contracting State is exempt from tax in this State, this country, the calculation of the tax rate applicable to the rest of the resident's income, however, may take into account the income which shall be exempt from taxation. 5. where in accordance with any provisions of this Convention a Contracting State income or capital gains are fully or partially exempt from taxation and in the other Contracting State the applicable law natural person regarding this income or capital gains are subject to taxation on all income rather than capital gains or volume, but this income or capital gains, the amount of What has been paid to the other Contracting State, or been received the second Contracting State, then the first Contracting State under this Convention allotted tax relief will apply only in respect of their income or capital gains part, which has been transferred to the other Contracting State or a Contracting State in the other. Article 24 non-discrimination 1. prevent nationals of a Contracting State in the other Contracting State shall not be subject to any taxation or any requirement 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, which differ from the taxation or related requirements, which are or may be exposed to nationals in the same circumstances, or which is more burdensome. 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 business. This provision shall not be interpreted so that it would impose a Contracting State the obligation to grant the other Contracting State, a resident of any private discounts, exemptions and reductions for taxation granted by the State to its residents, in the light of their civil status or family responsibilities. 4. Except where the applicable paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State in the other Contracting State the cost of the resident, in determining the taxable profit of the company, must be deducted from the profits subject to the same provisions as if they were to be paid to the first residents of that State. 5. the Contracting State whose capital is wholly or partly belongs to one or more of the other Contracting State residents or which they directly or indirectly control, the first in that country may not be subject to any taxation or any requirements connected with them, which is different from the taxation and related requirements, which are or may be exposed to similar to the former State enterprises, or which are more onerous. 6. The provisions of this article shall apply to taxes covered by this Convention. 25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting States party to the cause or may cause that person such taxation, which does not comply with the provisions of this Convention, that person may, irrespective of the domestic 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, paragraph 1 , its Contracting State the competent authorities of which are this person. The question to be submitted for review within three years from the first notification of the action that caused the taxation not in accordance with the provisions of this Convention. 2. the competent authorities are obliged to seek to resolve this issue, if it considers that the complaint is justified, and if this institution fail to reach a satisfactory solution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities in order to prevent this Convention without the appropriate taxation. Any such agreement is reached is due irrespective of the Contracting State of the domestic laws of the time limits laid down. 3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise in the interpretation or application of this Convention. 4. in order to reach agreement on these issues in the previous paragraphs, the competent authorities of the Contracting States may communicate directly with one another, as well as following an exchange of views can take place with the Commission, which consists of the competent authorities of the Contracting States ' representatives. Article 26 exchange of information 1. National authorities should exchange information necessary for the carrying out of the provisions of this Convention or of the domestic legislation of the Contracting States of acts relating to the taxes to which this Convention applies, 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 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 covered by this Convention, the calculation, collection, the application of coercive measures, investigations or appeals. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public court proceedings or in judgements. 2. in no case shall the provisions of paragraph 1 shall not be interpreted so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to provide information that is not available under one or other of the Contracting State law and generally applicable administrative practices; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to the public interest (ordre public).
Article 27 diplomatic and consular personnel, nothing in this Convention shall not affect the diplomatic missions or consular posts personnel fiscal privileges that apply to them in accordance with international law or special agreements. Article 28 entry into force 1. Each of the Contracting States must notify the other State that the procedure provided for in the legislation required to give effect to the Convention have been met. 2. this Convention shall enter into force on the date of receipt of the last notification, and its provisions will be applied: (a)) in Ireland: (i) in respect of income and capital gains tax: starting in any tax year, which starts on 6 April, or after the calendar year following the year in which this Convention enters into force; (ii) in respect of the business tax: starting in any financial year, which starts on the first of January, or after the calendar year following the year in which this Convention enters into force;
(b)): (i) in respect of taxes withheld at the time the cost: starting with the income gained in January of the calendar year, or the first day after the calendar year following the year in which the this Convention enters into force; (ii) in respect of other taxes on income from taxes payable in any tax year beginning in the calendar year of the first day of January, or after the calendar year following the entry into force of this Convention.
Article 29 termination this Convention shall remain valid as long as the one Contracting State it shall be terminated. Each Contracting State may terminate this Convention, through diplomatic channels, submit written notice of termination at least six months before any end of the calendar year. In this case, the Convention will end: a) in Ireland: (i) in respect of income and capital gains tax: starting in any tax year, which starts on 6 April, or after the calendar year following the year in which the notice of termination; (ii) in respect of the business tax: starting in any financial year, which starts on the first of January, or after the calendar year following the year in which the notice of termination;
(b)): (i) in respect of taxes withheld at the time the cost: starting with the income gained in January of the calendar year, or the first day after the calendar year following the year in which the notice of termination is submitted; (ii) in respect of other taxes on income from taxes payable in any tax year beginning in the calendar year of the first day of January, or after the calendar year following the year in which the notice of termination is submitted.
In witness thereof, the undersigned, being duly authorised, have signed this Convention. The Convention is drawn up in two copies in 1997, 13 November, Latvian and English languages, both texts being equally authentic. Different interpretations or any non-conformity is decisive in the English text.

The Government of the Republic of Latvia in Ireland on behalf of the Government of Valdis Birkavs Patrick Makeib signing the Protocol signed today by the Government of the Republic of Latvia and the Government of Ireland to the Convention on the avoidance of double taxation and the prevention of fiscal evasion with respect to income and capital gains taxes, the parties have agreed upon the following provisions, which are an integral part of this Convention. 1. in relation to article 4, paragraph 1 it is understood that the person who is registered or as otherwise established by the legislation of a Contracting State, shall not be deemed to be a resident of that State for the purposes of the application of this Convention, except when this person in this country is taxed as a resident of that State with respect to its worldwide income regardless of where the income arises. 2. with regard to article 4, paragraph 3 If the person is not a natural person, is a resident of both Contracting States and the competent authorities of the Contracting States, by mutual agreement, seek the person's status, then they should take into account factors such as the person's actual place of management, place of registration (incorporation) or where it is otherwise established, and other important factors. 3. with regard to article 6 paragraph 3 of the Contracting States understand that all income and capital gains arising from the Contracting State an existing property seizures, may be taxed in that Contracting State duty in accordance with article 13 of this Convention. 4. with regard to article 7, paragraph 1 it is understood that the Contracting State of which the company's profits gained on the sale of goods or products in the other Contracting State who is subject to the same or similar to the goods or products that are sold through the permanent representation in the country, or the other Contracting State the profits that are gained for other second country made the business that is the same or similar to What is done through the permanent representation in the other country, can be considered to be attributable to the permanent representations, if it is established that the sale or business has been conducted in the framework of the business rather than fair, but mainly in order to avoid paying taxes in the country in which the permanent establishment is situated. 5. with regard to article 7 (3) in determining the profits of a permanent representation, will understand that the expenditure is allowed to deduct the Contracting State shall include only expenses that are deductible under the domestic laws of that State. 6. with regard to article 12 of the Convention, if any for the avoidance of double taxation, which, at the date of signature of this Convention, Latvia signed with a third country, which is the Organization for economic cooperation and development member at the time of signature of this Convention, Latvia agrees that royalty definition that does not include any right referred to in paragraph 3, or other property, or agrees to release from the Latvian tax royalties arising in Latvia or to apply rates that are lower than those set out in paragraph 2, then, starting from the date of entry into force of the Convention with a third State or this Convention, depending on which of these conventions shall enter into force on the later, this definition, exemption or reduced rate is to be applied automatically as it would be determined in paragraph 3 or in paragraph 2. 7. with regard to article 16 of the Contracting States understood that this article applies only to institutions that are related to the company's central management and control. In witness thereof, the undersigned, being duly authorised, have signed this Protocol. The Protocol is drawn up in two copies in 1997, 13 November, Latvian and English languages, both texts being equally authentic. Different interpretations or any inconsistencies in the case, the decisive is the text in English.

The Government of the Republic of Latvia in Ireland on behalf of the Government of Valdis Birkavs Patrick Makeib Convention between the Government of Ireland and the Government of the Republic of Latvia for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and Capital gains the Government of Ireland and the Government of the Republic of Latvia, 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 capital gains, have agreed as follows: article 1 PERSONAL scope this Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This Convention shall apply to taxes on income and capital gains imposed on behalf of a Contracting State or of its local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income and capital gains taxes imposed on total income all or one item of income, including taxes on gains from the alienation of movable or immovabl property. 3. The existing taxes to which this Convention shall apply in particular to: (a) in the case of Ireland: (i) the income tax; (ii) the corporation tax; (iii) the capital gains tax; (hereinafter referred to as "Irish tax");
(b) in the case of Latvia: (i) the enterprise income tax (income tax of enterprises); (ii) the personal income tax (will tax revenue); (hereinafter referred to as "Latvian 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 "Ireland" includes any area outside the territorial waters of Ireland which, in accordanc with international law has been or may hereafter be designated under the laws of Ireland concerning the Continental Shelf, as an area within which the rights of Ireland with respect to the sea bed and subsoil and their natural resources may be exercised; (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 subsoil and their natural resources; (c) the terms "a Contracting State" and "the other Contracting State" mean Ireland or Latvia, as the context requires; and the term "Contracting States" means Ireland and Latvia; (d) the term "person" includes an individual, a company, a trust and any other body of persons; (e) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purpose; (f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; (g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (h) the term "competent authority" means: (i) in the case of Ireland, the Revenue Commissioners or their authorised representative; (ii) in the case of Latvia, the Ministry of finance or its authorised representative;
(i) the term "national" means: (i) in relations to Ireland, any citizen of Ireland and any legal person, partnership, association or other entity deriving its status as such from the law in force in Ireland; (ii) in the Corporation, any relations individual possessing the nationality of a legal person, its affiliates and any partnership or association deriving its status as such from the law in force in Latvia.
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. 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 local authority thereof. This term, however, does not include any person who is liabl to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (Centre of vital interests); (b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; (c) if he has an habitual abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national of both States or of ither of them not, the competent authorities of the Contracting States shall settle the the question by mutual agreement.
3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question it by mutual agreement. In the absence of such agreement, for the purpose of the Convention, the person shall not be entitled to claim any benefits provided by this Convention. Article 5 permanent establishment 1. For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: (a) a place of management; (b) a branch; (c) an Office; (d) a factory; (e) a workshop, and (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3. A building site, a construction, assembly or installation project constitut a permanent establishment only if such site or project lasts for more than six months. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; (f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraph (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character.
5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclud-contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertak-for the enterprise , unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, where the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise and where the conditions between the agent and the enterprise differ from those which would be made between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this paragraph. In such case the provision of paragraph 5 shall apply. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other. 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 or gains which under 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. For the purpose of paragraph 1, profits derived from the operation of ships or aircraft in international traffic include profits derived from the rental on a bare-boat basis of ships or aircraft where such rental incidentals to the ISO operations by the enterprise of ships or aircraft in international traffic. 3. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting State of the directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or (b) the same person is directly or indirectly to participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not (a) 12:5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the voting power of the company paying the dividend; (b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, participating in profits and includes any income or distribution assimilated to income from shares under the taxation law of the Contracting State of which the company paying the dividends or income or making the distribution is a resident. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other State. Article 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it «arise and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State and paid to a resident of the other Contracting State shall be in the taxabl only if such a State (a) the other resident is the beneficial owner of the interest, provided the payer or the recipient of the interest is the Government of a Contracting State, a local authority or any agency of that Government , the Central bank or any financial institution wholly owned by that Government, or if such interest is paid on loans guaranteed by the Government of a Contracting 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's as well as all other income assimilated to income from money lent by the laws of the State in which the income of the «arise but does not include any income which is treated as a dividend under article 10. 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 (a) 12:5 per cent of the gross amount of the paid for the USA royalt of industrial , commercial or scientific equipment; (b) 10 per cent of the gross amount of all other cas in 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 motion pictures [or] [and] films, recordings on tape or other media used for radio or television broadcasting or other means of reproduction or transmission), 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 where 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 Contracting 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. For the purpose of paragraph 1, gains from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State shall include gains from the alienation of shares or other rights in a company or other legal entity, or of an interest in a partnership or under a trust, the greater part of the assets of which the consis , directly or indirectly, of immovabl property situated in the other Contracting State or of a any other right pertaining to such property immovabl. 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 the ship or aircraft, such shall be only in the taxabl you state. 5. Gains from the alienation of any property, other than that referred to in the preceding paragraphs of this article, shall be taxabl only in the Contracting State of which the alienator is a resident. 6. The provision of paragraph 5 shall not be affec the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and was a resident of the first-mentioned State at any time during the three years immediately preceding the alienation of the property if the property was held by the individual before he becam a resident of that other State. 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 is present in the other Contracting State for a period or periods exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year, he shall be any deemed for that fiscal year 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 deemed attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18 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 taxabl only in the first-mentioned State if: (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned, and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State , and (c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting 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, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman's, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman's in his capacity as such notes to the accru entertainer or sportsman's himself but to another person, that income may, notwithstanding the provision of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman's are exercised. 3. The provision of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by an entertainer or a sportsman's if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or local authorities thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsman's is a resident. Article 18 PENSION AND to subject the ANNUIT 1. 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 and any annuity paid to such a resident shall be only in the taxabl you state. 2. The term "annuity" means a stated sum payable periodically at stated times during life or during a specified period of time or ascertainabl is under an obligation to make the payments in return for adequat and full considerations in money or money's worth. Article 19 government service 1 (a), and others of the Salar WAGs similar remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State 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 local authority thereof to an individual in respect of services rendered to that State or authority shall be only in the taxabl you state. (b) However, such pension shall be taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16 and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof or an agency thereof or an entity wholly owned by such a State or authority. 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 Convention shall be only in the taxabl you state. However, such items of income, arising in the Contracting State, the other may also be taxed in that 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 miscellaneous rules applicable TO CERTAIN offshore activities 1. The provision of this article shall apply notwithstanding any other provision of this Convention. 2. For the purpose of this article, the term "offshore activities" means any activity carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and subsoil and their natural resources situated therein. 3. A person who is a resident of a Contracting State and carr to on offshore activities in the other Contracting State shall, subject to paragraph 4, be deemed to be carrying on business in that other State through a permanent establishment situated therein or a fixed base. 4. The provision of paragraph 3 shall not apply where the offshore activities are carried on through a permanent establishment for a period or periods not exceeding in the aggregate 30 days within any twelve month period commencing or ending in the fiscal year concerned. For the purpose of this paragraph: (a) where a person carrying on offshore activities in the other Contracting State is associated with another person carrying on substantially similar offshore activities there, the first-mentioned person shall be deemed to be carrying on all such activities of the last-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 regarded as associated with another person if one of the directly or indirectly participat in the management, control or capital of the other or if a third person or third persons directly or indirectly the participat in the management, control or capital of both the first-mentioned person and the second-mentioned person.
5. 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 within any twelve month period commencing or ending of the fiscal year concerned. 6. 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. Article 23 ELIMINATION OF double TAXATION 1. Subject to the provision of the law of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland (which shall not be the general principles of the affec hereof)-(a) the Latvian tax payable under the laws of Latvia and in accordanc with this Convention, directly or by deduction in "whethers , on profits, income or gains from sources within the United States (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income or gains by reference to which Latvian tax is computed. (b) In the case of a dividend paid by a company which is a resident of Latvia to a company which is a resident of Ireland and which controls directly or indirectly 10 per cent or more of the voting power in the company paying the dividend, the credit shall take into account (in addition to any tax under the Latvian creditabl the provision of sub-paragraph (a) of this paragraph) Latvian tax payable by the company in respect of the profits out of which such dividend is paid.
2. (a) where a resident of Latvia or of deriv income capital gains which, in accordanc with this Convention, may be taxed in Ireland, unless a more favourabl treatment is provided in its domestic law, Latvia shall allow as a deduction in "from the tax on the income of that resident, an amount equal to the Irish income tax or capital gains tax paid thereon in Ireland. Such marbles in either case shall not, however, that about 12 of the income tax in Latvia, as computed before the deduction in "is given, which is attributabl to the income or the capital which may be taxed in gains Ireland. (b) For the purpose of sub-paragraph (a) of this paragraph, where a company that is a resident of Latvia receive a dividend from a company that is a resident of Ireland in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Ireland 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. 3. For the purpose of paragraphs 1 and 2, profits, income and capital gains owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordanc with this Convention shall be deemed to be derived from sources in that other Contracting State. 4. Where in accordanc with any provision of this 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 tax on the remaining income of such resident, take into account the exempted income. 5. Where, under any provision of this Convention, income or gain is wholly or partly relieved with the or from tax in a Contracting State and, under the law in force in the other Contracting State, an individual, in respect of the said income or gains, is subject to tax by reference to the amount thereof which is remitted to or received in that other State , and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned State shall apply only to so much of the income as is remitted to or gains or received in that other State. Article 24 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. a person who with Stateles of residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of the State concerned in the same 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, apply, interest, and other disbursement royalt paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned State may be subjected to or. 6. The provision of this article shall apply to the taxes which are the subject of this Convention. Article 25 MUTUAL agreement procedure 1-where a person consider. that the actions of one or both of the Contracting States result or will result for him in taxation not in accordanc with the provision of this Convention, he may, irrespectiv of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or , if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the Convention. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the Convention. 4. The competent authorities of the Contracting States 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's at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
Article 27 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this 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. Each of the Contracting States shall notify the other of the completion of the procedures required by its law for the bringing into force of this Convention. 2. This Convention shall enter into force on the date of receipt of the later of these notifications and shall thereupon have effect: (a) in Ireland: (i) in respect of income tax and capital gains tax, for any year of assessment beginning on or after the sixth day of April in the calendar year next following the year in which the Convention enter into force; (ii) in respect of corporation tax, for any financial 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;
(b) in the United Kingdom: (i) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (ii) in respect of other taxes on income, for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the 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 Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to have the have effect: (a) in Ireland: (i) in respect of income tax and capital gains tax, for any year of assessment beginning on or after the sixth day of April in the calendar year next following the year in which the notice has been given; (ii) in respect of corporation tax, for any financial year beginning on or after the first day of January in the calendar year next following the year in which the notice has been given;
(b) in the United Kingdom: (i) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given; (ii) in respect of other taxes on income, for taxes for any chargeabl fiscal year beginning on or after the first day of January in the calendar year next following the year in which the notice has been given.
In witness whereof, the undersigned, duly authorised the theret, have signed this Convention. Done in duplicate at Riga this week of 13 November 1997, in the English and Latvian languages, both texts being equally authentic. In the case of a divergenc of interpretation the English text shall prevails.

For the Government For the Government of the Republic of Latvia of Ireland PROTOCOL At the signing today of the Convention between the Government of Ireland and the Government of the Republic of Latvia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, the undersigned have agreed the following provision in , which shall form an integral part of the Convention: 1. With reference to paragraph 1 of article 4 It is understood that a person which is incorporated or constituted under the law otherwise of a Contracting State shall not be considered a resident of that State for the purpose of this Convention unless such person is a liabl to tax in that State on all of its income , wherever arising, as a resident of that State. 2. With reference to paragraph 3 of article 4 where a person other than an individual is a resident of both Contracting States and the competent authorities of the Contracting States the endeavour to determin it status by mutual agreement, they shall have regard to such factors as the place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. 3. With reference to paragraph 3 of article 6 the Contracting States understand that all income and gains arising from the alienation of property immovabl [situated] in a Contracting State may be taxed in that Contracting State in accordanc with article 13 of this Convention. 4. With reference to paragraph 1 of article 7 It is understood that the profits of an enterprise of a Contracting State derived from the sale of goods or merchandise in the other Contracting State of the same or similar kind as those sold, or from other business activities carried on in the other Contracting State of the same or similar kind as those effected , through a permanent establishment situated in that other State may be considered attributabl to that permanent establishment if it is established that such sales or activities were not carried out for valid business reasons or were primarily for the purpose of «avoiding tax in that other State. 5. With reference to paragraph 3 of article 7 In determining the profits of a permanent establishment, it is understood that expense to be allowed as of marbles by a Contracting State include only expense the are under the domestic law of deductibl of that State. 6. With reference to article 12 If in any Convention for the avoidance of double taxation signed after the date of signature of this Convention by the United Kingdom and a third State which is a member of the Organisation for Economic Co-operation and development at the date of signature of this Convention, to a definition of its affiliates agree to exclude any of the royalt which rights or other property referred to in paragraph 3 or in the main the royalt arising from Latvian to corporation tax on the lower rates to royalt or of tax than those provided for in paragraph 2, such definition, the lower rates exemption, or shall automatically apply under this Convention as they were specified in paragraph 3 or paragraph 2 respectively with effect from the date on which the provision of that Convention, or of this Convention, whichever is the later, become effective. 7. With reference to article 16 the Contracting States understand that the article only applies to the organ which is concerned with the central management and control of the company. In witness whereof, the undersigned, duly authorised the theret, have signed this Protocol. Done in duplicate at Riga this week of 13 November 1997, in the English and Latvian languages, both texts being equally authentic. In the case of a divergenc of interpretation the English text shall prevails.

For the Government For the Government of the Republic of Latvia of Ireland



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