The Saeima has adopted and the President promulgated the following laws: the Republic of Latvia and the Republic of Belarus to the Convention on the avoidance of double taxation and prevention of tax fraud article 1. 1995 September 7 in Minsk signed in the Republic of Latvia and the Republic of Belarus to the Convention on the avoidance of double taxation and the prevention of tax evasion (hereinafter referred to as the Convention) with this law is accepted and approved. 2. article. The law shall enter into force on the date of its promulgation. To put the Convention by law Latvian and English. 3. article. Ministry of Foreign Affairs of the Republic of Latvia on the basis of this law and in accordance with article 27 of the Convention, the first subparagraph shall be drawn up in writing to send the ratification of the Government of the Republic of Belarus. 4. article. The Convention shall enter into force in its article 27 on time and in order. The Saeima adopted the law on February 8, 1996. The President g. Ulmanis in Riga on 24 February 1996 in the Republic of Latvia and the Republic of Belarus to the Convention on the avoidance of double taxation and the prevention of fiscal evasion, the Government of the Republic of Latvia and the Government of the Republic of Belarus, people's willingness to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes, agreed: article 1 scope of the Convention this Convention shall apply to persons of either Contracting State or resident of both Contracting States. Article 2 taxes covered by the Convention (1) this Convention shall apply to taxes levied by the authorities of a Contracting State or its name, regardless of their collection. 2. income taxes deemed all taxes that total income or taxable income, also part of the tax, which taxed property seizures result in earned income. 3. The existing taxes to which this Convention applies, in particular, are the following: (a)): (i) corporate income tax; (ii) the individual income tax; (hereinafter referred to as the Latvian tax); (b)) in Belarus: (i) the legal person income and profits tax; (ii) the individual income tax; (hereinafter referred to as the Belarusian tax). 4. the Convention shall also apply 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 any significant amendments to the national tax legislation. Article 3 General definitions 1. If it is not apparent from the context, otherwise in this Convention: a the term "Latvia") means the Republic of Latvia, and, used in a geographical sense, it represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the legislation of Latvia and international law can be implemented in Latvia of rights on land and sea depths and natural resources contained therein; (b) the term "Belarus") means the Republic of Belarus and, used in a geographical sense, it represents the area in which, in accordance with the legislation of Belarus and international law can be implemented in the Republic of Belarus rights and jurisdiction; (c) the term "Contracting State)" and "the other Contracting State" depending on the context of Latvia or Belarus represents; (d) the term "person") represents a natural person, company, or any person as a whole; e the term "company") represents any legal person or any entity, which, for the purposes of taxation is considered a legal person; (f) the term "Contracting Government) of the enterprise" and "enterprise of the other Contracting State" represents the company, run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; (g)) the concept of "citizen" represents: (i) any natural person who is a citizen of a Contracting State; (ii) any legal person, partnership or association whose status stems from State legislation in force; h) 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; (i) the term "competent authority" means: (i) in Latvia: the Minister of finance or his authorised representative; (ii) in Belarus: the Cabinet's main national tax administration chief or his authorized representative. 2. as regards the application of the Convention, the Contracting State will use any term which is not defined here, if one does not follow from the context otherwise, only in the sense in which it is applied to these national tax legislation with respect to 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 of the actual management, place of incorporation (registration) or any similar character criteria. The concept also includes the State Government and its authorities. However, this term does not include persons who are taxed in that State in respect only of income from sources in that country. 2. Where, in accordance with the provisions of article 1 the natural person is a resident of both Contracting States, its status will be determined in the following manner: (a)) this person will be deemed to be resident in the country where the permanent place of residence; If you are habitually resident in two countries, this person will be considered a resident of the State with which it has the closest personal or economic relations (vital interests); (b)) if it is not possible to determine the country in which that person is a vibrant centre of interests, or if it does not have a permanent place of residence in one of the two countries, that person will be considered a resident of the State that it is customary in the home; c) if that person normally home in both countries, or is not one of them, it will be considered a resident of the State of which a citizen is a person; (d) if the person was resident) status can not be determined under subparagraph (a))-c), the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the Contracting State the competent authorities shall endeavour to resolve the matter by mutual agreement and determine the mode of application of this Convention to such person. Article 5 permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business of which is wholly or partly carried on business. 2. The term "permanent establishment" includes: (a) the management of the company); b) branch; c) Office; (d) a factory;) e) workshop; f) mine shaft, oil or gas extraction sites, quarries or any other natural resource exploration or mining site. 3. A building site, a construction, Assembly or installation project or a supervisory or related advisory transaction will be considered permanent representation only if the building or design work lasts more 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 the storage, demonstration and supplies; (b) goods belonging to the company) and inventory products intended solely for storage, demonstration and supplies; (c) the goods belonging to the company) and inventory products intended exclusively for processing in the other company. d) permanent site designed exclusively for the purchase of goods or products or company collecting the information you need; e) permanent site designed exclusively for making business arrangements or any other ancillary; f) permanent site designed exclusively for making "a" through "e" referred to actions in any combination, provided that the overall activity of the preparatory or ancillary nature is. 5. Notwithstanding points 1 and 2, when the person is not subject to paragraph 6, the independent agent status, running the business and typically uses its powers to enter into contracts in the name of this establishment in the Contracting State, shall be considered that this company has a permanent establishment in that State in respect of any the person's business activities in that State, except when the permanent site used by this person, doing the activities referred to in paragraph 4 may not be considered a permanent establishment under the provisions of paragraph 4. 6. it will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country, through intermediaries only, sales agent or any other agent of an independent, provided that such persons perform their normal business activities. However, if such agents are fully carried out business, they cannot be considered an independent agent This means referred to in paragraph 1. 7. the fact that the company is a resident of a Contracting State-controlled company, which is a resident of the other Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way), or is subject to the control of such undertaking itself does not turn into one of those companies on the other company's permanent representation. Article 6 Income from real property 1. Income for the resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State, may be taxing in that other country. 2. the term "immovable property" have the meaning it has in its legislation of a Contracting State in which the property is located. For real estate will not be considered to be vessels and aircraft. 3. the provisions of paragraph 1 shall be applied in respect of income from real estate direct use, letting or use in any other way, as well as income from the disposal of real estate. 4. If the company's shares or other rights gives its owner the right to public use of the immovable 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. 5.1 and paragraph 3 shall be applied also with regard to the income from real property of the company, as well as income from property that is used for independent individual services. Article 7 business profits 1. Contracting State company profits will be taxed only in that State unless the enterprise carries on business in the other Contracting State through a permanent representation of the existing there. If the enterprise carries on business in that way, the company's profits can be taxing in the other country, but only the profit relating to the permanent representations. 2. in accordance with the provisions of paragraph 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the amount of profit, it would benefit if the individual is clearly the company that performs the same or similar business activities under the same or similar conditions and works independently from this company. 3. in determining the profits of the permanent representation will be made permanent representation in the deductible expense deduction from amounts taxable. These expenses may be representations of operational and general administrative expenses incurred by the country in which the permanent establishment or elsewhere. Editions of that Contracting State allowed to deduct, include only those costs that are allowed to be deducted in accordance with the national legislation. 4. where a Contracting State the profits attributable to the permanent establishment shall be determined by the joint company profits apportioned between units, (2) do not prohibit a Contracting State 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 other articles of this Convention separately featured income types, 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 shall 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; (b)) one and the same person, directly or indirectly, participate in Contracting State of an organization's management or control or they own in the company's capital and at the same time, other companies in the other Contracting State, and these two companies in the commercial and financial relations are created or established by rules different from those provisions that the force between two independent (non-related) companies, any profit that the formation of one of the companies, but the above provisions do not affect the established, may be included in the profits of that enterprise and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State and, where the taxable profit, in respect of which the company of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two totally independent companies country, then the other must be the appropriate corrective for the size of the tax, which taxed the earnings of the other country. In determining this corrective, account must be taken of other provisions of this Convention and, if necessary, shall be held by the competent authorities of the Contracting States for consultations. Article 10 dividends 1-dividends, a company of a Contracting State a resident of the other Contracting State paid to a resident, can be taxing in that other country. 2. However, such dividends may also be taxing in accordance with the national law of the Contracting State of which the resident is a company that pays dividends, but if the dividend recipient is the true owner of the dividends, the tax may not exceed 10 per cent of the gross amount of dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term "dividends" in this article means income from shares or other rights to participate in profits, which is not a debt, as well as income from other rights which is subjected to the same taxation as income for the procedure of shares in accordance with the national provisions, which the resident is a company that performs this distribution. 4. paragraphs 1 and 2 shall not apply if the true owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment there, existing, or provide other State independent personal services from a permanent base located there, where the company that pays dividends, is the other State residents and where participation, which is paid out in dividends, is actually related to the permanent representation or permanent base. In this case in accordance with the conditions applicable in article 7 or 14. 5. If the company — a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be 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; If interest is the interest of the beneficiary in the true owner, tax shall not exceed 10 per cent of the gross amount of the interest. 3. the provisions of paragraph 2 shall not be applied where the interest arising in a Contracting State, one receives the other Contracting Government, as well as the local governments, the Central (national) bank or any other this Government fully-owned financial institutions, being the owner of the interest the exercise or the interest received on the loans guaranteed by the Government, will not be taxed in the first Contracting State. 4. for the purposes of this article, the term "interest" means income from debt of any kind regardless of their security guarantees, in particular, income from government securities and income from bonds, promissory notes, including bonuses and awards for these securities, bonds or debentures. Fines, which received timely interest not paid, will not be considered interest covered by this article. 5. paragraphs 1 and 2 shall not apply if the person put the interest owner ó, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or provide this second country independent personal services through a permanent base located there, and the indebtedness on which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case in accordance with the conditions applicable in article 7 or 14. 6. If the payer of the interest is a resident of that State, be considered that interest arises in this country. If, however, the person paying the interest, whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred the debt for which interest is paid, and the interest shall be paid to the permanent establishment or fixed base, will be considered that the interest incurred in the State in which the permanent establishment or fixed base. 7. If due to the special relationship between the payer and the interest percentage implemented owner or between both of them and a third person interest amount relating to indebtedness on the basis of which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest owner will, if implemented, they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the remaining part of the payment is taxed in accordance with the national provisions, provided that you comply with the other provisions of this Convention. Article 12 Royalties (1) royalties arising in a Contracting State and is paid to residents of the other Contracting State, may be taxing in that other country. 2. However, such royalties may be taxing in accordance with national law of the Contracting State in which it arises. If the beneficiary is the royalties royalties put owner, tax shall not exceed 10 per cent of the total royalties. 3. The term "royalties" in this article means payments of any kind received as a compensation for the use of any copyright or rights to use the copyright in a literary, scientific or artistic work, motion picture, also on any patent, trademark, design or model, plan, secret formula or process, or for any industrial, commercial or scientific equipment, or for the right to use it, or for information concerning industrial , commercial and scientific activities and experience. 4. paragraphs 1 and 2 shall not apply if the payment is effected, as the owner of a Contracting State, carries on business in the other resident in the Contracting State in which the royalties arise, through a permanent representation of the existing there, or in another country provides independent personal services through a permanent base located there, and if the rights or property of, subject to royalty payments, is actually related to the permanent representations, or permanent base. In this case in accordance with the conditions applicable in article 7 or 14. 5. If the payer of the royalties is a resident of a Contracting State, it will be considered that the royalties arise in the country. If, however, the person paying the royalties, whether or not that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which committed to pay royalties and the royalties paid to the permanent establishment or fixed base, will be considered that the royalties arise in the State in which the permanent establishment or fixed base. 6. If, owing to a special relationship between the payer of royalties and royalties shall implement the owner or between both of them and a third person the amount of the royalties relating to the rights of use or information exceeds the amount of royalties that would have been able to implement a single payer and the owner if they would not have this special relationship, then the provisions of this article shall be applied only to the last-mentioned amount. In this case, the payment of the part exceeding this amount are taxed according to each Contracting State law provided that you comply with the other provisions of this Convention. Article 13 Income from property disposals 1. income for the resident of a Contracting State alienates a referred to in article 6, in the other Contracting State the existing real estate or shares of one company, which actively consist mainly of such property can be taxing in that other country. 2. the income gained from the disposal of property, other than real estate, who have permanent representation in that country of a contracting entity uses the second Contracting State commercial units, or part of the income earned from the property, other than real estate, disposal of a resident of a Contracting State-owned independent personal services to create a permanent base in the other Contracting State; also, the income gained from the disposal of such, the permanent representation (alone or with the whole enterprise) or of such a standing base, can be taxing in the other Contracting State. 3. income for the company of a Contracting State who uses the ships and aircraft in international traffic, the disposal of ships or aeroplanes, or forfeit the property, other than real property, that is associated with this ship and the aircraft, shall be taxable only in that State. 4. the income gained from the disposal of property, which is different from 1, 2, and 3. the property referred to in paragraph 1, shall be taxable in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. Contracting State residents — physical persons income earned by providing professional services or other independent activities, will be taxed only in the country, except when this person your operational needs using a permanent (regular access to a permanent place of business) 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 he maintains in the other Contracting State for a period or periods exceeding in the aggregate 183 that days in any 12 month period commencing or ending in the fiscal year, and the income earned on the second country made 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. the provisions of article 19 and the wages and other similar remuneration received by a resident of a Contracting State in his work, will be taxed only in the country, if one paid work is not performed in the other Contracting State. If a paid work is performed in the other Contracting State, the remuneration received for it can be taxing in that other country. 2. Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxed in the first only in that country, provided that: (a)) is a beneficiary in another country not more than 183 days in any period of 12 months; (b) the remuneration is paid) an employer who is not a resident of the other State, or the name of the employer; (c) the remuneration is not paid) permanent establishment or fixed base which the employer has in the other State is used. 3. Notwithstanding the foregoing provisions of this article, remuneration for work carried out by working on the enterprise of a Contracting State sea or air means of transport in international traffic, may be to tax in this country. Article 16 Directors ' fees directors ' fees and other similar payments to residents of a Contracting State receives as a society, which is the territory of the other Contracting State, a resident of the Board of Directors can be taxing in the other Contracting State. Article 17 artists and athletes 1. articles 14 and 15 of the rules of income, the resident of a Contracting State as izpildītājmāksliniek, such as theatre, film, radio or television actor as well as a musician or an athlete for your individual activities in the other Contracting Country, taxing can in the 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. Article 18 pensions in accordance with paragraph 2 of article 19, pensions and other similar payments received by a resident of a Contracting State for previous paid employment will be taxed only in the country. Article 19 government service 1 a) salary, earnings, and other similar remuneration, other than a pension, and a natural person the cost of Contracting State or its municipalities on State or local services to be taxed only in the country. (b)) However, this salary, earnings and other remuneration will be taxed only in the other Contracting State if the services are rendered in that other Contracting 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 purposes of providing the services. 2. a pension by) any natural person the cost of Contracting State or a local government, or what the cost of that Contracting State or of its local authorities create funds 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. Salary, earnings, other remuneration and pensions received for services rendered in connection with a Contracting State or of its local authorities, the business must apply to the 15, 16 and article 18. 4. for the purposes of the application of this article, the term "municipality" will be applied only in the case of Latvia. Article 20 students payments which a residence, study or internship needs receives a student, apprentice or trainee, who just before the arrival of a Contracting State has or had in the other Contracting State, a resident of and located in the first mentioned State solely for the purpose of study or placement period, will not be taxed in that State, if such payments arise outside that State. Article 21 other income 1. other previous articles of this Convention shall not featured a resident of a Contracting State shall, whatever their income sources will be taxed only in the country. 2. paragraph 1 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 in accordance with the conditions applicable in article 7 or 14. Article 22 the avoidance of double taxation with respect to Latvia 1, double taxation will be avoided in the following manner: (a)) in case the resident of Latvia derives income which, in accordance with the provisions of this Convention can be taxing in Belarus unless the internal legislation of Latvia do not provide more favourable provisions must allow Latvia to reduce the resident's income tax on the portion of the tax is equal to the income tax paid in Belarus; These reductions must not, however, exceed that part of the income tax, which is calculated in Latvia before the application of this reduction, which is attributable to the income that can be taxing in Belarus; (b)) for the application of the "a" section, where the company — a resident of Latvia receives a dividend from a company — — — residents of Belarus and Latvia's residents in this society owns not less than 10 percent of shares with full voting rights, the tax paid in Belarus be included not only tax that taxed dividends, but also tax, which taxed the public profits from which dividends are paid. 2. in the case of Belarus double taxation shall be avoided as follows: where a resident of Belarus derives income which, in accordance with the provisions of this Convention can be taxing in Latvia, Belarus should be permitted to deduct from the income of a resident of this amount equal to the tax paid in Latvia. This deduction shall not, however, exceed that part of the income tax, which is attributable to the taxable income in Latvia before the deduction. Article 23 elimination of discrimination 1. nationals of a Contracting State in the other Contracting State shall not be subject to taxation or any requirements connected therewith which differs from taxation or the related requirements which are or may be exposed to the other citizens of the country in the same circumstances, or which is more burdensome, in particular with respect to residence. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not party to one or both of the Contracting States of the residents. 2. a Contracting State a permanent establishment, the representative which it uses 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 or reductions for taxation, as this country give their residents given their civil status or family responsibilities. 3. Except where the applicable paragraph 1 of article 9, paragraph 6 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other payments made by the enterprise of a Contracting State, in determining the taxable profit of the company, must be deducted from the profit upon the same terms as if they were to be paid to the first residents of that State. 4. 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, not the first in that country may be subject to taxation or any requirements connected therewith which differ from the taxation and related requirements, which are or may be exposed to similar companies in the first country, or which is more burdensome. 5. the provisions of this article independently of the provisions of article 2, apply to taxes of every kind. Article 24 mutual conciliation procedure 1. If a person believes that one or both of the Contracting States party to lead or may lead to the person's taxation, which does not comply with the provisions of this Convention, that person may, irrespective of the internal legislation of these countries the rules governing to prevent such taxation, submit your question for consideration by the competent authorities of the country of which that person is resident, or, if the matter relates to article 23 (1) of the of the Member State the competent authorities of which are this person. The question to be submitted for review within three years from the first notification of the action which led to the taxation not in accordance with the provisions of this Convention. 2. the competent authorities are obliged to seek to resolve this issue, if it considers that the complaint is justified, and if this institution fail to reach a satisfactory solution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities in order to prevent this Convention without the appropriate taxation. Each such agreement is reached must be met regardless of the contracting domestic legislative deadlines. 3. the national competent authorities should seek mutual consent in the course of resolving any problems or concerns that may arise in the interpretation or application of this Convention. They may also consult to avoid double taxation in cases not provided for in this Convention. 4. The competent authorities of the Contracting States may communicate directly with one another in order to reach agreement on these issues in the previous paragraphs. If you think it is appropriate for achieving agreement to exchange thoughts orally, such exchange may take place by creating a Commission, composed of the competent authorities of the Contracting States. Article 25 exchange of information 1. National authorities should exchange information necessary for the carrying out of the provisions of this Convention or in this Convention, the Contracting States tax related internal legislation requirements in so far as these laws are not contrary to this Convention. Article 1 of the Convention does not restrict the exchange of information. Any information received by a Contracting State, should be considered as sensitive 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 this Convention included in the calculation of tax, in the collection, the use of coercive measures, trials or appeals. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in lawsuits or judgments. 2. in no case shall the provisions of paragraph 1 shall not be interpreted so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not match with the one or the other national legislation or administrative practice; (b)) to provide information that is not available under one or the other national legislation or administrative practice; (c)) to provide information that can reveal any trade, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 26 diplomatic and consular representation in diplomatic and consular staff and employees nothing in this Convention shall not affect the diplomatic and consular missions of the diplomatic and consular personnel and fiscal privileges of the employees that are applicable to them under international law, or special agreements. Article 27 entry into force 1 this Convention shall be subject to ratification, and States parties should exchange instruments of ratification as soon as possible after ratification. 2. the Convention shall enter into force on the date of exchange of instruments of ratification and its provisions will be applied in both Contracting States: a in respect of taxes) charged the cost of the moment: starting with the income for the first day of January or after the first day of January in the calendar year following the year in which this Convention enters into force; (b)) for the other taxes: starting with the taxes to be paid in any taxation period beginning on the first day of January or after the first day of January in the calendar year following the year in which this Convention enters into force. Article 28 termination this Convention shall remain valid as long as the contracting party terminates its activities. Each Contracting State may terminate this Convention, through diplomatic channels, submit a written note about the termination at least six months before any end of the calendar year. In this case, the Convention will end in both countries: a) in respect of taxes levied at the time of the costs: starting with the income for the first day of January or after 1 January in the calendar year following the year in which the notes in question; (b)) in respect of other taxes on income from taxes paid in any taxation period beginning on the first day of January or after 1 January in the calendar year following the year in which the relevant note. This, the undersigned, being duly authorised, have signed this Convention. The Convention is drawn up in duplicate in the 1995 in Minsk on September 7, Latvian, Belarusian and English languages, all three texts being equally authentic, but if you are in doubt, the decisive is the interpretation the English text.
The Republic of Latvia, the Republic of Belarus, on behalf of the Government of the Government of the CONVENTION between the Republic of Latvia and the Republic of Belarus for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income the Government of the Republic of Latvia and the Government of the Republic of Belarus, (menu rngton Line4) to conclud a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income , 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 imposed on behalf of a Contracting State or of its local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of property. 3. The existing taxes to which the Convention shall apply in particular to: (a)) in the United Kingdom: (i) the enterprise income tax (corporate income tax); (ii) the personal income tax (individual income tax); (hereinafter referred to as "Latvian tax"); (b)) in Belarus: (i) the tax on income and profits of legal persons (padatak na pribitak i juridičnih dahod asob); (ii) the income tax on individual (padahodn, padatak z gramadzjan). (hereinafter referred to as "Belarus tax"). 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes which have been made in their taxation laws of respectiv. Article 3 General definition 1. For the purpose of this Convention, unless the context otherwise requires: a the term) "Corporation" means the Republic of Latvia, and when used in the location sense means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which under the law of Latvia and in accordanc with international law the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (b)), the term "Bul" means the Republic of Belarus and, when used in a location sense, means the territory over which the Republic of Belarus exercises under the laws of Belarus and in accordanc with international law sovereign rights and jurisdiction; (c)) the terms "a Contracting State" and "the other Contracting State" mean, as the context requires, Latvia or Belarus; (d) the term "person") includes an individual, a company and any other body of persons; e the term "company") means any legal person or any entity which is treated as a legal person for tax purpose; (f) the term ") enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; (g) the term "national") means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership and association deriving their status as such from the law in force in a Contracting State; h) 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; I) the term "competent authority" means: (i) in Latvia, the Minister of finance or his authorised representative; (ii) in Belarus, the Main State Tax Body at the Cabinet of Minister or its authorised representative. 2. As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning 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. The term shall also include the Government of that State itself and its local authorities. However, this term does not include any person who is liabl to tax in that State in respect only of income from sources in that State. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident of the State of which he is a national; (d)) if the status of a resident cannot be determined according to subparagraph (a))-c), the competent authorities of the Contracting States shall settle the the question by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to the settle the question by their mutual agreement and determin the mode of application of the Convention to such person. 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 exploration or extraction of natural resources. 3. A building site, a construction, assembly or installation project or a supervisory activity connected therewith or consultancy constitut a permanent establishment only if such site, project or activity lasts for a period of more than 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 subparagraph (a)) (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, when the activities of such an agent are devoted wholly on behalf of that enterprise, he will not be considered an agent of an individual status within the meaning of this paragraph. 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 to one business in the carr are others 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. Ships 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, as well as income from the alienation of property immovabl. 4. Where the ownership of shares or other rights in a company the owner of entitl such shares or 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 and 3 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. The expense to be allowed as deduction in "by a Contracting State shall include only expense the are under the domestic law of deductibl of that State. 4. Insofar as it has been customary in a Contracting State to determin the profits to be attributed to a permanent establishment on the basis of an apportionmen of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclud that Contracting State from determining the profits to be taxed by such an apportionmen as may be customary; the method of apportionmen, however, the adopted shall be such that the result shall be in accordanc with the principles led in this article. 5. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7. Where profits include items of income which the deal with separately in other articles of this Convention, then the provision of those articles shall not be affected by the provision of this article. Article 8 Shipping and air transport 1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. The provision of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 Associated enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this Convention and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall be the 10 per cent exceeds 100 notes of the gross amount of the dividends. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares, or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be shall apply. 5. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not tax any impost on dividend 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 recipient is the beneficial owner of the interest the tax so charged shall be the 10 per cent exceeds 100 notes of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State and beneficially owned by the derived and Government of the other Contracting State, including local authorities thereof, the Central (National) Bank or any financial institution wholly owned by that Government, or interest derived on loans guaranteed by the Government, shall be that main from tax in the first-mentioned 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 and debentur, including premium and prizes attaching to such securities, bonds or debentur. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1 and 2 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 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 the resident of the other Contracting State may be taxed in that other State. 2. However, such may be taxed in royalt also in the Contracting State in which they «arise and according to the law of that State, but if the recipient is the beneficial owner of the royalt, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the royalt. 3. The term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of , or the right to use any industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalt, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt «arise, through to a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalt paid is effectively connected with such permanent establishment or with fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. you shall be deemed the Royalt «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the whethers royalt, he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the incurred, and such was the royalt royalt with is borne by such permanent establishment or fixed base, then such shall be deemed to be the royalt «arise in the State in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalt, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would be 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 gains from the alienation of property 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, or shares in a company the assets of which mainly of such property be consis may be taxed in that other State. 2. Gains from the alienation of property other than property of forming immovabl of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of property other than property pertaining to a fixed immovabl base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or property other than property pertaining to immovabl the operation of such ships or aircraft, shall be only in the taxabl you state. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be only in the taxabl Contracting State of which the alienator is a resident. Article 14 independent personal services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base (fixed place regularly available to him for the purpose of performing his activities) in the other Contracting State. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve-month period in commencing or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent personal services 1-subject to the provision of articles 16, 18 and 19, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned, and b the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State, may be taxed in that State. Article 16 Director's fees Director's fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of Directors 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 article 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as 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 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. Article 18 Pension subject to the provision of paragraph 2 of article 19, the pension and other similar payments paid to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of the 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 other Contracting 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. 4. For the purpose of this article the term "local authority" shall be applied only in the case of Latvia. Article 20 students payments which a student, or 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. 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 to one business in carr the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. Article 22 Elimination of double taxation 1. In the case of Latvia, double taxation shall be eliminated as follows: a where a resident of) Corporation's deriv income which in accordanc with this Convention, may be taxed in Belarus, unless a more favorable treatment is provided in its domestic law, Latvia shall allow as a deduction in "from the tax on the income of that resident, an amount equal to the income tax paid thereon in Belarus; Such notes shall, however, exceeds 100 Marbles that part of the income tax in Latvia as computed before the deduction in "is given, which is attributabl to the income which may be taxed in Belarus. (b)) For the purpose of sub-paragraph (a)), where a company that is a resident of Latvia receive a dividend from a company that is a resident of Belarus in which it will own at least 10 per cent of its shares having full voting rights, the tax paid in Belarus 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. 2. In the case of Belarus, double taxation shall be eliminated as follows: where a resident of Belarus of income which, in deriv accordanc with the provision of this Convention, may be taxed in Latvia, Belarus shall allow as a deduction in "from the tax on the income of that resident, an amount equal to the income tax paid in Latvia. Such notes shall, however, exceeds 100 Marbles that part of the income tax, as computed before the deduction in "is given, which is attributabl to the income which may be taxed in the United Kingdom. Article 23 Non-discrimination 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. The 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. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably 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. 3. Except where the provision of paragraph 1 of article 9, paragraph 6 of article 11, or paragraph 6 of article 12, apply, interest, and other disbursement royalt paid by an enterprise of a 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. 4. 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. 5. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description. Article 24 Mutual agreement procedure 1-where a person consider. that the actions of one or both of the Contracting States result or will result for him in taxation not in accordanc with the provision of this 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 23, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the Convention. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States the may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisabl in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of the representatives of the competent authorities of the Contracting States. Article 25 exchange of information 1. The competent authorities of the Contracting the States shall exchange such information as is not cessary for carrying out the provision of this 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) involved in the asessmen 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 judical decision. 2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and the administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclos) any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Article 26 members of diplomatic missions and consular posts Nothing in this 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 27 Entry into force 1 this Convention. is subject to ratification and the instruments of ratification shall be exchanged as soon as possible. 2. This Convention shall enter into force on the date of exchange of the instruments of ratification and its provision shall have effect in both Contracting States: a in a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which the Convention enter into force; (b)) in respect of other taxes, for taxes chargeabl for any period beginning on or after the taxabl the first day of January in the calendar year next following the year in which the Convention enter into force. Article 28 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 be the it have effect in both States: a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which such notice has been given; (b)) in respect of other taxes, for taxes chargeabl for any period beginning on or after the taxabl 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, being duly authorised have signed this theret the Convention. Done in duplicate at Minsk this 7th day of September 1995 in the Latvian, Belorussian and English languages, all three texts being equally authentic. In the case of the divergenc of interpretation, the English text shall prevails.
For the Government For the Government of the Republic of Latvia of the Republic of Belarus