The Saeima has adopted and the President promulgated the following laws: the Republic of Latvia and Republic of Lithuania Convention of double taxation and prevention of tax payable article 1. 17.1993 in Vilnius in December signed in the Republic of Latvia and Republic of Lithuania Convention double taxation and prevention of tax paid with this law is accepted and approved. 2. article. The law shall enter into force on the date of its promulgation. With the law put in article 1 of the Convention in the Latvian language. 3. article. The Convention shall enter into force on its 31. period laid down in article and in order. The law adopted by the Parliament in 1994 10 November. The President g. Ulmanis in Riga in 1994 of 26 November, the Republic of Latvia and the Republic of LITHUANIA, the Convention of double taxation and prevention of tax not paid by the Government of the Republic of Latvia and the Government of the Republic of Lithuania on the basis of the desire to conclude a Convention on double taxation and prevention of tax payable in respect of taxes on income and capital, agreed on the following: 1. application of the Convention ARTICLE 1 this Convention shall apply to persons that is one or both of the Contracting States residents. Article 2 taxes covered by the Convention (1) this Convention shall apply to taxes on income and capital, charged of a Contracting State, its political subdivisions or local authorities, irrespective of their collection. 2. On the income and capital tax will be charged on all taxable income, the total of all capital, or income or capital, including tax on income gained from the immovable or real property as a result of the disposal of tax, which taxed capital gains. 3. The existing taxes to which this Convention applies, and in particular: (a)): (i) the profit tax;     (ii) the individual income tax;     (iii) the property tax;     (hereinafter referred to as "Latvian tax"). (b)) in Lithuania: (i) the legal person income tax (juridini blade of mokest ash);     (ii) the individual income tax (fizini blade of mokest Pajamas);     (iii) the tax on the use of public funds (the capital of the palūkano on valstybini naudojim);     (labeled the "Lithuanian tax"). 4. the Convention shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of the Convention, complementing or replacing the existing taxes. Contracting States, the competent authorities shall inform each other of any significant changes in the tax legislation of these countries. Article 3 General definitions 1. If it is not apparent from the text, then another in this Convention: a the term "Latvia") means the Republic of Latvia and, used in a geographical sense, represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the Latvian legislation and international legislation can be implemented in Latvia of rights to the depths of the sea, underground and the natural resources contained therein; (b) the term "Lithuania") means the Republic of Lithuania and, used in a geographical sense, denotes the Lithuanian territory and any other Republic of Lithuania territorial waters adjacent to the territories in which, in accordance with the Lithuanian legislation and international legislation implemented in Lithuania the right to the depths of the sea, underground and the natural resources contained therein; (c) the term "person") represents an individual, a company and any person as a whole; (d)) the term "company" means any entity or any combined entity for the purposes of taxation is considered as a United entity; e) concepts "Contracting State" 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; f) concept of "citizen" means: (i) any natural person who is a citizen of a Contracting State;     (ii) any legal person, company or association whose status stems from State legislation in force; g) the term "international traffic" means any carriage by sea, air, rail or road transport performed by a company of a Contracting State except where sea, air, rail or road vehicles moving between locations only, the other Contracting State; h) the term "competent authority" means: (i) the Minister of Finance of Latvia-and his authorized person;     (ii) the Minister of finance in Lithuania-and his authorised person.
2. as regards the application of the Convention, the Contracting State will use any term which is not defined here, unless the context requires otherwise, use it only in the sense that it is this country's tax legislation in relation to the taxes to which this Convention applies. Article 4 residence 1. For application of 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 his permanent place of residence, residence, location of the actual management, incorporation (registration-the interpreter.) or by any similar character criteria. However, this term does not include a person who is subject to tax in that State in respect only to income from existing sources in that State or in the country located in the capital. The term "resident of a Contracting State" also includes the Government of this country, its political and administrative units, local government and any Government of this country, administrative unit, or local government agencies or bodies belonging to it completely, which is established in accordance with the national legislation. 2. If, following the provisions of article 1 the natural person is a resident of both Contracting States, then its status will be determined in the following manner: (a)) this person will be deemed to be resident in the country in which is situated the permanent place of residence; If they have a permanent residence in both States, 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 vital interest of the Centre, 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 in which it is normally used to reside; c) If this person usually tend to stay in both countries or in one of those, then it will be considered a resident of the State of which a citizen is a person; (d)) if that person is a citizen of both countries, or any of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of paragraph 1 a person other than a natural person, is a resident of both Contracting States, then it shall be deemed to be a resident of the State from which the law is clear that person's status as such. Article 5 permanent establishment 1. For the purpose of 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 especially: (a) the management of the company); b) branch; c) Office; (d) a factory;) e) workshop, f) a mine, an oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. A building site, construction or Assembly project will be considered a permanent establishment only if such building or design work going on for longer than six months. 4. Notwithstanding the preceding paragraphs of this article, the rules, the term "permanent establishment" shall not include: (a) use of equipment) and only the goods belonging to the storage, viewing and supplies; (b) goods belonging to the company) and inventory products intended solely for storage, viewing 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 for the collection of necessary information; e) permanent site designed solely to carry out the business of any other preparatory or ancillary activities; f) permanent site designed solely to make a specified)-e) the activities referred to in any combination thereof, provided that the overall activity is preparatory or ancillary activities with nature. 5. Notwithstanding points 1 and 2 of the rules, in the case where such a person is not subject to paragraph 6, the independent agent status, running the business and typically uses its powers to conclude agreements for the company in a good state, will then be considered that this company has a permanent establishment in that State in respect of any activities carried out by this person in this country, except when he is carrying out activities referred to in paragraph 4 of by using a standalone site, this distinct place of business cannot be considered independent representations in accordance with the provisions of this paragraph. 6. Will be considered that the company no independent representations in a Contracting State only if the enterprise carries on business in that State through a broker, agent or any other agent of an independent status, provided that such persons perform their normal business activities. However, when such agents are performed completely or almost completely in good company, wine cannot be considered independent of the status of agents within the meaning referred to in this paragraph. 7. The fact that the company-resident of a Contracting State controls or is controlled from the company, which is the second resident of a Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way) itself does not turn into one of the 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 taxed in that other State. 2. the term "immovable property" have the meaning it has in its legislation of a Contracting State in which the property is located. In any case, this concept will be used to denote the property which belongs to real estate property, the right to exercise rights in respect of immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of the general legislation on real estate, located on Earth, the real estate uzufrukt and rights to variable or fixed payments for the right to use valid minerals, sources and other natural resources , or for their use. For real estate will not be considered as passenger or transport ships and aircraft. 3. the first paragraph shall be applied in respect of income derived from real estate direct use, letting or use in another way, as well as to the profits obtained from the disposal of real estate. 4. paragraphs 1 and 3 of the rules will be applied also with regard to the income from real property of the company and also with regard to the income from immovable property, which 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 located there. If the enterprise carries on business in that way, the company's earnings may be taxed in the other State, but only on the profit relating to the permanent representations. 2. in accordance with the provisions of paragraph 3, the Contracting State is established in the second Member State, through the permanent missions stationed there, in each Contracting State to the permanent representations to be subject to the amount of profit, it would get if it were clearly separate undertaking carrying out identical or similar business, under the same or similar conditions and works independently from this company. 3. in determining the profits of a 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. 4. If a Contracting State has been the practice to determine the profits attributable to the permanent representations, by company profit-sharing the common principle of proportional by departments, paragraph 2 does not prohibit Contracting State to determine the taxable profit by this principle, as it is usual; However, this method of distribution must be used so that the results match the content 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: in the profit attributed to the permanent representations, each year is to be determined using the same method, except when it is sufficiently justified the need to act. 7. If profit is included in the income of that view separately in other articles of this Convention, then the provisions of this article shall not affect the other provisions of this article. Article 8 international transport 1. Contracting State company profits from the sea, air, rail or road vehicles in international traffic of the use will be taxed only in the country. 2. paragraph 1 of this article, the rules will also apply to a company that deals with maritime, air, rail and road transport, income that is earned from a container (trailer, barges, container transport equipment concerned) use, maintenance or rental, used for the transport of goods or articles in international traffic. 3. the first and second paragraph shall also apply to profits gained by participation in a cartel in the Union, total business or international transport 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, control or it owns part of the company's capital; (b)) the same persons directly or indirectly participating in, or they own a share of control of the capital in the company, which is located in a Contracting State and the other company at the second Contracting State, and in each case between the two enterprises in their commercial and financial relations are created or established rules, which are different from the rules that run between two independent (non-related) companies, then any profit that take place between the two independent companies, but the above provisions do not affect the established developed, may be included in this corporate earnings and taxed accordingly. 2. where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits subject to which the company of the other Contracting State has been charged to tax, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two enterprises had been those which would have been between two totally independent companies, then the other countries have to make corresponding changes in relation to the size of the tax that is taxed in the country of this profit second. Article 10 dividends 1. Dividends company-a resident of a Contracting State in the other Contracting State, the cost for residents will be exempt from taxes only in the second country, if the dividend recipient is: a) the company (other than a partnership); (b) the real owner of dividends); (c)) is the holder of the shares, which represent not less than 25% of the capital and voting rights in the company, which pays dividends. 2. Dividends that are not such as referred to in paragraph 1, the cost of which company that is a resident of a Contracting State, a resident of the other Contracting State, may be exempt from taxes in the other country. However, such dividends may also be taxed in the Contracting State taxes, which residents is a company that pays dividends, and in accordance with the legislation of that State, but if the dividend recipient is the true owner of the dividends, the tax may not exceed 15% of the gross amount of the dividends. The competent authorities of the Contracting States by agreement may determine the manner in which this restriction is applied. 3. paragraphs 1 and 2 shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 4. The term "dividends" in this article means income from shares or other rights, other than debt obligations, to participate in profits, as well as income from other corporate rights which is subjected to the same taxation procedure as income from shares in accordance with the law of the country in which the resident is a company that performs this distribution. 5. paragraphs 1 and 2 shall not apply if the true owner of the dividends, being a resident of a Contracting State engaged in business activities in the country, the second Contracting through the permanent representation located there, or take the second country independent personal services through the established a permanent base there, if the company pays dividends is a resident of that other State, and if participation, which is paid out in dividends, is practically related to the permanent establishment or permanent base. In this case, depending on the circumstances of the need to apply article 7 or article 14. 6. when the company is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be put to any tax on the dividends paid, except when the dividends are paid to a resident of that other State, or if the participation that is paid for those dividends, is practically related to the permanent representation or permanent base located in this second country; nor be subject to taxation on undistributed profits of the company, the company's retained profit even if the dividends paid or retained earnings composed wholly or partly of profits or income arising in the second country. Article 11 interest 1. interest arising in a Contracting State and paid to a resident of the other Contracting State who is the rightful owner of this interest, are taxed only in that other State. 2. for the purposes of this article, the term "interest" means income from debt obligations of any kind, whatever their security guarantees, and in particular, income from government securities and income from bonds, promissory notes, including bonuses and prizes, which belong to these securities, bonds or debentures. Interest received on the interest cost of the untimely, not be regarded as interest for use in accordance with the provisions of this article. 3. The provisions of paragraph 1 shall not apply if the person carried-interest owner who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation located there, or in the second country provided independent personal services through a permanent base located there, and shows a commitment on the basis of which the interest is paid, is practically related to the permanent representations, or permanent base. In this case, depending on the circumstances, have to apply article 7 or article 14. 4. If the special relationship between the payer of the interest and the interest of the owner, or implemented between them and a third person, the amount of interest that relate to debt obligations, on the basis of which it is paid, exceeds the amount which would have been agreed between the payer and the interest owner, implemented in the absence of this special relationship, then this article will be applied only to the latter (harmonised-interpreter). In this case, the remaining payment of shares is taxed in accordance with the legislation of each Contracting State on the condition that you comply with the other provisions of this Convention. 12. Article Rojalt 1. Rojalt, which occurs in a Contracting State and paid to a resident of the other Contracting State who is the owner of the rojalt implementation will be taxed only in the second country. 2. The concept of "rojalt" in the context of this article represents payments of any kind received by the compensation for the use of any copyright, or for the right to use the copyright for literary, scientific or artistic work, including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for the industrial, commercial or scientific equipment, or for the right to use it, or for information concerning industrial , commercial and scientific activities and experience. 3. the provisions of paragraph 1 shall not be applied, if the implementation of these duties as owner, a resident of a Contracting State, carries on business in the other Contracting State in which the rojalt using the existing permanent representation there, or in the second country independent personal services through a permanent base located there, and, if the right or property, for which rojalt is practical related with this Permanent Mission or base. In these cases, depending on the circumstances, be appropriate in article 7 or article 14. 4. If the special relationship between the payer and the "rojalt" implements the owner or between them and any other third party, "rojalt", which refers to the rights of use or information beyond "rojalt" the amount by which the taxable person should have been able to agree and implement owner if they would not have such a special relationship, the provisions of this article to atlieks only to the last-mentioned "rojalt". In such cases, the payment of the share exceeding this amount will be taxed in accordance with the legislation of each Contracting State, taking into consideration other provisions of this Convention. Article 13 capital gains 1. Income from capital gains, received by a resident of a Contracting State referred to in article 6, the other Contracting State, the alienation of immovable property may be taxed in that other State. 2. Income from capital gains earned on the property, which form a permanent representation in commercial units of that Contracting State, the company uses the second Contracting State or income from property that belongs to a resident of a Contracting State to the permanent base of the second Contracting State established independent personal services, including the disposal income of such permanent missions (alone or with the whole enterprise) or of such a disposal of the standing base may be taxed in the other Contracting State. 3. Income from capital gains, the contracting company that used ships, aircraft, rail and road vehicles in international traffic, of vessels, aircraft, train or vehicle seizures, or a property that is associated with these vessels, aircraft, rail and road transport, or containers (including trailers, barges and container transport equipment) disposal, is taxed only in the country. 4. Income from capital gains on the property, which is different from the 1, 2 and 3 above, the forfeiture of the property, is taxed in the Contracting State of which the resident is the seizure of property. 5. Notwithstanding the provisions of paragraph 4, income from capital gains on the disposition of any property received by a person, who is a former resident of a Contracting State and who has become a resident of the other Contracting State, may be taxed in the first country, where the expropriation takes place at any time, the ten-year period after the date on which the individual has ceased to be a resident of the first-named country. Article 14 independent personal services 1. Contracting State resident income from professional services or by other independent activity will be taxed only in the country, except when this person your actions, uses regular access to a permanent base the second Contracting State. If you are using such a permanent base, the income may be taxing the second Contracting State but only to the extent they apply to the permanent base. 2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well as independent doctors, lawyers, engineers, architects, dentists and accountants the action. Article 15 dependent personal services 1.16, 18 and article 19 of the regulations of 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 second Contracting State. If the salaried work is carried out in this way, for it received remuneration may be taxed in the other State. 2. Notwithstanding the no1. the provisions of paragraph 1, remuneration which a resident of a Contracting State receives for paid work that is being done in the second Contracting State, be taxed in the first only in that country, if: (a) if the beneficiary is the remuneration) was the second country to no more than 183 days in any 12-month period, and b the remuneration is paid) if the employer or other person for him, who is not a resident of the other State and (c) if the remuneration is not paid) from the Permanent Mission or permanent base, used by the employer in the second country. 3. Notwithstanding the preceding provisions of this article, remuneration received for work that is being done on the company-resident of a Contracting State the sea, air, rail or road vehicles, which operate in international traffic, may be taxed in that State. Article 16 Directors ' fees directors ' fees and other similar charges which are residents of a Contracting State receives as a member of the Board of Directors, or to any company or other legal person who is a resident of a Contracting State in the other, a member of the governing body, may be taxed in the other Contracting State. Article 17 artists and athletes 1. articles 14 and 15 of the rules of the income received by a resident of a Contracting State as an artist-performer, as, for example, theatre, film, radio or television actor or a musician, or as an athlete for your individual actions, carried out the second Contracting State, may be taxed in that other State. 2. in cases where the artist or athlete's income on his individual activity in this area is paid not the artist or athlete but to another person, that income, regardless of the 7, 14 and 15 of the rules, the article can be taxing in the Contracting State in which the artist-artist or athlete. 3. paragraphs 1 and 2 of the regulations does not apply to income derived from activities performed by country artist or athlete, if they visit the country are financed in whole or in part from the other Contracting State, its political and administrative units, local authorities public funds. In such cases, depending on the circumstances, the income will be taxed under 7, 14 or 15. Article 18 pensions 1. in accordance with paragraph 2 of article 19, pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment will be subject to tax only in the country. Article 19 government service 1 a) rewards other than pensions and the cost of which a natural person, the Contracting State or of its political or administrative unit of local government for this country, unit, or the municipality provided the dependent personal services, will be subject to tax only in the country. (b)) However, this reward 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 purposes of providing the services. 2. a pension by) any natural person the cost of Contracting State or of its political or administrative unit of local government, or what the cost of Contracting State or of its political or administrative unit, the local Government set up funds for services provided by that person in that State, or local government entity will be taxed only in the country. (b)) However, this pension will be taxed only in the other Contracting State if the individual is this (second-the interpreter.) A resident of the State and the citizen. 3. remuneration and pensions, which are received for services rendered in connection with a Contracting State or of its political or administrative unit, a local authority, the business must apply to the 15, 16 and article 18. Article 20 students 1. payments received by a student, apprentice or trainee, residence, study or internship needs that directly before entering in the Contracting State was or is the second resident of a Contracting State and situated in the first mentioned State solely for the purpose of study or placement period, will not be taxed in that State provided that such payments arise outside that State. Article 21 other income 1. resident of a Contracting State other income regardless of their building sites that are not covered in previous articles of this Convention, be taxed only in the country. 2. The provisions of paragraph 1 shall not apply in relation to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of the income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent representation located there or in the other State independent personal services from a permanent base located there, and if the rights or property of which the income is paid is practical related with the permanent representation or permanent base. In these cases, depending on the circumstances, have to apply article 7 or article 14. Article 22 capital 1. Capital represented by article 6 of the real estate, which is a resident of a Contracting State and situated in the second Contracting State, may be taxed in the other State taxes. 2. Capital represented by movable property forming part of the second Contracting State located in the Contracting State of the permanent representation of the company property, or capital represented by movable property that belongs to a resident of a Contracting State to the permanent base of the second Contracting State used an independent personal services, may be taxed in the other State taxes. 3. the Contracting State company which deals with maritime, air, rail or road vehicles in international traffic, the use of capital, represented by sea, air, rail or road vehicles which carry out transport in international traffic, as well as movable property associated with the sea, air, rail and road transport; or containers (including trailers, barges and container transport auxiliary units), which are used in international traffic, will be subject to tax only in the country. 4. All the other Contracting State, a resident of the capital items will be taxed only in the country. Article 23 double-taxation 1. when a resident of a Contracting State derives income (other than income to which article 29), or a resident of a Contracting State owns capital which, in accordance with this Convention, 14 7 15 and 22 articles may be subject to taxes in the other Contracting State, the first to that country should be exempted from the income or capital taxation in accordance with this article and the provisions of paragraph 3. 2. where a resident of a Contracting State derives income that is not the income covered by this article, the provisions of paragraph 1 and in accordance with the provisions of this Convention may be taxed in the other Contracting State, the first to that country should be permitted to deduct from the tax, which taxed the earnings of resident, such size that is equal to the tax paid in the other country. These deductions, however, exceed that part of the tax, which is calculated before deductions are being made which relate to the second Contracting State earned income. 3. where in accordance with any of the provisions of this Convention to a resident of a Contracting State generated by the or his capital is exempt from taxation in that country, despite the fact that State to calculate tax on the remaining income or capital of such resident divides, it may also be taken into account income or capital which are exempt from taxes. Article 24 non-discrimination 1. Contracting State will not be the second Contracting State subject to taxation or any requirements associated with them that is different or is more burdensome than the taxation or related requirements, which may be or are exposed to the other citizens of the country in the same circumstances. This provision shall, notwithstanding the provisions of article 1 shall apply to persons who do not have one or both of the Contracting States residents. 2. Stateless persons who are residents of a Contracting State, any of the Contracting States shall not be subject to taxation or any requirements associated with them that is different or is more burdensome than the taxation and connected requirements to which are or may be exposed to nationals in the same circumstances. 3. the State company's permanent representation in that it uses the second Contracting State, may be taxed in that other State, be less favourable than taxed in the other State companies that do the same type of business. This provision shall not be construed as obliging a Contracting State the obligation to grant the other Contracting State, a resident of any private discounts, exemptions or reductions regarding the taxation of which this country give their residents given their civil status or family responsibilities. 4. except where the applicable paragraph 1 of article 9, paragraph 4 of article 11, or paragraph 4 of article 12 apply, interest, rojalt and other payments made by the enterprise of a Contracting State in favour of the other Contracting State, a resident of determining the taxable profits of the company, must be deducted from the profit on the same conditions as if they were to be paid to the first residents of that State. Similarly, the enterprise of a Contracting State in the other Contracting State debt residents, establishing this company's taxable capital, is to report on such special rules as if it refers to the first residents of that State. 5. enterprises of a Contracting State, the capital of which is wholly or partly belongs to one or more of the other Contracting State, or the residents of the resident or residents directly or indirectly controlled by the company, the first in that country may not be subject to taxation or any related requirements that differ or are more burdensome on taxes and related requirements, which are or may be exposed to similar companies in the first country. 6. The provisions of this article independently of the provisions of article 2, apply to taxes of every kind. 25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting States result or action can 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, to submit your case the competent national authorities, which this person is resident, or, if necessary, applies to article 24, l. the point is, the competent authorities of the country of which are this person. The case should 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 resolution, it should try to solve the question by mutual agreement with the other Contracting State, the competent authorities, taking into account the possible attempt to avoid tax evasion, which are not in accordance with this Convention. Each such agreement is reached must be met regardless of the time limit for the internal law of a Contracting State. 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 together in order to prevent double taxation in cases not provided for in this Convention. 4. the competent authority of the Contracting States may communicate directly with one another in order to reach agreement on the question referred to in the previous paragraphs. If it seems appropriate to achieving agreement to share thoughts verbally, the following Exchange may take place through a Commission consisting of the competent authorities of the Contracting States. Article 26 exchange of information 1 Contracting States to the competent authorities must exchange information that is necessary for the carrying out of the provisions of this Convention or in the internal law of the Contracting States, the requirements relating to taxes covered by this Convention, the implementation of the provision to the extent 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 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 this Convention included in the calculation of tax, withholding, or in appeals. This persons or authorities must use this information only for the purposes mentioned above. They may disclose this information in a lawsuit or court decisions, 2. in no case shall the provisions of paragraph 1 shall not be construed as obliging 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 may disclose any trade, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). Article 27 assistance in tax collection 1. the Contracting States undertake to provide assistance to each other taxpayer's outstanding tax collection, tax in final size is determined in accordance with the law of the country which makes a request for assistance. 2. where a Contracting State shall submit the request to provide assistance in the collection of taxes, the collection of which is accepted by the other Contracting State, such taxes will be collected in the other State in accordance with the law that applies to this second state tax revenues, and as taxes would be levied in the other State taxes. 3. any request of a Contracting State to levy taxes must be added to the confirmation that the taxpayer's debt is finally determined in accordance with the national legislation. 4. when a Contracting State requested the tax amount is not possible to determine precisely because it is determined in court or in any other way, that State may, to maintain its revenue, ask another Contracting State to take interim action in the preservation of these funds on its behalf, if it is allowed to the second country, in accordance with the second law. If the latter agrees to comply with the request, temporary is performed as if this tax debt first to that country would be the second country due to taxes. 5. a request under the preceding paragraph of this article, the provisions of the Contracting State should be submitted only when it does not have available sufficient property tax to cover the outstanding tax amount. 6. the Contracting State where the tax is levied in accordance with the provisions of this article, shall be paid to the Contracting State of which the good this tax was levied, the amount of the tax collected, from which, if necessary, less the amount of exceptional costs associated with this collection, referred to in paragraph 7 (b)). 7. Will be considered until the competent authorities of the Contracting States have agreed on rules: (a) the Contracting State) current expenditure incurred in providing assistance shall be borne by that State; b) extraordinary expenses arising in the Contracting State providing assistance shall be borne by the other State, irrespective of the amount of tax is collected it. In the case where a Contracting State anticipates that extraordinary costs may arise, it must immediately inform the other State, and such expenditure must be presented possible. 8. for the purposes of this article, the term "tax" taxes covered by this Convention, and any related penalties or interest. Article 28 Diplomatic and consular officers nothing in this Convention shall not affect the members of diplomatic missions or consular point of fiscal privileges of the employees, in accordance with the applicable international law or special agreements. 29. Article 1 of the shelf zone of Action. The provisions of this article shall be applied without regard to any other provisions of this Convention. 2. Person-resident of a Contracting State in the other Contracting State by the action of the ice zone, related to the second Contracting State-owned sea, deep underground and there existing natural resource exploration and exploitation, in accordance with this article and the provisions of paragraph 4, will be treated as a business that made the second country using existing permanent representation or permanent base. 3. the provisions of paragraph 2 shall not apply if the duration of the action exceeds the period or periods in a total of 30 days in any twelve-month period that begins or ends in the relevant financial year. However, this point needs: (a)), carried out by a person who is related to another person, this will be seen as another person to take action, if this action is essentially the same as it carried out the first mentioned person; (b)) a person shall be deemed to be associated with any other person, if one of them directly or indirectly controls the other, or with a third party directly or indirectly controls both of the above persons. 4. the salary and other remuneration of equivalent received by a resident of a Contracting State for work related to the other Contracting State the sea, deep underground and there existing natural resource exploration or exploitation, may be subject to tax in that other State to the extent that work is carried out in another country provided that the job will ice area has been made at least 30 days in any twelve-month period that begins or ends in the relevant financial year. 5. income from capital gains, received by a resident of a Contracting State: (a) disposal of) rights or rights relating to the part of the other Contracting State the sea deep underground and there existing natural resource exploration or use, or (b)) property situated in the other Contracting State and who is associated with the use of the research or referred to in this work (in the second-the interpreter.) Country, or c) shares, which for the most part of value, directly or indirectly, arising from such right or property which are mined a) and b) subparagraphs may be subject to tax in the other country. Article 30 limitation of Benefits despite 11 and article 12, paragraph 1 of article 7. paragraph 1 of article 10, paragraph 1 of article 14 of the rules, the legal persons-residents of a Contracting State's share of income that is received or created from the second Contracting State, may be taxed in each country in accordance with national domestic legislation and other provisions of this Convention, if it can reasonably be considered that he has created the first in the country with the main objective to take advantage of this provision. Article 31 entry into force 1. After compliance with the constitutional requirements for the entry into force of the Convention. The Governments of the Contracting States must exchange relevant notes. 2. the Convention shall enter into force 30 days after the last notes referred to in paragraph 1 of the date of submission and the rules will be applied: (i) in respect of taxes withheld at the time the cost: starting with the income gained from the calendar year 1 January or after the calendar year following the year in which this Convention enters into force;     (ii) in respect of other taxes on income and capital: starting with taxes due in any tax year beginning in the calendar year January 1, on or after 1 January, following the entry into force of this Convention. Article 32 termination this Convention shall remain valid as long as the Contracting State to stopped. Each Contracting State may terminate this Convention, through diplomatic channels, submit a written note about the termination of not less than 6 months before any end of the calendar year. In such event, the Convention will be terminated: (i) in respect of taxes withheld at the time the costs from income for the calendar year January 1st or after in the year following the year in which the notes in question;     (ii) in respect of other taxes on income and capital: starting with taxes payable in any tax year beginning on or after 1 January in the year following the year in which the relevant note. Signature in the presence of witnesses, being duly authorised, have signed this Convention. The Convention is drawn up in duplicate in the 1993 in Vilnius on December 17 in English, Latvian and Lithuanian languages, each version being regarded as authentic, but due to confusion between the different versions, the English version will take precedence.
The Government of the Republic of Latvia, the Republic of Lithuania Government, dear Sir, I have the honour to refer to the Convention of double taxation and prevention of tax paid in respect of income and capital taxes, signed today between our Governments. With regard to article 8 of the Convention, I wish to point out that our Government adopts the term "enterprise of a Contracting State for the use of profits in international traffic" explanation, which is given in the OECD (OECD) Model Convention article 8 of 7 to 14 comments, and this statement does not in any event include the profit gained by the dock, warehouse, terminal equipment, loading-unloading equipment, as well as any other similar , located on the ground use of property, except where such profits are directly related to the company's Board. We would be very grateful if you would confirm that it agrees with the following explanation and agrees to the application of this Convention. Signature dear Sir, I have the honour to refer to your letter concerning our Governments today signed the Convention on double taxation and prevention of tax paid in respect of income and capital taxes in the context of article 8 of this Convention. I have the honour to confirm that my Government agrees with the statement that "the Contracting State Corporation for use in international traffic" explanation that is given in your letter. Signature