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For The Republic Of Latvia And The Kingdom Of Norway, Of The Convention For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion

Original Language Title: Par Latvijas Republikas un Norvēģijas Karalistes konvenciju par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu

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The Saeima has adopted and the President promulgated the following laws: For the Republic of Latvia and the Kingdom of Norway, of the Convention for the avoidance of double taxation and prevention of tax fraud article 1. 19 July 1993 in Riga in the Latvian Republic signed and Convention of the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with this law adopted and approved. 2. article. The law shall enter into force on the date of notification. With the law put referred to in article 1 of the Convention and its translation into Latvian language. 3. article. The Convention shall enter into force on its article 30 on time and in order. The law adopted in 1993 the Saeima on 25 November. The President g. Ulmanis Riga 1993 December 1, the Republic of LATVIA and the Kingdom of Norway Convention on double taxation and the prevention of fiscal evasion, the Government of the Republic of Latvia and the Government of the Kingdom of Norway, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, agreed to: 1. The scope of the Convention ARTICLE 1 this Convention shall be applied in respect of persons, which is one of the national or resident of both Contracting States. Article 2 taxes covered by this Convention 1. this Convention shall be applied in relation to existing taxes, which are: (a)): (i) the profit tax; (ii) the individual income tax; (iii) the property tax; (hereinafter referred to as «Latvian tax»). (b)) in Norway: (i) the national income tax (inntektsskat til staten); (ii) the area of the municipal income tax (inntektsskat til fvlkeskommunen); (iii) the municipal income tax (intektsskat til kommunen); (iv) the payment of the Tax Equalization Fund (felesskat til Skattefordelingsfonde); (v) the national capital tax (formuesskat til staten); (vi) the municipal tax on capital (formuesskat til kommunen); (VII) national tax on income and capital associated with underwater oil resources exploration and exploitation, as well as with the activities in this field, including an oil pipeline transport (see vedrorend of the til staten inntek og forbindels med undersokels formu-i-ogutnvttels of undersjoisk of petroleumsforekomster etter av og dertil knvtte virksomhe arbeid, herunder a rorledningstranspor or the AVI to utvunne petroleum); and (VIII) the national tax on income of non-resident artists (avgif til staten av honorarer som tilfaller i utlande kunstner-Bossa); (hereinafter designated as «the Norwegian tax»); 2. where a Contracting State is introduced new income or capital taxes after the date of signature of this Convention, this Convention will be extended for these taxes. Contracting State to the competent authorities by mutual agreement, the road is necessary to determine when tax is introduced in each of the Contracting States, has the duty, in accordance with the above is to apply this Convention. 3. the Convention will be applied with any taxes identical or substantially similar taxes which are listed or referred to in paragraphs 1 and 2, which will be implemented after the date of signature of this Convention, supplementing or replacing the tax, which according to these points is applied the Convention. Contracting authorities must inform each other of all significant amendments to the tax laws of these countries. Article 3 General definitions 1. If it is not apparent from the context, then the other 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, the Republic of Latvia or other territorial waters of the adjacent territory in accordance with international law and the use of the rights to the depths of the sea, underground and the natural resources contained therein; (b)) the notion of «Norway» means the Kingdom of Norway, including any area outside the territorial waters of the Kingdom of Norway, the Kingdom of Norway in accordance with Norwegian legislation and international law, to exercise their rights in relation to the depths of the sea, underground and the natural resources contained therein; This concept does not include Spicbergen, Jana Maijen Islands and in the area of custody («biland»); (c) the term "person) ' means a natural person, company, or any person as a whole; (d) the term «company») means any United formations or to any entity which, for the purposes of taxation is considered as a United entity; e) concepts «Contracting State» and «enterprise of the other Contracting State the company» represents the company, run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; (f) the 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 notion of «international traffic» means any transport by sea or air, by a company of a Contracting State ^ except in cases when a marine or air transport means to move only between places within the other Contracting State; h) the term "competent authorities ' means: (i) in Latvia-Minister of finance or his pilnvarotuperson; (ii) Norway-Minister of finance and customs or his authorized person. 2. the application of this Convention to the Contracting State will use any term which is not defined here, unless the context requires otherwise, in its use 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 the place of residence, residence, location of the actual management, incorporation (registration-the interpreter.) or by any similar character criteria. This term also includes a Contracting State itself, its political and administrative units, municipalities and incorporated companies. 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. 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)) a person will be considered a resident of the country in which is situated the permanent place of residence; If they have a permanent place of residence, which in both 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 vital interest of the Centre, or if it does not have a permanent residence in one of the two countries, that person will be considered a resident of the State in which it is customary in the home; c) if that person normally home in both countries or none of them, 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 the competent contracting authorities should seek to resolve the matter by mutual agreement and determine the mode of application of this Convention to such person. If such an agreement is not reached, then the application of this Convention to each of the Contracting States shall not be deemed to be a resident of the other Contracting State. Article 5 permanent establishment 1. For the purposes of this Convention the term «permanent establishment» means a location where the business is wholly or partly carried on business. 2. The term «permanent establishment» includes: a) company management location b) branch; c) Office; (d) a factory;) e) workshop; f) mine shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. A building site, construction or Assembly project, or supervisory or related advisory activities would be regarded as a permanent establishment only if this construction project or operation may take longer than six months. 4. Notwithstanding the preceding paragraphs of this article, the term «permanent rules representation» does not include: (a) the use of the building) 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) the permanent place of business), intended only to only purchase goods or products or company collecting the information you need; e) standing operational site designed solely to carry out the necessary preparatory work for the company or ancillary jobs; (f)), the standing site intended solely to deal with (a))-e) activities referred to in any combination thereof, provided that the overall activity of the preparatory or ancillary nature is. 5. Notwithstanding points 1 and 2 of the regulations if the person not subject to paragraph 6, the independent agent status, running the business and typically uses its authority to enter into contracts in good state ', will be considered that this company uses the permanent representation in this country for any of the person's business activities, except when he is carrying out the activities referred to in paragraph 4 and which occurs through ongoing activities, cannot be regarded as permanent representations in accordance with the provisions of this paragraph. 6. Will be considered that the company does not have permanent representation in the Contracting State where the undertaking is established in that country with REALTORS, sales agent or any other agent of an independent status, provided that through these individuals perform their normal business activities. However, if such an agent is completely or almost completely for your business, they can not be considered independent of the status of the agents in the sense referred to in this paragraph. 7. The fact that the company-resident of a Contracting State controls or is controlled from the society, 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), by 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 the second country. 2. The term «immovable property» shall be such meaning it is the law of a Contracting State in which the property is located. In any case, this term will be used to denote the property which belongs to real estate property, livestock and equipment used in agriculture and forestry, rights to which the general law is attributable to property which is located on the ground; buildings, any real estate purchase-sales rights or other similar rights in respect of immovable property, 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 to be ships, barges, and air transportation. 3. The provisions of paragraph 1 will apply to income derived from the property direct use, letting or use in any other way, as well as to the income obtained from the alienation of immovable property. 4. If the company's shares or other corporate rights give the holder the right to the company's real estate and how to use it, then the income from the direct use, letting or use in any other manner may be subject to tax in the Contracting State in which the immovable property is situated. 5.1 and paragraph 3 shall be applied with respect to the income from real property of the company, and to income from immovable property, which is used for independent personal services. Article 7 business profits 1. Contracting State company profits will be taxed only in the country, except when such an undertaking is established in the second Member State, using the existing permanent representation. If the enterprise carries on business in that way, the company can profit to tax in the other country, but only about the profit that can be attributed to: (a) the permanent representation;) (b)) the same or similar goods and the sale of the products in that second country which are sold via the permanent representations; (c) other other country) made the business that is the same or similar to that undertaken with this permanent representation. Subparagraph (b)), and (c)) the rules will not be enforced if the company reasonably demonstrate that such sales or operation cannot be performed using this permanent representation. 2. in accordance with the provisions of paragraph 3, if a company of a Contracting State carries on business in the other Contracting State through a permanent representation located 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 the permanent representation will be made permanent representation expense deduction from amounts taxable. These expenses may be representations of operational and general administrative expenses incurred by the country in which the permanent establishment or elsewhere. 4. 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, the profits attributed to the permanent representations, each year must be determined using the same method, except where duly justified by the necessity to act otherwise. 7. If profit is included in the income approaches that look at separately in other articles of this Convention, then the provisions of this article shall not affect the other provisions of the article. Article 8 of sea and air TRANSPORT, 1. Contracting State company profits from the sea and air transport, the use of the resources of the international traffic will be taxed only in the country. 2. paragraph 1 shall apply also to the profit generated for participation in a cartel in the Union, total business or international transport company. 3. If the national companies have agreed to jointly make the business of air transport in the form of a consortium, then 1 and 2 of the rules will be applied only to the profit of the Consortium relating to the resident of a Contracting State's participation in the Consortium. 9. Article SASKARĪG undertakings 1.) when: (a) the Contracting State Enterprise 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 different from the provisions, which run between the 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 income of the company in this country (and accordingly taxable) income, for which the company of the other Contracting State should pay taxes, and these included income is income that would have been the first company of a Contracting State, if the relationship between the two enterprises had been those which would have been between two totally independent companies, then the other must be made for appropriate corrective tax size with which this income is taxed in the other State, if the other country considers this change acceptable. In determining these changes, you need to take into account the other provisions of this Convention, and, if necessary, the competent authorities shall consult. Article 10 dividends 1-dividends a company resident of a Contracting State shall pay the second resident of a Contracting State, may be taxing in the second country. 2. However, such dividends may also be taxing in the Contracting State where the resident is a company that pays dividends, in accordance with the legislation of that State, but if the recipient of the dividends is the true owner of the tax may not exceed: (a) 5% of the dividend) gross value, if the owner is a real company (other than a partnership) which directly manages at least 25% of the capital in the company, which pays dividends; b) 15% of the gross amount of the dividends in all other cases. The competent authorities of the Contracting States by agreement may determine the application of such restrictions. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividend is paid. 3. The term «dividends» in this article means income from shares or other rights, not claims, to participate in profits, as well as income from other corporate rights which is subjected to the same taxation as income from shares in accordance with the law of the country in 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 engaged in business in the second Contracting State using the existing permanent representation there, or with the second country made independent personal services through a permanent base located there, where the company that pays dividends, is this second country resident, and where participation, which is paid out in dividends, is practically related to the permanent missions or discretionary basis. In the case of a skewed depending on the circumstances, have to apply article 7 or 14. 5. when a company which is resident of a Contracting State derives profits or income from the other Contracting State, that other State may not be to any duty of the society paid a dividend, except where the dividends are paid to a resident of that other State or if participation, which is paid for those dividends, is practically related to the permanent representation or permanent base in another country; nor subject to taxation of retained earnings of the company 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. Percent, the Contracting State and is paid to residents of the other Contracting State, may be taxing in the second country. 2. However, such interest may also be taxing in the Contracting State in which they are formed in accordance with the legislation of that State, but if the recipient of the interest is the true owner of the interest, the tax may not exceed 10% of the aggregate amount of interest. The competent authorities of the Contracting States by agreement may determine the application of such restrictions. 3. Notwithstanding paragraphs 1 and 2 of the regulations): (a) interest arising in Latvia, Latvia will get rid of the tax if the interest is paid to: (i) the country of Norway, its political and administrative unit, the local municipality or the status of the society; (ii) the Central Bank of Norway; (iii) the Norwegian Guarantee Institute for export credits, or (iv) A/s «export-finance»; or (v) any institution, similar to in (iii) above, agreed between the contracting competent national authorities; (b)) percent, which represented in Norway, will get rid of the tax in the case of Norway, when the interest will be paid: (i) the country of Latvia, its political and administrative entity, municipality, incorporated companies; (ii) the Bank of Latvia; (iii) any Latvian State organization that is established after the date of signature of this Convention and which is similar to the established organisations in Norway, which listed a) subparagraph (iii) in subsection (Contracting State the competent authorities of the mutual agreement to determine which organizations are similar in nature); or (iv) any institution, similar to a) subparagraph (iv) referred to in section, agreed between the competent authorities of the Contracting States; (c)) percent, a Contracting State on a loan guaranteed by any a) or (b)) and that the said organization are paid to residents of the other Contracting State, be taxed only in that other State. (d)) percent, a Contracting State will be taxed only in the second country, if: (i) the beneficiary is a resident of that other State; and (ii) the resident is the second State company and is the true owner of that interest; and (iii) the interest is paid in respect of such debt company that created any trade, industrial, commercial or scientific equipment sales to credit the first company of that State, except where the sale is made between saskarīg undertakings. 4. for the purposes of this article, the term «interest» represents income from any type of debt obligations, regardless of their security guarantees, 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, applying the provisions of this article. 5. paragraphs 1 and 2 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 establishment located there, or provide in this second country 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, it is necessary to apply article 7 or 14. 6. in the case when the payer of the interest is a resident of a Contracting State, shall be considered the interest of this occurs in the country. However, the person paying the interest, whether he is a resident of a Contracting State, the Contracting State used the permanent representation located or fixed base in connection with which the developed shows the relationship for which you pay interest, and this interest is paid from the permanent missions or fixed base, then it will be considered that the interest in the formation of the State in which the permanent establishment or fixed base. 7. If the special relationship between the payer and the interest percentage implemented owner or between both of them and some trešoperson 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 of the owners implemented in the absence of this special relationship, then this article will be applied only to the latter (harmonised-interpreter). Such a case, the remaining part of the payment is taxed in accordance with the legislation of each Contracting State on the condition that you comply with the other provisions of this Convention. Article 12 ROYALTIES 1. The author of the author's royalties arising in a Contracting State and paid to a resident of the other Contracting State, may be taxing in the second country. 2. However, the author's royalties can be taxing in the Contracting State in which they arise according to the legislation of that State. If the author's royalty recipient is this author royalty real owner, tax shall not exceed: a) 5% of the total royalty paid for the production, commercial or scientific equipment; b) 10% of the total royalty in all other cases. The competent authorities of the Contracting States by agreement may determine the application of such restrictions. 3. The term «royalties» of the author in context of this article means payments of any kind received as a compensation for the use of any copyright, or for the right to use the copyright to literary, scientific or artistic works, including motion pictures, films and recordings, television and radio broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the right to use industrial, commercial or scientific equipment, or for their use, or for information concerning industrial, commercial or scientific activity and experience. 4. paragraphs 1 and 2 shall not apply if the payment is effected, as the owner of a Contracting State a resident of the second establishment in the Contracting State in which the author's royalties, using the existing permanent representation or gives this second country independent personal services through a permanent base located there, and if the right or property covered by the author's royalty payments, is practically related to the permanent representations, or base. In these cases, depending on the circumstances, have to apply article 7 or 14. 5. where the author's royalty payer is a resident of a Contracting State, it will be considered that the author's fees incurred in that country. However, when the person who paid the author royalties, regardless of whether that person is a resident of a Contracting State, the Contracting State is used for permanent representation located or fixed base in connection with which the obligation to pay up the author's royalty, and the author's royalties are paid out from the permanent missions or fixed base, then it will be considered that the author's fees incurred in the State in which the permanent establishment or fixed base. 6. If the special relationship between the payer and the results of the author's royalties shall implement the owner or between them and any other third party, the author's fees, relating to rights, or information beyond the author's royalties in 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 will apply only to the last-mentioned author royalties. In such cases, the payment of the part that exceeds this amount will be taxed in accordance with the legislation of each Contracting State, taking into consideration other provisions of this Convention. 7. If in any Convention for the avoidance of double taxation and the prevention of tax evasion, which Latvia signed with a third country which is the economic development and cooperation (OECD) member at the time of signature of this Convention, after that date, Latvia agrees to exclude any rights or ownership of this article includes definitions, or to release the author's royalties arising in Latvia, the Latvian tax on author's royalties or by reducing the tax rate specified in paragraph 2; This definition, exemption or reduced rate of tax will be automatically applied, as though it were specified in paragraph 2 or 3. Article 13 capital gains 1. income from capital gains, received by a resident of a Contracting State for article 6, paragraph 2, of the real property situated in the other Contracting State or a society whose assets consist mainly of such property, or disposal of shares, can be taxing in the second country. 2. Income from capital gains earned on the property, which form a company of a Contracting State in the other permanent representation in State commercial units, part of the disposal of assets or income earned on property that belongs to a resident of a Contracting State to the permanent base of the second Contracting State established independent personal services, including forfeiture of profits from such permanent missions (alone or with the whole enterprise) or of such a permanent base disposal can be taxing the second Contracting State. 3. income from capital gains, the company of a Contracting State in international traffic, used for maritime and air transport, or disposal of these sea and air vehicles belonging to the forfeiture of the property, will be subject to tax only in the country. 4. Income from capital gains on the property, which is different from this article mentioned in the previous paragraphs, the forfeiture of the property will be taxed only in the Contracting State of which the resident is the seizure of property. 5. in the case of income from capital gains, the number of countries established air transport Consortium, the provisions of paragraph 3 be applied only for the kaipitāl of the increase relating to companies-residents of a Contracting State's participation in the Consortium. 6. Notwithstanding the provisions of paragraph 4, a Contracting State may taxing income from capital gains received by the other Contracting State a person for the company-the first resident of that country, shares or other corporate rights of alienation, or income from capital gains on other securities that this (the first-the interpreter.) The country is subject to the same taxation as the aforementioned shares or rights. However, this taxation can happen only if the shares or rights that the seizure was the first resident of that State at any time during the five year period immediately before this stock, or securities transfer law. Article 14 independent personal services 1. Natural persons-residents of a Contracting State, the income received for professional services or by other independent services will be taxed only in the country, except when the person uses regular access to a permanent base the second Contracting State. If you are using such a permanent base, the income may be taxing to the other Contracting State, but only insofar as they apply to this permanent base. In this regard will be considered that a person uses regular access to a permanent base the second Contracting State, if a natural person-resident of a Contracting State, staying in the second Contracting State for a period or periods exceeding 183 days in General, in any 12-month period that begins or ends in the tax year, and the income received for the second country made by the above mentioned actions will be applied to the fixed base. 2. The term «professional services» includes in particular an independent scientific, literary, artistic, educational) or educational activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants profession. Article 15 dependent personal services 1.16, 18 and article 19 of the rules of the salary and other remuneration to the assimilated form received by a resident of a Contracting State in his work, will be taxed only in the country, except for the paid work is carried out in the second Contracting State. In such cases, the remuneration received by taxing the other can. 2. Notwithstanding 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 will be taxed only in the first mentioned State if: (a) the remuneration of the receiver is found) in the second country no more than 183 days in any period of 12 months; (b) the remuneration is paid), the employer or his authorized person who is not a resident of the other State; (c) the remuneration is not paid) from the Permanent Mission or permanent base, used by the employer in the other country. 3. Notwithstanding the preceding provisions of this article, remuneration received for work that is being done to the residents of a Contracting State the sea or air means of transport engaged in international transport operations, can be taxing in the country. 4. If a resident of a Contracting State shall receive remuneration for work carried out on the various national society created the air transport consortium used in international traffic, air transport, and if this company participates in the Consortium, which is a resident of this State, the remuneration will be subject to tax only in the country. Article 16 DIRECTORS ' fees directors ' fees and other similar payments to residents of a Contracting State receives as a member of the Board of directors or as any other similar, community-resident of the other Contracting State, a member of the governing body, may be taxing in the second country. Article 17 artists and athletes 1. articles 14 and 15 of the rules, the income received by a resident of a Contracting State as izpildītājmāksliniek, as, for example, theatre, film, radio or television actor or a musician, or as an athlete on their personal activities that are performed in the other Contracting State, may be taxed in the other State. 2. in cases where the artist or athlete's income for his personal actions in this area are not paid the same artist or athlete but to another person, that income, regardless of the 7, 14 and 15 of the rules, the article can be taxing the Contracting State to which the izpildītājmāksliniek or athletes. 3. paragraphs 1 and 2 shall not be applied in respect of income earned for the action taken by a Contracting State or an athlete, an artist if they visit this country wholly or partly funded by the other Contracting State or of its political or administrative unit, a local authority public funds. In such cases, the return must be taxable according to 7, 14 or 15. Article 18 pensions, annual fees and SIMILAR costs 1. Pension, annual fees and other similar remuneration, the Contracting State and is paid to residents of the other Contracting State shall be exempt from taxes only in the second country. 2. The term «annual fees», used in this article, represents a certain amount of periodically paid to certain time limits throughout their lives or a specific period of time, with the condition to perform the appropriate and complete its repayment in cash or the cash value of the property (other than services provided to the recipient). Article 19 government service 1 a) rewards other than pensions and the cost of that natural person contracting State or of its political or administrative unit of local government, or incorporated companies on this country, the administrative unit of local government, or of the dependent personal services incorporated companies services, will be subject to tax only in the country but these rewards, b) will be exempt from taxes only in the Contracting State of which the natural person is resident in If the services are rendered in that State and the individual: (i) is a national of that State; or (ii) has not become resident in this country solely for the purpose of providing the services. 2. articles 15 and 16 of the regulations should apply to the consideration paid in respect of services rendered in connection with a Contracting State or of its political and administrative units, or local authorities, or the business of the incorporated companies. Article 20 students payments which a student or apprentice receives, 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 offshore ACTIVITIES in zone 1. 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 activities of the Contracting State of the shelf 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 be applied, if the action does not exceed the duration of the period or periods in a total of 30 days in any 12-month period. 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 will be considered saskarīg 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 mentioned persons. 4. profit, received by a resident of a Contracting State for supplies and personnel transport to or between areas in the Contracting State where the sea, deep underground and there existing natural resource exploration and exploitation related activities, or on the tugboat and other services, carrying out this action necessary ancillary will be taxed only in the first country. 5. a) in accordance with the provisions of subparagraph (b)) for salaries and other it offset costs, 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 and exploitation, may be subject to tax in that other State to the extent that work has been done in this second country shelf area. However, such payment will be taxed only in the country where the first work shelf area takes place during the period or periods not exceeding in the aggregate 30 days in any 12-month period, and if the work has been made in favour of the employer that is not a resident of the other State. b) salary and other it offset costs, received by a resident of a Contracting State of the work carried out to sea or air transport, or supplying personnel to transport or between areas in the Contracting State where the sea, deep underground and there existing natural resource exploration and exploitation related activities, or to work on tugs or other vessels, which carry out such activity required for ancillary activities may be subject to tax in the Contracting State of which the employer is resident. 6. income for the resident of a Contracting State: (a) disposal of exploration and exploitation rights); or (b)) property that hosted the second Contracting State and used in this second national marine, deep underground and there existing natural resource exploration and exploitation; or (c)), the value of which shares or values most arising directly or indirectly from such rights or property, combining them may be taxed in that other State. This article, the term «exploration and exploitation rights "means the right to property, which can be generated by taking the second Contracting; National Marine, deep underground and there existing natural resource exploration and exploitation, including the right to participation in the ownership or profit to be gained in this property. Article 22 other income 1. residents of a Contracting State other income that is not covered in previous articles of this Convention, be taxed only in the country. However, the following types of income which constituted the second Contracting State can also be taxing in the second country. 2. The provisions of paragraph 1 shall not apply in relation to income, which is different than income from property, as paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent representation located there, or give this second State independent personal services from a permanent base located there, and, if the right or property in respect of which the income is received is practically related to the permanent representations, or permanent base. In this case, depending on the circumstances are applicable to article 7 or 14. Article 23 capital 1. a resident of a Contracting State capital, represented by article 6, paragraph 2 of the real estate in the second Contracting State or shares in a company the assets of which consist mainly of such property, 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, may be taxed in the other State taxes. 3. a Contracting State, the capital of the company by represents the maritime and air transport products, which are used in international traffic, as well as movable property belonging to the maritime and air transport, 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. 5. in the case of different established air transport Consortium capital point 3 and 4 rules will be applied only in respect of their share of the capital, which is attributable to public-resident of a Contracting State participation in the Consortium. Article 24 ELIMINATION of double taxation 1. In Latvia, double taxation will be avoided in the following manner: (a)) in case the resident of Latvia receives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Norway taxes unless the internal legislation of Latvia does not provide for more favourable terms, Latvia must permit: (i) reduce the resident's income tax on the portion of the tax is equal to the income tax paid in Norway; (ii) reduce the capital residents a tax on that portion of the tax is equal to the capital tax paid in Norway. These reductions, however, shall in no case exceed the income tax or capital tax, part of which is calculated before the application of this reduction, which is attributable to the income or the capital which may be taxed in Norway taxes; (b) subparagraph (a)) applies), a company which is a resident of Latvia receives a dividend, from the company that is a resident of Norway and Latvia in the resident owns not less than 10% of shares with full voting rights, the tax paid in Norway will include not only the tax that taxed dividends, but also tax, which taxed the company's profits from which dividends are paid. 2. in accordance with the laws of Norway regarding taxes paid outside the territory of Norway, lending against Norwegian tax (without changing its basic principles): a) in the case of Norway resident receives income or owns capital which, in accordance with the provisions of this Convention may be exempt from taxes in Latvia, Norway must allow: (i) reduce the resident's income tax on the portion of the tax is equal to the income tax paid in Latvia; (ii) reduce the capital residents a tax on that portion of the tax is equal to the capital tax paid in Latvia. These reductions, however, shall in no case exceed the income tax or capital tax, part of which is calculated before this fall, what is attributable to the income or the capital which may be taxed taxes in Latvia; (b) where a resident of Norway) derives income or owns capital which, in accordance with any provisions of this Convention shall be exempt from taxation in Norway, Norway, calculating taxes on the remaining income or capital, take into account the exempted income tax or part of the capital; (c)), where, under the legislation of Latvia's Permanent Representative to the Organization of Norway in Latvia is applied to the exemption or reduction in respect of taxes payable under the provisions of article 7, subparagraph (a) of the rules for application of Norway) tax will be allowed to reduce the tax on size, as if such exemption or reduction would not have been suitable, provided that established permanent representation (not the financial (bank)) and no more than 25% of the permanent representation of the income consists of interest and income from the disposal of shares, or consist of third countries income; (d)), when a company-Latvian resident company pays dividends to the person (company), which is resident in Norway, and which directly or indirectly owns not less than 25% of the share capital of the company, then those dividends will be exempt from tax in Norway on the condition that the company. which dividends, business activities (not financial (bank) operations), and no more than 25% of the company's income consists of interest and income from the alienation of shares or consist of third countries income; e) c) and (d)) rules will be applied in the first ten years after the entry into force of this Convention. The competent authorities should consult each other to determine whether this period will be extended. Any extension of this period will take effect with the date and will apply to such modifications and conditions, including rules on winding up, which will be specified and agreed between the Contracting States exchange notes, which must be carried out in a diplomatic way or by some other means in accordance with national constitutional procedures. 25. Article 1 of the Prevention of discrimination of nationals of the Contracting State will not be the second Contracting State subject to taxation or any requirements associated with them that are different or more burdensome than the taxation or the requirements associated with them, which may be or are exposed to the other citizens of the country in the same circumstances, in particular with respect to residence. This provision shall, notwithstanding the provisions of article 1, also apply to persons who do not have one or both of the residents of the Contracting States. 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 are different or more burdensome than the taxation if the related requirements, which are or may be exposed to nationals in the same circumstances, in particular with respect to residence. 3. the State company's permanent representation in that it uses in the other Contracting State, may be taxed in that other State to any taxation which is less favourable than the taxes that are taxed in the other State companies that perform similar actions. This provision shall not be construed as obliging a Contracting State to apply the obligations of the other Contracting State residents personal discounts, exemptions or tax reductions, taking into account the civil status or family commitments, as it applied to their residents. 4. Except where the applicable paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12 apply, interest, royalties and other authors of the payments made by the Contracting State companies with good 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 are paid to a resident of the first-mentioned 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 the same conditions as if they would apply 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 all kinds of names. Article 26 mutual conciliation procedure 1. 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, submit your question to the competent authorities of the country of which that person is a resident or, if the matter relates to article 25 (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 strive, if it appears that the complaint is justified and if the same fail to reach a satisfactory solution, to resolve the matter 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. In the event the competent authorities reach such an agreement, Contracting States must allow tax refund or credit under this agreement. Every such agreement 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 can also consult each other to resolve 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 the question referred to in the previous paragraphs. If it seems appropriate to exchange thoughts, orally, to reach an agreement, such an Exchange may occur, creating a Commission, composed of the competent authorities of the Contracting States. Article 27 Exchange of information 1. National authorities should exchange information, which 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 the calculation of tax, withholding, investigation or examination of the appeal. Such 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 is not in accordance with the laws of a Contracting State or an administrative practice; (b)) to provide information that is not available under one or other of the laws of a Contracting State or an 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 the surrounding public policy (ordre public). Article 28 assistance in tax collection 1. the Contracting States undertake to provide each other assistance the 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 by the other State in accordance with the legislation which applies to these other State tax revenues, and as taxes should be levied in the other State taxes. 3. any Contracting State a request for assistance in collection of taxes must be accompanied by a confirmation that the taxpayer's debt is fixed definitively in accordance with the laws of the country. 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 in the other State 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 to tax it. 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 the exceptional costs associated with this collection, referred to in paragraph 7 (b)). 7. as long as the competent authorities of the Contracting States have agreed on other arrangements will be considered: (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 on its behalf. 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» means the taxes covered by this Convention, and any related penalties or interest. Article 29 DIPLOMATIC and consular officers nothing in this Convention shall not affect the members of diplomatic missions or consular point of fiscal privileges of employees who. in accordance with the applicable international law or special agreements. Article 30 entry into force 1. After compliance with the constitutional requirements for the entry into force of the Convention, the Governments of the Contracting States are to be exchanged with the relevant notes. 2. the Convention shall enter into force 30 days after the last note referred to the date of submission and the rules both of the Contracting States will be applied: (i) in respect of taxes withheld at the time the cost: starting with the income gained from the 1 January of the calendar year after the calendar year or following the year in which this Convention enters into force (ii) in respect of other taxes on income and capital starting on taxes to be paid in any taxation year that begins this calendar year, January or after l January 1, following the entry into force of this Convention. Article 31 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 in both Contracting States will terminate: (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 paid in any taxation year that begins on January 1, or then this year following the year in which the notes in question has been submitted. The Convention is drawn up in duplicate in the English, signed July 19, 1993, Riga. Signature in the presence of witnesses, being duly authorised, have signed this Convention in the Republic of Latvia on behalf of the Government of the Kingdom of Norway, on behalf of the Government of g. Andrejevs, Latvian Aalb, Minister of Foreign Affairs of the Kingdom of Norway Ambassador in the Republic of Latvia to the protocol signing today of the Convention double taxation and prevention of tax paid, in respect of taxes on income and capital (hereinafter referred to as "the Convention") between the Kingdom of Norway and the Republic of Latvia, signed up have agreed upon the following provisions, which ways an integral part of this Convention. 1. with regard to the provisions of this Convention: using the concept of "organization" (statutory body), it will be understood that this concept means any person of a public nature, which is established under the legislation of a Contracting State and which is not participating in another person as only this State, its political subdivisions or local authorities. 2. with regard to article 7 (3): to be understood. the expenditure is allowed to deduct from their taxable income, determined by a Contracting State iemākum is the only expenditure that is permitted to deduct, in accordance with the national legislation. 3. as regards article 8: to be understood that the term "enterprise of a Contracting State from the use of the income in international traffic" will be interpreted in accordance with the OECD Model Convention, 1992 article 8 comments 7 to 14 points, and in any case these income does not include income derived from the quays, storage, Terminal, or other, similar ground-based property, except where such income is directly attributable to the company's Board. 4. in respect of article 11 (d)): to be understood that the person is associated with another person in the case when one person alone or with another, or more related persons own more than 50% of the other party, or in the event of one or more persons individually, or together own more than 50% of the two parties. 5. with regard to paragraph 3 of article 12: to be understood that the term "rojalt" does not include payments for drilling rig or other similar facilities, which are used in exploration and extraction of hydrocarbons. 6. with regard to paragraph 3 of article 12: have decided that income from the production, trade, and scientific equipment rentals will be included in the concept of "rojalt", which is defined in article 12 paragraph 2. 7. with regard to paragraph 2 of article 15. 15. paragraph 2 shall not apply in respect of employees who are "rented" (hired out). For application of the first sentence: an employee who is a resident of a Contracting State will be considered "occupied" when he designated the action of another person, the person, with the intention (landlords) to carry out the work of the other person (the driver) in the framework of the business carried out in the other Contracting State provided that this other person (the Manager) is the second resident of a Contracting State or a Contracting State of the second permanent representation located, and that person (leaseholders) does not in any way responsible for the results of the work to be carried out. In determining when the employee will be considered to be "rented" to do a comprehensive assessment, paying particular attention to: (a)) or is responsible for driving overall supervision of the work; (b)) work is done in the workplace, which is located in the driver's possession and responsibility; (c)) ("leaseholders") remuneration is calculated in accordance with the employee (the "rented") the working time, or under any other relationship between the remuneration and the wages received by the employee (the "rented"); d) most of the tools and materials are delivered to the driver; e) person ("leaseholders") unilaterally decides the issue of the number of staff and their qualifications. 8. taking into account paragraph 16 of article 15. If the remuneration is received in connection with employment on the ship, which is registered in the Norwegian international ship register (N. I. S.) (or similar shipping register to be agreed between the competent authorities of the Contracting States) such remuneration is taxed only in the Contracting State of which the beneficiary is resident. This paragraph shall not apply if the beneficiary is subject to tax in your country of residence on favourable terms as a person employed on board a vessel that is not so registered, the same conditions, especially on the residence. Signature in the presence of witnesses, being duly authorised, have signed this Protocol: a protocol is drawn up in duplicate.................................................................... "in English.
The Government of the Kingdom of Norway, on behalf of the Government of the Republic of Latvia, the