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Eesti Vabariigi valitsuse ja Lti Vabariigi valitsuse vaheline tulumaksuga to... Leht 1 / 21

Vljaandja: RiigikoguAkti liik: vlislepingTeksti liik: algtekstJustumise kp: 21.11.2002Avaldamismrge: RT II 2002, 33, 157

Eesti Vabariigi valitsuse ja Lti Vabariigi valitsusevaheline tulumaksuga topeltmaksustamise vltimise

ning maksudest hoidumise tkestamise leping

Vastu vetud 11.02.2002

()13.01.10 12:15

Lepingu ratifitseerimise seadus

Vlisministeeriumi teadaanne vlislepingu justumise kohta

Eesti Vabariigi valitsus ja Lti Vabariigi valitsus,

soovides slmida lepingu tulumaksuga topeltmaksustamise vltimiseks ja maksudest hoidumise tkestamiseks,

on kokku leppinud jrgmises.

I peatkkLEPINGU ULATUS

Artikkel 1. Lepingu subjektid

Leping kehtib isikute kohta, kes on he vi mlema lepinguosalise riigi residendid.

Artikkel 2. Lepingu ese

(1) Leping kehtib lepinguosalise riigi vi selle kohalike omavalitsuste kehtestatud tulumaksude kohta, sltumatanende sissenudmise viisist.

(2) Tulumaksudena ksitatakse kogu tulult vi tulu osadelt vetavaid makse, mis hlmavad ka makse vallas- vikinnisvara vrandamisest saadud kasult ning makse vara vrtuse kasvult.

(3) Maksud, mille kohta leping kehtib, on eelkige:a) Eestis(i) tulumaks;(edaspidiEesti maks);b) Ltis(i) juriidilise isiku tulumaks (uznemumu ienkuma nodoklis);(ii) fsilise isiku tulumaks (iedzvotju ienkuma nodoklis);(edaspidiLti maks).

(4) Lepingut kohaldatakse ka samastele vi sama laadi maksudele, mis kehtestatakse prast lepinguallakirjutamist olemasolevate maksude asemele vi nendele lisaks. Lepinguosaliste riikide pdevad ametiisikudteevad teineteisele teatavaks asjaomaste maksuseaduste iga thtsa muudatuse.

II peatkkLEPINGUS KASUTATAVAD MISTED

Artikkel 3. Phimisted

(1) Juhul kui kontekst ei nua teisiti, kasutatakse selles lepingus misteid jrgmises thenduses:
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Leht 2 / 21 Eesti Vabariigi valitsuse ja Lti Vabariigi valitsuse vaheline tulumaksuga to...

a)Eestithendab Eesti Vabariiki ja geograafilises mttes Eesti territooriumi ning Eesti territoriaalvetegaklgnevaid alasid, kus Eesti vib Eesti seaduste ja rahvusvahelise iguse kohaselt teostada oma igusimerephja ja maapue ning seal leiduvate loodusvarade suhtes;b)Ltithendab Lti Vabariiki ja geograafilises mttes Lti territooriumi ning Lti territoriaalvetega klgnevaidalasid, kus Lti vib Lti seaduste ja rahvusvahelise iguse kohaselt teostada oma igusi merephja ja maapuening seal leiduvate loodusvarade suhtes;c) lepinguosaline riikja teine lepinguosaline riikthendavad kontekstist olenevalt kas Eestit vi Ltit;d) isikthendab fsilist isikut, rihingut ja muud isikute hendust;e) rihingon juriidiline isik vi muu isikute hendus, keda maksustatakse kui juriidilist isikut;f) lepinguosalise riigi ettevtjaja teise lepinguosalise riigi ettevtjathendavad kontekstist olenevalt kas he viteise lepinguosalise riigi residendist ettevtjat;

g) rahvusvaheline transportthendab lepinguosalise riigi ettevtja mere- vi hutransporti, vlja arvatud juhul,kui mere- vi hutransport toimub ainult teises lepinguosalises riigis;h)pdev ametiisikthendab:(i) Eestis rahandusministrit vi tema volitatud esindajat;(ii) Ltis rahandusministeeriumi vi selle volitatud esindajat;i) kodanikthendab:(i) lepinguosalise riigi kodakondsusega fsilist isikut;(ii) juriidilist isikut vi muud isikute hendust, kes on asutatud lepinguosalise riigi seaduste alusel.

(2) Kui lepinguosaline riik kasutab lepingu kohaldamisel lepingus mratlemata mistet, tuleb juhul, kuikontekst ei nua teisiti, lhtuda lepingualuste maksudega seotud mistet tlgendades selle riigi seadusteskasutatud definitsioonist, arvestades, et maksuseadustes defineeritud misted on limuslikud.

Artikkel 4. Resident

(1) Selles lepingus thendab miste lepinguosalise riigi residentisikut, kes on selle riigi seaduste aluselmaksukohustuslane elu- vi asukoha, juhtkonna asukoha vi asutamiskoha vi muu sellesarnase kriteeriumijrgi. Miste hlmab ka riiki ja kohalikke omavalitsusi. Miste ei hlma isikut, kes on selles riigismaksukohustuslane ksnes seetttu, et tema tuluallikas vi vara asub selles riigis.

(2) Kui like 1 kohaselt on fsiline isik mlema lepinguosalise riigi resident, mratakse tema iguslik seisundjrgmiselt:a) ta on selle riigi resident, kus tal on alaline elukoht; kui tal on alaline elukoht mlemas riigis, siis on ta selleriigi resident, millega tal on tihedamad isiklikud ja majanduslikud sidemed (eluliste huvide keskus);b) kui eluliste huvide keskust ei ole vimalik kindlaks mrata vi kui isikul ei ole alalist elukohta kummaskiriigis, siis on ta selle riigi resident, kus ta tavaliselt viibib;c) kui isik viibib tavaliselt mlemas riigis vi kui ta ei viibi tavaliselt kummaski neist, siis on ta selle riigiresident, mille kodanik ta on;d) kui isik on mlema lepinguosalise riigi kodanik vi kui ta ei ole kummagi lepinguosalise riigi kodanik, siislahendatakse ksimus lepinguosaliste riikide pdevate ametiisikute kokkuleppel.

(3) Kui like 1 kohaselt on isik, vlja arvatud fsiline isik, mlema lepinguosalise riigi resident, siis otsustavadlepinguosaliste riikide pdevad ametiisikud tema suhtes lepingu kohaldamise kokkuleppe teel. Kui kokkuleppeleei juta, siis ei ksitata isikut kummagi lepinguosalise riigi residendina ja lepingus ettenhtud soodustusi talle eikohaldata.

Artikkel 5. Psiv tegevuskoht

(1) Selles lepingus thendab mistepsiv tegevuskohtritegevuse kindlat kohta, mille kaudu tielikult viosaliselt toimub ettevtja ritegevus.

(2) Psivaks tegevuskohaks peetakse esmajoones:a) juhtkonna asukohta;b) filiaali;

c) kontorit;d) tehast;e) tkoda; jaf) kaevandust, nafta- ja gaasipuurauku, karjri ning muud loodusvarade kaevandamise kohta.

(3) Ehitusplatsi ning montaai- ja seadmestamistde kohta peetakse psivaks tegevuskohaks ksnes juhul, kuiselles kohas kestab tegevus rohkem kui kuus kuud.

(4) Olenemata eelnevates ligetes stestatust ei peeta psivaks tegevuskohaks sellist ettevtja ritegevuseasukohta, kus:a) kasutatakse rajatisi ainult ettevtjale kuuluva kauba ja materjali ladustamiseks, vljapanekuks vikohaletoimetamiseks;b) ettevtja hoiab enda kaubavaru ainult ladustamiseks, vljapanekuks vi kohaletoimetamiseks;c) ettevtja hoiab endale kuuluvat ja teisele ettevtjale ainult ttlemiseks antavat kaupa;d) ostetakse ainult ettevtjale vajalikke kaupu vi kogutakse talle vajalikku riteavet;

e) tehakse igasuguseid muid ainult ettevtjale vajalikke ettevalmistus- vi abitid;


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f) leiab aset ainult mitmetel punktides ae loetletud eesmrkidel toimuv tegevus, tingimusel, et sellinekombineeritud tegevus on kokkuvttes ettevalmistavat vi abistavat laadi.

(5) Kui isik tegutseb ettevtja nimel ning on volitatud slmima ja tavaliselt slmib lepinguosalises riigisettevtja nimel lepinguid, siis olenemata ligetes 1 ja 2 stestatust loetakse, et ettevtjal on selles riigis psivtegevuskoht sellise isiku poolt ettevtja nimel tehtud tehingute suhtes, vlja arvatud juhul, kui sellise isikutegevus on piiratud likes 4 loetletuga. See lige ei kehti likes 6 nimetatud isikute kohta.

(6) Ettevtjal ei ole teises lepinguosalises riigis psivat tegevuskohta, kui tema ritegevus seal riigis toimubainult maakleri, komisjonri vi muu sltumatu vahendaja kaudu, eeldusel et need isikud tegutsevad omatavaprase ritegevuse raames. Juhul kui sellise isiku tegevus toimub tielikult vi peaaegu tielikult selleettevtja huvides, ei loeta seda isikut selle like mistes sltumatuks vahendajaks.

(7) Asjaolu, et lepinguosalise riigi residendist rihing kontrollib teist rihingut vi teda kontrollib rihing,kes on teise lepinguosalise riigi resident, vi kelle ritegevus toimub teises riigis (kas psiva tegevuskoha kauduvi muul viisil), ei muuda kumbagi rihingut teineteise suhtes psivaks tegevuskohaks.

III peatkkTULUDE MAKSUSTAMINE

Artikkel 6. Kinnisvaratulu

(1) Tulu, mida lepinguosalise riigi resident saab teises lepinguosalises riigis asuvast kinnisvarast (sealhulgaspllumajandusest vi metsandusest saadud tulu), vib maksustada selles teises riigis.

(2) Miste kinnisvaramratletakse vara asukoha riigi seaduste alusel. Kinnisvarana ksitatakse igal juhulkinnisasja praldisi, pllumajanduses ja metsanduses kasutatavaid seadmeid ning eluskarja, maaomanditksitlevate seadustega stestatud igusi, samuti kinnisvara kasutusvaldust ning loodusvarade kasutustasu jaloodusvarade kasutusiguse tasu. Kinnisvarana ei ksitata laevu ega husidukeid.

(3) Lige 1 kehtib kinnisvara otsesest kasutamisest, rendile andmisest vi muul viisil kasutamisest ningkinnisvara vrandamisest saadud tulu kohta.

(4) Liked 1 ja 3 kehtivad ka ettevtluses kasutatavast kinnisvarast saadud tulu kohta.

Artikkel 7. rikasum

(1) Lepinguosalise riigi ettevtja kasum maksustatakse ainult selles riigis. Kui ettevtja tegutseb psivategevuskoha kaudu ka teises lepinguosalises riigis, vib selles teises riigis maksustada seda osa kasumist, mis onomistatav sellele psivale tegevuskohale.

(2) Vttes arvesse likes 3 stestatut, omistatakse mlemas lepinguosalises riigis psivale tegevuskohale kasum,mida psiv tegevuskoht oleks vinud saada, tegutsedes iseseisva ettevtjana samadel vi sarnastel tingimustelsamal vi sarnasel tegevusalal, olles tiesti iseseisev oma suhetes teise lepinguosalise riigi ettevtjaga, kellepsiv tegevuskoht ta on.

(3) Psivale tegevuskohale omistatavat kasumit arvutades vib tuludest maha arvata psiva tegevuskohagaseotud kulud, sealhulgas juhtimis- ja halduskulud, sltumata sellest, kas need tekkisid psiva tegevuskohaasukoha riigis vi mujal. Lepinguosaline riik lubab psiva tegevuskoha kasumi arvutamisel tuludest maha arvataainult sellised kulud, mida vivad maha arvata selle riigi ettevtjad.

(4) Juhul kui lepinguosaline riik on tavaliselt psivale tegevuskohale omistatava kasumi kindlaksmramiseljaotanud ettevtja kogukasumi proportsionaalselt ettevtja erinevate osade vahel, siis likes 2 stestatu ei takistalepinguosalisel riigil eelnimetatud meetodit kasutamast, kuid sellise kasumi jaotamise meetodi rakendamisetulemus peab olema koosklas selles artiklis stestatud phimtetega.

(5) Kasumit ei omistata psivale tegevuskohale, kui ettevtja ainult ostab psiva tegevuskoha kaudu kaupu.

(6) Eelmistes ligetes ksitletud kasumit arvutades rakendatakse igal aastal sama meetodit, kui ei ole kllaldastphjust seda muuta.

(7) Kui kasum hlmab tulu liike, mida ksitletakse eraldi lepingu teistes artiklites, siis kohaldatakse nendele tululiikidele teisi asjakohaseid artikleid.

Artikkel 8. Mere- ja hutransport

(1) Lepinguosalise riigi ettevtja rahvusvahelisest mere- ja hutranspordist saadud kasum maksustatakse ainultselles riigis.


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(2) Lige 1 kehtib ka kasumi kohta, mis on saadud osalusest puulis vi muud liiki hises ritegevuses virahvusvahelises transpordiorganisatsioonis.

Artikkel 9. Seotud ettevtjad

(1) Kuia) lepinguosalise riigi ettevtja otseselt vi kaudselt osaleb teise lepinguosalise riigi ettevtja juhtimises, viomab osalust ettevtja osa- vi aktsiakapitalis; vib) sama isik otseselt vi kaudselt osaleb mlema riigi ettevtja juhtimises, vi omab osalust ettevtja osa- viaktsiakapitalis,

ning kui ettevtjad kasutavad omavahelistes ri- ja finantssuhetes mitteseotud iseseisvate ettevtjate vahelkokkulepitust erinevaid tingimusi, mille tttu jb ettevtja kasum eeldatavast viksemaks, siis loetakseettevtja kasumiks see eeldatav kasum ja maksustatakse vastavalt.

(2) Kui lepinguosaline riik loeb selle riigi ettevtja kasumi hulka ja maksustab vastavalt kasumi, mille osasteise lepinguosalise riigi ettevtja on selles teises riigis maksustatud, ja kui selline kasum oleks lisandunudesimesena mainitud riigi ettevtjale, kui nende kahe ettevtja vahelised tingimused oleksid olnud sarnasediseseisvate ettevtjate vaheliste tingimustega, siis teine riik korrigeerib tasumisele kuuluvat maksusummat,kui ta leiab, et see on igustatud. Maksusumma korrigeerimisel arvestatakse kesoleva lepingu teisi stteid jalepinguosaliste riikide pdevad ametiisikud konsulteerivad vajaduse korral teineteisega.

Artikkel 10. Dividendid

(1) Dividende, mida lepinguosalise riigi residendist rihing maksab teise lepinguosalise riigi residendile, vibmaksustada selles teises riigis.

(2) Dividende vib maksustada ka dividendi maksja residendiriigis, kuid kui dividendide saaja on teiselepinguosalise riigi resident, siis vib dividendidelt maksu kinni pidada kuni:a) 5 protsenti dividendide brutosummast, kui dividendide saaja on rihing (vlja arvatud juriidilise isikustaatust mitteomav isikute hendus), kelle osalus dividendi maksva rihingu aktsia- vi osakapitalis onvhemalt 25 protsenti;b) 15 protsenti dividendide brutosummast kigil teistel juhtudel.

Liget ei kohaldata rihingu selle kasumi maksustamise suhtes, millest dividende makstakse.

(3) Selles artiklis ksitatakse dividendidena tulu aktsiatest vi muudest igustest kasumile, mis ei olevlanuded, ning tulu teistest igustest, mida dividende maksva rihingu residendiriigi seaduste kohaseltksitatakse tuluna osalusest rihingu aktsia- vi osakapitalis.

(4) Likeid 1 ja 2 ei kohaldata, kui lepinguosalise riigi residendist dividendide saaja ritegevus toimub psivategevuskoha kaudu teises lepinguosalises riigis, mille resident dividende maksev rihing on, vi kui ta kindlaasukoha kaudu tegutseb iseseisvalt oma kutsealal ning saab dividende seoses psiva tegevuskoha vi kindlaasukoha kaudu toimuva ritegevusega. Sel juhul kohaldatakse artiklit 7 vi artiklit 14.

(5) Kui lepinguosalise riigi residendist rihing saab kasumit vi tulu teisest lepinguosalisest riigist, vib seeteine riik dividende maksustada ksnes juhul, kui dividende makstakse selle teise riigi residendile, vi kuiosalus, mille alusel dividende makstakse, on seotud selles teises riigis asuva psiva tegevuskoha vi ritegevusekindla asukohaga. Teine lepinguosaline riik ei vi maksustada rihingu jaotamata kasumit isegi siis, kuidividendid vi jaotamata kasum on tielikult vi osaliselt tekkinud selles teises riigis.

Artikkel 11. Intressid

(1) Intresse, mis tekivad lepinguosalises riigis ja mida makstakse teise lepinguosalise riigi residendile, vibmaksustada selles teises riigis.

(2) Nimetatud intresse vib oma seaduste kohaselt maksustada ka see lepinguosaline riik, kus intressid tekivad.Kui intresside saaja on aga teise lepinguosalise riigi resident, vib intressidelt maksu kinni pidada kuni10 protsenti intresside brutosummast.

(3) Olenemata likes 2 stestatust:a) ei maksustata lepinguosalises riigis selles riigis tekkivaid intresse, mille saaja on teise lepinguosalise riigivalitsus, kohalik omavalitsus, keskpank vi riigile kuuluv finantsasutus, samuti selle teise riigi valitsuse vikohaliku omavalitsuse tagatud laenult makstavaid intresse.b) ei maksustata lepinguosalises riigis selles riigis tekkivaid intresse, mille saaja on teise lepinguosalise riigiettevtja, ning kui intresse makstakse seoses vlgnevusega, mis on selle teise riigi ettevtjal tekkinud igasugusekauba vi tstusliku, kaubandusliku vi teadusalase sisseseade krediitimgiga, vlja arvatud juhul, kuitegemist on mgi vi vlgnevusega seotud isikute vahel.

(4) Selles artiklis ksitatakse intressidena tulu igasugustest tagatud vi tagamata vlanuetest ning valitsuse

vrtpaberitest ja vlakohustustest ja nendega seotud maksetest. Miste intressidei hlma htegi artiklis 10dividendidena ksitatud tulu liiki. Hilinenud makse eest vetavaid viiviseid intressidena ei ksitata.


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(5) Likeid 1, 2 ja 3 ei kohaldata, kui lepinguosalise riigi residendist intresside saaja ritegevus toimub teiseslepinguosalises riigis, kus intressid tekivad, asuva psiva tegevuskoha kaudu vi kui ta kindla asukoha kaudutegutseb teises riigis iseseisvalt oma kutsealal ja saab intresse psiva tegevuskoha vi kindla asukoha kaudutoimuva ritegevusega seotud vlanudelt. Sel juhul kohaldatakse artiklit 7 vi artiklit 14.

(6) Intressid on tekkinud lepinguosalises riigis, kui intresse maksab selle riigi resident. Juhul kui vlgnevus,mille alusel intresse makstakse, on tekkinud seoses psiva tegevuskoha vi ritegevuse kindla asukohategevusega ning intresse makstakse psiva tegevuskoha vi ritegevuse kindla asukoha kaudu, siis loetakse, etintressid on tekkinud psiva tegevuskoha vi ritegevuse kindla asukoha riigis.

(7) Kui intresside maksja ja intresside saaja vi nende mlema ning muu isiku erisuhte tttu letab vlanudeeest makstavate intresside summa seda summat, milles oleksid intresside maksja ja intresside saaja kokkuleppinud ilma sellise suhteta, kohaldatakse seda artiklit ainult viimati nimetatud summa suhtes. Enammakstudintresside summa maksustatakse kummagi lepinguosalise riigi seaduste kohaselt, arvestades lepingu teisi stteid.

Artikkel 12. Litsentsitasud

(1) Litsentsitasusid, mis tekivad lepinguosalises riigis ja mida makstakse teise lepinguosalise riigi residendile,vib maksustada selles teises riigis.

(2) Nimetatud litsentsitasusid vib oma seaduste kohaselt maksustada ka see lepinguosaline riik, kus

litsentsitasud tekivad. Kui litsentsitasude saaja on teise lepinguosalise riigi resident, vib litsentsitasudelt maksukinni pidada kuni:a) 5 protsenti tstusliku, kaubandusliku vi teadusalase sisseseade kasutamise eest makstavate litsentsitasudebrutosummast;b) 10 protsenti litsentsitasude brutosummast lejnud juhtudel.

(3) Selles artiklis ksitatakse litsentsitasudena makseid, mida saadakse kino- vi telefilmi vi raadio- vitelevisioonisaate salvestise, kirjandus- vi kunstiteose, teadust, autoriiguse, patendi, kaubamrgi, disaini vimudeli, plaani vi salajase valemi vi tehnoloogilise protsessi kasutamise eest vi nende kasutamise iguse eest.Litsentsitasudena ksitatakse ka makseid, mida saadakse tstusliku, kaubandusliku vi teadusalase sisseseadekasutamise vi tstusliku, kaubandusliku vi teadusliku oskusteabe kasutamise vi kasutamise iguse eest.

(4) Likeid 1 ja 2 ei kohaldata, kui lepinguosalise riigi residendist litsentsitasude saaja ritegevus toimub teiseslepinguosalises riigis, kus litsentsitasud tekivad, psiva tegevuskoha kaudu vi kui ta tegutseb selles teiseslepinguosalises riigis kindla asukoha kaudu iseseisvalt oma kutsealal ja saab litsentsitasusid psiva tegevuskoha

vi kindla asukoha kaudu toimuvas ritegevuses kasutatavast igusest vi varast. Sel juhul kohaldatakseartiklit 7 vi 14.

(5) Litsentsitasud on tekkinud lepinguosalises riigis, kui nende maksja on selle riigi resident. Juhul kuilitsentsitasude maksmise kohustus on tekkinud seoses psiva tegevuskoha vi ritegevuse kindla asukohategevusega ning litsentsitasusid makstakse psiva tegevuskoha vi ritegevuse kindla asukoha kaudu, siisloetakse, et litsentsitasud on tekkinud psiva tegevuskoha vi ritegevuse kindla asukoha riigis.

(6) Kui litsentsitasude maksja ja litsentsitasude saaja vi nende mlema ja muu isiku erisuhte tttu letab asjakasutamise, kasutusiguse vi oskusteabe eest makstava litsentsitasu summa seda summat, milles oleksidlitsentsitasude maksja ja litsentsitasu saaja kokku leppinud ilma sellise suhteta, kohaldatakse seda artiklit ainultviimati nimetatud summa suhtes. Enammakstud litsentsitasud maksustatakse kummagi lepinguosalise riigiseaduse kohaselt, arvestades lepingu teisi stteid.

Artikkel 13. Kasu vara vrandamisest

(1) Kasu, mida lepinguosalise riigi resident on saanud artiklis 6 mratletud ja teises lepinguosalises riigis asuvakinnisvara vi sellise rihingu aktsiate vrandamisest, kelle vara koosneb philiselt teises lepinguosalisesriigis asuvast kinnisvarast, vib maksustada selles teises riigis.

(2) Kasu, mida lepinguosalise riigi resident saab teises lepinguosalises riigis psiva tegevuskoha kaudutoimuvas ritegevuses vi teises lepinguosalises riigis kindla asukoha kaudu iseseisvalt oma kutsealal tegutsedeskasutatava vallasvara (eraldi vi koos kogu ettevttega) vrandamisest, vib maksustada selles teises riigis.

(3) Kasu, mida lepinguosalise riigi ettevtja saab rahvusvahelises transpordis kasutatavate laevade vihusidukite vrandamisest vi nende juurde kuuluva vallasvara vrandamisest, maksustatakse ainult sellesriigis.

(4) Ligetes 1, 2 ja 3 ksitlemata vara vrandamisest saadav kasu maksustatakse ksnes vara vrandajaresidendiriigis.

Artikkel 14. Iseseisev kutsetegevus


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(1) Tulu lepinguosalise riigi fsilisest isikust residendi iseseisvast kutsetegevusest vi ettevtlusestmaksustatakse ainult selles riigis. Juhul kui fsiline isik tegutseb teises lepinguosalises riigis asuva kindlaasukoha kaudu, siis vib selles teises lepinguosalises riigis maksustada seda tulu osa, mis on omistatavkindlale asukohale. Fsilisel isikul loetakse teises lepinguosalises riigis olevat kindel asukoht ja iseseisvastkutsetegevusest saadud tulu omistatakse teises riigis asuvale kindlale asukohale juhul, kui lepinguosaliseriigi residendist fsiline isik viibib teises lepinguosalises riigis jooksval majandusaastal algava vi lppevakaheteistkmnekuulise perioodi jooksul kokku le 183 peva.

(2) Selles lepingus ksitatakse kutsetegevusena muu hulgas eraviisilist teadus- ja haridustd, kirjandus- jakunstialast tegevust ning arsti, juristi, inseneri, arhitekti, hambaarsti ja raamatupidaja erapraksist.

Artikkel 15. Palgat

(1) Arvestades artiklites 16, 18 ja 19 stestatut, maksustatakse palk ja muud tasud, mida lepinguosalise riigiresident on saanud ttamise eest, ainult selles riigis. Juhul kui lepinguosalise riigi resident on ttanud ka teiseslepinguosalises riigis, vib ttasu maksustada selles teises riigis.

(2) Olenemata likes 1 stestatust maksustatakse lepinguosalise riigi residendi teises lepinguosalises riigisttamise eest saadud tasud ksnes tasu saaja residendiriigis, kui:a) tasu saaja viibib teises lepinguosalises riigis jooksval majandusaastal algava vi lppevakaheteistkmnekuulise perioodi vltel kokku kuni 183 peva; jab) tasu maksab tandja vi tasu makstakse tandja nimel, kes ei ole teise lepinguosalise riigi resident; jac) tasu ei maksta tandja teises riigis asuva psiva tegevuskoha vi kindla asukoha kaudu.

(3) Olenemata eelnevates ligetes stestatust vib lepinguosalise riigi ettevtja rahvusvahelises transpordiskasutatavatel mere- vi husidukitel ttamise eest saadud tasu maksustada selles riigis.

Artikkel 16. Juhatuse liikmete tasud

Juhatuse liikmete ttasu ja muid seda laadi tasusid, mida lepinguosalise riigi resident saab teise lepinguosaliseriigi residendist rihingu vi muu juriidilise isiku juhatuse vi muu sarnase organi liikmena, vib maksustadaselles teises riigis.

Artikkel 17. Loomettajate ja sportlaste tulu

(1) Olenemata artiklites 14 ja 15 stestatust vib lepinguosalise riigi residendi tulu, mida ta on saanud teiseslepinguosalises riigis teatris, filmis, raadios vi televisioonis esinemise eest vi selles teises riigis muusiku visportlasena tegutsedes, maksustada selles teises riigis.

(2) Juhul kui loomettaja vi sportlase teenitud tulu laekub tema asemel mnele teisele isikule, vib sellist tuluolenemata artiklites 7, 14 ja 15 stestatust maksustada riigis, kus toimus loomettaja vi sportlase tegevus.

(3) Likeid 1 ja 2 ei kohaldata, kui loomettaja vi sportlane saab tulu lepinguosalises riigis toimuvasttegevusest, mida tielikult vi philiselt rahastatakse he vi mlema lepinguosalise riigi vi kohalikuomavalitsuse vahenditest. Sel juhul maksustatakse tulu ainult loomettaja vi sportlase residendiriigis.

Artikkel 18. Pensionid

Vlja arvatud artikli 19 likes 2 stestatud juhtudel maksustatakse lepinguosalise riigi residendile makstavadpensionid ja muud sellised vljamaksed varasema ttamise eest ainult selles riigis.

Artikkel 19. Riigiteenistus

(1) a) Palk ja muud tasud (vlja arvatud pension), mida lepinguosaline riik vi kohalik omavalitsus maksabisikule ttamise eest selle riigi vi kohaliku omavalitsuse ametiasutuses, maksustatakse ainult selles riigis.

b) Selline palk ja muud tasud maksustatakse ainult teises lepinguosalises riigis, kui teenistus on toimunud sellesriigis ja kui fsiline isik on selle riigi resident, kes:(i) on selle riigi kodanik; vi(ii) ei saanud residendiks ksnes teenistuse tttu.

(2) a) Igasugune pension, mida lepinguosaline riik vi kohalik omavalitsus maksab vi mida nende loodudfondidest makstakse isikule ttamise eest selle riigi vi kohaliku omavalitsuse ametiasutuses, maksustatakseainult selles riigis.b) Selline pension maksustatakse ainult teises lepinguosalises riigis, kui pensioni saaja on teise riigi resident jakodanik.

(3) Palga, muude tasude ja pensionide kohta, mis on saadud lepinguosalise riigi vi kohaliku omavalitsuseritegevusega seotud t eest, kehtivad artiklid 15, 16, 17 ja 18.

Artikkel 20. lipilaste tulu


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Kui lepinguosalises riigis ainult pingutel vi praktikal viibiv lipilane on vi oli vahetult enne ppimavi praktikale asumist teise lepinguosalise riigi resident, ei maksustata tema lalpidamiseks, pinguteks vipraktikaks saadud vljamakseid selles lepinguosalises riigis, tingimusel et vljamakseid saadakse vljaspoolseda riiki asuvast allikast.

Artikkel 21. Merel toimuv tegevus

(1) Seda artiklit kohaldatakse sltumata artiklites 4 kuni 20 stestatust.

(2) Selles artiklis thistab miste merel toimuv tegevuslepinguosalise riigi vetes asuva merephja, maapue ningneis leiduvate loodusvarade uurimise ja kasutuselevtmisega seotud merel toimuvat tegevust.

(3) Arvestades likes 4 stestatut, loetakse lepinguosalise riigi residendi teises lepinguosalises riigis mereltoimuvat tegevust seal asuva psiva tegevuskoha vi kindla asukoha kaudu toimuvaks ritegevuseks.

(4) Liget 3 ei kohaldata juhul, kui tegevus merel kestab mingi kaheteistkmnekuulise perioodi jooksul kokkuvhem kui 30 peva. Selle like thenduses:a) kui tegevus merel toimub kontrollitava isiku kaudu, siis loetakse sellist tegevust toimuvaks kontrollivaisiku kaudu juhul, kui knealune tegevus on olemuslikult sarnane kontrollitava isiku tegevusega, vlja arvatudulatuses, milles toimub samal ajal kontrolliva isiku tegevus;b) isikut peetakse kontrollitavaks, kui teine isik teda otseselt vi kaudselt kontrollib vi kui neid mlemaid

kontrollib otseselt vi kaudselt kolmas isik vi kolmandad isikud.(5) Palka ja muid tasusid, mida lepinguosalise riigi resident saab teises lepinguosalises riigis merel toimuvategevusega seotud t eest, vib maksustada selles teises riigis tingimusel, et t on tehtud selles teises riigismerel. Siiski maksustatakse selliseid tasusid ainult esimesena mainitud lepinguosalises riigis, kui tandja eiole teise riigi resident ja tegevus merel ei ole kestnud kokku le 30 peva mingi kaheteistkmnekuulise perioodijooksul.

(6) Kasu, mida lepinguosalise riigi resident on saanud:a) uurimis- vi kasutusiguste vrandamisest; vib) merel toimuva tegevusega seotud ja teises lepinguosalises riigis asuva vara vrandamisest; vic) sellise osaluse vrandamisest, mille vrtus vi suurem osa vrtusest tuleneb otseselt vi kaudselt sellistestigustest vi varast vi igustest ja varast koos,

vib maksustada selles teises riigis.

Selles likes thendab miste uurimis- vi kasutusigusedigusi loodusvaradele, mida saadakse teiseslepinguosalises riigis merel toimuva tegevuse kaudu, vi igusi teatud osale sellistest loodusvaradest vi kasuleloodusvarade vrandmisest.

Artikkel 22. Muu tulu

(1) Lepinguosalise riigi residendi eelmistes artiklites ksitlemata tulu maksustatakse olenemata tulu tekkimisekohast ainult selles riigis.

(2) Lige 1 ei kehti tulu kohta, mida lepinguosalise riigi resident saab teises lepinguosalises riigis psivategevuskoha kaudu tegutsedes, vi kutsetegevusest, mis toimub selles teises riigis asuva kindla asukoha kaudu,ning igused vi vara, millest selline tulu on tekkinud, on seotud psiva tegevuskoha vi kindla asukohaga.Sellistel juhtudel kohaldatakse artiklit 7 vi 14. See lige ei kehti artikli 6 likes 2 mratletud kinnisvarastsaadud tulu kohta.

(3) Olenemata ligetes 1 ja 2 stestatust vib lepinguosalise riigi residendi eelmistes artiklites ksitlemata tulu,mis tekib teises lepinguosalises riigis, maksustada teises lepinguosalises riigis.

IV peatkkTOPELTMAKSUSTAMISE VLTIMISEKS KASUTATAVAD MEETODID

Artikkel 23. Topeltmaksustamise vltimine

(1) Eesti residendi puhul vlditakse topeltmaksustamist jrgmiselt:a) Kui Eesti resident saab tulu vi kui tal on vara, mida vastavalt sellele lepingule vib maksustada Ltis,siis juhul kui Eesti siseriiklikud seadused ei sisalda soodsamaid stteid, lubab Eesti tasumisele kuuluvasttulumaksust maha arvata summa, mis vrdub Ltis makstud tulumaksuga.

Mahaarvatud summa ei leta Eesti tulumaksu seda osa, mis oli arvutatud enne tasutud maksusumma

mahaarvamist tulult, mida vib maksustada Ltis.


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b) Tiendavalt punktis a stestatule hlmab Ltis tasutud maks lisaks dividendidelt tasutud maksule kadividendide maksmise aluseks olevalt kasumi osalt tasutud maksu, kui Eesti residendist rihing saab dividendeLti residendist rihingult, kelle hleiguslikest aktsiatest kuulub talle vhemalt 10 protsenti.

(2) Lti residendi puhul vlditakse topeltmaksustamist jrgmiselt:a) Kui Lti resident saab tulu vi kui tal on vara, mida vastavalt sellele lepingule vib maksustada Eestis, siisjuhul kui Lti siseriiklikud seadused ei sisalda soodsamaid stteid, lubab Lti tasumisele kuuluvast tulumaksustmaha arvata summa, mis vrdub Eestis makstud tulumaksuga.

Mahaarvatud summa ei leta Lti tulumaksu seda osa, mis oli arvutatud enne tasutud maksusummamahaarvamist tulult, mida vib maksustada Eestis.

b) Tiendavalt punktis a stestatule hlmab Eestis tasutud maks lisaks dividendidelt tasutud maksule kadividendide maksmise aluseks olevalt kasumi osalt tasutud maksu, kui Lti residendist rihing saab dividendeEesti residendist rihingult, kelle hleiguslikest aktsiatest kuulub talle vhemalt 10 protsenti.

(3) Kui mne lepingustte alusel on lepinguosalise riigi residendi tulu vi vara selles riigis maksust vabastatud,siis vib see riik sellest hoolimata residendi lejnud tulult vi varalt maksukohustuse arvutamisel maksustvabastatud tulu vi vara arvesse vtta.

V peatkkERISTTED

Artikkel 24. Vrdne kohtlemine

(1) Lepinguosalise riigi kodanikke ei maksustata teises lepinguosalises riigis koormavamalt ega esitata neiletiendavaid maksustamisega seotud nudeid kui need, mida samades tingimustes kohaldatakse vi kohaldatakseelkige seoses residentsusega teise riigi kodanikele. Seda stet kohaldatakse olenemata artiklis 1 stestatust kaisikutele, kes ei ole kummagi lepinguosalise riigi residendid.

(2) Lepinguosalise riigi kodakondsuseta residente ei maksustata teises lepinguosalises riigis koormavamalt egaesitata neile tiendavaid maksustamisega seotud nudeid, kui need, mida samades tingimustes kohaldatakse vikohaldataks eelkige seoses residentsusega teise riigi kodanikele.

(3) Lepinguosalise riigi ettevtja teises lepinguosalises riigis asuvat psivat tegevuskohta maksustataksesamadel alustel kui teise lepinguosalise riigi samal tegevusalal tegutsevat ettevtjat. Seda liget ei tlgendatakui lepinguosalise riigi kohustust vimaldada teise lepinguosalise riigi residendile tema perekonnaseisu viperekondlike kohustuste tttu samasuguseid maksusoodustusi, -vabastusi vi -vhendusi, mida ta vimaldaboma residendile.

(4) Vlja arvatud artikli 9 likes 1, artikli 11 likes 7 ja artikli 12 likes 6 ettenhtud juhtudel lubablepinguosaline riik oma ettevtjal maksustatava kasumi kindlaks mramisel maha arvata teise lepinguosaliseriigi ettevtjale makstud intresse, litsentsitasusid ja muid vljamakseid samadel alustel, mida kohaldatakse juhul,kui vljamakseid tehakse sama riigi residendile.

(5) Lepinguosaline riik ei maksusta koormavamalt ettevtjat ega esita tiendavaid maksustamisega seotudnudeid ettevtjale, milles teise lepinguosalise riigi resident vi residendid omavad otsest vi kaudset osalust.

(6) Selle artikli stted kehtivad olenemata artiklis 2 stestatust kigi maksude kohta.

Artikkel 25. Vastastikuse kokkuleppe menetlus

(1) Kui isik arvab, et he vi mlema lepinguosalise riigi tegevus phjustab vi vib tema suhtes phjustadasellist maksustamist, mis ei ole lepinguga koosklas, vib ta nende riikide seadustes stestatust hoolimataesitada oma juhtumi arutamiseks oma residendiriigi pdevale ametiisikule. Kui tema juhtumi suhtes tulebkohaldada artikli 24 liget 1, siis esitab ta juhtumi arutamiseks selle lepinguosalise riigi pdevale ametiisikule,

mille kodanik ta on. Juhtum tuleb arutamiseks esitada kolme aasta jooksul alates lepingut rikkuvat maksustamistphjustavast tegevusest teadasaamisest.

(2) Kui protest on pdeva ametiisiku arvates igustatud ja rahuldavat lahendust ei leita, pab ta juhtumilahendada vastastikusel kokkuleppel teise lepinguosalise riigi pdeva ametiisikuga, jrgides phimtet, etlepingut eiravat maksustamist tuleb vltida. Saavutatud kokkulepe tidetakse hoolimata lepinguosaliste riikideseadustes ettenhtud ajapiirangutest.

(3) Lepinguosaliste riikide pdevad ametiisikud pavad lepingu tlgendamisel ja kohaldamisel tekkivadraskused ja kahtlused krvaldada vastastikusel kokkuleppel. Nad vivad topeltmaksustamise vltimiseksteineteisega konsulteerida ka lepingus ksitlemata juhtudel.

(4) Lepinguosaliste riikide pdevad ametiisikud vivad eelmistes ligetes ksitletud kokkuleppele judmisekssuhelda teineteisega vahetult (sealhulgas pdevatest ametiisikutest vi nende esindajatest moodustatudhiskomisjoni kaudu) vi esindajate kaudu.

Artikkel 26. Infovahetus


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(1) Lepinguosaliste riikide pdevad ametiisikud vahetavad lepingu jrgimiseks ja lepinguosaliste riikideseaduste titmiseks infot kikide lepinguosalise riigi vi kohalike omavalitsuste kehtestatud maksude kohtatingimusel, et selline maksustamine ei ole lepinguga vastuolus. Infovahetus ei ole piiratud artiklites 1 ja 2stestatuga. Igasugust teisest lepinguosalisest riigist saadud teavet ksitatakse saladusena samamoodi nagu selleriigi seaduste alusel saadud teavet. Teavet avaldatakse ksnes isikutele ja ametivimudele (sealhulgas kohtuteleja haldusasutustele), kes esimeses lauses nimetatud makse mravad, koguvad vi sisse nuavad, maksuseadusterikkujaid vastutusele vtavad vi maksudega seotud kaebusi lahendavad. Sellist teavet kasutatakse ainulteelloetletud otstarbel ja seda vib avaldada ksnes avalikel kohtuistungitel vi kohtuotsustes.

(2) Liget 1 ei tlgendata lepinguosalise riigi kohustusena:a) kasutada haldusabinusid, mis on vastuolus lepinguosaliste riikide igus- ja halduspraktikaga;b) anda informatsiooni, mis ei ole lepinguosaliste riikide seaduste alusel vi tavaprase ametitegevuse kiguskttesaadav;c) anda informatsiooni, mis avaldaks ri- vi kutsesaladusi vi salajasi andmeid tootmisprotsesside kohta, viinformatsiooni, mille avaldamine on vastuolus avalike huvidega (ordre public).

Artikkel 27. Abi maksuvlgade sissenudmisel

(1) Lepinguosalised riigid kohustuvad osutama teineteisele abi selliste maksuvlgade sissenudmisel, millesumma on abi taotleva riigi seaduste alusel lplikult kindlaks mratud.

(2) Juhul kui lepinguosaline riik on nustunud teisele lepinguosalisele riigile maksuvla sissenudmisel abiosutama, nutakse teise riigi maksuvlg sisse vastavalt abi osutava riigi seadustes stestatule.

(3) Lepinguosaline riik esitab koos maksuvla sissenudmise abipalvega tunnistuse, mis vastavalt selle riigiseadustele tendab, et maksuvla summa on lplikult kindlaks mratud.

(4) Kui lepinguosalise riigi maksuvlg ei ole lplikult kindlaks mratud seetttu, et seda saab veel edasikaevata, siis vib see riik paluda teisel lepinguosalisel riigil oma tulude kaitseks rakendada selliseid ajutisimeetmeid maksuvlglase vara silitamiseks, mis on selle teise riigi seaduste alusel teise riigi ksutuses.Kui teine lepinguosaline riik vtab abipalve vastu, siis rakendatakse neid ajutisi meetmeid sel viisil, naguvlgnetavad maksud oleksid selle teise riigi enda maksud.

(5) Maksuvla sissenudmise abipalve esitab lepinguosaline riik selle artikli eelnevate ligete alusel ainultjuhul, kui selles riigis ei ole maksuvlgade sissenudmiseks kllaldaselt maksumaksja varasid.

(6) Lepinguosaline riik, kus maksuvlg selle artikli alusel sisse nutakse, on kohustatud teisele lepinguosaliseleriigile viivitamatult le kandma sissenutud maksuvla summa, millest on vajaduse korral maha arvatud like 7punktis b ksitletavad erakorralised kulud.

(7) Kui lepinguosaliste riikide pdevad ametiisikud ei ole teistmoodi kokku leppinud, siis:a) kannab lepinguosalises riigis abi osutamisega seotud tavalised kulud abi osutav riik;b) kannab lepinguosalises riigis abi osutamisega seotud erakorralised kulud teine riik ja need kuuluvadmaksmisele sltumata teise riigi eest sissenutud maksuvla suurusest. Niipea kui lepinguosaline riik neb etteerakorraliste kulude tekkimist, annab ta sellest teada teisele lepinguosalisele riigile ja nitab ra selliste kuludearvestusliku summa.

(8) Kesolevas artiklis thistab miste maksudartikli 26 likes 1 nimetatud makse ja hlmab kiki nendegakaasnevaid intresse ja trahve.

Artikkel 28. Diplomaatiliste esinduste ja konsulaarasutuste liikmed

Lepingut ei kohaldata diplomaatiliste esinduste ja konsulaarasutuste liikmete rahvusvahelise iguseldtunnustatud phimtetega ja erikokkulepetega ettenhtud rahalistele soodustustele.

Artikkel 29. Soodustuste piiramine

(1) Olenemata artiklites 11 ja 12 ning artikli 7 likes 1 ja artikli 10 likes 2 stestatust vib lepinguosaliseriigi residendist juriidilise isiku teises lepinguosalises riigis tekkinud tulu maksustada mlemas riigis nendesiseriiklike seaduste alusel, arvestades teisi lepingu stteid, kui on kllaldane alus arvata, et peamine phjusjuriidilise isiku loomiseks vi mitteresidendi vi mitteresidentide osaluse omandamiseks sellises juriidilisesisikus oli saada eelloetletud artiklites stestatud soodustusi.

(2) Olenemata artikli 7 likes 1 stestatust vib lepinguosalises riigis tekkinud ja teise lepinguosalise riigiresidendile makstud teenustasusid maksustada teenustasude maksja residendiriigis, kui teenustasude maksjaja teenustasude saaja vi nende mlema ning muu isiku erisuhte tttu letab teenuse eest makstavate tasude

summa seda summat, milles oleksid teenustasude maksja ja saaja kokku leppinud ilma sellise suhteta. Artikli 7


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liget 1 kohaldatakse ainult viimati nimetatud summa suhtes. Enammakstud teenustasude summa vibmaksustada teenustasude maksja residendiriigis.

VI peatkkLPPSTTED

Artikkel 30. Lepingu justumine

(1) Lepinguosaliste riikide valitsused teatavad teineteisele lepingu justumiseks vajalike phiseaduslike nuetetitmisest.

(2) Leping justub likes 1 nimetatud viimasena saadetud teate kttesaamise peval ning selle stted kehtivadmlemas lepinguosalises riigis:a) alates 1. jaanuarist 2002 saadud tulult kinnipeetavate maksude kohta;b) 1. jaanuaril 2002 vi prast seda algaval majandusaastal makstavate tulumaksude kohta.

(3) Eesti Vabariigi ja Lti Vabariigi vaheline tulu- ja kapitalimaksuga topeltmaksustamise vltimise ningmaksudest hoidumise tkestamise leping, mis on alla kirjutatud 14. mail 1993 Tallinnas, muutub kehtetuksalates kuupevast, mil kesolev leping vastavalt likele 2 justub.

Artikkel 31. Lepingu lpetamine

Leping on jus, kuni lepinguosaline riik selle lpetab. Kumbki lepinguosaline riik vib lepingu lpetada,teatades sellest diplomaatiliste kanalite kaudu kirjalikult ette vhemalt kuus kuud enne kalendriaasta lppu. Seljuhul lakkab leping mlemas lepinguosalises riigis kehtimast:a) 1. jaanuaril vi prast seda saadud tulult kinnipeetavate maksude kohta kalendriaastal, mis jrgneb lepingulpetamise kohta teate edastamise aastale;b) 1. jaanuaril vi prast seda algaval majandusaastal makstavate tulumaksude kohta kalendriaastal, mis jrgneblepingu lpetamise kohta teate edastamise aastale.

Selle kinnituseks on volitatud isikud lepingule alla kirjutanud.

Slmitud Riias 11. veebruaril 2002 kahes eksemplaris eesti, lti ja inglise keeles. Kik tekstid on vrdseltautentsed. Tlgendamiserinevuse korral vetakse aluseks ingliskeelne tekst.

Eesti Vabariigi valitsuse nimel Lti Vabariigi valitsuse nimelKristina OJULAND Indulis BERZINS

CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF

ESTONIA AND THE GOVERNMENT OF THE REPUBLIC OF LATVIAFOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION

OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of Estonia and the Government of the Republic of Latvia,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasionwith respect to taxes on income,

Have agreed as follows:

Chapter I

SCOPE OF THE CONVENTION

Article 1. Persons Covered

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2. Taxes Covered

1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or local authorities,irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income,including taxes on gains from the alienation of movable or immovable property, as well as taxes on capitalappreciation.

3. The existing taxes to which the Convention shall apply are, in particular:a) in Estonia:


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(i) the income tax (tulumaks);(hereinafter referred to as Estonian tax);b) in Latvia:(i) the enterprise income tax (uznemumu ienkuma nodoklis);(ii) the personal income tax (iedzvotju ienkuma nodoklis);(hereinafter referred to as Latvian tax);

4. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the dateof signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of theContracting States shall notify each other of any significant changes that have been made in their respectivetaxation laws.

Chapter IIDEFINITIONS

Article 3. General Definitions

1. For the purposes of this Convention, unless the context otherwise requires:a) the term Estonia means the Republic of Estonia and, when used in the geographical sense, means theterritory of Estonia and any other area adjacent to the territorial waters of Estonia within which, under the lawsof Estonia and in accordance with international law, the rights of Estonia may be exercised with respect to the

sea bed and its sub-soil and their natural resources;b) the term Latvia means the Republic of Latvia and, when used in the geographical sense, means the territoryof the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia withinwhich, under the laws of Latvia and in accordance with international law, the rights of Latvia may be exercisedwith respect to the sea bed and its sub-soil and their natural resources;c) the term a Contracting State and the other Contracting State mean Estonia and Latvia, as the contextrequires;d) the term person includes an individual, a company and any other body of persons;e) the term company means any body corporate or any entity which is treated as a body corporate for taxpurposes;f) the terms enterprise of a Contracting State and enterprise of the other Contracting State mean respectivelyan enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of theother Contracting State;g) the term international traffic means any transport by a ship or aircraft operated by an enterprise of aContracting State, except when the ship or aircraft is operated solely between places in the other Contracting

State;h) the term competent authority means:(i) in Estonia, the Minister of Finance or his authorised representative;(ii) in Latvia, the Ministry of Finance or its authorised representative;i) the term national means:(i) any individual possessing the nationality of a Contracting State;(ii) any legal person, partnership or association deriving its status as such from the laws in force in a ContractingState.

2. As regards the application of the Convention at any time by a Contracting State, any term not defined thereinshall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Statefor the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of thatState prevailing over a meaning given to the term under other laws of that State.

Article 4. Resident

1. For the purposes of this Convention, the term resident of a Contracting State means any person who, underthe laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, placeof incorporation or any other criterion of a similar nature, and also includes that State and any local authoritythereof. This term, however, does not include any person who is liable to tax in that State in respect only ofincome from sources in that State or capital situated therein.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, thenhis status shall be determined as follows:a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if hehas a permanent home available to him in both States, he shall be deemed to be a resident only of the State withwhich his personal and economic relations are closer (centre of vital interests);b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanenthome available to him in either State, he shall be deemed to be a resident only of the State in which he has anhabitual abode;

c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the Stateof which he is a national;


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d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shallsettle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of bothContracting States, the competent authorities of the Contracting State shall endeavour to settle the question bymutual agreement. In the absence of such agreement, for the purposes of the Convention, the person shall not beentitled to claim any benefits provided by this Convention.

Article 5. Permanent Establishment

1. For the purposes of this Convention, the term permanent establishment means a fixed place of business

through which the business of an enterprise is wholly or partly carried on.

2. The term permanent establishment includes especially:a) a place of management;b) a branch;c) an office;d) a factory;e) a workshop, andf) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. A building site or construction or installation project constitutes a permanent establishment only if it lastsmore than six months.

4. Notwithstanding the preceding provisions of this Article, the term permanent establishment shall be deemednot to include:a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging tothe enterprise;b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose ofstorage, display or delivery;c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose ofprocessing by another enterprise;d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or ofcollecting information, for the enterprise;e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any otheractivity of a preparatory or auxiliary character;f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from thiscombination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independentstatus to whom paragraph 6 applies is acting on behalf of an enterprise and has, and habitually exercises,in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shallbe deemed to have a permanent establishment in that State in respect of any activities which that personundertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4which, if exercised through a fixed place of business, would not make this fixed place of business a permanentestablishment under the provisions of that paragraph.

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely becauseit carries on business in that State through a broker, general commission agent or any other agent of anindependent status, provided that such persons are acting in the ordinary course of their business. However,when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will notbe considered an agent of an independent status within the meaning of this paragraph.

7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company

which is a resident of the other Contracting State, or which carries on business in that other State (whetherthrough a permanent establishment or otherwise), shall not of itself constitute either company a permanentestablishment of the other.

Chapter IIITAXATION OF INCOME

Article 6. Income from Immovable Property

1. Income derived by a resident of a Contracting State from immovable property (including income fromagriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2. The term immovable property shall have the meaning which it has under the law of the Contracting State inwhich the property in question is situated. The term shall in any case include property accessory to immovableproperty, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law

respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as


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consideration for the working of, or the right to work, mineral deposits, sources and other natural resources.Ships and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any otherform of immovable property, as well as income from the alienation of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterpriseand to income from immovable property used for the performance of independent personal services.

Article 7. Business Profits

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprisecarries on business in the other Contracting State through a permanent establishment situated therein. If theenterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but onlyso much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business inthe other Contracting State through a permanent establishment situated therein, there shall in each ContractingState be attributed to that permanent establishment the profits which it might be expected to make if it were adistinct and separate enterprise engaged in the same or similar activities under the same or similar conditionsand dealing wholly independently with the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses whichare incurred for the purposes of the permanent establishment, including executive and general administrativeexpenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.The expenses to be allowed as deductions by a Contracting State shall include only expenses which would bedeductible if that permanent establishment were a separate enterprise of that State.

4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanentestablishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothingin paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such anapportionment as may be customary; the method of apportionment adopted shall, however, be such that theresult shall be in accordance with the principles contained in this Article.

5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanentestablishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shallbe determined by the same method year by year unless there is good and sufficient reason to the contrary.

7. Where profits include items of income which are dealt with separately in other Articles of this Convention,then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8. Shipping and Air Transport

1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international trafficshall be taxable only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or aninternational operating agency.

Article 9. Associated Enterprises1. Wherea) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital ofan enterprise of the other Contracting State, orb) the same persons participate directly or indirectly in the management, control or capital of an enterprise of aContracting State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two enterprises in their commercial or financialrelations which differ from those which would be made between independent enterprises, then any profits whichwould, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, havenot so accrued, may be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on which an enterprise of the other Contracting State has been charged to tax in that other State and

the profits so included are profits which would have accrued to the enterprise of the first-mentioned Stateif the conditions made between the two enterprises had been those which would have been made between


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independent enterprises, then that other State shall make an appropriate adjustment to the amount of the taxcharged therein on those profits. In determining such adjustment, due regard shall be had to the other provisionsof this Convention and the competent authorities of the Contracting States shall if necessary consult each other.

Article 10. Dividends

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other ContractingState may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying thedividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a

resident of the other Contracting State, the tax so charged shall not exceed:a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership)which holds directly at least 25 per cent of the capital of the company paying dividends;b) 15 per cent of the gross amount of the dividends in all other cases.This paragraph shall not affect the taxation of the company in respect of profits out of which the dividends arepaid.

3. The term dividends as used in this Article means income from shares or other rights, not being debt-claims,participating in profits, as well as income from other rights which is subjected to the same taxation treatment asincome from shares by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a residentof a Contracting State, carries on business in the other Contracting State of which the company paying thedividends is a resident, through a permanent establishment situated therein, or performs in that other Stateindependent personal services from a fixed base situated therein, and the holding in respect of which thedividends are paid is effectively connected with such permanent establishment or fixed base. In such case theprovisions of Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the otherContracting State, that other State may not impose any tax on the dividends paid by the company, except insofaras such dividends are paid to a resident of that other State or insofar as the holding in respect of which thedividends are paid is effectively connected with a permanent establishment or a fixed base situated in that otherState, nor subject the companys undistributed profits to a tax on the companys undistributed profits, even ifthe dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such otherState.

Article 11. Interest

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in thatother State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the lawsof that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax socharged shall not exceed 10 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2:a) interest arising in a Contracting State, derived and beneficially owned by the Government of the otherContracting State, a local authority, the Central Bank or any financial institution wholly owned by thatGovernment, or interest paid in respect of a loan guaranteed by that Government or authority, shall be exemptfrom tax in the first-mentioned State;b) interest arising in a Contracting State shall be exempt from tax in that State if the beneficial owner of theinterest is an enterprise of the other Contracting State, and the interest is paid with respect to an indebtednessarising as a consequence of the sale on credit by an enterprise of that other State of any merchandise orindustrial, commercial or scientific equipment to an enterprise of the first-mentioned State, except where the

sale or indebtedness is between related persons.4. The term interest as used in this Article means income from debt-claims of every kind, whether or notsecured by mortgage and whether or not carrying a right to participate in the debtors profits, and in particular,income from government securities and income from bonds or debentures, including premiums and prizesattaching to such securities, bonds or debentures. The term interest shall not include any income which istreated as a dividend under the provisions of Article 10. Penalty charges for late payment shall not be regardedas interest for the purpose of this Article.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a residentof a Contracting State, carries on business in the other Contracting State in which the interest arises, through apermanent establishment situated therein, or performs in that other State independent personal services from afixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connectedwith such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as thecase may be, shall apply.


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6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where,however, the person paying the interest, whether he is a resident of a Contracting State or not, has in aContracting State a permanent establishment or a fixed base in connection with which the indebtedness onwhich the interest is paid was incurred, and such interest is borne by such permanent establishment or fixedbase, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed baseis situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both ofthem and some other person, the amount of the interest, having regard to the debt-claim for which it is paid,exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absenceof such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case,the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regardbeing had to the other provisions of this Convention.

Article 12. Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed inthat other State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to thelaws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax

so charged shall not exceed:a) 5 per cent of the gross amount of the royalties paid for the use of industrial, commercial or scientificequipment;b) 10 per cent of the gross amount of the royalties in all other cases.

3. The term royalties as used in this Article means payments of any kind received as a consideration for theuse of, or the right to use, any copyright of literary, artistic or scientific work including cinematographic films,and films or tapes for television or radio broadcasting, any patent, trade mark, design or model, plan, secretformula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or forinformation concerning industrial, commercial or scientific experience.

4. The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the royalties, being a residentof a Contracting State, carries on business in the other Contracting State in which the royalties arise, througha permanent establishment situated therein, or performs in that other State independent personal services froma fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively

connected with such permanent establishment or fixed base. In such case the provisions of Article 7 orArticle 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where,however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in aContracting State a permanent establishment or a fixed base in connection with which the liability to payroyalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then suchroyalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

6. Where, by reason of a special relationship between the payer and the beneficial owner or between both ofthem and some other person, the amount of the royalties, having regard to the use, right or information for whichthey are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner inthe absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. Insuch case, the excess part of the payments shall remain taxable according to the laws of each Contracting State,due regard being had to the other provisions of this Convention.

Article 13. Capital Gains

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to inArticle 6 and situated in the other Contracting State or shares in a company the assets of which consist mainly ofsuch property may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanentestablishment which an enterprise of a Contracting State has in the other Contracting State or of movableproperty pertaining to a fixed base available to a resident of a Contracting State in the other Contracting Statefor the purpose of performing independent personal services, including such gains from the alienation of such apermanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that otherState.

3. Gains derived by an enterprise of a Contracting State operating ships or aircraft in international traffic from

the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operationof such ships or aircraft, shall be taxable only in that State.


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4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxableonly in the Contracting State of which the alienator is a resident.

Article 14. Independent Personal Services

1. Income derived by an individual who is a resident of a Contracting State in respect of professional servicesor other activities of an independent character shall be taxable only in that State unless he has a fixed baseregularly available to him in the other Contracting State for the purpose of performing his activities. If he hassuch a fixed base, the income may be taxed in the other State but only so much of it as is attributable to thatfixed base. For this purpose, where an individual who is a resident of a Contracting State stays in the otherContracting State for a period or periods exceeding in the aggregate 183 days in any twelve month period

commencing or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly availableto him in that other State and the income that is derived from his activities referred to above that are performedin that other State shall be attributable to that fixed base.

2. The term professional services includes especially independent scientific, literary, artistic, educational orteaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists andaccountants.

Article 15. Dependent Personal Services

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derivedby a resident of a Contracting State in respect of an employment shall be taxable only in that State unless theemployment is exercised in the other Contracting State. If the employment is so exercised, such remuneration asis derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State inrespect of an employment exercised in the other Contracting State shall be taxable only in the first-mentionedState if:a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days inany twelve month period commencing or ending in the fiscal year concerned, andb) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, andc) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in theother State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employmentexercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State, maybe taxed in that State.

Article 16. Directors Fees

Directors fees and other similar remuneration derived by a resident of a Contracting State in his capacity as amember of the board of directors or any other similar organ of a company or any other legal person which is aresident of the other Contracting State may be taxed in that other State.

Article 17. Artistes and Sportsmen

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State asan entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, fromhis personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity assuch accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstandingthe provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertaineror sportsman are exercised.

3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities exercised in aContracting State by an entertainer or a sportsman if the visit to that State is wholly or mainly supported bypublic funds of one or both of the Contracting States or local authorities thereof. In such case, the income shallbe taxable only in the Contracting State of which the entertainer or sportsman is a resident.

Article 18. Pensions

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a residentof a Contracting State in consideration of past employment shall be taxable only in that State.

Article 19. Government Service

1. a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a localauthority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in

that State.


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b) However, such salaries, wages and other similar remuneration shall be taxable only in the other ContractingState if the services are rendered in that State and the individual is a resident of that State who:(i) is a national of that State, or(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. a) Any pension paid by, or out of funds created by, a Contracting State or a local authority thereof to anindividual in respect of services rendered to that State or authority shall be taxable only in that State.b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of,and a national of, that State.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, andto pensions, in respect of services rendered in connection with a business carried on by a Contracting State or alocal authority thereof.

Article 20. Students

Payments which a student, an apprentice or a trainee who is or was immediately before visiting a ContractingState a resident of the other Contracting State and who is present in the first-mentioned State solely for thepurpose of his education or training receives for the purpose of his maintenance, education or training shall notbe taxed in that State, provided that such payments arise from sources outside that State.

Article 21. Offshore activities1. The provisions of this Article shall apply notwithstanding the provisions of Article 4 to 20 of this Convention.

2. For the purposes of this Article, the term offshore activities means activities carried on offshore in aContracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their naturalresources situated in that State.

3. A person who is a resident of a Contracting State and carries on offshore activities in the other ContractingState shall, subject to paragraph 4, be deemed to be carrying on business in that other State through a permanentestablishment or a fixed base situated therein.

4. The provisions of paragraph 3 shall not apply where the offshore activities are carried on for a period orperiods not exceeding in the aggregate 30 days in any twelve month period. For the purposes of this paragraph:a) offshore activities carried on by a person who is associated with another person shall be deemed to be carried

on by the other person if the activities in question are substantially the same as those carried on by the first-mentioned person, except to the extent that those activities are carried on at the same time as its own activities;b) a person shall be deemed to be associated with another person if one is controlled directly or indirectly by theother, or both are controlled directly or indirectly by a third person or third persons.

5. Salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of anemployment connected with offshore activities in the other Contacting State may, to the extent that the duties areperformed offshore in that other State, be taxed in that other State. However, such remuneration shall be taxableonly in the first-mentioned State if the employment is carried on for an employer who is not a resident of theother State and for a period or periods not exceeding in the aggregate 30 days in any twelve month period.

6. Gains derived by a resident of a Contracting State from the alienation of:a) exploration or exploitation rights; orb) property situated int eh other Contracting State which is used in connection with the offshore activities carriedon in that other State; or

c) shares deriving their value or the greater part of their value directly or indirectly from such rights or suchproperty or from such rights and such property taken together;

may be taxed in that other State.

In this paragraph the term exploration or exploitation rights means rights to assets to be produced by offshoreactivities carried on in the other Contracting State, or to interests in or to the benefit of such assets.

Article 22. Other Income

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articlesof this Convention shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property asdefined in 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 establishment situated therein, orperforms in that other State independent personal services from a fixed base situated therein, and the right or


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property in respect of which the income is paid is effectively connected with such permanent establishment orfixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting Statenot dealt with in the foregoing Article of this Convention and arising in the other Contracting State may also betaxed in that other State.

Chapter IVMETHODS FOR ELIMINATION OF DOUBLE TAXATION

Article 23. Elimination of Double Taxation

1. In the case of a resident of Estonia, double taxation shall be avoided as follows:a) Where a resident of Estonia derives income or owns capital which, in accordance with this Convention, maybe taxed in Latvia, unless a more favourable treatment is provided in its domestic law, Estonia shall allow as adeduction from the tax on the income of that resident, an amount equal to the income tax paid thereon in Latvia.Such deduction shall not, however, exceed that part of the income tax in Estonia, as computed before thededuction is given, which is attributable to the income which may be taxed in Latvia.b) For the purposes of sub-paragraph a), where a company that is a resident of Estonia receives a dividend froma company that is a resident of Latvia in which it owns at least 10 per cent of its shares having full voting rights,the tax paid in Latvia shall include not only the tax paid on the dividend, but also the appropriate portion of thetax paid on the underlying profits of the company out of which the dividend was paid.

2. In the case of a resident of Latvia, double taxation shall be avoided as follows:a) Where a resident of Latvia derives income or owns capital which, in accordance with this Convention, maybe taxed in Estonia, unless a more favourable treatment is provided in its domestic law, Latvia shall allow asa deduction from the tax on the income of that resident, an amount equal to the income tax paid thereon inEstonia.Such deduction shall not, however, exceed that part of the income tax in Latvia, as computed before thededuction is given, which is attributable to the income which may be taxed in Estonia.b) For the purposes of sub-paragraph a), where a company that is a resident of Latvia receives a dividend from acompany that is a resident of Estonia in which it owns at least 10 per cent of its shares having full voting rights,the tax paid in Estonia shall include not only the tax paid on the dividend, but also the appropriate portion of thetax paid on the underlying profits of the company out of which that dividend was paid.

3. Where in accordance with any provision of the Convention income derived or capital owned by a resident of aContracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of taxon the remaining income of such resident, take into account the exempted income.

Chapter VSPECIAL PROVISIONS

Article 24. Non-discrimination

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation orany requirement connected therewith, which is other or more burdensome than the taxation and connectedrequirements to which nationals of that other State in the same circumstances, in particular with respect toresidence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also applyto persons who are not residents of one or both of the Contracting States.

2. Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State toany taxation or any requirement connected therewith, which is other or more burdensome than the taxation andconnected requirements to which nationals of the State concerned in the same circumstances, in particular withrespect to residence, are or may be subjected.

3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the otherContracting State shall not be less favourably levied in that other State than the taxation levied on enterprises ofthat other State carrying on the same activities. This provision shall not be construed as obliging a ContractingState to grant to residents of the other Contracting State any personal allowances, reliefs and reductions fortaxation purposes on account of civil status or family responsibilities which it grants to its own residents.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 ofArticle 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting Stateto a resident of the other Contracting State shall, for the purpose of determining the taxable profits of suchenterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentionedState.

5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly orindirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentionedState to any taxation or any requirement connected therewith which is other or more burdensome than the

taxation and connected requirements to which other similar enterprises of the first-mentioned State are or maybe subjected.


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6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kindand description.

Article 25. Mutual Agreement Procedure

1. Where a person considers that the actions of one or both of the Contracting States result or will result forhim in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remediesprovided by the domestic law of those States, present his case to the competent authority of the ContractingState of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the ContractingState of which he is a national. The case must be presented within three years from the first notification of theaction resulting in taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itselfable to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authorityof the other Contracting State, with a view to the avoidance of taxation which is not in accordance with theConvention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic lawof the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement anydifficulties or doubts arising as to the interpretation or application of the Convention. They may also consulttogether for the elimination of double taxation in cases not provided for in the Convention.

4. The competent authorities of the Contracting States may communicate with each other directly, includingthrough a joint commission consisting of themselves or their representatives, for the purpose of reaching anagreement in the sense of the preceding paragraphs.

Article 26. Exchange of Information

1. The competent authorities of the Contracting States shall exchange such information as is necessaryfor carrying out the provisions of this Convention or of the domestic laws concerning taxes of every kindand description imposed on behalf of the Contracting States, or local authorities, insofar as the taxationthereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1and 2. Any information received by a Contracting State shall be treated as secret in the same manner asinformation obtained under the domestic laws of that State and shall be disclosed only to persons or authorities(including courts and administrative bodies) concerned with the assessment or collection of, the enforcement orprosecution in respect of, or the determination of appeals in relation to the taxes referred to in the first sentence.

Such persons or authorities shall use the information only for such purposes. They may disclose the informationin public court proceedings or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State theobligation:a) to carry out administrative measures at variance with the laws and administrative practice of that or of theother Contracting State;b) to supply information which is not obtainable under the laws or in the normal course of the administration ofthat or of the other Contracting State;c) to supply information which would disclose any trade, business, industrial, commercial or professional secretor trade process, or information, the disclosure of which would be contrary to public policy (ordre public).

Article 27. Assistance in Collection

1. The Contracting States undertake to lend assistance to each other in the collection of the taxes owed by

a taxpayer to the extent that the amount thereof has been finally determined according to the laws of theContracting State making the request for assistance.

2. In the case of a request by a Contracting State for the collection of taxes which has been accepted forcollection by the other Contracting State, such taxes shall be collected by that other State in accordance with thelaws applicable to the collection of its own taxes and as if the taxes to be so collected were its own taxes.

3. Any request for collection by a Contracting State shall be accompanied by such certificate as is required bythe laws of that State to establish that the taxes owing by the taxpayer have been finally determined.

4. Where the tax claim of a Contracting State has not been finally determined by reason of it being subject toappeal or other proceeding, that State may, in order to protect its revenues, request the other Contracting Stateto take such interim measures for conservancy on its behalf as are available to the other State under the laws ofthat other State. If such request is accepted by the other State, such interim measures shall be taken by it as if thetaxes owing to the first-mentioned State were the own taxes of that other State.


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5. A request under the preceding paragraphs of this Article shall only be made by a Contracting State to theextent that sufficient property of the taxpayer owing the taxes is not available in that State for recovery of thetaxes owed.

6. The Contracting State in which tax is recovered in accordance with the provisions of this Article shallforthwith remit to the Contract

Documents

DTC agreement between Latvia and Estonia