12. pants

1. Līgumslēdzēju Valstu valdības pa diplomātiskajiem kanāliem

rakstiski informē viena otru par to, kad ir izpildītas to

konstitucionālās prasības, lai šis Protokols stātos spēkā.

2. Protokols stājas spēkā ar 1.daļā minētā pēdējā paziņojuma

datumu un tā noteikumi abās Līgumslēdzējās Valstīs tiek

piemēroti:

a) attiecībā uz nodokļiem, ko ietur ienākuma izmaksas brīdī -

ienākumam, kas gūts janvāra pirmajā dienā vai pēc tās,

kalendārajā gadā, kas seko gadam, kurā šis Protokols stājas

spēkā;

b) attiecībā uz pārējiem ienākuma nodokļiem un kapitāla

nodokļiem - nodokļiem, kas maksājami par jebkuru taksācijas gadu,

kas sākas janvāra pirmajā dienā vai pēc tās, kalendārajā gadā,

kas seko gadam, kurā šis Protokols stājas spēkā.

To apliecinot, būdami pienācīgi pilnvaroti, šo Protokolu ir

parakstījuši.

Protokols sastādīts Rīgā divos eksemplāros 2012.gada 29.maijā

latviešu, gruzīnu un angļu valodā, turklāt visi trīs teksti ir

vienlīdz autentiski. Atšķirīgas interpretācijas gadījumā

noteicošais ir teksts angļu valodā.

Latvijas

Republikas vārdā

Gruzijas

vārdā

Andris Razāns

Nino Kalandadze

Ārlietu

ministrijas valsts sekretāra vietnieks

Ārlietu ministra

vietniece

PROTOCOL

BETWEEN THE REPUBLIC OF LATVIA AND GEORGIA

AMENDING THE OCTOBER 13, 2004 CONVENTION FOR THE AVOIDANCE OF

DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT

TO TAXES ON INCOME AND ON CAPITAL

The Republic of Latvia and Georgia,

Desiring to conclude a Protocol amending the Convention

between the Republic of Latvia and Georgia for the Avoidance of

Double Taxation and the Prevention of Fiscal Evasion with Respect

to Taxes on Income and on Capital, signed at Riga on

13th October 2004 (hereinafter referred to as

"the Convention"),

Have agreed as follows:

Article 1

Sub-paragraph g) of paragraph 1 of Article 3 of the Convention

shall be deleted and replaced by the following sub-paragraph:

"g) the term "international traffic" means any

transport by a ship, aircraft or road vehicle operated by an

enterprise of a Contracting State, except when the ship, aircraft

or road vehicle is operated solely between places in the other

Contracting State;"

Article 2

The reference in paragraph 3 of Article 5 of the Convention to

"six months" shall be deleted and replaced by the

reference to "nine months".

Article 3

The third sentence of paragraph 2 of Article 6 of the

Convention shall be deleted and replaced by the following

sentence:

"Ships, aircraft and road vehicles shall not be regarded

as immovable property."

Article 4

The title and paragraph 1 of Article 8 of the Convention shall

be deleted and replaced by the following title and paragraph:

"Article 8

PROFITS FROM INTERNATIONAL TRANSPORT

1. Profits derived by an enterprise of a Contracting State

from the operation of ships, aircraft or road vehicles in

international traffic shall be taxable only in the Contracting

State in which the place of effective management of the

enterprise is situated."

Article 5

Article 10 of the Convention shall be deleted and replaced by

the following Article:

"Article 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a

Contracting State to a resident of the other Contracting State

may be taxed in that other State.

2. However, such dividends may also be taxed in the

Contracting State of which the company paying the dividends is a

resident and according to the 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 10 per cent of the capital of the company

paying the dividends;

b) 10 per cent of the gross amount of the dividends in all

other cases.

3. Notwithstanding the provisions of paragraphs 1 and 2 of

this Article, dividends paid by a company which is a resident of

a Contracting State shall be taxable only in the other

Contracting State if the beneficial owner is a company (other

than a partnership) that is a resident of that other State

and holds directly at least 50 per cent of the capital of

the company paying the dividends.

4. The term "dividends" as used in this Article

means income from shares or other rights, not being debt-claims,

participating in profits, as well as income from other rights

which is subjected to the same taxation treatment as income from

shares by the laws of the State of which the company making the

distribution is a resident.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if

the beneficial owner of the dividends, being a resident of a

Contracting State, carries on business in the other Contracting

State of which the company paying the dividends is a resident,

through a permanent establishment situated therein, or performs

in that other State independent personal services from a fixed

base situated therein, and the holding in respect of which the

dividends are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of

Article 7 or Article 14, as the case may be, shall apply.

6. Where a company which is a resident of a Contracting State

derives profits or income from the other Contracting State, that

other State may not impose any tax on the dividends paid by the

company, except insofar as such dividends are paid to a resident

of that other State or insofar as the holding in respect of which

the dividends are paid is effectively connected with a permanent

establishment or a fixed base situated in that other State, nor

subject the company's undistributed profits to a tax on the

company's undistributed profits, even if the dividends paid or

the undistributed profits consist wholly or partly of profits or

income arising in such other State."

Article 6

1. The reference in paragraph 2 of Article 11 of the

Convention to "10 per cent" shall be deleted and

replaced by the reference to "5 per cent".

2. Paragraph 3 of Article 11 of the Convention shall be

deleted and replaced by the following paragraph:

"3. Notwithstanding the provisions of paragraph 2,

interest arising in a Contracting State and paid to a resident of

the other Contracting State who is the beneficial owner thereof

shall be taxable only in that other State if such interest is

paid:

a) on any loan or credit of whatever kind granted by a

bank;

b) to the Government of the other Contracting State, including

any political subdivision or local authority thereof, the Central

Bank or any financial institution controlled by that Government

or on loans guaranteed by that Government."

Article 7

The reference in paragraph 2 of Article 12 of the Convention

to "10 per cent" shall be deleted and replaced by the

reference to "5 per cent".

Article 8

Paragraph 3 of Article 13 of the Convention shall be deleted

and replaced by the following paragraph:

"3. Gains from the alienation of ships, aircraft or road

vehicles operated in international traffic or movable property

pertaining to the operation of such ships, aircraft or road

vehicles, shall be taxable only in the Contracting State in which

the place of effective management of the enterprise is

situated."

Article 9

Paragraph 3 of Article 15 of the Convention shall be deleted

and replaced by the following paragraph:

"3. Notwithstanding the preceding provisions of this

Article, remuneration derived in respect of an employment

exercised aboard a ship, aircraft or road vehicle operated in

international traffic, may be taxed in the Contracting State in

which the place of effective management of the enterprise is

situated."

Article 10

Paragraph 3 of Article 23 of the Convention shall be deleted

and replaced by the following paragraph:

"3. Capital represented by ships, aircraft and road

vehicles operated in international traffic and by movable

property pertaining to the operation of such ships, aircraft and

road vehicles, shall be taxable only in the Contracting State in

which the place of effective management of the enterprise is

situated."

Article 11

Reference 4 in the Protocol of the Convention shall be deleted

and replaced by the following:

"4. With reference to Article 8, Article 13, Article 15,

Article 23

It is understood that the provisions of paragraph 1 of Article

8, paragraph 3 of Article 13, paragraph 3 of Article 15 and

paragraph 3 of Article 23 are not applicable until Latvia has not

introduced in its domestic legislation the place of effective

management as a criteria for the determination of residence, but

the following provisions are applicable instead:

Article 8, paragraph 1

"Profits of an enterprise of a Contracting State from the

operation of ships, aircraft or road vehicles in international

traffic shall be taxable only in that State."

Article 13, paragraph 3

"Gains derived by an enterprise of a Contracting State

operating ships, aircraft or road vehicles in international

traffic from the alienation of ships, aircraft or road vehicles

operated in international traffic or movable property pertaining

to the operation of such ships, aircraft or road vehicles, shall

be taxable only in that State."

Article 15, paragraph 3

"Notwithstanding the preceding provisions of this

Article, remuneration derived in respect of an employment

exercised aboard a ship, aircraft or road vehicle operated in

international traffic by an enterprise of a Contracting State may

be taxed in that State."

Article 23, paragraph 3

"Capital represented by ships, aircraft and road vehicles

operated in international traffic by an enterprise of a

Contracting State and by movable property pertaining to the

operation of such ships, aircraft and road vehicles, shall be

taxable only in that State.""

Article 12

1. The Governments of the Contracting States shall notify each

other in writing through diplomatic channels when the

constitutional requirements for the entry into force of this

Protocol have been complied with.

2. The Protocol shall enter into force on the date of the

later of the notifications referred to in paragraph 1 and its

provisions shall have effect in both Contracting States:

a) in respect of taxes withheld at source, on income derived

on or after the first day of January in the calendar year next

following the year in which the Protocol enters into force;

b) in respect of other taxes on income and taxes on capital,

for taxes chargeable for any fiscal year beginning on or after

the first day of January in the calendar year next following the

year in which the Protocol enters into force.

In witness whereof, the undersigned, duly authorised thereto,

have signed this Protocol.

Done in duplicate at Riga this 29th day of May

2012, in the Latvian, Georgian and English languages, all three

texts being equally authentic. In the case of divergence of

interpretation the English text shall prevail.

For the Republic

of Latvia

For Georgia

Andris Razāns

Nino Kalandadze

Under-Secretary of

State of the Ministry of Foreign Affairs

Deputy Minister of

Foreign Affairs