31. pants

Darbības izbeigšana

1. Šis līgums ir spēkā tik ilgi, kamēr viena Līgumslēdzēja

Valsts izbeidz tā darbību. Katra Līgumslēdzēja Valsts var izbeigt

Līguma darbību, pa diplomātiskajiem kanāliem iesniedzot rakstisku

paziņojumu par izbeigšanu vismaz sešus mēnešus pirms jebkura

kalendārā gada beigām, kas sākas pēc piecu gadu perioda beigām,

kurā tā noteikumi stājas spēkā. Šajā gadījumā Līgums zaudē spēku

abās Līgumslēdzējās Valstīs:

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

par ienākumu, kas gūts janvāra pirmajā dienā vai pēc tās,

kalendārajā gadā, kas seko gadam, kurā ir iesniegts

paziņojums;

b) attiecībā uz pārējiem ienākuma nodokļiem, par nodokļiem,

kas maksājami par jebkuru taksācijas gadu, kas sākas janvāra

pirmajā dienā vai pēc tās, kalendārajā gadā, kas seko gadam, kurā

ir iesniegts paziņojums.

To apliecinot, būdami pienācīgi pilnvaroti, šo līgumu ir

parakstījuši.

Parakstīts Stokholmā 2020. gada 24. novembrī divos

eksemplāros latviešu, albāņu un angļu valodā, turklāt katrs

teksts ir vienlīdz autentisks. Atšķirīgas interpretācijas

gadījumā noteicošais ir teksts angļu valodā.

Latvijas Republikas vārdā:

Marģers Krams

Latvijas Republikas

ārkārtējais un

pilnvarotais vēstnieks

Zviedrijas Karalistē

Kosovas Republikas vārdā:

Škendije Geci Šerifi

Kosovas Republikas

ārkārtējā un

pilnvarotā vēstniece

Zviedrijas Karalistē

PROTOKOLS

Parakstot Latvijas Republikas un Kosovas Republikas līgumu par

nodokļu dubultās uzlikšanas attiecībā uz ienākuma nodokļiem un

ļaunprātīgas izvairīšanās no nodokļu maksāšanas un nodokļu

nemaksāšanas novēršanu, apakšā parakstījušies ir vienojušies par

to, ka šādi noteikumi ir Līguma neatņemama daļa.

1. Attiecībā uz 6. pantu (Ienākums no nekustamā

īpašuma):

tiek saprasts, ka termins "nekustamais īpašums", kā

tas definēts šī pants 2. daļā ietver opcijas (līgumus, kas

piešķir tiesības, neuzliekot nekādu pienākumu, pirkt vai pārdot

nekustamo īpašumu par noteiktu cenu noteiktā laika periodā) vai

līdzīgas tiesības iegādāties nekustamo īpašumu.

2. Attiecībā uz 6. (Ienākums no nekustamā īpašuma) un

13. (Kapitāla pieaugums) pantu:

tiek saprasts, ka visam ienākumam un kapitāla pieaugumam, kas

radies no nekustamā īpašuma, kas atrodas Līgumslēdzējā Valstī,

atsavināšanas, var uzlikt nodokļus šajā valstī saskaņā ar šī

līguma 13. panta noteikumiem.

To apliecinot, būdami pienācīgi pilnvaroti, šo protokolu ir

parakstījuši.

Parakstīts Stokholmā 2020. gada 24. novembrī divos

eksemplāros latviešu, albāņu un angļu valodā, turklāt katrs

teksts ir vienlīdz autentisks. Atšķirīgas interpretācijas

gadījumā noteicošais ir teksts angļu valodā.

Latvijas Republikas vārdā:

Marģers Krams

Latvijas Republikas

ārkārtējais un

pilnvarotais vēstnieks

Zviedrijas Karalistē

Kosovas Republikas vārdā:

Škendije Geci Šerifi

Kosovas Republikas

ārkārtējā un

pilnvarotā vēstniece

Zviedrijas Karalistē

AGREEMENT

BETWEEN THE REPUBLIC OF LATVIA AND THE REPUBLIC OF KOSOVO FOR THE

ELIMINATION OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME

AND THE PREVENTION OF TAX EVASION AND AVOIDANCE

The Republic of Latvia and the Republic of Kosovo,

Desiring to further develop their economic relationship and to

enhance their co-operation in tax matters,

Intending to conclude an Agreement for the elimination of

double taxation with respect to taxes on income without creating

opportunities for non-taxation or reduced taxation through tax

evasion or avoidance (including through treaty-shopping

arrangements aimed at obtaining reliefs provided in this

Agreement for the indirect benefit of residents of third

States),

Have agreed as follows:

Article 1

PERSONS COVERED

This Agreement shall apply to persons who are residents of one

or both of the Contracting States.

Article 2

TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on

behalf of a Contracting State or of its 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 and, in the case of Kosovo, taxes on the total amounts

of wages or salaries paid by enterprises.

3. The existing taxes to which the Agreement shall apply are

in particular:

a) in Latvia:

(i) the enterprise income tax (uznemumu ienakuma nodoklis);

and

(ii) the personal income tax (iedzivotaju ienakuma

nodoklis);

(hereinafter referred to as "Latvian tax");

b) in the Republic of Kosovo:

(i) the personal income tax; and

(ii) the corporation tax;

(hereinafter referred to as "Kosovo tax").

4. The Agreement shall apply also to any identical or

substantially similar taxes that are imposed after the date of

signature of the Agreement in addition to, or in place of, the

existing taxes. The competent authorities of the Contracting

States shall notify each other of any significant changes that

have been made in their taxation laws.

Article 3

GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context

otherwise requires:

a) the term "Latvia" means the Republic of Latvia

and, when used in the geographical sense, means the territory of

the Republic of Latvia and any other area adjacent to the

territorial waters of the Republic of Latvia within which under

the laws of Latvia and in accordance with international law, the

rights of Latvia may be exercised with respect to the sea bed and

its sub-soil and their natural resources;

b) the term "Kosovo" means the Republic of Kosovo,

including all the land territory, including air space above it,

over which it has jurisdiction or sovereign rights for the

purpose of exploration, exploitation and conservation of natural

resources pursuant to international law;

c) the terms "a Contracting State" and "the

other Contracting State" mean Latvia or Kosovo, as the

context requires;

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 that is treated as a body corporate for tax

purposes;

f) the terms "enterprise of a Contracting State" and

"enterprise of the other Contracting State" mean

respectively an enterprise carried on by a resident of a

Contracting State and an enterprise carried on by a resident of

the other Contracting State;

g) the term "international traffic" means any

transport by a ship or aircraft except when the ship or aircraft

is operated solely between places in a Contracting State and the

enterprise that operates the ship or aircraft is not an

enterprise of that State;

h) the term "competent authority" means:

(i) in Latvia, the Ministry of Finance or its authorised

representative;

(ii) in Kosovo, the Ministry of Finance or its authorised

representative;

i) the term "national", in relation to a Contracting

State, means:

(i) any individual possessing the nationality of that

Contracting State; and

(ii) any legal person, partnership or association deriving its

status as such from the laws in force in that Contracting

State;

j) the term "recognised pension fund" of a State means an

entity or arrangement established in that State that is treated

as a separate person under the taxation laws of that State

and:

(i) that is established and operated exclusively or almost

exclusively to administer or provide retirement benefits and

ancillary or incidental benefits to individuals and that is

regulated as such by that State or local authorities; or

(ii) that is established and operated exclusively or almost

exclusively to invest funds for the benefit of entities or

arrangements referred to in subdivision (i).

2. As regards the application of the Agreement at any time by

a Contracting State, any term not defined therein shall, unless

the context otherwise requires, have the meaning that it has at

that time under the law of that State for the purposes of the

taxes to which the Agreement applies, any meaning under the

applicable tax laws of that State prevailing over a meaning given

to the term under other laws of that State.

Article 4

RESIDENT

1. For the purposes of this Agreement, the term "resident

of a Contracting State" means any person who, under the laws

of that State, is liable to tax therein by reason of his

domicile, residence, place of incorporation or any other

criterion of a similar nature, and also includes that State and

any local authority, as well as a recognised pension fund of that

Contracting State. This term, however, does not include any

person who is liable to tax in that State in respect only of

income 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, then his

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 he has a

permanent home available to him in both States, he shall be

deemed to be a resident only of the State with which his personal

and economic relations are closer (centre of vital

interests);

b) if the State in which he has his centre of vital interests

cannot be determined, or if he has not a permanent home available

to him in either State, he shall be deemed to be a resident only

of the State in which he has an habitual abode;

c) if he has an habitual abode in both States or in neither of

them, he shall be deemed to be a resident only of the State of

which he is a national;

d) if he is a national of both States or of neither of them,

the competent authorities of the Contracting States shall settle

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 both Contracting

States, the competent authorities of the Contracting States shall

endeavour to determine by mutual agreement the Contracting State

of which such person shall be deemed to be a resident for the

purposes of the Agreement, having regard to its place of

effective management, the place where it is incorporated or

otherwise constituted and any other relevant factors. In the

absence of such agreement, such person shall not be entitled to

any relief or exemption from tax provided by this Agreement

except to the extent and in such manner as may be agreed upon by

the competent authorities of the Contracting States.

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term

"permanent establishment" means a fixed place of

business through which the business of an enterprise is wholly or

partly carried on.

2. The term "permanent establishment" includes

especially:

a) a place of management;

b) a branch;

c) an office;

d) a factory;

e) a workshop, and

f) a mine, an oil or gas well, a quarry or any other place of

extraction of natural resources.

3. A building site, a construction, assembly or installation

project or supervisory activities in connection therewith

constitutes a permanent establishment, but only if such site,

project or activities last more than nine months.

4. Notwithstanding the preceding provisions of this Article,

the term "permanent establishment" shall be deemed not

to include:

a) the use of facilities solely for the purpose of storage,

display or delivery of goods or merchandise belonging to the

enterprise;

b) the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of storage,

display or delivery;

c) the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of processing

by another enterprise;

d) the maintenance of a fixed place of business solely for the

purpose of purchasing goods or merchandise or of collecting

information, for the enterprise;

e) the maintenance of a fixed place of business solely for the

purpose of carrying on, for the enterprise, any other activity of

a preparatory or auxiliary character;

f) the maintenance of a fixed place of business solely for any

combination of activities mentioned in subparagraphs a) to e),

provided that the overall activity of the fixed place of business

resulting from this combination is of a preparatory or auxiliary

character.

5. Notwithstanding the provisions of paragraphs 1 and 2 but

subject to the provisions of paragraph 6, where a person is

acting in a Contracting State on behalf of an enterprise and, in

doing so, habitually concludes contracts, or habitually plays the

principal role leading to the conclusion of contracts that are

routinely concluded without material modification by the

enterprise, and these contracts are:

a) in the name of the enterprise, or

b) for the transfer of the ownership of, or for the granting

of the right to use, property owned by that enterprise or that

the enterprise has the right to use, or

c) for the provision of services by that enterprise,

that enterprise shall be deemed to have a permanent

establishment in that State in respect of any activities which

that person undertakes for the enterprise, unless the activities

of such person are limited to those mentioned in paragraph 4

which, if exercised through a fixed place of business, would not

make this fixed place of business a permanent establishment under

the provisions of that paragraph.

6. An enterprise shall not be deemed to have a permanent

establishment in a Contracting State merely because it carries on

business in that State through a broker, general commission agent

or any other agent of an independent status, provided that such

persons are acting in the ordinary course of their business.

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 (whether through a permanent

establishment or otherwise), shall not of itself constitute

either company a permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from

immovable property (including income from agriculture or

forestry) situated in the other Contracting State may be taxed in

that other State.

2. The term "immovable property" shall have the

meaning which it has under the law of the Contracting State in

which the property in question is situated. The term shall in any

case include property accessory to immovable property, 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 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 other form of

immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to

the income from immovable property of an enterprise and 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 enterprise carries on

business in the other Contracting State through a permanent

establishment situated therein. If the enterprise carries on

business as aforesaid, the profits of the enterprise may be taxed

in the other State but only so 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 in the

other Contracting State through a permanent establishment

situated therein, there shall in each Contracting State be

attributed to that permanent establishment the profits which it

might be expected to make if it were a distinct and separate

enterprise engaged in the same or similar activities under the

same or similar conditions and dealing wholly independently with

the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment in

a Contracting State, there shall be allowed as deductions

expenses (other than expenses which would not be deductible if

that permanent establishment were a separate enterprise of that

Contracting State) which are incurred for the purposes of the

permanent establishment, including executive and general

administrative expenses so incurred, whether in the State in

which the permanent establishment is situated or elsewhere.

4. Insofar as it has been customary in a Contracting State to

determine the profits to be attributed to a permanent

establishment on the basis of an apportionment of the total

profits of the enterprise to its various parts, nothing in

paragraph 2 shall preclude that Contracting State from

determining the profits to be taxed by such an apportionment as

may be customary; the method of apportionment adopted shall,

however, be such that the result 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 permanent establishment of

goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits

to be attributed to the permanent establishment shall be

determined by the same method year by year unless there is good

and sufficient reason to the contrary.

7. Where profits include items of income which are dealt with

separately in other Articles of this Agreement, then the

provisions of those Articles shall not be affected by the

provisions of this Article.

Article 8

INTERNATIONAL SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise of a Contracting State from the

operation of ships or aircraft in international traffic shall be

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 an

international operating agency.

Article 9

ASSOCIATED ENTERPRISES

1. Where

a) an enterprise of a Contracting State participates directly

or indirectly in the management, control or capital of an

enterprise of the other Contracting State, or

b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a Contracting

State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the

two enterprises in their commercial or financial relations which

differ from those which would be made between independent

enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by

reason of those conditions, have not so accrued, may be included

in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an

enterprise of that State - and taxes accordingly - profits on

which an enterprise of the other Contracting State has been

charged to tax in that other State and the profits so included

are profits which would have accrued to the enterprise of the

first-mentioned State if the conditions made between the two

enterprises had been those which would have been made between

independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein

on those profits. In determining such adjustment, due regard

shall be had to the other provisions of this Agreement 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 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) 0 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 throughout a 365 day period that includes

the day of the payment of the dividend (for the purpose of

computing that period, no account shall be taken of changes of

ownership that would directly result from a corporate

reorganisation, such as a merger or divisive reorganisation, of

the company that holds the shares or that pays the dividend);

b) 10 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 the profits out of which the dividends are paid.

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

means income from shares, mining shares, founders' shares or

other rights, not being debt-claims, participating in profits, as

well as income from other rights which is subjected to the same

taxation treatment as income from shares by the laws of the State

of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 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.

5. 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 11

INTEREST

1. Interest arising in a Contracting State and paid to a

resident of the other Contracting State may be taxed in that

other State.

2. However, such interest may also be taxed in the Contracting

State in which it arises and according to the laws of that State,

but if the beneficial owner of the interest is a resident of the

other Contracting State, the tax so charged shall not exceed:

a) 0 per cent of the gross amount of the interest if the

interest is paid by a company that is a resident of a Contracting

State to a company (other than a partnership) that is a resident

of the other Contracting State and is the beneficial owner of the

interest;

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

other cases.

3. Notwithstanding the provisions of paragraph 2 interest

arising in a Contracting State, derived and beneficially owned by

the Government of the other Contracting State, including its

local authorities, the Central Bank or any financial institution

wholly owned by that Government, or interest derived on loans

guaranteed by that Government, shall be exempt from tax in the

first-mentioned State.

4. The term "interest" as used in this Article means

income from debt-claims of every kind, whether or not secured by

mortgage and whether or not carrying a right to participate in

the debtor's profits, and in particular, income from government

securities and income from bonds or debentures, including

premiums and prizes attaching to such securities, bonds or

debentures. The term "interest" shall not include any

income which is treated as a dividend under the provisions of

Article 10. Penalty charges for late payment shall not be

regarded as 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 resident of a

Contracting State, carries on business in the other Contracting

State in which the interest arises, through a permanent

establishment situated therein, or performs in that other State

independent personal services from a fixed base situated therein,

and the debt-claim in respect of which the interest is paid is

effectively connected with such permanent establishment or fixed

base. In such case the provisions of Article 7 or Article 14, as

the case may be, shall apply.

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 a Contracting State a permanent

establishment or a fixed base in connection with which the

indebtedness on which the interest is paid was incurred, and such

interest is borne by such permanent establishment or fixed base,

then such interest shall be deemed to arise in the State in which

the permanent establishment or fixed base is situated.

7. Where, by reason of a special relationship between the

payer and the beneficial owner or between both of them 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 absence of 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 regard being had to the other

provisions of this Agreement.

Article 12

ROYALTIES

1. Royalties arising in a Contracting State and paid to a

resident of the other Contracting State may be taxed in that

other State.

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

Contracting State in which it arises and according to the laws 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) 0 per cent of the gross amount of the royalties if the

royalties are paid by a company that is a resident of a

Contracting State to a company (other than a partnership) that is

a resident of the other Contracting State and is the beneficial

owner of the royalties;

b) 5 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 the

use of, or the right to use, any copyright of literary, artistic

or scientific work including cinematograph films, any patent,

trade mark, design or model, plan, secret formula or process, or

for information concerning industrial, commercial or scientific

experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the royalties, being a resident of a

Contracting State, carries on business in the other Contracting

State in which the royalties arise, through a permanent

establishment situated therein, or performs in that other State

independent personal services from a 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 or

Article 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 a Contracting State a permanent

establishment or a fixed base in connection with which the

liability to pay the royalties was incurred, and such royalties

are borne by such permanent establishment or fixed base, then

such royalties 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 of them and some

other person, the amount of the royalties, having regard to the

use, right or information for which they are paid, exceeds the

amount which would have been agreed upon by the payer and the

beneficial owner in the absence of 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 regard being had to the other provisions of this

Agreement.

Article 13

CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the

alienation of immovable property referred to in Article 6 and

situated in the other Contracting State may be taxed in that

other State.

2. Gains from the alienation of movable property forming part

of the business property of a permanent establishment which an

enterprise of a Contracting State has in the other Contracting

State or of movable property pertaining to a fixed base available

to a resident of a Contracting State in the other Contracting

State for the purpose of performing independent personal

services, including such gains from the alienation of such a

permanent establishment (alone or with the whole enterprise) or

of such fixed base, may be taxed in that other State.

3. Gains that an enterprise of a Contracting State that

operates ships or aircraft in international traffic derives from

the alienation of such ships or aircraft, or from movable

property pertaining to the operation of such ships or aircraft,

shall be taxable only in that State.

4. Gains derived by a resident of a Contracting State from the

alienation of shares or comparable interests, such as interests

in a partnership or trust, may be taxed in the other Contracting

State if, at any time during the 365 days preceding the

alienation, these shares or comparable interests derived more

than 50 per cent of their value directly or indirectly from

immovable property, as defined in Article 6, situated in that

other Contracting State.

5. Gains from the alienation of any property other than that

referred to in paragraphs 1, 2, 3 and 4, shall be taxable

only 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 services or other

activities of an independent character shall be taxable only in

that State unless he has a fixed base regularly available to him

in the other Contracting State for the purpose of performing his

activities. If he has such a fixed base, the income may be taxed

in the other State but only so much of it as is attributable to

that fixed base. For this purpose, where an individual who is a

resident of a Contracting State stays in the other Contracting

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

available to him in that other State and the income that is

derived from his activities referred to above that are performed

in that other State shall be attributable to that fixed base.

2. The term "professional services" includes

especially independent scientific, literary, artistic,

educational or teaching activities as well as the independent

activities of physicians, lawyers, engineers, architects,

dentists and accountants.

Article 15

INCOME FROM EMPLOYMENT

1. Subject to the provisions of Articles 16, 18 and 19,

salaries, wages and other similar remuneration derived by a

resident of a Contracting State in respect of an employment shall

be taxable only in that State unless the employment is exercised

in the other Contracting State. If the employment is so

exercised, such remuneration as is derived therefrom may be taxed

in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration

derived by a resident of a Contracting State in respect of an

employment exercised in the other Contracting State shall be

taxable only in the first-mentioned State if:

a) the recipient is present in the other State for a period or

periods not exceeding in the aggregate 183 days in any twelve

month period commencing or ending in the fiscal year concerned,

and

b) the remuneration is paid by, or on behalf of, an employer

who is not a resident of the other State, and

c) the remuneration is not borne by a permanent establishment

or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article,

remuneration derived by a resident of a Contracting State in

respect of an employment, as a member of the regular complement

of a ship or aircraft, that is exercised aboard a ship or

aircraft operated in international traffic, other than aboard a

ship or aircraft operated solely within the other Contracting

State, shall be taxable only in the first-mentioned State.

Article 16

DIRECTORS' FEES

Directors' fees and other similar remuneration derived by

a resident of a Contracting State in his capacity as a member of

the board of directors or any other similar organ of a company

which is a resident of the other Contracting State may be taxed

in that other State.

Article 17

ENTERTAINERS AND SPORTSPERSONS

1. Notwithstanding the provisions of Articles 14 and 15,

income derived by a resident of a Contracting State as an

entertainer, such as a theatre, motion picture, radio or

television artiste, or a musician, or as a sportsperson, from

that resident's 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 sportsperson acting as such accrues not to

the entertainer or sportsperson but to another person, that

income may, notwithstanding the provisions of Articles 7, 14 and

15, be taxed in the Contracting State in which the activities of

the entertainer or sportsperson are exercised.

3. The provisions of paragraphs 1 and 2 shall not apply to

income derived from activities exercised in a Contracting State

by an entertainer or a sportsperson if the visit to that State is

wholly or mainly supported by public funds of one or both of the

Contracting States or local authorities thereof. In such case,

the income shall be taxable only in the Contracting State of

which the entertainer or sportsperson is a resident.

Article 18

PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19,

pensions and other similar remuneration paid to a resident of a

Contracting State in consideration of past employment shall be

taxable only in that State.

2. Notwithstanding the provisions of paragraph 1 of this

Article and paragraph 2 of Article 19, pensions and other similar

remuneration paid under the social security legislation of a

Contracting State shall be taxable only in that State.

Article 19

GOVERNMENT SERVICE

1. a) Salaries, wages and other similar remuneration paid by a

Contracting State or a local authority thereof to an individual

in respect of services rendered to that State or authority shall

be taxable only in that State.

b) However, such salaries, wages and other similar

remuneration shall be taxable only in the other Contracting State

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) Notwithstanding the provisions of paragraph 1, pensions

and other similar remuneration paid by, or out of funds created

by, a Contracting State or a local authority thereof to an

individual in respect of services rendered to that State or

authority shall be taxable only in that State.

b) However, such pensions and other similar remuneration 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, pensions, and other similar

remuneration in respect of services rendered in connection with a

business carried on by a Contracting State or a local authority

thereof.

Article 20

STUDENTS

Payments which a student, an apprentice or a trainee who is or

was immediately before visiting a Contracting State a resident of

the other Contracting State and who is present in the

first-mentioned State solely for the purpose of his education or

training receives for the purpose of his maintenance, education

or training shall not be taxed in that State, provided that such

payments arise from sources outside that State.

Article 21

OFFSHORE ACTIVITIES

1. The provisions of this Article shall apply notwithstanding

the provisions of Articles 5 to 20 of this Agreement.

2. For the purposes of this Article, the term "offshore

activities" means activities carried on offshore in a

Contracting State in connection with the exploration or

exploitation of the sea bed and sub-soil and their natural

resources situated in that State.

3. A person who is a resident of a Contracting State and

carries on offshore activities in the other Contracting State

shall, subject to paragraph 4, be deemed to be carrying on

business in that other State through a permanent establishment 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 or periods 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 the other,

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 an employment

connected with offshore activities in the other Contracting State

may, to the extent that the duties are performed offshore in that

other State, be taxed in that other State. However, such

remuneration shall be taxable only in the first-mentioned State

if the employment is carried on for an employer who is not a

resident of the other 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; or

b) property situated in the other Contracting State which is

used in connection with the offshore activities carried on in

that other State; or

c) shares deriving their value or the greater part of their

value directly or indirectly from such rights or such property 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 offshore

activities 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 Articles of

this Agreement shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income,

other than income from immovable property as defined 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, or performs in that other State independent personal

services from a fixed base situated therein, and the right or

property in respect of which the income is paid is effectively

connected with such permanent establishment or fixed base. In

such case the provisions of Article 7 or Article 14, as the case

may be, shall apply.

Article 23

ELIMINATION OF DOUBLE TAXATION

1. In Latvia, double taxation shall be eliminated as

follows:

Where a resident of Latvia derives income which, in accordance

with this Agreement, may be taxed in Kosovo, unless a more

favourable treatment is provided in its domestic law, Latvia

shall allow as a deduction from the tax on the income of that

resident, an amount equal to the income tax paid thereon in

Kosovo.

Such deduction shall not, however, exceed that part of the

income tax in Latvia, as computed before the deduction is given,

which is attributable to the income which may be taxed in

Kosovo.

2. In Kosovo, double taxation shall be eliminated as

follows:

Where a resident of Kosovo derives income which in accordance

with the provisions of this Agreement may be taxed in Latvia,

Kosovo shall allow as a deduction from the tax on the income of

that resident, an amount equal to the income tax paid in

Latvia.

Such deduction shall not, however, exceed that part of the

Kosovo tax, as computed before the deduction is given, which is

attributable to the income which may be taxed in Latvia.

3. Where in accordance with any provision of the Agreement

income derived by a resident of a Contracting State is exempt

from tax in that State, such State may nevertheless, in

calculating the amount of tax on the remaining income of such

resident, take into account the exempted income.

Article 24

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in

the other Contracting State to any taxation or any requirement

connected therewith, which is other or more burdensome than the

taxation and connected requirements to which nationals of that

other State in the same circumstances, in particular with respect

to residence, are or may be subjected. This provision shall,

notwithstanding the provisions of Article 1, also apply to

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 to any

taxation or any requirement connected therewith, which is other

or more burdensome than the taxation and connected requirements

to which nationals of the State concerned in the same

circumstances, in particular with respect to residence, are or

may be subjected.

3. The taxation on a permanent establishment which an

enterprise of a Contracting State has in the other Contracting

State shall not be less favourably levied in that other State

than the taxation levied on enterprises of that other State

carrying on the same activities. This provision shall not be

construed as obliging a Contracting State to grant to residents

of the other Contracting State any personal allowances, reliefs

and reductions for taxation 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 of Article 12, apply,

interest, royalties and other disbursements paid by an enterprise

of a Contracting State to a resident of the other Contracting

State shall, for the purpose of determining the taxable profits

of such enterprise, be deductible under the same conditions as if

they had been paid to a resident of the first-mentioned State.

Similarly, any debts of an enterprise of a Contracting State to a

resident of the other Contracting State shall, for the purpose of

determining the taxable capital of such enterprise, be deductible

under the same conditions as if they had been contracted to a

resident of the first-mentioned State.

5. Enterprises of a Contracting State, the capital of which is

wholly or partly owned or controlled, directly or indirectly, by

one or more residents of the other Contracting State, shall not

be subjected in the first-mentioned State to any taxation or any

requirement connected therewith which is other or more burdensome

than the taxation and connected requirements to which other

similar enterprises of the first-mentioned State are or may be

subjected.

6. The provisions of this Article shall, notwithstanding the

provisions of Article 2, apply to taxes of every kind and

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 for him in taxation

not in accordance with the provisions of this Agreement, he may,

irrespective of the remedies provided by the domestic law of

those States, present his case to the competent authority of

either Contracting State. The case must be presented within three

years from the first notification of the action resulting in

taxation not in accordance with the provisions of the

Agreement.

2. The competent authority shall endeavour, if the objection

appears to it to be justified and if it is not itself able to

arrive at a satisfactory solution, to resolve the case by mutual

agreement with the competent authority of the other Contracting

State, with a view to the avoidance of taxation which is not in

accordance with the Agreement. Any agreement reached shall be

implemented notwithstanding any time limits in the domestic law

of the Contracting States.

3. The competent authorities of the Contracting States shall

endeavour to resolve by mutual agreement any difficulties or

doubts arising as to the interpretation or application of the

Agreement. They may also consult together for the elimination of

double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States may

communicate with each other directly, including through a joint

commission consisting of themselves or their representatives, for

the purpose of reaching an agreement 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 foreseeably relevant for carrying

out the provisions of this Agreement or to the administration or

enforcement of the domestic laws concerning taxes of every kind

and description imposed on behalf of the Contracting States, or

of their local authorities, insofar as the taxation thereunder is

not contrary to the Agreement. The exchange of information is not

restricted by Articles 1 and 2.

2. Any information received under paragraph 1 by a Contracting

State shall be treated as secret in the same manner as

information obtained under the domestic laws of that State and

shall be disclosed only to persons or authorities (including

courts and administrative bodies) concerned with the assessment

or collection of, the enforcement or prosecution in respect of,

the determination of appeals in relation to the taxes referred to

in paragraph 1, or the oversight of the above. Such persons or

authorities shall use the information only for such purposes.

They may disclose the information in public court proceedings or

in judicial decisions. Notwithstanding the foregoing, information

received by a Contracting State may be used for other purposes

when such information may be used for such other purposes under

the laws of both States and the competent authority of the

supplying State authorises such use.

3. In no case shall the provisions of paragraphs 1 and 2 be

construed so as to impose on a Contracting State the

obligation:

a) to carry out administrative measures at variance with the

laws and administrative practice of that or of the other

Contracting State;

b) to supply information which is not obtainable under the

laws or in the normal course of the administration of that or of

the other Contracting State;

c) to supply information which would disclose any trade,

business, industrial, commercial or professional secret or trade

process, or information the disclosure of which would be contrary

to public policy (ordre public).

4. If information is requested by a Contracting State in

accordance with this Article, the other Contracting State shall

use its information gathering measures to obtain the requested

information, even though that other State may not need such

information for its own tax purposes. The obligation contained in

the preceding sentence is subject to the limitations of paragraph

3 but in no case shall such limitations be construed to permit a

Contracting State to decline to supply information solely because

it has no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed

to permit a Contracting State to decline to supply information

solely because the information is held by a bank, other financial

institution, nominee or person acting in an agency or a fiduciary

capacity or because it relates to ownership interests in a

person.

Article 27

LIMITATION OF BENEFITS

Notwithstanding the other provisions of this Agreement, a

benefit under this Agreement shall not be granted in respect of

an item of income if it is reasonable to conclude, having regard

to all relevant facts and circumstances, that obtaining that

benefit was one of the principal purposes of any arrangement or

transaction that resulted directly or indirectly in that benefit,

unless it is established that granting that benefit in these

circumstances would be in accordance with the object and purpose

of the relevant provisions of this Agreement.

Article 28

ASSISTANCE IN THE COLLECTION OF TAXES

1. The Contracting States shall lend assistance to each other

in the collection of revenue claims. This assistance is not

restricted by Articles 1 and 2.

2. The term "revenue claim" as used in this Article means an

amount owed in respect of taxes of every kind and description

imposed on behalf of the Contracting States, or of their

political subdivisions or local authorities, insofar as the

taxation thereunder is not contrary to this Agreement or any

other instrument to which the Contracting States are parties, as

well as interest, administrative penalties and costs of

collection or conservancy related to such amount.

3. When a revenue claim of a Contracting State is enforceable

under the laws of that State and is owed by a person who, at that

time, cannot, under the laws of that State, prevent its

collection, that revenue claim shall, at the request of the

competent authority of that State, be accepted for purposes of

collection by the competent authority of the other Contracting

State. That revenue claim shall be collected by that other State

in accordance with the provisions of its laws applicable to the

enforcement and collection of its own taxes as if the revenue

claim were a revenue claim of that other State.

4. When a revenue claim of a Contracting State is a claim in

respect of which that State may, under its law, take measures of

conservancy with a view to ensure its collection, that revenue

claim shall, at the request of the competent authority of that

State, be accepted for purposes of taking measures of conservancy

by the competent authority of the other Contracting State. That

other State shall take measures of conservancy in respect of that

revenue claim in accordance with the provisions of its laws as if

the revenue claim were a revenue claim of that other State even

if, at the time when such measures are applied, the revenue claim

is not enforceable in the first-mentioned State or is owed by a

person who has a right to prevent its collection.

5. Notwithstanding the provisions of paragraphs 3 and 4, a

revenue claim accepted by a Contracting State for purposes of

paragraph 3 or 4 shall not, in that State, be subject to the time

limits or accorded any priority applicable to a revenue claim

under the laws of that State by reason of its nature as such. In

addition, a revenue claim accepted by a Contracting State for the

purposes of paragraph 3 or 4 shall not, in that State, have any

priority applicable to that revenue claim under the laws of the

other Contracting State.

6. Proceedings with respect to the existence, validity or the

amount of a revenue claim of a Contracting State shall not be

brought before the courts or administrative bodies of the other

Contracting State.

7. Where, at any time after a request has been made by a

Contracting State under paragraph 3 or 4 and before the other

Contracting State has collected and remitted the relevant revenue

claim to the first-mentioned State, the relevant revenue claim

ceases to be:

(a) in the case of a request under paragraph 3, a revenue

claim of the first-mentioned State that is enforceable under the

laws of that State and is owed by a person who, at that time,

cannot, under the laws of that State, prevent its collection,

or

(b) in the case of a request under paragraph 4, a revenue

claim of the first-mentioned State in respect of which that State

may, under its laws, take measures of conservancy with a view to

ensure its collection

the competent authority of the first-mentioned State shall

promptly notify the competent authority of the other State of

that fact and, at the option of the other State, the

first-mentioned State shall either suspend or withdraw its

request.

8. In no case shall the provisions of this Article be

construed so as to impose on a Contracting State the

obligation:

(a) to carry out administrative measures at variance with the

laws and administrative practice of that or of the other

Contracting State;

(b) to carry out measures which would be contrary to public

policy (ordre public);

(c) to provide assistance if the other Contracting State has

not pursued all reasonable measures of collection or conservancy,

as the case may be, available under its laws or administrative

practice;

(d) to provide assistance in those cases where the

administrative burden for that State is clearly disproportionate

to the benefit to be derived by the other Contracting State.

Article 29

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges

of members of diplomatic missions or consular posts under the

general rules of international law or under the provisions of

special agreements.

Article 30

ENTRY INTO FORCE

1. The Contracting States shall notify each other in writing

through diplomatic channels when the constitutional requirements

for the entry into force of this Agreement have been complied

with.

2. The Agreement 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 Agreement enters into force;

b) in respect of other taxes on income 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

Agreement enters into force.

Article 31

TERMINATION

This Agreement shall remain in force until terminated by a

Contracting State. Either Contracting State may terminate the

Agreement, through diplomatic channels, by giving written notice

of termination at least six months before the end of any calendar

year beginning after the expiration of a period of five years

from the date on which its provisions became effective. In such

event, the Agreement shall

cease to 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 notice has been given;

b) in respect of other taxes on income, 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

notice has been given.

In witness whereof, the undersigned, duly authorised

thereto, have signed this Agreement.

Done in duplicate at Stockholm this 24 day of November 2020,

in the Latvian, Albanian and English languages, each text being

equally authentic. In the case of divergence of interpretation

the English text shall prevail.

For the Republic of Latvia

Marģers Krams

Ambassador Extraordinary and

Plenipotentiary of the

Republic of Latvia to the

Kingdom of Sweden

For the Republic of Kosovo

Shkendije Geci Sherifi

Ambassador Extraordinary and

Plenipotentiary of the

Republic of Kosovo to the

Kingdom of Sweden

PROTOCOL

At the signing of the Agreement between the Republic of Latvia

and the Republic of Kosovo for the elimination of double taxation

with respect to taxes on income and the prevention of tax evasion

and avoidance, the undersigned have agreed that the following

provisions shall form an integral part of the Agreement.

1. With the reference to Article 6 (Income from immovable

property):

It is understood that the term "immovable property"

as defined in paragraph 2 of this Article includes options

(agreements granting a right, without imposing any obligation, to

purchase or sell immovable property for a determined price within

a specified period of time) or similar rights to acquire

immovable property.

2. With reference to Articles 6 (Income from immovable

property) and 13 (Capital gains):

It is understood that all income and gains arising from the

alienation of immovable property situated in a Contracting State

may be taxed in that State in accordance with Article 13 of this

Agreement.

In witness whereof, the undersigned, duly authorised

thereto, have signed this Protocol.

Done in duplicate at Stockholm this 24 day of November 2020,

in the Latvian, Albanian and English languages, each text being

equally authentic. In the case of divergence of interpretation

the English text shall prevail.

For the Republic of Latvia

Marģers Krams

Ambassador Extraordinary and

Plenipotentiary of the

Republic of Latvia to the

Kingdom of Sweden

For the Republic of Kosovo

Shkendije Geci Sherifi

Ambassador Extraordinary and

Plenipotentiary of the

Republic of Kosovo to the

Kingdom of Sweden