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Spēkā · redakcija pārbaudīta 2026-05-18
Darbības izbeigšana
Šis Līgums ir spēkā, līdz Līgumslēdzēja Puse izbeidz tā
darbību. Katra Līgumslēdzēja Puse var izbeigt Līguma darbību,
iesniedzot otrai Līgumslēdzējai Pusei rakstisku paziņojumu par
izbeigšanu vismaz sešus mēnešus pirms jebkura kalendārā gada.
Šādā gadījumā Līgums zaudē spēku:
a) Honkongas īpašā administratīvā reģiona gadījumā:
attiecībā uz Honkongas īpašā administratīvā reģiona nodokļiem,
par jebkuru taksācijas periodu, kas sākas aprīļa pirmajā dienā
vai pēc tās, kalendārajā gadā, kas seko gadam, kurā iesniegts
paziņojums;
b) Latvijas gadījumā:
(i) attiecībā uz nodokļiem, ko ietur ienākuma izmaksas brīdī -
sākot ar ienākumu, kas gūts janvāra pirmajā dienā vai pēc tās,
kalendārajā gadā, kas seko gadam, kurā ir iesniegts
paziņojums;
(ii) attiecībā uz pārējiem ienākuma nodokļiem - sākot ar
nodokļiem, kas maksājami par jebkuru taksācijas gadu, kas sākas
janvāra pirmajā dienā vai pēc tās, kalendārajā gadā, kas seko
gadam, kurā iesniegts paziņojums.
TO APLIECINOT, būdami pienācīgi pilnvaroti, šo Līgumu ir
parakstījuši.
SASTĀDĪTS Rīgā divos eksemplāros 2016.gada 13.aprīlī, katrs
latviešu, ķīniešu un angļu valodā, turklāt visi trīs teksti ir
vienlīdz autentiski. Atšķirīgas interpretācijas gadījumā
noteicošais ir teksts angļu valodā.
Latvijas Republikas valdības
vārdā
Ķīnas Tautas Republikas
Honkongas īpašā administratīvā reģiona valdības vārdā
Dana
Reizniece-Ozola
Sīdžers
Kakengs Čans
PROTOKOLS
Parakstot Latvijas Republikas valdības un Ķīnas Tautas
Republikas Honkongas īpašā administratīvā reģiona valdības līgumu
par nodokļu dubultās uzlikšanas un nodokļu nemaksāšanas novēršanu
attiecībā uz ienākuma nodokļiem (turpmāk - Līgums), divas
valdības ir vienojušās par tālāk minētajiem noteikumiem, kas ir
Līguma neatņemama sastāvdaļa.
1. Attiecībā uz
5.pantu:
Tiek saprasts, ka Līgumslēdzējas Puses uzņēmumam otrā
Līgumslēdzējā Pusē veidojas patstāvīgā pārstāvniecība attiecībā
uz jūras un zemes dzīļu un tur esošo dabas resursu pētīšanu un
izmantošanu otras Līgumslēdzējas Puses šelfa zonā, ja tas otrā
Līgumslēdzēja Pusē veic šādas darbības, bet tikai, ja veiktās
darbības ilgst laika posmu vai posmus, kas kopumā pārsniedz 30
dienas jebkurā divpadsmit mēnešu periodā.
2. Attiecībā uz
6.pantu:
Tiek saprasts, ka visam ienākumam un kapitāla pieaugumam no
Līguma 6.pantā minētā nekustamā īpašuma, kas atrodas
Līgumslēdzējā Pusē, atsavināšanas, var tikt uzlikti nodokļi šajā
Pusē.
3. Attiecībā uz
17.pantu:
Tiek saprasts, ka pensija vai vecuma pensijas plāns tiek
uzskatīts par atzītu nodokļu uzlikšanas vajadzībām, ja tas ir
izveidots un uzraudzīts Līgumslēdzējā Pusē un iemaksas plānā ir
kvalificētas kā atbrīvotas no nodokļa.
4. Attiecībā uz
24.pantu:
a) Tiek saprasts, ka šī panta noteikumi tiek piemēroti arī
attiecībā uz sekojošiem nodokļiem, kas tiek administrēti un
uzlikti Latvijā:
(i) pievienotās vērtības nodoklis; un
(ii) nekustamā īpašuma nodoklis.
b) Panta noteikumi neuzliek Līgumslēdzējām Pusēm pienākumu
veikt automātisku informācijas apmaiņu, vai informācijas apmaiņu
pēc savas iniciatīvas.
TO APLIECINOT, būdami pienācīgi pilnvaroti, šo Protokolu ir
parakstījuši.
SASTĀDĪTS Rīgā divos eksemplāros 2016.gada 13.aprīlī, katrs
latviešu, ķīniešu un angļu valodā, turklāt visi trīs teksti ir
vienlīdz autentiski. Atšķirīgas interpretācijas gadījumā
noteicošais ir teksts angļu valodā.
Latvijas Republikas valdības
vārdā
Ķīnas Tautas Republikas
Honkongas īpašā administratīvā reģiona valdības vārdā
Dana
Reizniece-Ozola
Sīdžers
Kakengs Čans
AGREEMENT BETWEEN THE GOVERNMENT
OF THE REPUBLIC OF LATVIA AND THE GOVERNMENT OF THE HONG KONG
SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL
EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the Republic of Latvia and the Government of
the Hong Kong Special Administrative Region of the People's
Republic of China,
Desiring to conclude an Agreement for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income,
Have agreed as follows:
Article 1
Persons Covered
This Agreement shall apply to persons who are residents of one
or both of the Contracting Parties.
Article 2
Taxes Covered
1. This Agreement shall apply to taxes on income imposed on
behalf of a Contracting Party 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, as well as taxes on capital appreciation.
3. The existing taxes to which the Agreement shall apply are
in particular:
(a) in the case of the Hong Kong Special Administrative
Region,
(i) profits tax;
(ii) salaries tax; and
(iii) property tax;
whether or not charged under personal assessment;
(b) in the case of Latvia,
(i) the enterprise income tax (uzņēmumu ienākuma nodoklis);
and
(ii) the personal income tax (iedzīvotāju ienākuma
nodoklis).
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, as well as any other taxes falling within
paragraphs 1 and 2 of this Article which a Contracting Party may
impose in future. The competent authorities of the Contracting
Parties shall notify each other of any significant changes that
have been made in their taxation laws.
5. The existing taxes, together with the taxes imposed after
the signature of this Agreement, are hereinafter referred to as
"Latvian tax" or "Hong Kong Special Administrative
Region tax", as the context requires.
Article 3
General Definitions
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) (i) the term "Hong Kong Special Administrative
Region" means any place where the tax laws of the Hong Kong
Special Administrative Region of the People's Republic of China
apply;
(ii) 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 "business" includes the performance of
professional services and of other activities of an independent
character;
(c) the term "company" means any body corporate or
any entity that is treated as a body corporate for tax
purposes;
(d) the term "competent authority" means:
(i) in the case of the Hong Kong Special Administrative
Region, the Commissioner of Inland Revenue or his authorised
representative;
(ii) in the case of Latvia, the Ministry of Finance or its
authorised representative;
(e) the term "Contracting Party" or
"Party" means Latvia or the Hong Kong Special
Administrative Region, as the context requires;
(f) the term "enterprise" applies to the carrying on
of any business;
(g) the terms "enterprise of a Contracting Party"
and "enterprise of the other Contracting Party" mean
respectively an enterprise carried on by a resident of a
Contracting Party and an enterprise carried on by a resident of
the other Contracting Party;
(h) the term "international traffic" means any
transport by a ship or aircraft operated by an enterprise of a
Contracting Party, except when the ship or aircraft is operated
solely between places in the other Contracting Party;
(i) the term "national" in relation to Latvia
means:
(i) any individual possessing the nationality of Latvia;
and
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in Latvia;
(j) the term "person" includes an individual, a
company and any other body of persons;
(k) the term "tax" means Latvian tax or the Hong
Kong Special Administrative Region tax, as the context
requires.
2. In this Agreement, the terms "Latvian tax" and
"Hong Kong Special Administrative Region tax" do not
include any penalty or interest imposed under the laws of either
Contracting Party relating to the taxes to which this Agreement
applies by virtue of Article 2.
3. As regards the application of the Agreement at any time by
a Contracting Party, 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 Party for the purposes of the
taxes to which the Agreement applies, any meaning under the
applicable tax laws of that Party prevailing over a meaning given
to the term under other laws of that Party.
Article 4
Resident
1. For the purposes of this Agreement, the term "resident
of a Contracting Party" means:
(a) in the case of the Hong Kong Special Administrative
Region:
(i) any individual who ordinarily resides in the Hong Kong
Special Administrative Region;
(ii) any individual who stays in the Hong Kong Special
Administrative Region for more than 180 days during a year of
assessment or for more than 300 days in two consecutive years of
assessment one of which is the relevant year of assessment;
(iii) a company incorporated in the Hong Kong Special
Administrative Region or, if incorporated outside the Hong Kong
Special Administrative Region, being normally managed or
controlled in the Hong Kong Special Administrative Region;
(iv) any other person constituted under the laws of the Hong
Kong Special Administrative Region or, if constituted outside the
Hong Kong Special Administrative Region, being normally managed
or controlled in the Hong Kong Special Administrative Region;
(b) in the case of Latvia, any person who, under the laws of
Latvia, is liable to tax therein by reason of his domicile,
residence, place of management, place of incorporation or any
other criterion of a similar nature. This term, however, does not
include any person who is liable to tax in Latvia in respect only
of income from sources in Latvia or of capital situated
therein;
(c) in the case of either Contracting Party, the Party, the
Government of that Party and any local authority thereof;
(d) in the case of either Contracting Party, a pension fund or
scheme that is established and regulated according to the
statutory provisions of a Contracting Party and the income of
which is generally exempt from tax in that Contracting Party.
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contracting Parties, then his
status shall be determined as follows:
(a) he shall be deemed to be a resident only of the Party in
which he has a permanent home available to him; if he has a
permanent home available to him in both Parties, he shall be
deemed to be a resident only of the Party with which his personal
and economic relations are closer ("centre of vital
interests");
(b) if the Party 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 Party, he shall be deemed to be a resident only
of the Party in which he has an habitual abode;
(c) if he has an habitual abode in both Parties or in neither
of them, he shall be deemed to be a resident only of the Party of
which he is a national (in the case of Latvia) on in which he has
the right of abode (in the case of the Hong Kong Special
Administrative Region);
(d) if he is a national of Latvia and also has the right of
abode in the Hong Kong Special Administrative Region, or if he is
not a national of Latvia nor have the right of abode in the Hong
Kong Special Administrative Region, the competent authorities of
the Contracting Parties 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
Parties, the competent authorities of the Contracting Parties
shall endeavour to settle the question by mutual agreement and
determine the mode of application of the Agreement to such
person. In the absence of such agreement, for the purposes of the
Agreement, the person shall not be entitled to claim any benefits
provided by the Agreement.
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. The term "permanent establishment" also
encompasses:
(a) a building site, construction, assembly or installation
project or supervisory activities in connection therewith, but
only if such site, project or activities last more than nine
months;
(b) the furnishing of services, including consultancy
services, by an enterprise of a Contracting Party directly or
through employees or other personnel engaged by the enterprise
for such purpose, but only where such activities continue (for
the same or a connected project) in the other Contracting Party
for a period or periods exceeding in the aggregate six months
within any twelve month period.
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 sub-paragraphs (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, where
a person - other than an agent of an independent status to whom
paragraph 6 applies - is acting on behalf of an enterprise and
has, and habitually exercises, in a Contracting Party an
authority to conclude contracts in the name of the enterprise,
that enterprise shall be deemed to have a permanent establishment
in that Party 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 Party merely because it carries on
business in that Party 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 Party controls or is controlled by a company which is
a resident of the other Contracting Party, or which carries on
business in that other Party (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 Party from
immovable property (including income from agriculture or
forestry) situated in the other Contracting Party may be taxed in
that other Party.
2. The term "immovable property" shall have the
meaning which it has under the law of the Contracting Party 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,
any option or similar right to acquire immovable property,
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.
Article 7
Business Profits
1. The profits of an enterprise of a Contracting Party shall
be taxable only in that Party unless the enterprise carries on
business in the other Contracting Party 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 Party, 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 Party carries on business in the
other Contracting Party through a permanent establishment
situated therein, there shall in each Contracting Party 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,
there shall be allowed as deductions expenses which are incurred
for the purposes of the permanent establishment, including
executive and general administrative expenses so incurred,
whether in the Party in which the permanent establishment is
situated or elsewhere.
4. Insofar as it has been customary in a Contracting Party 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 Party 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
Shipping and Air Transport
1. Profits of an enterprise of a Contracting Party from the
operation of ships or aircraft in international traffic shall be
taxable only in that Party.
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.
3. For the purposes of this Article, profits of an enterprise
from the operation of ships or aircraft in international traffic
include:
(a) revenues and gross receipts from the operation of ships or
aircraft for the transport of persons, goods, mail or merchandise
in international traffic including:
(i) income derived from the lease of ships or aircraft on a
bareboat charter basis where such lease is incidental to the
operation of ships or aircraft in international traffic;
(ii) income derived from the sale of tickets and the provision
of services connected with such transport whether for the
enterprise itself or for any other enterprise, provided that in
the case of provision of services, such provision is incidental
to the operation of ships and aircraft in international
traffic;
(b) interest on investments that are made in a Contracting
Party as integral part of carrying on the business of operation
of ships or aircraft in international traffic, which shall be
regarded as profits derived from the operation of such ships or
aircraft and the provisions of Article 11 shall not apply in
relation to such interest;
(c) profits from the use, maintenance or lease of containers
(including trailers and related equipment for the transport of
containers) by the enterprise for the transport of goods or
merchandise when such activities are incidental to the operation
of ships or aircraft in international traffic.
Article 9
Associated Enterprises
1. Where
(a) an enterprise of a Contracting Party participates directly
or indirectly in the management, control or capital of an
enterprise of the other Contracting Party, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Contracting
Party and an enterprise of the other Contracting Party, 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 Party includes in the profits of an
enterprise of that Party - and taxes accordingly - profits on
which an enterprise of the other Contracting Party has been
charged to tax in that other Party and the profits so included
are profits which would have accrued to the enterprise of the
first-mentioned Party if the conditions made between the two
enterprises had been those which would have been made between
independent enterprises, then that other Party 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 Parties shall if
necessary consult each other.
Article 10
Dividends
1. Dividends paid by a company which is a resident of a
Contracting Party to a resident of the other Contracting Party
may be taxed in that other Party.
2. However, such dividends may also be taxed in the
Contracting Party of which the company paying the dividends is a
resident and according to the laws of that Party, but if the
beneficial owner of the dividends is a resident of the other
Contracting Party, 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);
(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. Notwithstanding the provisions of paragraph 2 of this
Article, dividends arising in a Contracting Party are exempt from
tax in that Party, if they are paid:
(a) in the case of the Hong Kong Special Administrative
Region:
(i) to the Government of the Hong Kong Special Administrative
Region;
(ii) to the Hong Kong Monetary Authority;
(iii) to the Exchange Fund;
(iv) to any institution wholly or mainly owned by the
Government of the Hong Kong Special Administrative Region as may
be agreed from time to time between the competent authorities of
the Contracting Parties;
(b) in the case of Latvia:
(i) to the Government of Latvia or its local authority;
(ii) to the Bank of Latvia;
(iii) to a statutory body or any institution wholly or mainly
owned by the Government of Latvia or its local authority, and in
either case as may be agreed from time to time between the
competent authorities of the Contracting Parties;
(c) in the case of either Contracting Party, to a pension fund
or scheme as referred to in paragraph 1 of Article 4.
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 Party of which the company making the
distribution is a resident.
5. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting Party, carries on business in the other Contracting
Party of which the company paying the dividends is a resident
through a permanent establishment situated therein and the
holding in respect of which the dividends are paid is effectively
connected with such permanent establishment. In such case the
provisions of Article 7 shall apply.
6. Where a company which is a resident of a Contracting Party
derives profits or income from the other Contracting Party, that
other Party 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 Party or insofar as the holding in respect of which
the dividends are paid is effectively connected with a permanent
establishment situated in that other Party, 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 Party.
Article 11
Interest
1. Interest arising in a Contracting Party and paid to a
resident of the other Contracting Party may be taxed in that
other Party.
2. However, such interest may also be taxed in the Contracting
Party in which it arises and according to the laws of that Party,
but if the beneficial owner of the interest is a resident of the
other Contracting Party, 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
Party to a company (other than a partnership) that is a resident
of the other Contracting Party 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 of this
Article, interest arising in a Contracting Party is exempt from
tax in that Party, if it is paid:
(a) in the case of the Hong Kong Special Administrative
Region:
(i) to the Government of the Hong Kong Special Administrative
Region;
(ii) to the Hong Kong Monetary Authority;
(iii) to the Exchange Fund;
(iv) to any institution wholly or mainly owned by the
Government of the Hong Kong Special Administrative Region as may
be agreed from time to time between the competent authorities of
the Contracting Parties;
(b) in the case of Latvia:
(i) to the Government of Latvia or its local authority;
(ii) to the Bank of Latvia;
(iii) to a statutory body or any institution wholly or mainly
owned by the Government of Latvia or its local authority, and in
either case as may be agreed from time to time between the
competent authorities of the Contracting Parties;
(c) in the case of either Contracting Party, to a pension fund
or scheme as referred to in paragraph 1 of Article 4.
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 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting Party, carries on business in the other Contracting
Party in which the interest arises through a permanent
establishment situated therein and the debt-claim in respect of
which the interest is paid is effectively connected with such
permanent establishment. In such case the provisions of Article 7
shall apply.
6. Interest shall be deemed to arise in a Contracting Party
when the payer is a resident of that Party. Where, however, the
person paying the interest, whether he is a resident of a
Contracting Party or not, has in a Contracting Party a permanent
establishment in connection with which the indebtedness on which
the interest is paid was incurred, and such interest is borne by
such permanent establishment, then such interest shall be deemed
to arise in the Party in which the permanent establishment 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 Party, due regard being had to the other
provisions of this Agreement.
Article 12
Royalties
1. Royalties arising in a Contracting Party and paid to a
resident of the other Contracting Party may be taxed in that
other Party.
2. However, such royalties may also be taxed in the
Contracting Party in which they arise and according to the laws
of that Party, but if the beneficial owner of the royalties is a
resident of the other Contracting Party, the tax so charged shall
not exceed:
(a) 0 per cent of the gross amount of the royalties for the
use of, or the right to use, industrial, commercial or scientific
equipment or for information concerning industrial, commercial or
scientific experience if the royalties are paid by a company that
is a resident of a Contracting Party to a company (other than a
partnership) that is a resident of the other Contracting Party
and is the beneficial owner of the royalties;
(b) 3 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, films or tapes
for radio or television broadcasting, any patent, trade mark,
design or model, plan, secret formula or process, or for the use
of, or the right to use, industrial, commercial, or scientific
equipment, 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 Party, carries on business in the other Contracting
Party in which the royalties arise through a permanent
establishment situated therein and the right or property in
respect of which the royalties are paid is effectively connected
with such permanent establishment. In such case the provisions of
Article 7 shall apply.
5. Royalties shall be deemed to arise in a Contracting Party
when the payer is a resident of that Party. Where, however, the
person paying the royalties, whether he is a resident of a
Contracting Party or not, has in a Contracting Party a permanent
establishment in connection with which the liability to pay the
royalties was incurred, and such royalties are borne by such
permanent establishment, then such royalties shall be deemed to
arise in the Party in which the permanent establishment 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 Party,
due regard being had to the other provisions of this
Agreement.
Article 13
Capital Gains
1. Gains derived by a resident of a Contracting Party from the
alienation of immovable property referred to in Article 6 and
situated in the other Contracting Party may be taxed in that
other Party.
2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting Party has in the other Contracting
Party, including such gains from the alienation of such a
permanent establishment (alone or with the whole enterprise), may
be taxed in that other Party.
3. Gains derived by an enterprise of a Contracting Party
operating ships or aircraft in international traffic from the
alienation of ships or aircraft operated in international traffic
or movable property pertaining to the operation of such ships or
aircraft shall be taxable only in that Party.
4. Gains derived by a resident of a Contracting Party from the
alienation of shares or of a comparable interest of any kind
deriving more than 50 per cent of their value directly or
indirectly from immovable property situated in the other
Contracting Party may be taxed in that other Party. However, this
paragraph does not apply to gains derived from the alienation of
shares:
(a) quoted on such stock exchange as may be agreed between the
Parties; or
(b) alienated or exchanged in the framework of a
reorganisation of a company, a merger, a division or a similar
operation.
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 Party of which the alienator is a resident.
Article 14
Income from Employment
1. Subject to the provisions of Articles 15, 17 and 18,
salaries, wages and other similar remuneration derived by a
resident of a Contracting Party in respect of an employment shall
be taxable only in that Party unless the employment is exercised
in the other Contracting Party. If the employment is so
exercised, such remuneration as is derived therefrom may be taxed
in that other Party.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by a resident of a Contracting Party in respect of an
employment exercised in the other Contracting Party shall be
taxable only in the first-mentioned Party if:
(a) the recipient is present in the other Party for a period
or periods not exceeding in the aggregate 183 days in any twelve
month period commencing or ending in the taxable period
concerned, and
(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other Party, and
(c) the remuneration is not borne by a permanent establishment
which the employer has in the other Party.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised aboard
a ship or aircraft operated in international traffic by an
enterprise of a Contracting Party shall be taxable only in that
Party.
Article 15
Directors' Fees
Directors' fees and other similar remuneration derived by a
resident of a Contracting Party 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 Party may be taxed
in that other Party.
Article 16
Artistes and Sportsmen
1. Notwithstanding the provisions of Articles 7 and 14, income
derived by a resident of a Contracting Party as an entertainer,
such as a theatre, motion picture, radio or television artiste,
or a musician, or as a sportsman, from his personal activities as
such exercised in the other Contracting Party, may be taxed in
that other Party.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsman himself but to another person,
that income may, notwithstanding the provisions of Articles 7 and
14, be taxed in the Contracting Party in which the activities of
the entertainer or sportsman are exercised.
Article 17
Pensions
1. Subject to the provisions of paragraph 2 of this Article
and paragraph 2 of Article 18, pensions and other similar
remuneration (including a lump sum payment) paid to a resident of
a Contracting Party in consideration of past employment including
self-employment shall be taxable only in that Party.
2. Subject to the provisions of paragraph 2 of Article 18,
pensions and other similar remuneration (including a lump sum
payment) made under a pension or retirement scheme which is:
(a) a public scheme which is part of the social security
system of a Contracting Party; or
(b) a scheme in which individuals may participate to secure
retirement benefits and which is recognised for tax purposes in a
Contracting Party,
shall be taxable only in that Contracting Party.
Article 18
Government Service
1. (a) Salaries, wages and other similar remuneration, other
than a pension, paid by a Contracting Party or a local authority
thereof to an individual in respect of services rendered to that
Party or authority shall be taxable only in that Party.
(b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other Contracting Party
if the services are rendered in that Party and the individual is
a resident of that Party who:
(i) in the case of Latvia, is a national thereof and in the
case of the Hong Kong Special Administrative Region, has the
right of abode therein; or
(ii) did not become a resident of that Party solely for the
purpose of rendering the services.
2. (a) Any pension (including a lump sum payment) and other
similar remuneration paid by, or paid out of funds created or
contributed by a Contracting Party or a local authority thereof
to an individual in respect of services rendered to that Party or
authority shall be taxable only in that Party.
(b) However, if the individual who rendered the services is a
resident of the other Contracting Party and the case falls within
subparagraph (b) of paragraph 1 of this Article, any
corresponding pension (whether a payment in lump sum or by
instalments) and other similar remuneration shall be taxable only
in that other Contracting Party.
3. The provisions of Articles 14, 15, 16, and 17 shall apply
to salaries, wages, pensions (including a lump sum payment), and
other similar remuneration in respect of services rendered in
connection with a business carried on by a Contracting Party or a
local authority thereof.
Article 19
Students
Payments which a student or business apprentice who is or was
immediately before visiting a Contracting Party a resident of the
other Contracting Party and who is present in the first-mentioned
Party 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 Party, provided that such
payments arise from sources outside that Party.
Article 20
Other Income
1. Items of income of a resident of a Contracting Party,
wherever arising, not dealt with in the foregoing Articles of
this Agreement shall be taxable only in that Party.
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 Party, carries on business in the other
Contracting Party through a permanent establishment situated
therein and the right or property in respect of which the income
is paid is effectively connected with such permanent
establishment. In such case the provisions of Article 7 shall
apply.
Article 21
Elimination of Double Taxation
1. In the case of the Hong Kong Special Administrative Region,
double taxation shall be eliminated as follows:
Subject to the provisions of the laws of the Hong Kong Special
Administrative Region relating to the allowance of a credit
against Hong Kong Special Administrative Region tax of tax paid
in a jurisdiction outside the Hong Kong Special Administrative
Region (which shall not affect the general principle of this
Article), Latvian tax paid under the laws of Latvia and in
accordance with this Agreement, whether directly or by deduction,
in respect of income derived by a person who is a resident of the
Hong Kong Special Administrative Region from sources in Latvia,
shall be allowed as a credit against Hong Kong Special
Administrative Region tax payable in respect of that income,
provided that the credit so allowed does not exceed the amount of
Hong Kong Special Administrative Region tax computed in respect
of that income in accordance with the tax laws of the Hong Kong
Special Administrative Region.
2. In the case of 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 the Hong Kong Special
Administrative Region, unless a more favourable treatment is
provided in its internal 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 the Hong Kong Special
Administrative Region. 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 the Hong Kong Special Administrative Region.
Article 22
Non-Discrimination
1. Persons who, in the case of Latvia, are Latvian nationals,
and, in the case of the Hong Kong Special Administrative Region,
have the right of abode or are incorporated or otherwise
constituted therein, shall not be subjected in the other
Contracting Party 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 Party
(where that other Party is Latvia) or persons who have the right
of abode or are incorporated or otherwise constituted in that
other Party (where that other Party is the Hong Kong Special
Administrative Region) 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 Parties.
2. Stateless persons who are residents of a Contracting Party
shall not be subjected in either Contracting Party 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 Party (where the Party is Latvia) or
persons who have the right of abode in the Party (where the Party
is the Hong Kong Special Administrative Region) 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 Party has in the other Contracting
Party shall not be less favourably levied in that other Party
than the taxation levied on enterprises of that other Party
carrying on the same activities. This provision shall not be
construed as obliging a Contracting Party to grant to residents
of the other Contracting Party any personal allowances, reliefs
and reduction 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 l 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 Party to a resident of the other Contracting
Party 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
Party.
5. Enterprises of a Contracting Party, the capital of which is
wholly or partly owned or controlled, directly or indirectly, by
one or more residents of the other Contracting Party, shall not
be subjected in the first-mentioned Party 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 Party 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 23
Mutual Agreement Procedure
1. Where a person considers that the actions of one or both of
the Contracting Parties 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 internal laws of
those Parties, present his case to the competent authority of the
Contracting Party of which he is a resident or, if his case comes
under paragraph 1 of Article 22, to that of the Contracting Party
of which he is a national (in the case of Latvia) or in which he
has the right of abode or is incorporated or otherwise
constituted (in the case of the Hong Kong Special Administrative
Region). 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
Party, 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 internal laws
of the Contracting Parties.
3. The competent authorities of the Contracting Parties 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 Parties 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 24
Exchange of Information
1. The competent authorities of the Contracting Parties shall
exchange such information as is foreseeably relevant for carrying
out the provisions of this Agreement or to the administration or
enforcement of the internal laws of the Contracting Parties
concerning taxes covered by the Agreement, insofar as the
taxation thereunder is not contrary to the Agreement. The
exchange of information is not restricted by Article 1.
2. Any information received under paragraph 1 by a Contracting
Party shall be treated as secret in the same manner as
information obtained under the internal laws of that Party 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,
or the determination of appeals in relation to the taxes referred
to in paragraph 1. 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.
Information shall not be disclosed to any third jurisdiction for
any purpose.
3. In no case shall the provisions of paragraphs 1 and 2 be
construed so as to impose on a Contracting Party the
obligation:
(a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting Party;
(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 Party;
(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 Party in
accordance with this Article, the other Contracting Party shall
use its information gathering measures to obtain the requested
information, even though that other Party 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 Party 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 Party 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 25
Members of Government Missions
Nothing in this Agreement shall affect the fiscal privileges
of members of government missions, including consular posts,
under the general rules of international law or under the
provisions of special agreements.
Article 26
Miscellaneous Provisions
1. Nothing in this Agreement shall prejudice the right of each
Contracting Party to apply its internal laws and measures
concerning tax avoidance, whether or not described as such.
2. For the purposes of this Article, "laws and measures
concerning tax avoidance" includes laws and measures for
preventing, discouraging, avoiding or counteracting the effect of
any transaction, arrangement or practice which has the purpose or
effect of conferring a tax benefit on any person.
Article 27
Entry into Force
1. Each of the Contracting Parties shall notify the other in
writing of the completion of the procedures required by its law
for the bringing into force of this Agreement. The Agreement
shall enter into force on the date of the later of these
notifications.
2. The provisions of the Agreement shall thereupon have
effect:
(a) in the case of the Hong Kong Special Administrative
Region:
in respect of Hong Kong Special Administrative Region tax, for
any year of assessment beginning on or after the first day of
April in the calendar year next following that in which the
Agreement enters into force;
(b) in the case of Latvia:
(i) in respect of taxes withheld at source, on income derived
on or after the first day of January in the calendar year next
following that in which the Agreement enters into force;
(ii) 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 that in which the
Agreement enters into force.
Article 28
Termination
This Agreement shall remain in force until terminated by a
Contracting Party. Either Contracting Party may terminate the
Agreement by giving the other Contracting Party written notice of
termination at least six months before the end of any calendar
year. In such event, the Agreement shall cease to have
effect:
(a) in the case of the Hong Kong Special Administrative
Region:
in respect of Hong Kong Special Administrative Region tax, for
any year of assessment beginning on or after the first day of
April in the calendar year next following that in which the
notice has been given;
(b) in the case of Latvia:
(i) in respect of taxes withheld at source, on income derived
on or after the first day of January in the calendar year next
following that in which the notice has been given;
(ii) 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 that in which the
notice has been given.
IN WITNESS WHEREOF, the undersigned, duly authorised thereto,
have signed this Agreement.
DONE in duplicate at Riga this 13th day of April
2016 , in the Latvian, Chinese and English languages, all three
texts being equally authentic. In the case of divergence of
interpretation the English text shall prevail.
For the Government of the
Republic of Latvia
For the Government
of the Hong Kong Special Administrative Region
of the People's Republic of China
Dana
Reizniece-Ozola
Ceajer
Ka-keung Chan
PROTOCOL
At the time of signing of the Agreement between the Government
of the Republic of Latvia and the Government of the Hong Kong
Special Administrative Region of the People's Republic of China
for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income ("the
Agreement"), the two Governments have agreed on the
following provisions which shall form an integral part of the
Agreement.
1. With reference to
Article 5:
It is understood that an enterprise of a Contracting Party
shall be deemed to have a permanent establishment in the other
Contracting Party in respect of offshore activities in connection
with the exploration or extraction from the sea bed and sub-soil
of natural resources situated in the other Contracting Party if
it carries on such activities in the other Contracting Party, but
only where such activities are carried on for a period or periods
exceeding in the aggregate 30 days in any twelve month
period.
2. With reference to
Article 6:
It is understood that all income and gains from the alienation
of immovable property referred to in Article 6 and situated in a
Contracting Party may be taxed in that Party.
3. With reference to
Article 17:
It is understood that a pension or retirement scheme is
recognised for tax purposes if it is established and regulated in
a Contracting Party and contributions to the scheme qualify for
tax relief.
4. With reference to
Article 24:
(a) It is understood that the provisions in this Article also
apply to the following taxes that are administrated and enforced
in Latvia:
(i) the value added tax (pievienotās vērtības nodoklis);
and
(ii) the immovable property tax (nekustamā īpašuma
nodoklis).
(b) The Article does not require the Contracting Parties to
exchange information on an automatic or a spontaneous basis.
IN WITNESS WHEREOF, the undersigned, duly authorised thereto,
have signed this Protocol.
DONE in duplicate at Riga this 13th day of April 2016, in the
Latvian, Chinese and English languages, all three texts being
equally authentic. In the case of divergence of interpretation
the English text shall prevail.
For the Government of the
Republic of Latvia
For the Government
of the Hong Kong Special Administrative Region
of the People's Republic of China
Dana
Reizniece-Ozola
Ceajer
Ka-keung Chan