32. pants

DARBĪBAS IZBEIGŠANA

Šī Konvencija ir spēkā piecus gadus un pēc tam paliek spēkā

līdzīgu periodu vai periodus, izņemot ja kāda no Līgumslēdzējām

Valstīm informē otru, iesniedzot pa diplomātiskajiem kanāliem

rakstisku paziņojumu vismaz sešus mēnešus pirms sākotnējā vai

jebkura tam sekojošā piecu gadu perioda beigām, par tās nodomu

izbeigt šīs Konvencijas darbību. Šajā gadījumā Konvencijas

darbība abās Līgumslēdzējās Valstīs tiek izbeigta:

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

ienākumam, kas gūts janvāra pirmajā dienā vai pēc tās kalendārajā

gadā, kas seko gadam, kurā ir iesniegts paziņojums par darbības

izbeigšanu;

b) attiecībā uz pārējiem ienākuma nodokļiem un kapitāla

nodokļiem - nodokļiem, kas maksājami jebkurā taksācijas gadā, kas

sākas janvāra pirmajā dienā vai pēc tās kalendārajā gadā, kas

seko gadam, kurā ir iesniegts paziņojums par darbības

izbeigšanu.

To apliecinot, attiecīgie abu Līgumslēdzēju Valstu

pilnvarotie, ir parakstījuši šo Konvenciju.

Konvencija sastādīta divos eksemplāros 1430 H gada Zulkida

mēneša 21.dienā, kas atbilst 2009.gada 9.novembrim, latviešu,

arābu un angļu valodā, turklāt visi trīs teksti ir vienlīdz

autentiski. Atšķirīgas interpretācijas gadījumā noteicošais ir

teksts angļu valodā.

Latvijas Republikas valdības

vārdā

Māris

Riekstiņš

Ārlietu ministrs

Kuveitas Valsts valdības

vārdā

Raudāns

A.Alraudāns

Valsts ministrs valdības

lietās un ārlietu ministra p.i.

PROTOKOLS

Parakstot Latvijas Republikas valdības un Kuveitas Valsts

valdības Konvenciju par nodokļu dubultās uzlikšanas un nodokļu

nemaksāšanas novēršanu attiecībā uz ienākuma un kapitāla

nodokļiem (turpmāk - Konvencija), puses ir vienojušās par tālāk

minētajiem noteikumiem, kas ir Konvencijas neatņemama

sastāvdaļa.

Attiecībā uz 4.panta 2.daļu, tiek saprasts, ka, 2.daļas

piemērošanai, Kuveitas Investīciju pārvalde (ieskaitot tās

ārvalstu filiāles) tiek atzīta par valdības institūciju.

To apliecinot, attiecīgie abu Līgumslēdzēju Valstu

pilnvarotie, ir parakstījuši šo Protokolu.

Protokols sastādīts divos eksemplāros 1430 H gada Zulkida

mēneša 21.dienā, kas atbilst 2009.gada 9.novembrim, latviešu,

arābu un angļu valodā, turklāt visi trīs teksti ir vienlīdz

autentiski. Atšķirīgas interpretācijas gadījumā noteicošais ir

teksts angļu valodā.

Latvijas Republikas valdības

vārdā

Māris Riekstiņš

Ārlietu ministrs

Kuveitas Valsts valdības

vārdā

Raudāns A.Alraudāns

Valsts ministrs valdības

lietās un ārlietu ministra p.i.

CONVENTION BETWEEN THE GOVERNMENT

OF THE REPUBLIC OF LATVIA AND THE GOVERNMENT OF THE STATE OF

KUWAIT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF

FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON

CAPITAL

The Government of the Republic of Latvia and the Government of

the State of Kuwait,

Desiring to promote their mutual economic relations through

the conclusion between them of a Convention for the avoidance of

double taxation and the prevention of fiscal evasion with respect

to taxes on income and on capital,

Have agreed as follows:

Article 1

PERSONS COVERED

This Convention shall apply to persons who are residents of

one or both of the Contracting States.

Article 2

TAXES COVERED

1. This Convention shall apply to taxes on income and on

capital 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 and on capital

all taxes imposed on total income, on total capital, or on

elements of income or of capital, 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 Convention shall apply are

in particular:

a) in Latvia:

(1) the enterprise income tax (uznemumu ienakuma

nodoklis);

(2) the personal income tax (iedzivotaju ienakuma

nodoklis);

(3) the immovable property tax (nekustama ipasuma

nodoklis);

(hereinafter referred to as "Latvian tax");

b) in Kuwait:

(1) the corporate income tax;

(2) the contribution from the net profits of the Kuwaiti

shareholding companies payable to the Kuwait Foundation for

Advancement of Science (KFAS);

(3) the Zakat;

(4) the tax subjected according to the supporting of national

employee law;

(hereinafter referred to as "Kuwaiti tax").

4. The Convention shall apply also to any identical or

substantially similar taxes that are imposed after the date of

signature of the Convention 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 respective taxation laws.

Article 3

GENERAL DEFINITIONS

1. For the purposes of this Convention, 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 "Kuwait" means the territory of the

State of Kuwait including any area beyond the territorial sea

which in accordance with international law has been or may

hereafter be designated, under the laws of Kuwait, as an area

over which Kuwait may exercise sovereign rights or

jurisdiction;

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

other Contracting State" mean Latvia or Kuwait, 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 operated by an enterprise of a

Contracting State, except when the ship or aircraft is operated

solely between places in the other Contracting State;

h) the term "competent authority" means:

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

representative;

(2) in Kuwait, the Ministry of Finance or an authorized

representative of the Ministry of Finance;

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

State, means:

(1) any individual possessing the nationality of that

Contracting State;

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

status as such from the laws in force in that Contracting

State;

j) the term "tax" means Latvian tax or Kuwaiti tax,

as the context requires.

2. As regards the application of the Convention 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 Convention 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 Convention, the term

"resident of a Contracting State" means:

a) in 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, but does not include any person who is liable to

tax in Latvia in respect only of income from sources in Latvia or

capital situated therein;

b) in Kuwait: an individual who has his domicile in Kuwait and

is a Kuwaiti national, and a company which is incorporated in

Kuwait.

2. For the purpose of paragraph 1, a resident of a Contracting

State shall include all of the following:

a) the Government of Contracting State and any local authority

thereof;

b) any governmental institution created in that Contracting

State under public law such as a corporation, Central Bank, fund,

authority, foundation, agency or other similar entity;

c) any entity established in that State, all the capital of

which has been provided by the Government of that State or any

local authority thereof or any governmental institution as

defined in subparagraph b), together with Governments of other

states.

3. 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 his status cannot be determined under the provision of

sub-paragraphs a) to c), the competent authorities of the

Contracting States shall settle the question by mutual

agreement.

4. Where by reason of the provisions of paragraphs 1 and 2 a

person other than an individual is a resident of both Contracting

States, then it shall be deemed to be a resident only of the

Contracting State where it was incorporated.

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term

"permanent establishment" means a fixed place of

business through which the business of an enterprise is wholly or

partly carried on.

2. The term "permanent establishment" includes

especially:

a) a place of management;

b) a branch;

c) an office;

d) a factory;

e) a workshop, and

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

relating to the exploration, extraction or exploitation of

natural resources.

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

project or a supervisory activity connected therewith,

constitutes a permanent establishment only if such site, project

or activity lasts for a period of more than nine months.

4. The furnishing of services, including consultancy services,

by an enterprise of a Contracting State through employees or

other personnel engaged by the enterprise for such purpose,

constitutes a permanent establishment but only where such

activities continue in the territory of the other Contracting

State for a period or periods exceeding in the aggregate six

months within any twelve-month period.

5. Activities carried on offshore in a Contracting State in

connection with the exploration or extraction from the sea bed

and sub-soil of natural resources situated in that State,

constitutes a permanent establishment but only where such

activities are carried on for a period or periods exceeding in

the aggregate 90 days in any twelve month period.

6. 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.

7. Notwithstanding the provisions of paragraphs 1 and 2, where

a person - other than an agent of an independent status to whom

paragraph 8 applies - is acting on behalf of an enterprise and

has, and habitually exercises, in a Contracting State an

authority to conclude contracts in the name of the enterprise,

that enterprise 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 6 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.

8. 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.

9. 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,

rights to assets to be produced by the exploration or

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

resources, including rights to interests in or to the benefit of

such assets. Ships, boats 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, as well as income from the alienation of

immovable property.

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

the income from immovable property of an 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 Convention, then the

provisions of those Articles shall not be affected by the

provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

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

operation of ships or aircraft in international traffic shall be

taxable only in that State.

2. For the purposes of this Article, profits of an enterprise

from the operation of ships or aircraft in international traffic

include:

a) profits from the rental on a bareboat basis of ships or

aircraft; and

b) profits from the use, maintenance or rental of containers

(including trailers and related equipment for the transport of

containers) used for the transport of goods or merchandise;

where such rental or such use, maintenance or rental, as the

case may be, is incidental to the operation of ships or aircraft

by the enterprise in international traffic.

3. The provisions of paragraphs 1 and 2 shall also apply to

profits derived 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 Convention and the

competent authorities of the Contracting States shall if

necessary consult each other.

Article 10

DIVIDENDS

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

Contracting State to a resident of the other 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 5 per cent

of the gross amount of the dividends.

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 paragraphs 1 and 2,

dividends paid by a company which is a resident of a Contracting

State shall not be taxable in that Contracting State if the

beneficial owner of the dividends is:

a) the Government of the other Contracting State or any

governmental institution or other entity thereof as defined in

paragraph 2 of Article 4; or

b) a company (other than a partnership) which is a resident of

the other Contracting State that holds directly at least 10 per

cent of the capital of the company paying the dividends.

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

means income from shares, "jouissance" shares or

"jouissance" rights, 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.

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

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

Contracting State, carries on business in the other Contracting

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

through a permanent establishment situated therein, or performs

in that other State independent personal services from a fixed

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

dividends are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of

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

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

derives profits or income from the other Contracting State, that

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

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

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

the dividends are paid is effectively connected with a permanent

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

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

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

the undistributed profits consist wholly or partly of profits or

income arising in such other State.

Article 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 5

per cent of the gross amount of the interest.

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 or any governmental

institution or other entity thereof as defined in paragraph 2 of

Article 4, or interest arising in a Contracting State on any loan

of whatever kind granted by a bank of the other Contracting

State, 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, as well as income which is subjected to the same

taxation treatment as income from money lent by the taxation laws

of the Contracting State in which the income arises. However, 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 Convention.

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 they arise 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 5 per cent of the gross amount of the royalties.

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 and films or

tapes for radio or television broad-casting, 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 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

Convention.

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 derived by a resident of a Contracting State 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 State may be taxed in that other State.

3. 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.

4. Gains derived by an enterprise of a Contracting State

operating ships or aircraft in international traffic from the

alienation of ships or aircraft operated in international traffic

or movable property pertaining to the operation of such ships or

aircraft, shall be taxable only in that 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.

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.

3. For the purposes of this Convention the term "fixed

base" includes fixed place such as an office or room,

through which the activity of an individual performing

independent personal services is wholly or partly carried on.

Article 15

DEPENDENT PERSONAL SERVICES

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 in respect of an employment exercised aboard

a ship or aircraft operated in international traffic by an

enterprise of a Contracting State may be taxed in that State.

4. Ground staff performing functions of managerial nature and

appointed from head office of national air carrier of a

Contracting State to the other Contracting State shall be

exempted from taxes levied on their remunerations in that other

Contracting State.

Article 16

DIRECTORS' FEES

Directors' fees and other similar payments 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

ARTISTES AND SPORTSMEN

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 sportsman, from his

personal activities as such exercised in the other Contracting

State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by

an entertainer or a sportsman in his capacity as such accrues not

to the entertainer or sportsman himself 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 sportsman 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 sportsman 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 sportsman 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 system of a

Contracting State shall be taxable only in that State.

Article 19

GOVERNMENT SERVICE

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

than a pension, paid by a Contracting State or a 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:

(1) is a national of that State; or

(2) did not become a resident of that State solely for the

purpose of rendering the services.

2. a) Any pension paid by, or out of funds created by, a

Contracting State or a local authority thereof to an individual

in respect of services rendered to that State or authority shall

be taxable only in that State.

b) However, such pension shall be taxable only in the other

Contracting State if the individual is a resident of, and a

national of, that State.

3. The provisions of Articles 15, 16, 17, and 18 shall apply

to salaries, wages, and other similar remuneration, and to

pensions, in respect of services rendered in connection with a

business carried on by a Contracting State or a local authority

thereof.

Article 20

TEACHERS AND RESEARCHERS

1. An individual who visits a Contracting State for the

purpose of teaching or carrying out research at the university,

college or other recognised educational or scientific institution

in that Contracting State and who is or was immediately before

that visit a resident of the other Contracting State, shall be

exempted from taxation in the first-mentioned Contracting State

on remuneration for such teaching or research for a period not

exceeding two years from the date of his first visit for that

purpose.

2. The provisions of this Article shall not apply to income

from research if such research is undertaken not in the public

interest but primarily for the private benefit of a specific

person or persons.

Article 21

STUDENTS

1. 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.

2. In respect of the payments not covered by paragraph 1, and

remuneration for dependent personal services rendered during such

education or training, a student, an apprentice or a trainee

shall be entitled to the same exemptions, reliefs or reductions

in respect of taxes on income as are available to residents of

the Contracting State he is visiting.

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 Convention shall be taxable only in that State.

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

other than income from immovable property 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

CAPITAL

1. Capital represented by immovable property referred to in

Article 6, owned by a resident of a Contracting State and

situated in the other Contracting State, may be taxed in that

other State.

2. Capital represented by 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 by 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, may be taxed in that other State.

3. Capital represented by ships and aircraft operated in

international traffic by an enterprise of a Contracting State and

by movable property pertaining to the operation of such ships,

aircraft and boats, shall be taxable only in that State.

4. All other elements of capital of a resident of a

Contracting State shall be taxable only in that State.

Article 24

ELIMINATION OF DOUBLE TAXATION

1. In Latvia double taxation shall be eliminated as

follows:

a) Where a resident of Latvia derives income or owns capital

which, in accordance with this Convention, may be taxed in

Kuwait, unless a more favourable treatment is provided in its

domestic law, Latvia shall allow:

(1) as a deduction from the tax on the income of that

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

Kuwait;

(2) as a deduction from the tax on the capital of that

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

Kuwait.

Such deduction in either case shall not, however, exceed that

part of the income tax or capital tax in Latvia, as computed

before the deduction is given, which is attributable, as the case

may be, to the income or the capital which may be taxed in

Kuwait.

b) For the purposes of sub-paragraph a), where a company that

is a resident of Latvia receives a dividend from a company that

is a resident of Kuwait in which it owns at least 10 per cent of

its shares having full voting rights, the tax paid in Kuwait

shall include not only the tax paid on the dividend, but also the

appropriate portion of the tax paid on the underlying profits of

the company out of which the dividend was paid.

2. In Kuwait, double taxation shall be eliminated as

follows:

Where a resident of Kuwait derives income or owns capital

which, in accordance with the provisions of this Convention, may

be taxed in both Kuwait and Latvia, Kuwait shall allow as a

deduction from the tax on the income of that resident, an amount

equal to the income tax paid in Latvia and as a deduction from

the tax on the capital of that resident an amount equal to the

capital tax paid in Latvia.

Such deductions in either case shall not, however, exceed that

part of the tax on income or on capital, as computed before the

deduction is given, which is attributable, as the case may be, to

the income or the capital which may be taxed in Latvia.

Article 25

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.

2. 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 residents of that other State

carrying on the same activities under the same circumstances.

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.

3. 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.

4. Nothing in this Article shall be interpreted as imposing a

legal obligation on a Contracting State to extend to the

residents of the other Contracting State, the benefit of any

treatment, preference or privilege which may be accorded to any

third state or its residents by virtue of the formation of a

customs union, economic union, a free trade area or any regional

or sub-regional arrangement relating wholly or mainly to taxation

or movement of capital to which the first-mentioned State may be

a party.

5. The provisions of this Article shall apply to taxes covered

by this Convention.

Article 26

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 Convention, he may,

irrespective of the remedies provided by the domestic law of

those States, present his case to the competent authority of the

Contracting State of which he is a resident or, if his case comes

under paragraph 1 of Article 25, to that of the Contracting State

of which he is a national. 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

Convention.

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 Convention. 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

Convention. They may also consult together for the elimination of

double taxation in cases not provided for in the Convention.

4. The competent authorities of the Contracting States may

communicate with each other directly, 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 27

EXCHANGE OF

INFORMATION

1. The competent authorities of the Contracting States shall

exchange such information as is necessary for carrying out the

provisions of this Convention or of the domestic laws of the

Contracting States concerning taxes covered by the Convention

insofar as the taxation thereunder is not contrary to the

Convention. The exchange of information is not restricted by

Article 1. Any information received 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, or the determination of

appeals in relation to, the taxes covered by the Convention. 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.

2. In no case shall the provisions of paragraph 1 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).

Article 28

MISCELLANEOUS RULES

1. The provisions of this Convention shall not be construed to

restrict in any manner any exclusion, exemption, deduction,

credit or other allowance now or hereafter accorded either:

a) by the laws of a Contracting State in the determination of

the tax imposed by that State;

b) by any other special arrangement on taxation in connection

with the economic or technical cooperation between the

Contracting States.

2. The competent authorities of each Contracting State may

prescribe regulations necessary to carry out the provisions of

this Convention.

Article 29

LIMITATION OF BENEFITS

The benefits of any reduction in or exemption from taxes

provided for in this Convention may not be granted to a company

or other entity of a Contracting State if the main purpose or one

of the main purposes of the creation or existence of such a

company or entity was to obtain the benefits under this

Convention that would not otherwise be available.

Article 30

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Convention 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 31

ENTRY INTO FORCE

1. The Governments of the Contracting States shall notify each

other in written correspondence through diplomatic channels when

the constitutional requirements for the entry into force of this

Convention have been complied with.

2. The Convention 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 Convention enters into force;

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

for taxes chargeable for any fiscal year beginning on or after

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

year in which the Convention enters into force.

Article 32

TERMINATION

This Convention shall remain in force for a period of five

years and shall continue in force thereafter for a similar period

or periods unless either Contracting State notifies the other in

writing through diplomatic channels, at least six months before

the expiry of the initial or any subsequent period of five years,

of its intention to terminate this Convention. In such event, the

Convention 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 and taxes on capital,

for taxes chargeable for any fiscal year beginning on or after

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

year in which the notice has been given.

In witness whereof, the respective plenipotentiaries of both

Contracting States have signed this Convention.

Done at Kuwait this 21st day of Thulqida 1430 H

corresponding to the 9th day of November 2009, in two

originals, in the Latvian, Arabic 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

Mr. Māris Riekstiņš

For the Government of

the State of Kuwait

Mr. Roudhan A.Al-Roudhan

PROTOCOL

At the signing of the Convention between the Government of the

Republic of Latvia and the Government of the State of Kuwait for

the avoidance of double taxation and the prevention of fiscal

evasion with respect to taxes on income and on capital

(hereinafter referred to as "the Convention") the

undersigned have agreed upon the following provisions which form

an integral part of the Convention.

With reference to paragraph 2 of Article 4, it is understood

that the Kuwait Investment Authority (including its foreign

branches) has been recognised as a governmental institution for

the purposes of paragraph 2.

In witness whereof, the respective plenipotentiaries of both

Contracting States have signed this Protocol.

Done at Kuwait this 21st day of Thulqida 1430 H

corresponding to the 9th day of November 2009, in two

originals, in the Latvian, Arabic 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

Mr. Māris

Riekstiņš

For the Government of

the State of Kuwait

Mr. Roudhan

A.Al-Roudhan