Vairogs30. pants
Spēkā · redakcija pārbaudīta 2026-05-18
Darbības izbeigšana
1. Šī konvencija ir spēkā uz nenoteiktu laiku, taču ikviena
Līgumslēdzēja Valsts var izbeigt šīs konvencijas darbību, pa
diplomātiskiem kanāliem iesniedzot otrai Līgumslēdzējai Valstij
rakstisku paziņojumu par darbības izbeigšanu ne vēlāk kā jebkura
kalendārā gada 30. jūnijā pēc tam, kad aizritējuši vismaz
pieci gadi pēc gada, kurā šī konvencija stājusies spēkā.
2. Šādā gadījumā Konvencija zaudē spēku:
a) attiecībā uz nodokļiem, ko ietur ienākuma izmaksas brīdī
par summām, kas izmaksātas pēc kalendārā gada beigām, kurā
iesniegts šāds paziņojums; un
b) attiecībā uz pārējiem nodokļiem par taksācijas gadiem, kas
sākas pēc tā kalendārā gada beigām, kurā iesniegts šāds
paziņojums.
To apliecinot, būdami pienācīgi pilnvaroti, šo konvenciju ir
parakstījuši.
Parakstīts Rijādā 2019. gada 7. novembrī, kas
atbilst Hidžrī kalendāra 1441. gada zulkidas mēneša 10. datumam,
divos eksemplāros latviešu, arābu un angļu valodā, turklāt visi
teksti ir vienlīdz autentiski. Atšķirīgas interpretācijas
gadījumā noteicošais ir teksts angļu valodā.
Latvijas Republikas valdības
vārdā:
Edgars Rinkēvičs
ārlietu ministrs
Saūda Arābijas Karalistes
valdības vārdā:
Muhammads Aldžadāns
finanšu ministrs
PROTOKOLS
Latvijas Republikas valdības un Saūda Arābijas Karalistes
valdības konvencijas par nodokļu dubultās uzlikšanas attiecībā uz
ienākuma un kapitāla nodokļiem un ļaunprātīgas izvairīšanās no
nodokļu maksāšanas novēršanu parakstīšanas brīdī apakšā
parakstījušies ir vienojušies par to, ka turpmāk minētie
noteikumi ir Konvencijas neatņemama daļa.
1. Attiecībā uz Konvencijas 3. panta 1. daļas
d) apakšpunktu:
tiek saprasts, ka termins "persona" ietver arī
Līgumslēdzēju Valsti, tās administratīvās vienības vai
pašvaldības.
2. Attiecībā uz Konvencijas 4. panta 1. daļu:
tiek saprasts, ka termins "Līgumslēdzējas Valsts
rezidents" ietver arī juridisku personu, kas izveidota
saskaņā ar Līgumslēdzējas Valsts normatīvajiem aktiem un kas nav
apliekama ar nodokli vai parasti ir atbrīvota no nodokļa šajā
līgumslēdzējā valstī un ir nodibināta un uzturēta šajā
Līgumslēdzējā Valstī:
a) vienīgi ar reliģiju, labdarību, izglītošanu, zinātni
saistītām vajadzībām vai citā līdzīgā nolūkā, vai
b) nolūkā maksāt pensijas vai citus līdzīgus pabalstus.
3. Attiecībā uz Konvencijas 5. pantu:
tiek saprasts, ka personai, kas ir Līgumslēdzējas Valsts
rezidents un veic darbības šelfa zonā (definē kā darbības, ko
veic jebkurā Līgumslēdzējas Valsts teritoriālajiem ūdeņiem
piegulošā teritorijā saistībā ar jūras un zemes dzīļu, un tur
esošo dabas resursu izpēti vai izmantošanu) otrā Līgumslēdzējā
Valstī, ir pastāvīgā pārstāvniecība šajā otrā Līgumslēdzējā
Valstī.
4. Attiecībā uz Konvencijas 6. pantu:
tiek saprasts, ka jebkuram ienākumam, ko gūst, atsavinot
6. pantā minēto nekustamo īpašumu, kurš atrodas otrā
Līgumslēdzējā Valstī, var uzlikt nodokļus šajā otrā valstī.
5. Attiecībā uz Konvencijas 7. pantu:
tiek saprasts, ka:
a) Līgumslēdzējas Valsts uzņēmuma peļņai no preču
eksportēšanas uz otru Līgumslēdzēju Valsti netiek uzlikti nodokļi
otrā Līgumslēdzējā Valstī, ja vien netiek piemērota Konvencijas
5. panta 5. daļas noteikumi. Ja eksporta līgumos ir
ietvertas citas darbības, kas tiek veiktas, izmantojot pastāvīgo
pārstāvniecību otrā Līgumslēdzējā Valstī, no šādām darbībām
gūtajai peļņai var uzlikt nodokļus otrā Līgumslēdzējā Valstī;
b) termins "uzņēmējdarbības peļņa" ietver, bet
neaprobežojas ar peļņu, kas gūta no ražošanas, tirdzniecības,
banku darbības, apdrošināšanas, iekšzemes pārvadājumiem un
pakalpojumu sniegšanas. Šis termins neietver individuālo
pakalpojumus sniegšanu, ko fiziska persona veic vai nu kā algots
darbinieks vai neatkarīgi.
6. Attiecībā uz Konvencijas 10. pantu:
neatkarīgi no Konvencijas noteikumiem peļņai, ko gūst
Līgumslēdzējas Valsts sabiedrība, kura veic uzņēmējdarbību otrā
Līgumslēdzējā Valstī, izmantojot tajā esošu pastāvīgo
pārstāvniecību, pēc tam, kad tai ir uzlikti nodokļi saskaņā ar
7. pantu, var uzlikt nodokļus attiecībā uz atlikušo tās
peļņas summu Līgumslēdzējā Valstī, kurā atrodas pastāvīgā
pārstāvniecība, un šādi uzlikts nodoklis nedrīkst pārsniegt
5 procentus.
7. Ja Saūda Arābijas Karaliste ieviesīs ienākuma nodokli
attiecībā uz tās valstspiederīgajiem, kuri ir Saūda Arābijas
Karalistes rezidenti, vai ja tiks attiecīgi grozīts spēkā esošais
nodoklis, tad abas Līgumslēdzējas Valstis uzsāks sarunas, lai
iekļautu Konvencijā pantu par diskriminācijas nepieļaušanu.
To apliecinot, būdami pienācīgi pilnvaroti, šo protokolu ir
parakstījuši.
Parakstīts Rijādā 2019. gada 7. novembrī, kas
atbilst Hidžrī kalendāra 1441. gada zulkidas mēneša 10. datumam,
divos eksemplāros latviešu, arābu un angļu valodā, turklāt visi
teksti ir vienlīdz autentiski. Atšķirīgas interpretācijas
gadījumā noteicošais ir teksts angļu valodā.
Latvijas Republikas valdības
vārdā:
Edgars Rinkēvičs
ārlietu ministrs
Saūda Arābijas Karalistes
valdības vārdā:
Muhammads Aldžadāns
finanšu ministrs
CONVENTION BETWEEN THE GOVERNMENT
OF THE REPUBLIC OF LATVIA AND THE GOVERNMENT OF THE KINGDOM OF
SAUDI ARABIA FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO
TAXES ON INCOME, AND ON CAPITAL AND THE PREVENTION OF TAX
EVASION
The Government of the Republic of Latvia and the Government of
the Kingdom of Saudi Arabia,
Desiring to further develop their economic relationship and to
enhance their co‑operation in tax matters,
Intending to conclude a Convention for the avoidance of double
taxation with respect to taxes on income and on capital without
creating opportunities for non-taxation or reduced taxation
through tax evasion or avoidance (including through
treaty-shopping arrangements aimed at obtaining reliefs provided
in this Convention for the indirect benefit of residents of third
States),
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
administrative subdivisions or 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.
3. The existing taxes to which this Convention shall apply are
in particular:
(a) in the case of the Kingdom of Saudi Arabia:
(i) the Zakat;
(ii) the income tax including the natural gas investment
tax;
(hereinafter referred to as the "Saudi tax").
(b) in the case of Latvia:
(i) the enterprise income tax (uznemumu ienakuma
nodoklis);
(ii) the personal income tax (iedzivotaju ienakuma
nodoklis);
(iii) the immovable property tax (nekustama ipasuma
nodoklis);
(hereinafter referred to as "Latvian tax").
4. The provisions of this Convention shall apply also to any
identical or substantially similar taxes that are imposed by
either Contracting State after the date of signature of this
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 "Kingdom of Saudi Arabia" means the
territory of the Kingdom of Saudi Arabia which also includes the
area outside the territorial waters, where the Kingdom of Saudi
Arabia exercises its sovereign and jurisdictional rights in their
waters, sea bed, sub-soil and natural resources by virtue of its
law and international law;
(b) 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;
(c) the terms "a Contracting State" and "the
other Contracting State" mean the Kingdom of Saudi Arabia or
Latvia, 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:
(i) in the case of the Kingdom of Saudi Arabia, the Ministry
of Finance represented by the Minister of Finance or his
authorized representative;
(ii) in the case of Latvia, the Ministry of Finance or its
authorized representative.
(i) the term "national" means:
(i) any individual possessing the nationality of a Contracting
State;
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting State.
2. As regards the application of this 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 Contracting State for the
purposes of the taxes to which this Convention applies, any
meaning under the applicable tax laws of that Contracting State
prevailing over a meaning given to the term under other laws of
that Contracting State.
Article 4
Resident
1. For the purposes of this Convention, the term
"resident of a Contracting State" means any person who,
under the laws of that State, is liable to tax therein by reason
of his domicile, residence, place of incorporation, place of
management or any other criterion of a similar nature, and also
includes that State and any administrative subdivision or local
authority thereof.
This term, however, does not include any person who is liable
to tax in that State in respect only of income from sources in
that State or capital situated therein.
2. Where by reason of the provisions of paragraph 1 of this
Article, 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
Contracting State in which he has a permanent home available to
him; if he has a permanent home available to him in both
Contracting States, he shall be deemed to be a resident only of
the Contracting State with which his personal and economic
relations are closer (center of vital interests);
(b) if the Contracting State in which he has his center of
vital interests cannot be determined, or if he has not a
permanent home available to him in either Contracting State, he
shall be deemed to be a resident only of the Contracting State in
which he has an habitual abode;
(c) if he has an habitual abode in both Contracting States or
in neither of them, he shall be deemed to be a resident only of
the Contracting State of which he is a national;
(d) if he is a national of both Contracting States or of
neither of them, the competent authorities of the Contracting
States shall settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1 of this
Article, a person other than an individual is a resident of both
Contracting States, the competent authorities of the Contracting
States shall endeavour to settle the question by mutual
agreement, taking into consideration that the place of effective
management is one of the main criteria in this case.
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) any place of extraction of natural resources.
3. The term "permanent establishment" also
includes:
(a) a building site, a construction, assembly or installation
project, or supervisory activities, in connection therewith, but
only where such site, project or activities continue for a period
of more than 183 days;
(b) the furnishing of services, including consultancy
services, by an enterprise through employees or other personnel
engaged by the enterprise for such purpose, but only where
activities of that nature continue (for the same or a connected
project) within a Contracting State for a period or periods
exceeding in the aggregate 183 days within any 12-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 subparagraphs (a) to
(e), provided that the overall activity of the fixed place of
business resulting from this combination is of a preparatory or
auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2 of
this Article but subject to the provisions of paragraph 6 of this
Article, where a person is acting in a Contracting State on
behalf of an enterprise and:
(a) habitually concludes contracts, or habitually plays the
principal role leading to the conclusion of contracts that are
routinely concluded without material modification by the
enterprise, and these contracts are in the name of the
enterprise, or for the transfer of the ownership of, or for the
granting of the right to use, property owned by that enterprise
or that the enterprise has the right to use; or for the provision
of services by that enterprise; or
(b) habitually maintains in that State a stock of goods or
merchandise belonging to the enterprise from which he regularly
delivers goods or merchandise on behalf of the enterprise, and
effects in that State sales related activities contributing to
the sales of such goods or merchandise
that enterprise shall be deemed to have a permanent
establishment in that Contracting State in respect of any
activities which that person undertakes for the enterprise,
unless the activities of such person are limited to those
mentioned in paragraph 4 of this Article 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 of a Contracting State shall not be deemed to
have a permanent establishment in the other Contracting State
merely because it carries on business in that other State through
a broker, general commission agent or any other agent of an
independent status, provided that such persons are acting in the
ordinary course of their business.
7. The fact that a company which is a resident of a
Contracting State controls or is controlled by a company which is
a resident of the other Contracting State, or which carries on
business in that other State (whether through a permanent
establishment or otherwise), shall not of itself constitute
either company a permanent establishment of the other.
Article 6
Income from Immovable Property
1. Income derived by a resident of a Contracting State from
immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be taxed in
that other Contracting 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. This term shall in
any case include property accessory to immovable property,
livestock and equipment used in agriculture and forestry, rights
to which the provisions of general law respecting landed property
apply, usufruct of immovable property and rights to variable or
fixed payments as consideration for the working of, or the right
to work, mineral deposits, sources and other natural resources.
Ships and aircraft shall not be regarded as immovable
property.
3. The provisions of paragraph 1 of this Article 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 of this Article 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 of this Article,
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 the determination of the profits of a permanent
establishment there shall be allowed as deductions expenses which
are incurred for the purposes of the business 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. However, no such
deduction shall be allowed in respect of amounts, if any, paid
(otherwise than towards reimbursement of actual expenses) by the
permanent establishment to the head office of the enterprise or
any of its other offices, by way of royalties, fees or other
similar payments in return for the use of patents or other
rights, or by way of commission, for specific services performed
or for management, or, except in the case of a banking
enterprise, by way of income from debt-claims with regard to
moneys lent to the permanent establishment. Likewise, no account
shall be taken, in the determination of the profits of a
permanent establishment, for amounts charged (otherwise than
towards reimbursement of actual expenses), by the permanent
establishment to the head office of the enterprise or any of its
other offices, by way of royalties, fees or other similar
payments in return for the use of patents or other rights, or by
way of commission for specific services performed or for
management, or, except in the case of a banking enterprise, by
way of income from debt-claims with regard to moneys lent to the
head office of the enterprise or any of its other offices.
4. 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.
5. 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.
6. 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.
7. Nothing in this Article shall affect the operation of any
law of a Contracting State relating to tax imposed on income
derived by non-residents from insurance activities provided that
if the relevant law in force in either Contracting State at the
date of signature of this Convention is varied (otherwise than in
minor respects so as not to affect its general character) the
Contracting States shall consult with each other with a view to
agreeing to any amendment of this paragraph as may be
appropriate.
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 Contracting 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 full (time or voyage) basis
of ships or aircraft, used in international transport;
(b) profits from the rental on a bareboat basis of ships or
aircraft; and
(c) profits from the use, 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, as the case may be, is
incidental to the operation of ships or aircraft by the
enterprise in international traffic.
3. The provisions of paragraph 1 of this Article shall also
apply to profits from the participation in a pool, a joint
business or an international operating agency.
Article 9
Associated Enterprises
1. Where:
(a) an enterprise of a Contracting State participates directly
or indirectly in the management, control or capital of an
enterprise of the other Contracting State, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Contracting
State and an enterprise of the other Contracting State,
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by
reason of those conditions, have not so accrued, may be included
in the profits of that enterprise and taxed accordingly.
2. Where a Contracting State includes in the profits of an
enterprise of that State - and taxes accordingly - profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so included
are profits which would have accrued to the enterprise of the
first-mentioned State if the conditions made between the two
enterprises had been those which would have been made between
independent enterprises, then that other State shall make an
appropriate adjustment to the amount of the tax charged therein
on those profits. In determining such adjustment, due regard
shall be had to the other provisions of this 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 Contracting 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 paragraph 2 of this
Article, dividends paid by a company which is a resident of a
Contracting State shall not be taxed in that State if the
beneficial owner of the dividends is:
(a) the Government of the other Contracting State, including
its administrative subdivisions and local authorities;
(b) the Central Bank of the other Contracting State;
(c) any financial institution wholly owned by the Government
of the other Contracting State; or
(d) a company (other than a partnership) that is a resident of
the other Contracting State which holds directly at least 25 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 corporate 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 2 and 3 of this Article 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 of this Convention, 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 Contracting State.
Article 11
Income from Debt-Claims
1. Income from debt-claims arising in a Contracting State and
paid to a resident of the other Contracting State may be taxed in
that other Contracting State.
2. However, such income from debt-claims 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 income
from debt-claims is a resident of the other Contracting State,
the tax so charged shall not exceed 5 per cent of the gross
amount of the income from debt-claims.
3. Notwithstanding the provisions of paragraph 2 of this
Article income from debt-claims arising in a Contracting State
shall be exempt from tax in that State, if such income is derived
and beneficially owned by:
(a) the Government of the other Contracting State, including
its administrative subdivisions and local authorities;
(b) the Central Bank of the other Contracting State;
(c) any financial institution wholly owned by the Government
of the other Contracting State;
(d) a company (other than a partnership) that is a resident of
the other Contracting State; or
(e) any person that is a resident of the other Contracting
State with regard to loans guaranteed by the Government of either
Contracting State.
4. The term income from debt-claims 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. Penalty charges for late payment shall not be
regarded as income from debt-claims for the purpose of this
Article.
5. The provisions of paragraphs 2 and 3 of this Article shall
not apply if the beneficial owner of the income from debt-claims,
being a resident of a Contracting State, carries on business in
the other Contracting State in which the income from debt-claims
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 such income is paid is effectively connected with such
permanent establishment or fixed base. In such case, the
provisions of Article 7 or Article 14 of this Convention, as the
case may be, shall apply.
6. Income from debt-claims shall be deemed to arise in a
Contracting State when the payer is a resident of that State.
Where, however, the person paying the income from debt-claims,
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 income from
debt-claims is paid was incurred, and such income from
debt-claims is borne by such permanent establishment or fixed
base, then such income from debt-claims 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 income from debt-claims, 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 Contracting State.
2. However, such royalties may also be taxed in the
Contracting State in which it arises and according to the laws of
that Contracting State, but if the beneficial owner of the
royalties is a resident of the other Contracting State, the tax
so charged shall not exceed:
(a) 5 per cent of the gross amount of the royalties for the
use of, or the right to use, industrial, commercial or scientific
equipment;
(b) 7 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 and films or
tapes used 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 paragraph 2 of this Article 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 of this Convention, 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 of this
Convention and situated in the other Contracting State may be
taxed in that other Contracting State.
2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or of movable property pertaining to a fixed base available
to a resident of a Contracting State in the other Contracting
State for the purpose of performing independent personal
services, including such gains from the alienation of such a
permanent establishment (alone or with the whole enterprise) or
of such fixed base, may be taxed in that other Contracting
State.
3. Gains derived by an enterprise of a Contracting State 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 Contracting
State.
4. Gains derived by a resident of a Contracting State from the
alienation of shares in a company or of a comparable interest in
a partnership, trust or other similar entity 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.
5. Gains from the alienation of shares of a company which is a
resident of a Contracting State, other than those mentioned in
paragraph 4 of this Article, and not listed in a recognised stock
exchange, may be taxed in that Contracting State.
6. Gains from the alienation of any property other than that
referred to in the preceding paragraphs 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 except in the following circumstances, when such
income may also be taxed in the other Contracting State:
(a) if he has a fixed base regularly available to him in the
other Contracting State for the purpose of performing his
activities; in that case, only so much of the income as is
attributable to that fixed base may be taxed in that other
Contracting State, or
(b) if his stay in the other Contracting State is for a period
or periods amounting to or exceeding in the aggregate 183 days in
any 12-month period commencing or ending in the fiscal year
concerned; in that case, only so much of the income as is derived
from his activities performed in that other State may be taxed in
that other State.
2. The term "professional services" includes
especially, independent scientific, literary, artistic,
educational or teaching activities as well as the independent
activities of physicians, lawyers, engineers, architects,
dentists and accountants.
Article 15
Dependent Personal Services
1. Subject to the provisions of Articles 16, 18, 19 and
21 of this Convention, 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 Contracting
State.
2. Notwithstanding the provisions of paragraph 1 of this
Article, 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
12-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 Contracting
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.
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 Contracting State.
Article 17
Artistes and Sportspersons
1. Notwithstanding the provisions of Articles 14 and 15 of
this Convention, income derived by a resident of a Contracting
State as an entertainer, such as a theatre, motion picture, radio
or television artiste, or a musician, or as a sportsperson, from
his personal activities as such exercised in the other
Contracting State, may be taxed in that other Contracting
State.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsperson in his capacity as such accrues
not to the entertainer or sportsperson himself but to another
person, that income may, notwithstanding the provisions of
Articles 7, 14 and 15 of this Convention, be taxed in the
Contracting State in which the activities of the entertainer or
sportsperson are exercised.
3. Income derived by a resident of a Contracting State from
activities exercised in the other Contracting State as envisaged
in paragraphs 1 and 2 of this Article, shall be exempt from tax
in that other Contracting State if the visit to that other
Contracting State is supported wholly or mainly by public funds
of the first-mentioned Contracting State, an administrative
subdivision or a local authority thereof, or takes place under a
cultural agreement or arrangement between the Governments of the
Contracting States.
Article 18
Pensions
1. Subject to the provisions of paragraph 2 of Article 19 of
this Convention, pensions and other similar remuneration paid to
a resident of a Contracting State in consideration of past
employment shall be taxable only in that Contracting State.
2. Notwithstanding the provisions of paragraph 1 of this
Article, pensions paid and other payments made under the social
security system of a Contracting State or an administrative
subdivision or a local authority thereof 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 an administrative
subdivision or a local authority thereof to an individual in
respect of services rendered to that State or subdivision or
authority shall be taxable only in that Contracting 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 other State and the
individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the
purpose of rendering the services.
2. (a) Any pension paid by, or out of funds created by, a
Contracting State or an administrative subdivision or a local
authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be
taxable only in that Contracting 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 other Contracting State.
3. The provisions of Articles 15, 16, 17, and 18 of this
Convention 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
an administrative subdivision or a local authority thereof.
Article 20
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.
2. Payments received by 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 Contracting State solely for the purpose of his
education or training and which constitute remuneration in
respect of services performed in that other Contracting State
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.
Article 21
Teachers and Researchers
1. An individual who visits a Contracting State for the sole
purpose of teaching or conducting research at a university,
college, school or other recognised educational institution in
that State and who is or was immediately before that visit a
resident of the other Contracting State, shall be exempt from tax
in the first-mentioned State on any remuneration for such
teaching or research for a period not exceeding two years from
the date of his first arrival in that State, provided that such
remuneration is derived by him from outside that State.
2. The provisions of paragraph 1 of this Article shall not
apply to income from research if such activities are undertaken
by the individual not in the public interest but primarily for
the private benefit of some person or persons.
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 Contracting
State.
2. The provisions of paragraph 1 of this Article shall not
apply to income, other than income from immovable property as
defined in paragraph 2 of Article 6 of this Convention, 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 Contracting 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 of this Convention, as the
case may be, shall apply.
Article 23
Capital
1. Capital represented by immovable property referred to in
Article 6 of this Convention, owned by a resident of a
Contracting State and situated in the other Contracting State,
may be taxed in that other Contracting 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 and
aircraft, shall be taxable only in that Contracting State.
4. All other elements of capital of a resident of a
Contracting State shall be taxable only in that Contracting
State.
Article 24
Methods for Elimination of Double Taxation
1. Double taxation shall be eliminated as follows:
Where a resident of a Contracting State derives income or owns
capital which, in accordance with this Convention, may be taxed
in the other Contracting State, unless a more favourable
treatment is provided in its domestic law, the first-mentioned
Contracting State shall allow:
(a) as a deduction from the tax on the income of that
resident, an amount equal to the income tax paid thereon in the
other Contracting State;
(b) as a deduction from the tax on the capital of that
resident, an amount equal to the capital tax paid thereon in the
other Contracting State.
Such deduction in either case shall not, however, exceed that
part of the income tax or capital tax in the first-mentioned
Contracting State, 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 the other Contracting State.
2. In the case of the Kingdom of Saudi Arabia, the methods for
elimination of double taxation will not prejudice the provisions
of the Zakat collection regime.
Article 25
Mutual Agreement Procedure
1. Where a person considers that the actions of one or both of
the Contracting States result or will result for him in taxation
not in accordance with the provisions of this Convention, he may,
irrespective of the remedies provided by the domestic law of
those Contracting States, present his case to the competent
authority of either Contracting State. The case must be presented
within three years from the first notification of the action
resulting in taxation not in accordance with the provisions of
this 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 this 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 this
Convention. They may also consult together for the elimination of
double taxation in cases not provided for in this Convention.
4. The competent authorities of the Contracting States may
communicate with each other, including direct communication, for
the purpose of reaching an agreement in the sense of the
preceding paragraphs.
Article 26
Exchange of Information
1. The competent authorities of the Contracting States shall
exchange such information as is foreseeably relevant for carrying
out the provisions of this Convention or to the administration or
enforcement of the domestic laws concerning taxes of every kind
and description imposed on behalf of the Contracting States, or
of their administrative subdivisions or local authorities,
insofar as the taxation thereunder is not contrary to this
Convention. The exchange of information is not restricted by
Articles 1 and 2 of this Convention.
2. Any information received under paragraph 1 of this Article
by a Contracting State shall be treated as secret in the same
manner as information obtained under the domestic laws of that
State and shall be disclosed only to persons or authorities
(including courts and administrative bodies) concerned with the
assessment or collection of, the enforcement or prosecution in
respect of, the determination of appeals in relation to the taxes
referred to in paragraph 1 of this Article, or the oversight of
the above. Such persons or authorities shall use the information
only for such purposes. They may disclose the information in
public court proceedings or in judicial decisions.
Notwithstanding the foregoing, information received by a
Contracting State may be used for other purposes when such
information may be used for such other purposes under the laws of
both Contracting States and the competent authority of the
supplying State authorizes such use.
3. In no case shall the provisions of paragraphs 1 and 2 of
this Article be construed so as to impose on a Contracting State
the obligation:
(a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting State;
(b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that or of
the other Contracting State;
(c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or trade
process, or information the disclosure of which would be contrary
to public policy (ordre public).
4. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
use its information gathering measures to obtain the requested
information, even though that other Contracting State may not
need such information for its own tax purposes. The obligation
contained in the preceding sentence is subject to the limitations
of paragraph 3 of this Article but in no case shall such
limitations be construed to permit a Contracting State to decline
to supply information solely because it has no domestic interest
in such information.
5. In no case shall the provisions of paragraph 3 of this
Article be construed to permit a Contracting State to decline to
supply information solely because the information is held by a
bank, other financial institution, nominee or person acting in an
agency or a fiduciary capacity or because it relates to ownership
interests in a person.
Article 27
Miscellaneous Provisions
1. Nothing in this Convention shall affect the application of
the domestic provisions of either Contracting State to prevent
tax evasion and tax avoidance.
2. Notwithstanding any other provision of this Convention, a
benefit under this Convention shall not be granted in respect of
an item of income or capital if it is reasonable to conclude,
having regard to all relevant facts and circumstances, that
obtaining that benefit was one of the principal purposes of any
arrangement or transaction that resulted directly or indirectly
in that benefit, unless it is established that granting that
benefit in these circumstances would be in accordance with the
object and purpose of the relevant provisions of this
Convention.
Article 28
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 29
Entry into Force
1. Each of the Contracting States shall notify to the other in
writing through the diplomatic channels the completion of the
procedures required by its law for the entry into force of this
Convention. This Convention shall enter into force on the first
day of the second month following the month in which the later of
these notifications was received.
2. The provisions of this Convention shall apply in both
Contracting States:
(a) with regard to taxes withheld at source, in respect of
amounts paid on or after the first day of January next following
the date upon which the Convention enters into force; and
(b) with regard to other taxes, in respect of taxable years
beginning on or after the first day of January next following the
date upon which this Convention enters into force.
Article 30
Termination
1. This Convention shall remain in force indefinitely but
either of the Contracting States may terminate this Convention
through the diplomatic channels, by giving to the other
Contracting State written notice of termination not later than 30
June of any calendar year starting five years after the year in
which this Convention entered into force.
2. In such event this Convention shall cease to apply:
(a) with regard to taxes withheld at source, in respect of
amounts paid after the end of the calendar year in which such
notice is given; and
(b) with regard to other taxes, in respect of taxable years
beginning after the end of the calendar year in which such notice
is given.
In witness whereof, the undersigned, being duly authorised
thereto, have signed this Convention.
Done in duplicate at Riyadh on 7 November 2019 corresponding
to 10/3/1441 in the Latvian, Arabic and English languages, all
texts being equally authentic. In the case of divergence of
interpretation, the English text shall prevail.
For the Government of the
Republic of Latvia
Edgars Rinkēvičs
Minister of Foreign Affairs
For the Government of the
Kingdom of Saudi Arabia
Mohammed Al-Jadaan
Minister of Finance
PROTOCOL
At the moment of signing the Convention between the Government
of the Republic of Latvia and the Government of the Kingdom of
Saudi Arabia for the avoidance of double taxation with respect to
taxes on income and on capital and the prevention of tax evasion,
the undersigned have agreed that the following provisions shall
form an integral part of the Convention:
1. With reference to Article 3, paragraph 1 (d) of the
Convention:
It is understood that the term "person" also
includes a Contracting State, its administrative subdivisions or
local authorities.
2. With reference to Article 4, paragraph 1 of the
Convention:
It is understood that the term "resident of a Contracting
State" includes a legal person organised under the laws of a
Contracting State and that is not liable to tax or generally
exempt from tax in that Contracting State and is established and
maintained in that Contracting State either:
(a) exclusively for a religious, charitable, educational,
scientific, or other similar purpose; or
(b) to provide pensions or other similar benefits.
3. With reference to Article 5 of the Convention:
It is understood that a person that is a resident of a
Contracting State and carries on offshore activities (defined as
activities carried on in any area adjacent to the territorial
waters of a Contracting State in connection with the exploration
or exploitation of the seabed and its subsoil and their natural
resources) in the other Contracting State shall be deemed to have
a permanent establishment in that other Contracting State.
4. With reference to Article 6 of the Convention:
It is understood that any income 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.
5. With reference to Article 7 of the Convention:
It is understood that:
(a) profits of an enterprise of a Contracting State from the
exportation of merchandise to the other Contracting State shall
not be taxed in that other Contracting State unless the
provisions of paragraph 5 of Article 5 of the Convention are
applied. Where export contracts include other activities carried
on through a permanent establishment in the other Contracting
State profits derived from such activities may be taxed in the
other Contracting State;
(b) the term "business profits" includes, but is not
limited to profits derived from manufacturing, mercantile,
banking, insurance, from the operation of inland transportation
and the furnishing of services. Such a term does not include the
performance of personal services by an individual either as an
employee or in an independent capacity.
6. With reference to Article 10 of the Convention:
Notwithstanding any provision of the Convention, profits of a
company of a Contracting State carrying on business in the other
Contracting State through a permanent establishment situated
therein may, after having been taxed under Article 7, be taxed on
the remaining amount of its profits in the Contracting State in
which the permanent establishment is situated and the tax so
charged shall not exceed 5 per cent.
7. In the case in which the Kingdom of Saudi Arabia will
introduce an income tax applicable to its nationals who are
residents of the Kingdom of Saudi Arabia, or the existing tax
will be modified accordingly, then the two Contracting States
shall enter into negotiations in order to introduce in the
Convention an Article on non-discrimination.
In witness whereof, the undersigned, being duly authorised
thereto, have signed this Protocol.
Done in duplicate at Riyadh on 7 November 2019 corresponding
to 10/3/1441 in the Latvian, Arabic and English languages, all
texts being equally authentic. In the case of divergence of
interpretation, the English text shall prevail.
For the Government of the
Republic of Latvia
Edgars Rinkēvičs
Minister of Foreign Affairs
For the Government of the
Kingdom of Saudi Arabia
Mohammed Al-Jadaan
Minister of Finance