29. pants

DARBĪBAS IZBEIGŠANA

Šī Konvencija ir spēkā tik ilgi, kamēr viena Līgumslēdzēja

Valsts tās darbību izbeidz. Katra Līgumslēdzēja Valsts var

izbeigt Konvencijas darbību, paejot piecu gadu periodam pēc šīs

Konvencijas piemērošanas uzsākšanas datuma, pa diplomātiskajiem

kanāliem iesniedzot paziņojumu par izbeigšanu vismaz sešus

mēnešus pirms jebkura kalendārā gada beigām. 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;

b) attiecībā uz pārējiem ienākuma nodokļiem un kapitāla

nodokļiem - nodokļiem, kas maksājami par jebkuru taksācijas gadu,

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

kas seko gadam, kurā ir iesniegts paziņojums.

To apliecinot, būdami pienācīgi pilnvaroti, šo Konvenciju ir

parakstījuši.

Konvencija sastādīta Rīgā divos eksemplāros 2012.gada

11.septembrī latviešu, turkmēņu, krievu un angļu valodā, visiem

četriem tekstiem esot vienlīdz autentiskiem. Atšķirīgas

interpretācijas gadījumā noteicošais ir teksts angļu valodā.

Latvijas

Republikas valdības vārdā

Turkmenistānas

valdības vārdā

Andris Vilks

Bjašimirats Hodžamamedovs

Finanšu

ministrs

Ekonomikas un

attīstības ministrs

CONVENTION

BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF LATVIA

AND THE GOVERNMENT OF TURKMENISTAN

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

Turkmenistan,

Desiring to conclude a Convention for the avoidance of double

taxation and the prevention of fiscal evasion with respect to

taxes on income and on capital and to promote economic

cooperation between the two countries,

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 territorial 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, taxes on the

total amounts of wages or salaries paid by enterprises, as well

as taxes on capital appreciation.

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

in particular:

a) in Turkmenistan:

(i) the tax on profits (income) of juridical persons;

(ii) the tax on income of individuals; and

(iii) the tax on property;

(hereinafter referred to as "Turkmen tax");

b) in Latvia:

(i) the enterprise income tax;

(ii) the personal income tax; and

(iii) the immovable property tax;

(hereinafter referred to as "Latvian 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 which

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 terms "a Contracting State" and "the

other Contracting State" mean Latvia or Turkmenistan, as the

context requires;

b) the term "Turkmenistan" means the territory of

Turkmenistan comprised within its land borders together with the

maritime zones (including both marine and sub-marine zones) over

which Turkmenistan exercises sovereign or jurisdictional rights

under international law;

c) 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;

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 which 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 Turkmenistan, the Ministry of Finance and the Main

State Tax Service or their authorized representative;

(ii) in 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 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 any person who,

under the laws of that State, 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, and

also includes that State and any territorial 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 an

individual is a resident of both Contracting States, then his

status shall be determined as follows:

a) he shall be deemed to be a resident only of the State in

which he has a permanent home available to him; if he has a

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

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

and economic relations are closer (centre of vital

interests);

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

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

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

of the State in which he has an habitual abode;

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

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

which he is a national;

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

the competent authorities of the Contracting States shall settle

the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person

other than an individual is a resident of both Contracting

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

State under the laws of which it has been established.

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, a structure or any

other place of exploration, development or extraction of natural

resources.

3. A building site or construction or installation project or

a supervisory activity connected therewith constitutes a

permanent establishment only if it lasts more than nine

months.

4. Notwithstanding the preceding provisions of this Article,

the term "permanent establishment" shall be deemed not

to include:

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

display or delivery of goods or merchandise belonging to the

enterprise;

b) the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of storage,

display or delivery;

c) the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of processing

by another enterprise;

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

purpose of purchasing goods or merchandise or of collecting

information, for the enterprise;

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

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

a preparatory or auxiliary character;

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

combination of activities mentioned in sub-paragraphs a) to e),

provided that the overall activity of the fixed place of business

resulting from this combination is of a preparatory or auxiliary

character.

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

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

paragraph 6 applies - is acting on behalf of an enterprise and

has, and habitually exercises, in a Contracting 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 4 which, if

exercised through a fixed place of business, would not make this

fixed place of business a permanent establishment under the

provisions of that paragraph.

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

establishment in a Contracting State merely because it carries on

business in that State through a broker, general commission agent

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

persons are acting in the ordinary course of their business.

7. The fact that a company which is a resident of a

Contracting State controls or is controlled by a company which is

a resident of the other Contracting State, or which carries on

business in that other State (whether through a permanent

establishment or otherwise), shall not of itself constitute

either company a permanent establishment of the other.

Article 6

INCOME FROM IMMOVABLE PROPERTY

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

immovable property (including income from agriculture or

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

that other State.

2. The term "immovable property" shall have the

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

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

case include property accessory to immovable property, livestock

and equipment used in agriculture and forestry, rights to which

the provisions of general law respecting landed property apply,

usufruct of immovable property and rights to variable or fixed

payments as consideration for the working of, or the right to

work, mineral deposits, sources and other natural resources.

Ships and aircraft shall not be regarded as immovable

property.

3. The provisions of paragraph 1 shall apply to income derived

from the direct use, letting, or use in any other form of

immovable property.

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

the income from immovable property of an enterprise and to income

from immovable property used for the performance of independent

personal services.

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall

be taxable only in that State unless the enterprise carries on

business in the other Contracting State through a permanent

establishment situated therein. If the enterprise carries on

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

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

that permanent establishment.

2. Subject to the provisions of paragraph 3, where an

enterprise of a Contracting State carries on business in the

other Contracting State through a permanent establishment

situated therein, there shall in each Contracting State be

attributed to that permanent establishment the profits which it

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

enterprise engaged in the same or similar activities under the

same or similar conditions and dealing wholly independently with

the enterprise of which it is a permanent establishment.

3. In determining 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 interest on moneys lent to the permanent

establishment. Likewise, no account shall be taken, in the

determination of the profits of a permanent establishment, for

amount charged (otherwise than towards reimbursement of actual

expenses), by the permanent establishment to the head office of

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 interest on moneys lent to the head office

of the enterprise or any of its other offices.

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. Profits of an enterprise of a Contracting State from rental

of ships or aircraft, or profits from the use, maintenance or

rental of containers (including trailers and related equipment

for the transport of containers) where such rental or such use,

maintenance or rental, as the case may be, is incidental to the

operation of ships or aircraft in international traffic, shall be

taxable only in that State.

3. The provisions of paragraph 1 shall also apply to profits

from the participation in a pool, a joint business or an

international operating agency.

Article 9

ASSOCIATED ENTERPRISES

1. Where

a) an enterprise of a Contracting State participates directly

or indirectly in the management, control or capital of an

enterprise of the other Contracting State, or

b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a Contracting

State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the

two enterprises in their commercial or financial relations which

differ from those which would be made between independent

enterprises, then any profits which would, but for those

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

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

in the profits of that enterprise and taxed accordingly.

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

enterprise of that State - and taxes accordingly - profits on

which an enterprise of the other Contracting State has been

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

are profits which would have accrued to the enterprise of the

first-mentioned State if the conditions made between the two

enterprises had been those which would have been made between

independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein

on those profits. In determining such adjustment, due regard

shall be had to the other provisions of this 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:

a) 5 per cent of the gross amount of the dividends if the

beneficial owner is a company (other than a partnership) which

holds directly at least 25 per cent of the capital of the company

paying the dividends;

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

other cases.

This paragraph shall not affect the taxation of the company in

respect of the profits out of which the dividends are paid.

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

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

participating in profits, as well as income from other rights

which is subjected to the same taxation treatment as income from

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

distribution is a resident.

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

beneficial owner of the dividends, being a resident of a

Contracting State, carries on business in the other Contracting

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

through a permanent establishment situated therein, or performs

in that other State independent personal services from a fixed

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

dividends are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of

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

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

derives profits or income from the other Contracting State, that

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

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

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

the dividends are paid is effectively connected with a permanent

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

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

company's undistributed profits, even if the dividends paid

or the undistributed profits consist wholly or partly of profits

or income arising in such other State.

Article 11

INTEREST

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

resident of the other Contracting State may be taxed in that

other State.

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

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

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

other Contracting State, the tax so charged shall not exceed 10

per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest

arising in a Contracting State and paid to, or on loans

guaranteed or insured by, the Government of the other Contracting

State, including territorial administrative subdivisions or a

local authorities thereof, the Central Bank or any financial

institution wholly owned by that Government, shall be exempt from

tax in the first-mentioned State.

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

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

mortgage and whether or not carrying a right to participate in

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

government securities and income from bonds or debentures,

including premiums and prizes attaching to such securities, bonds

or debentures. 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 10 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

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. Income or gains derived by a resident of a Contracting

State from the alienation of immovable property referred to in

Article 6 and situated in the other Contracting State may be

taxed in that other State.

2. Gains from the alienation of movable property forming part

of the business property of a permanent establishment which an

enterprise of a Contracting State has in the other Contracting

State or of movable property pertaining to a fixed base available

to a resident of a Contracting State in the other Contracting

State for the purpose of performing independent personal

services, including such gains from the alienation of such a

permanent establishment (alone or with the whole enterprise) or

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

3. Gains 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.

4. 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.

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 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 the other

Contracting State; or

b) if he stay in the other Contracting State is for a period

or periods exceeding in the aggregate 183 days in any twelve

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 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.

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 performed in a Contracting State

by an entertainer or sportsman if the visit to that State is

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

Contracting States or administrative territorial subdivisions or

local authorities thereof. In such case, the income is taxable

only in the Contracting State of which the entertainer or

sportsman is a resident.

Article 18

PENSIONS

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.

Article 19

GOVERNMENT SERVICE

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

than a pension, paid by a Contracting State or an administrative

territorial 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 State.

b) However, such salaries, wages and other similar

remuneration shall be taxable only in the other Contracting State

if the services are rendered in that State and the individual is

a resident of that State who:

(i) is a national of that State; or

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

purpose of rendering the services.

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

Contracting State or an administrative territorial subdivision 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 an administrative

territorial subdivision or a local authority thereof.

Article 20

STUDENTS

Payments which a student or business apprentice who is or was

immediately before visiting a Contracting State a resident of the

other Contracting State and who is present in the first-mentioned

State solely for the purpose of his education or training

receives for the purpose of his maintenance, education or

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

payments arise from sources outside that State.

Article 21

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 22

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 or 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 State.

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

Contracting State shall be taxable only in that State.

Article 23

ELIMINATION OF DOUBLE TAXATION

1. In the case of Turkmenistan double taxation shall be

eliminated as follows:

Where a resident of Turkmenistan derives income or owns

capital which, in accordance with the provisions of this

Convention, may be taxed in Latvia, Turkmenistan shall allow:

a) as a deduction from the tax on the income of that resident,

an amount equal to the income tax paid in Latvia;

b) as a deduction from the tax on the capital of that

resident, an amount equal to the capital tax paid in Latvia. Such

deduction in either case shall not, however, exceed that part of

the income tax or capital tax, 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.

2. In the case of 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

Turkmenistan, unless a more favourable treatment is provided in

its domestic law, Latvia shall allow:

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

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

Turkmenistan;

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

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

Turkmenistan.

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

Turkmenistan.

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 Turkmenistan in which it owns at least 25 per

cent of its shares having full voting rights, the tax paid in

Turkmenistan 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.

3. Where in accordance with any provision of the Convention

income derived or capital owned by a resident of a Contracting

State is exempt from tax in that State, such State may

nevertheless, in calculating the amount of tax on the remaining

income or capital of such resident, take into account the

exempted income or capital.

Article 24

NON-DISCRIMINATION

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

the other Contracting State to any taxation or any requirement

connected therewith, which is other or more burdensome than the

taxation and connected requirements to which nationals of that

other State in the same circumstances, in particular with respect

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

notwithstanding the provisions of Article 1, also apply to

persons who are not residents of one or both of the Contracting

States.

2. Stateless persons who are residents of a Contracting State

shall not be subjected in either Contracting State to any

taxation or any requirement connected therewith, which is other

or more burdensome than the taxation and connected requirements

to which nationals of the State concerned in the same

circumstances in particular with respect to residence, are or may

be subjected.

3. The taxation on a permanent establishment which an

enterprise of a Contracting State has in the other Contracting

State shall not be less favourably levied in that other State

than the taxation levied on enterprises of that other State

carrying on the same activities. This provision shall not be

construed as obliging a Contracting State to grant to residents

of the other Contracting State any personal allowances, reliefs

and reductions for taxation purposes on account of civil status

or family responsibilities which it grants to its own

residents.

4. Except where the provisions of paragraph 1 of Article 9,

paragraph 7 of Article 11, or paragraph 6 of Article 12, apply,

interest, royalties and other disbursements paid by an enterprise

of a Contracting State to a resident of the other Contracting

State shall, for the purpose of determining the taxable profits

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

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

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

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

determining the taxable capital of such enterprise, be deductible

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

resident of the first-mentioned State.

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

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

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

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

requirement connected therewith which is other or more burdensome

than the taxation and connected requirements to which other

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

subjected.

6. The provisions of this Article shall, notwithstanding the

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

description.

Article 25

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of

the Contracting States result or will result for him in taxation

not in accordance with the provisions of this 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 24, 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 26

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 27

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 28

ENTRY INTO FORCE

1. The Contracting States shall notify each other through

diplomatic channels of the completion of the procedure for the

bringing into force of this Convention.

2. This 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 tax 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 29

TERMINATION

This Convention shall remain in force until terminated by a

Contracting State. Either Contracting State may terminate the

Convention, through diplomatic channels, by giving notice of

termination at least six months before the end of any calendar

year next following after the period of five years from the date

on which the provisions of this Convention became effective. 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 tax year beginning on or after the

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

in which the notice has been given.

In witness whereof, the undersigned, duly authorized thereto,

have signed this Convention.

Done in duplicate at Riga this 11th day of September 2012, in

the Latvian, Turkmen, Russian and English languages, all four

texts being equally authentic. In the case of divergence of

interpretation the English text shall prevail.

For the Government

of the Republic of Latvia

For the Government

of the Turkmenistan

Andris Vilks

Bjasimirat Hodzamamedov

Minister of

Finance

Minister of Economy and Development