13. pants

Abas Līgumslēdzējas Valstis pa diplomātiskiem kanāliem

rakstiski paziņo viena otrai par to, ka ir izpildītas nacionālās

juridiskās procedūras, kas nepieciešamas, lai šis protokols

stātos spēkā. Šis protokols, kurš veido Līguma neatņemamu

sastāvdaļu, stājas spēkā trīsdesmitajā dienā pēc pēdējā

paziņojuma saņemšanas un tiek piemērots attiecībā uz ienākumiem,

kas gūti janvāra pirmajā dienā vai pēc tam tajā kalendārajā gadā,

kas seko gadam, kurā šis protokols stājas spēkā.

To apliecinot, būdami pienācīgi pilnvaroti, šo Protokolu ir

parakstījuši.

Protokols sastādīts Rīgā divos eksemplāros 2011.gada

24.augustā latviešu, ķīniešu un angļu valodā, turklāt visi teksti

ir vienlīdz autentiski. Atšķirīgas interpretācijas gadījumā

noteicošais ir teksts angļu valodā.

Latvijas Republikas vārdā

Ķīnas Tautas Republikas vārdā

(paraksts)

Andris Vilks

(paraksts)

Xiao Jie

Protocol amending the Agreement

between the Government of the Republic of Latvia and the

Government of the People's Republic of China for the Avoidance of

Double Taxation and the Prevention of Fiscal Evasion with Respect

to Taxes on Income and on Capital

The Government of the Republic of Latvia and the

Government of the People's Republic of China,

Desiring to conclude a Protocol to amend the Agreement

between the Government of the Republic of Latvia and the

Government of the People's Republic of China for the Avoidance of

Double Taxation and the Prevention of Fiscal Evasion with Respect

to Taxes on Income and Capital (hereinafter referred to as

"the Agreement"), signed at Riga on 7th of

June 1996,

Have agreed as follows:

Article

1

Paragraph 3 of Article 2 (Taxes Covered) shall be

deleted and replaced by the following:

"3. The existing taxes to which the Agreement shall

apply are in particular:

a) in the People's Republic of China:

(i) the individual income tax;

(ii) the enterprise income tax;

(hereinafter referred to as "Chinese

tax");

b) in the Republic 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")."

Article

2

Subparagraph i) of paragraph 1 of Article 3 (General

Definitions) shall be deleted and replaced by the

following:

"i) the term "international traffic"

means any transport by a ship, aircraft, or railway vehicle

operated by an enterprise of a Contracting State, except when the

ship, aircraft or railway vehicle is operated solely between

places in the other Contracting State;"

Article

3

Paragraph 1 of Article 4 (Resident) shall be deleted and

replaced by the following:

"1. For the purpose of this Agreement, the term

"resident of a Contracting State" means any person who,

under the laws of that State, is liable to tax therein by reason

of his domicile, residence, place of incorporation or place of

effective management or any other criterion of a similar nature.

But this term 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."

Article

4

Paragraph 3 of Article 7 (Business Profits) shall be deleted

and replaced by the following:

"3. In determining the profits of a permanent

establishment, there shall be allowed as deductions expenses

which are incurred for the purposes of the permanent

establishment, including executive and general administrative

expenses so incurred, whether in the State in which the permanent

establishment is situated or elsewhere."

Article 5

The title and paragraph 1 of Article 8 (Shipping and Air

Transport) shall be deleted and replaced by the following:

"Article

8

INTERNATIONAL TRAFFIC

1. Profits of an enterprise of a Contracting State from

the operation of ships, aircraft or railway vehicles in

international traffic shall be taxable only in that

State."

Article 6

Paragraph 3 of Article 11 (Interest) shall be deleted and

replaced by the following:

"3. Notwithstanding the provisions of paragraph 2,

interest arising in a Contracting State and derived and

beneficially owned by the Government of the other Contracting

State, including its local authorities, the Central Bank or any

financial institution wholly owned by that Government, or

interest derived on loans guaranteed or insured by that

Government, including its local authorities, the Central Bank or

any financial institution wholly owned by that Government, shall

be exempted from tax in the first-mentioned Contracting

State."

Article 7

Paragraph 2 of Article 12 (Royalties) shall be deleted and

replaced by the following:

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

Contracting State in which they arise, and according to the laws

of that Contracting State, but if the recipient is the beneficial

owner of the royalties, the tax so charged shall not exceed 7 per

cent of the gross amount of the royalties."

Article 8

Paragraphs 3 and 4 of Article 13 (Capital Gains) shall be

deleted and replaced by the following:

"3. Gains derived by an enterprise of a Contracting

State operating ships or aircraft, or railway vehicles in

international traffic from the alienation of such ships, aircraft

or railway vehicles or movable property pertaining to the

operation of such ships or aircraft or railway vehicles shall be

taxable only in that State.

4. Gains derived by a resident of a Contracting State

from the alienation of shares or comparable interests of any kind

in a company or other 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."

Article 9

Paragraph 3 of Article 15 (Dependent Personal Services)

shall be deleted and replaced by the following:

"3. Notwithstanding the preceding provisions of

this Article, remuneration derived in respect of an employment

exercised aboard a ship, aircraft or railway vehicle operated in

international traffic by an enterprise of a Contracting State may

be taxed in that State."

Article 10

Paragraph 3 of Article 24 (Capital) shall be deleted and

replaced by the following:

"3. Capital represented by ships, aircraft and

railway vehicles operated in international traffic by an

enterprise of a Contracting State and by movable property

pertaining to the operation of such ships, aircraft and railway

vehicles, shall be taxable only in that State."

Article 11

Subparagraph b) of paragraph 1 of Article 25 (Methods for

Elimination of Double Taxation) shall be deleted and replaced by

the following:

"b) Where the income derived from Latvia is a dividend

paid by a company which is a resident of Latvia to a company

which is a resident of China and which owns not less than

20 per cent of the shares of the company paying the dividend, the

credit shall take into account the tax paid to Latvia by the

company paying the dividend in respect of its

income."

Article 12

Article 28 (Exchange of Information) shall be deleted and

replaced by the following:

"Article 28

Exchange of

Information

1. The competent authorities of the Contracting States

shall exchange such information as is foreseeably relevant for

carrying out the provisions of this Agreement or to the

administration or enforcement of the domestic laws concerning

taxes of every kind and description imposed on behalf of the

Contracting States, or of their local authorities, insofar as the

taxation thereunder is not contrary to the Agreement. The

exchange of information is not restricted by Articles 1 and

2.

2. Any information received under paragraph 1 by a

Contracting State shall be treated as secret in the same manner

as information obtained under the domestic laws of that State and

shall be disclosed only to persons or authorities (including

courts and administrative bodies) concerned with the assessment

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

the determination of appeals in relation to the taxes referred to

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

authorities shall use the information only for such purposes.

They may disclose the information in public court proceedings or

in judicial decisions.

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

be construed so as to impose on a Contracting State the

obligation:

a) to carry out administrative measures at variance with

the laws and administrative practice of that or of the other

Contracting State;

b) to supply information which is not obtainable under

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

of the other Contracting State;

c) to supply information which would disclose any

trade, business, industrial, commercial or professional secret or

trade process, or information, the disclosure of which would be

contrary to public policy (order public).

4. If information is requested by a Contracting State in

accordance with this Article, the other Contracting State shall

use its information gathering measures to obtain the requested

information, even though that other State may not need such

information for its own tax purposes. The obligation contained in

the preceding sentence is subject to the limitations of paragraph

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

Contracting State to decline to supply information solely because

it has no domestic interest in such information.

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

construed to permit a Contracting State to decline to supply

information solely because the information is held by a bank,

other financial institution, nominee or person acting in an

agency or a fiduciary capacity or because it relates to ownership

interests in a person."

Article

13

Both Contracting States shall notify each other through

diplomatic channels that they have completed the internal legal

procedures necessary for the entry into force of this Protocol.

This Protocol, which shall form an integral part of the

Agreement, shall enter into force on the thirtieth day upon the

receipt of the latter notification and shall be applicable in

respect of income derived during the taxable years beginning on

or after the first day of January next following that in which

this Protocol enters into force.

IN WITNESS whereof the undersigned, duly authorized thereto,

have signed this Protocol.

DONE at Riga on the 24th day of August, 2011, in duplicate in

the Latvian, Chinese and English languages, all texts being

equally authentic. In case of divergence in interpretation, the

English text shall prevail.

For

the Government of the Republic of Latvia

For

the Government of the People's Republic of China

(signature)

(signature)

Andris Vilks

Xiao Jie