Treaty Series Recueil des Traites - United Nations Treaty Collection ...

Volume 2223, 1-39522
PROTOCOL
At the moment of signing the Convention between the Republic of Latvia and the
Kingdom of Belgium for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income, the undersigned have agreed upon the following provisions
which shall form an integral part of the Convention.
I. Ad Article 4, paragraph 3
It is understood that the second sentence of paragraph 3 shall not be interpreted as
prohibiting a Contracting State to eliminate double taxation in accordance with Article 23
in respect of persons mentioned in paragraph 3 of Article 4.
2. Ad Article 6, paragraph 2
It is understood that the term "variable or fixed payments as consideration for the
working of, or the right to work mineral deposits, sources and other natural resources" also
includes payments relating to the production from such resources.
3. Ad Article 6, paragraph 3 and Article 13, paragraph it is understood that all income
and gains from the alienation of immovable property may be taxed in the Contracting State
in which the immovable property is situated.
4. Ad Article 7, paragraphs I and 2
There an enterprise of a Contracting State sells goods or merchandise or carries on
business in the other Contracting State through a permanent establishment situated therein,
the profits of that permanent establishment shall not be determined on the basis of the total
amount received by the enterprise but only on the basis of the remuneration which is attributable
to the actual activity of the permanent establishment for such sales or business.
However, profits derived from the sale of goods or merchandise of the same or similar
kind as those sold, or from other business activities of the same or similar nature as those
effected, through that permanent establishment may be considered attributable to that permanent
establishment if it is proved that the sale or activities were structured in a manner
intended to avoid taxation in the State where the permanent establishment is situated.
5. Ad Article 10, paragraph 3
The term "dividends" also includes income - even paid in the form of interest - which
is treated as income from shares by the laws of the State of which the paying company is
a resident.
6. Ad Article 12, paragraphs 2 and 3
If in any convention for the avoidance of double taxation concluded by Latvia with a
third State, being a member of the Organisation for Economic Co- operation and Development
(OECD) at the date of signature of this Convention, Latvia after that date would agree
to exclude any kind of rights or property from the definition contained in paragraph 3 or
exempt royalties arising in Latvia from Latvian tax on royalties or to limit the rates of tax
provided in paragraph 2, such definition or exemption or lower rate shall automatically apply
as if it had been specified in paragraph 3 or paragraph 2 respectively.
7. Ad Article 12, paragraph 3