SECOND PROTOCOL
AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF
LATVIA AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of the Republic Latvia
and the Government of the Republic of Singapore,
Desiring to amend the Agreement
between the Government of the Republic of Latvia and the
Government of the Republic of Singapore for the avoidance of
double taxation and the prevention of fiscal evasion with respect
to taxes on income, with Protocol, signed at Singapore on
6th October 1999 (hereinafter referred to as "the
Agreement"),
Have agreed as follows:
ARTICLE I
With reference to Article 3 (General
Definitions) of the Agreement, paragraph 1(b) shall be deleted
and replaced by the following:
"(b) the term
"Singapore" means the Republic of Singapore and, when
used in a geographical sense, includes its land territory,
internal waters and territorial sea, as well as any maritime area
situated beyond the territorial sea which has been or might in
the future be designated under its national law, in accordance
with international law, as an area within which Singapore may
exercise sovereign rights or jurisdiction with regards to the
sea, the sea-bed, the subsoil and the natural
resources;"
ARTICLE II
With reference to Article 5
(Permanent Establishment) of the Agreement, paragraph 3 shall be
deleted and replaced by the following:
"3.
(a) A building site, a construction,
assembly or installation project or supervisory activities
connected therewith constitute a permanent establishment only if
such site, project or activities last for a period of more than
twelve months.
(b) The furnishing of services,
including consultancy services, by an enterprise of a Contracting
State through employees or other personnel engaged by the
enterprise for such purpose constitutes a permanent establishment
only if activities of that nature continue (for the same or a
connected project) within the other Contracting State for a
period or periods aggregating more than 183 days in any twelve
month period."
ARTICLE III
With reference to Article 10
(Dividends) of the Agreement:
1. Paragraph 2 shall be deleted and
replaced by the following:
"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) 0 per cent of the gross amount of
the dividends if the beneficial owner is a company (other than a
partnership);
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."
2. Paragraph 4(a) shall be deleted
and replaced by the following:
"(a) in the case of Singapore
means the Government of Singapore, and shall include:
(i) the Monetary Authority of
Singapore;
(ii) GIC Private Limited; and
(iii) a statutory body or any
institution wholly owned by the Government of Singapore, and in
either case as may be agreed from time to time between the
competent authorities of the Contracting States;
ARTICLE IV
With reference to Article 11
(Interest) of the Agreement:
1. Paragraph 2 shall be deleted and
replaced by the following:
"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:
(a) 0 per cent of the gross amount of
the interest, if the interest is paid to:
(i) the Government of the other
Contracting State who is the beneficial owner of the
interest;
(ii) a financial institution of the
other Contracting State who is the beneficial owner of the
interest;
(iii) a company (other than a
partnership) that is a resident of the other Contracting State
who is the beneficial owner of the interest, where the interest
is paid by a company that is a resident of the first-mentioned
Contracting State; or
(iv) a resident of the other
Contracting State who is the beneficial owner of the interest,
where the interest is paid in respect of a loan, debt-claim or
credit that is guaranteed or insured by the Government of either
Contracting State;
(b) 10 per cent of the gross amount
of the interest in all other cases."
2. Paragraph 3 shall be deleted and
the remaining paragraphs shall not be renumbered.
3. In respect of paragraph 4, the
term "paragraph 3" shall be deleted and replaced with
the term "paragraph 2".
ARTICLE V
With reference to Article 12
(Royalties) of the Agreement:
1. In respect of paragraph 2, the
term "7.5 per cent" shall be deleted and replaced by
the term "5 per cent".
2. Paragraph 3 shall be deleted and
replaced by the following:
"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, any patent, trade mark, design or
model, plan, secret formula or process, or for information
concerning industrial, commercial or scientific
experience."
ARTICLE VI
With reference to Article 22
(Limitation of Benefit) of the Agreement, paragraphs 1 and 2
shall be deleted and the remaining paragraphs shall not be
renumbered.
ARTICLE VII
With reference to Article 24
(Non-Discrimination) of the Agreement, in respect of paragraph 1,
the sentence "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." shall
be deleted.
ARTICLE VIII
Article 26 (Exchange of
Information) of the Agreement shall be deleted and replaced by
the following:
"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
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 political
subdivisions or 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 (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 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 IX
Article 29 (Termination) of the
Agreement shall be deleted and replaced by the following:
"ARTICLE 29 -
Termination
This Agreement shall remain in force
until terminated by a Contracting State. Either Contracting State
may terminate the Agreement, through diplomatic channels, by
giving written notice of termination at least six months before
the end of any calendar year. In such event, the Agreement shall
cease to have effect:
(a) in Latvia:
(i) 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;
(ii) in respect of other taxes on
income, for taxes chargeable for any fiscal year beginning on or
after the first day of January in the calendar year next
following the year in which the notice has been given.
(iii) in respect of Article 26
(Exchange of Information), on requests made after the end of that
calendar year in which the notice is given.
(b) in Singapore:
(i) in respect of taxes withheld at
source, on amounts liable to be paid, deemed paid or paid
(whichever is the earliest) after the end of that calendar year
in which the notice is given;
(ii) in respect of tax chargeable
(other than taxes withheld at source) for any year of assessment
beginning on or after the first day of January in the second
calendar year following that calendar year in which the notice is
given; and
(iii) in all other cases, including
requests made under Article 26 (Exchange of Information) after
the end of that calendar year in which the notice is
given."
ARTICLE X
1. The Governments of the Contracting
States shall notify each other that the constitutional
requirements for the entry into force of this Second Protocol
have been complied with.
2. This Second Protocol shall enter
into force on the date of the later of the notifications referred
to in paragraph 1 and its provisions shall have effect:
(a) in Latvia:
(i) 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 Second
Protocol enters into force;
(ii) in respect of other taxes on
income, for taxes chargeable for any fiscal year beginning on or
after the first day of January in the calendar year next
following the year in which the Second Protocol enters into
force;
(iii) in respect of Article 26
(Exchange of Information), on requests made on or after the date
of entry into force."
(b) in Singapore:
(i) in respect of taxes withheld at
source, on amounts liable to be paid, deemed paid or paid
(whichever is the earliest) on or after the first day of January
of the calendar year next following the year in which the Second
Protocol enters into force;
(ii) in respect of tax chargeable
(other than taxes withheld at source) for any year of assessment
beginning on or after the first day of January in the second
calendar year following the year in which the Second Protocol
enters into force; and
(iii) in respect of Article 26
(Exchange of Information), for requests made on or after the date
of entry into force.
ARTICLE XI
This Second Protocol, which shall
form an integral part of the Agreement, shall remain in force as
long as the Agreement remains in force and shall apply as long as
the Agreement itself is applicable.
IN WITNESS WHEREOF the undersigned,
duly authorised thereto, have signed this Second Protocol.
DONE in duplicate at Washington this
20th day of April 2017 in the Latvian and English languages, both
texts being equally authentic. In the case of divergence of
interpretation, the English text shall prevail.
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For the Government of
the Republic of Latvia
Ms Dana Reizniece-Ozola
Minister of Finance,
Ministry of Finance
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For the Government of
the Republic of Singapore
Ms Indranee Rajah
Senior Minister of State,
Ministry of Finance and
Ministry of Law
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