3. Article

1. a)) in Sweden:
2. a)) jēdziens «Latvija» nozīmē Latvijas Republiku un, lietots ģeogrāfiskā nozīmē, apzīmē Latvijas Republikas teritoriju un jebkuru citu Latvijas Republikas teritoriālajiem ūdeņiem piegulošo teritoriju, kur saskaņā ar Latvijas un starptautiskajiem likumiem tiek izmantotas Latvijas tiesības uz jūras dzīlēm, apakšzemi un tur esošajiem dabas resursiem;
3. b)) in Latvia:
4. b)) jēdziens «Zviedrija» nozīmē Zviedrijas Karalisti un, lietots ģeogrāfiskā nozīmē, apzīmē Valsts teritoriju, Zviedrijas teritoriālos ūdeņus, kā arī citus jūras apvidus, kur saskaņā ar starptautiskajām tiesībām Zviedrija īsteno savas suverēnās tiesības vai likumdošanas varu;
5. a)) the term "Sweden" means the Kingdom of Sweden and, when used in a geographical sense, includes the national territory, the territorial sea of Sweden as well as other maritime areas over which Sweden in accordance with international law exercises sovereign rights or jurisdiction;
6. c)) jēdziens «persona» ietver fizisku personu, sabiedrību un jebkuru personu kopumu;
7. b)) the term "Latvia" means the Republic of Latvia, and when used in the geographic 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;
8. d)) jēdziens «sabiedrība» nozīmē jebkuru apvienotu veidojumu vai jebkuru vienību, kas nodokļu aplikšanas nolūkos tiek uzskatīta par apvienotu veidojumu;
9. e)) jēdzieni «Līgumslēdzējas Valsts uzņēmums» un «otras Līgumslēdzējas valsts uzņēmums» attiecīgi nozīmē uzņēmumu, ko vada Līgumslēdzējas Valsts rezidents, un uzņēmumu, ko vada otras Līgumslēdzējas Valsts rezidents;
10. c)) the term "person" includes an individual, a company and any other body of persons,
11. d)) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes:
12. f)) jēdziens «pilsonis» nozīmē:
13. e)) 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;
14. g)) jēdziens «starptautiskā satiksme» apzīmē jebkurus pārvadājumus ar jūras vai gaisa transportu, ko veic Līgumslēdzējas Valsts uzņēmums, izņemot gadījumus, kad jūras vai gaisa transporta līdzekļi pārvietojas vienīgi starp vietām otras Līgumslēdzējas Valsts iekšienē;
15. f)) the term "national" means:
16. h)) jēdziens «kompetentās iestādes» apzīmē:
17. 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:
18. a)) he shall be deemed to be a resident 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 of the State with which his personal and economic relations are closer (centre of vital interests);
19. 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 of the State in which he has an habitual abode;
20. c)) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
21. 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.
22. a)) a place of management;
23. b)) a branch;
24. c)) an office;
25. d)) a factory;
26. e)) a workshop; and
27. f)) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
28. b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
29. c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
30. 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;
31. 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;
32. 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.
33. b)) sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment; or
34. c)) other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment.
35. 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
36. 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, an 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.
37. 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 capital of the company paying the dividends;
38. b)) 15 per cent of the gross amount of the dividends in all other cases.
39. a)) interest arising in Latvia shall be exempt from Latvian tax if the interest is paid to:
40. b)) interest arising in Sweden shall be exempt from Swedish tax if the interest is paid to:
41. c)) interest arising in a Contracting State on a loan guaranteed by any of the bodies mentioned or referred to in sub-paragraph a) or sub-paragraph b) and paid to a resident of the other Contracting State shall be taxable only in that other State;
42. d)) interest arising in a Contracting State shall be taxable only in the other Contracting State if:
43. a)) 5 per cent of the gross amount of royalties paid for the use of industrial, commercial or scientific equipment;
44. b)) 10 per cent of the gross amount of the royalties in all other cases.
45. 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 tax year concerned, and
46. b)) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
47. c)) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
48. b)) However, such remuneration shall be taxable only in the Contracting State of which the individual is a resident if the services are rendered in that State and the individual:
49. a)) Where a resident of Sweden derives income which under the laws of Latvia and in accordance with the provisions of this Convention may be taxed in Latvia, Sweden shall allow ? subject to the provisions of the law of Sweden concerning credit for foreign tax (as it may be amended from time to time without changing the general principle hereof) ? as a deduction from the tax on such income, an amount equal to the Latvian tax paid in respect of such income.
50. b)) Where a resident of Sweden derives income which, in accordance with the provisions of Article 19, shall be taxable only in Latvia, Sweden may, when determining the graduated rate of Swedish tax, take into account the income which shall be taxable only in Latvia.
51. c)) Notwithstanding the provisions of sub-paragraph a), dividends paid by a company which is a resident of Latvia to a company which is a resident of Sweden shall be exempt from Swedish tax to the extent that the dividends would have been exempt under Swedish law if both companies had been Swedish companies. This exemption shall not apply unless:
52. d)) For the purposes of sub-paragraphs a) and c), the terms "the Latvian tax paid" and "the normal corporate tax in Latvia or an income tax comparable thereto" shall be deemed to include Latvian income tax which would have been paid but for any time-limited exemption or reduction of tax granted under incentive provisions contained in Latvian laws designed to promote economic development to the extent that such tax that would have been paid relates to profits other than profits from activities in the financial sector and that no more than 25 per cent of such profits consist of interest and gains from the alienation of shares and bonds or consist of profits derived from third States.
53. e)) The provisions of sub-paragraph d) shall apply only for the first ten years of which this Convention is applicable. The competent authorities shall consult each other in order to determine whether the provisions of sub-paragraph d) shall be applicable after that date.
54. f)) Where a resident of Sweden owns capital which, in accordance with the provisions of this Convention, may be taxed in Latvia, Sweden shall allow as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Latvia. Such deduction shall not, however, exceed that part of the capital tax as computed before the deduction is given, which is attributable to the capital which may be taxed in Latvia.
55. a)) Where a resident of Latvia derives income or owns capital which in accordance with this Convention, may be taxed in Sweden, unless a more favourable treatment is provided in its domestic law, Latvia shall allow:
56. b)) For the purpose of sub-paragraph a), where a company that is a resident of Latvia receives a dividend from a company that is a resident of Sweden in which it owns at least 10 per cent of its shares having full voting rights, the tax paid in Sweden shall include not only the tax paid on the dividend but also the tax paid on the underlying profits of the company out of which the dividend was paid.
57. c)) For the purposes of sub-paragraphs 1 f) and 2 a) the terms "the capital tax paid in Latvia" and "the capital tax paid in Sweden" shall not include any capital tax paid therein that is covered by paragraph 5 of Article 22.
58. a)) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
59. 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;
60. 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).
61. a)) ordinary costs incurred by a Contracting State in providing assistance shall be borne by that State,
62. b)) extraordinary costs incurred by a Contracting State in providing assistance shall be borne by the other State and shall be payable regardless of the amount collected on its behalf by that other State.
63. a)) a company that is a resident of a Contracting State derives its income primarily from other States
64. b)) except for the application of the method of elimination of double taxation normally applied by that State, such income would bear a significantly lower tax under the laws of that State than income from similar activities carried out within that State or from being the headquarters, co-ordination centre or similar entity providing administrative services or other support to a group of companies which carry on business in that State, as the case may be, sub-paragraph 1 d) of Article 23 and any other provisions of this Convention conferring an exemption or a reduction of tax shall not apply to the income of such company and to the dividends paid by such company.
65. a)) in respect of taxes withheld at source, on income derived on or after 1 January in the calendar year next following the year in which the Convention enters into force;
66. b)) in respect of other taxes on income, and taxes on capital, for taxes chargeable for any tax year beginning on or after 1 January in the calendar year next following the year in which the Convention enters into force.
67. b)) in respect of other taxes on income, and taxes on capital, for taxes chargeable for any tax year beginning on or after 1 January in the calendar year next following the year in which the notice is given.
68. a)) the overall supervision of the work rests with the principal;
69. b)) the work is carried out in a place of work which is at the disposal of the principal and for which he has responsibility;
70. c)) the remuneration to the hirer-out is computed according to the time spent or with reference to any other relationship between the remuneration and the wages received by the employee;
71. d)) the main part of the tools and materials are supplied by the principal; and
72. e)) the hirer-out does not decide unilaterally on the number of employees or their qualifications.