Agreed Note - Agreed Note - Latvia

AGREED NOTE At the signing of the Agreement between the Government of the Republic of India and the Government of the Republic of Latvia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Agreement ) the undersigned have agreed upon the following provisions with purpose to clarify the application of the Agreement. 1. With reference to Article 5: It is understood that on the date of signature of this Agreement none of the agreements for the avoidance of double taxation concluded by Latvia provide for special provision deeming an insurance enterprise of a Contracting State to have a permanent establishment in the other Contracting State if it collects premiums or insures risks in the territory of that other State through a dependent agent. However, if after that date, such special provision is included in any agreement for the avoidance of double taxation concluded by Latvia, then, after consultations between the competent authorities of the both States, such provision shall also be considered for this Agreement. 2. With reference to paragraph 4 of Article 5: It is understood that the provisions of paragraph 4 of Article 5 are designed to prevent an enterprise of one Contracting State from being taxed in the other State, if it carries on in that other State, activities of a purely preparatory or auxiliary character. 3. With reference to paragraph 3 of Article 5: It is understood that the supervisory activities or services referred to in paragraph 3 of Article 5 does not include activities or services covered under sub-paragraph (b) of paragraph 3 of Article 12. Done in duplicate at New Delhi this 18th day of September, 2013, each in the Hindi, Latvian and English languages, all texts being equally authentic. In the case of divergence of interpretation, the English text shall prevail.