Between Latvia and Turkmenistan is signed the Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion

During the official visit of President of the Republic of Turkmenistan to the Republic of Latvia, on September 11, 2012 was signed the Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income and capital taxes between the Government of Latvia and the Government of Turkmenistan.

Currently investors of Latvia and Turkmenistan are imposed with a tax in the other State only according to the tax laws of the other State.

When the Convention shall come into force, there shall be created more stable tax imposement regime in other contracting State for the potential investors of both States, in respect of business income, as well as such passive income as dividends, interests and royalties, what are defined in the Convention and to what are set the maximum rates, what can be imposed by the other contracting State.

The Convention establishes that dividends, if the beneficial owner is a resident of the other Contracting State, in the country of origin can be imposed with the tax not exceeding 5% when the recipient is a company which holds directly at least 25% of the distributing company's capital and 10% in all other cases.

Interest payments and royalties, if the beneficial owner is a resident of the other Contracting State, in the country of origin can be imposed with a tax at a rate not exceeding 10% of the total interest or royalties.

For the Convention to come into force, both States have to fulfill the established procedures.

Turkmenistan, Ashgabat