On 20 December, 2010 an agreement was signed between the Government of the Russian Federation 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 and on Capital.
This Agreement shall apply to taxes on income and on capital imposed on behalf of the Contracting State, or its political subdivisions, or local authorities, regardless of how they are levied.
The existing taxes to which the Agreement shall apply, in particular:
a) in the case of Russia:
- Corporate tax;
- Income tax;
- Corporate property tax; and
- Personal property tax;
b) in the case of Latvia:
- Corporate income tax;
- Individual income tax; and
- Immovable property tax.
Agreement shall apply also to any identical or substantially similar taxes on income or capital which are imposed after the date of signature, in addition to, or in place of, the existing taxes.
Each of the Contracting States shall take all measures necessary to give this Agreement the force of law within its jurisdiction and each shall send a written notification to the other of the completion of such measures. The agreement comes into force on the date of the last of such notifications and its provisions shall apply in both Contracting States:
a) in respect of taxes withheld at source on income arising on or after 1 January of the calendar year following the year in which this Agreement enters into force;
b) in respect of other taxes on income and capital - to taxes relating to any taxation year beginning on or after January 1 of the calendar year following the year in which this Agreement enters into force.