- 1
- Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blueprints related thereto, or for consultancy or supervisory services shall be deemed not to be payments received as a consideration for information concerning industrial, commercial or scientific experience, except to the extent that the amounts of such payments are based on production, sales, performance, profits or any other similar basis related to the use of the said information.
- 2
- It is understood that the term "royalties" shall be deemed not to include payments for the use of drilling rigs, or similar purpose equipment, used for the exploration for or the extraction of hydrocarbons.
- 3
If in any convention for the avoidance of double taxation concluded by Latvia with a third State, being a member of the Organisation for Economic Co-operation and Development (OECD) at the date of signature of this Convention, Latvia after that date would agree to exclude any kind of rights or property from the definition contained in paragraph 4 or exempt royalties arising in Latvia from Latvian tax on royalties or to limit the rates of tax provided in paragraph 2, such definition or exemption or lower rate shall automatically apply as if it had been specified in paragraph 4 or paragraph 2, respectively.
