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(a) Dividends

Dividends of Latvian companies paid to foreign enterprises are subject to the ordinary law and pay the tax on income from capital, which is deducted at the source at the rate of 5 per cent.

A foreign enterprise will also be liable to income-tax on these dividends, if they are among the receipts of an industrial or commercial establishment which the enterprise maintains in Latvia. Again, if such establishment has foreign shares in its portfolio, the dividends therefrom will be liable to income-tax as receipts of the establishment in question.

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