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(d) Royalties for Use of Patents, Copyrights, Trade-marks, Secret Processes and Formula and Similar Income

If the holder of a patent or similar rights is not domiciled in Latvia and has no establishment there, no tax is levied upon the royalties he draws from the mere concession of these rights or patents.

But, if these royalties are among the receipts of an establishment in Latvia, they will be liable to income-tax and the taxes on trade and industry in the same way as the establishment’s other industrial and commercial receipts.

The same applies if the patent has not been merely licensed, but if its cession is to be regarded as a contribution towards the capital of an enterprise having its head office or an establishment in Latvia. In this case, the patent-holder will be liable, like any other partner or person entitled to a share in the profits of the enterprise, on his share of the taxes due from the concessionary enterprise.

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