Cooperation Agreement between Ministry of Finance of Republic of Latvia and Ministry of Finance of the Republic of Azerbaijan

The Ministry of Finance of Republic of Latvia and the Ministry of Finance of the Republic of Azerbaijan (hereinafter called "the Parties")

whereas striving to develop and expand the cooperation in the fields of tax policy, customs legislation, internal audit, budget planning and execution and other financial areas, which meet the requirement and practice of international market;

striving to gradually integrate the economies of the Republic of Latvia and the Republic of Azerbaijan to world financial links;

considering the changes which occur in economic development of the Republic of Latvia and the Republic of Azerbaijan and on the basis of mutual interest regarding the efficiency of the implementation of the problems

agree as follows:

Article 1

The Parties shall assist to cooperation, hold consultations and exchange of experiences on financial and credit relations issues, in particular:

- organizational structure of financial authorities in an atmosphere of economic independence and transition to market relations;

- main principles and approaches in the formation of effective tax system, payment and collection (direct and indirect taxes);

- creation of the necessary database for providing of efficient control on complete tax payment and collections;

- main principles and approaches in respect of foreign investment, usage in structural transformation of economy;

- formation of efficient social protection mechanism of population and the source of its financing in an atmosphere of market economy;

- economic sources of government regulation of wages and prices.

Article 2

In order to establish the favorable conditions for the entrepreneurship, the Parties shall promote the implementation of the Convention between the Government of the Republic of Latvia and the Government of the Republic of Azerbaijan for the avoidance of double taxation with respect to taxes on income and on capital.

Article 3

The parties if needed would establish joint interdepartmental commissions to study the aforementioned issues, carry out the scientific researches, which represent mutual interest for both countries.

Article 4

The Parties express their interests in regular information exchange on financial and economic development issues of the Republic of Latvia and the Republic of Azerbaijan.

Article 5

The Parties have agreed on establishment favorable conditions for experience exchange, including training of appro­priate experts, carrying out scientific and practical conferences and workshops on aforementioned issues.

Article 6

All divergences concerning the interpretation and application of this Agreement shall be amicably settled through negotiations and consultations between the Parties.

Article 7

This Agreement shall be concluded to indefinite period and shall enter into force on the date of last written notification on implementation of internal legal procedures necessary for its entry into force.

Either Party may at any time give written notification through diplomatic channels to the other Party of its decision to terminate this Agreement. In such cases, the Agreement shall terminate 3 months after the date of receipt of the written notification by the Party.

This Agreement has been signed in Riga on October 4, 2006 in two original copies, each in Azeri, English and Latvian and all texts being equally authentic. In case of any discrepancy concerning the interpretation and application of this Agreement the Parties shall refer to English text.