Article 23 - Methods for elimination of double taxation

Double taxation relief: foreign tax credit and exemption regimes prevent double taxation through capped credits and exemptions.

India allows a deduction from Indian tax equal to tax paid in Latvia on income taxable in Latvia, capped to the portion of Indian tax attributable to that income; India may also take exempted income into account when computing tax on remaining income. Latvia generally exempts income taxed in India, but for certain treaty specified source taxed categories it grants a deduction equal to tax paid in India, likewise capped, and may include exempted income when computing tax on the resident's remaining income.