(1) For the purposes of this Agreement, unless the context otherwise requires:

• (a) the term "Federal Republic of Germany" means the area in which the tax law of the Federal Republic of Germany is in force, as well as the area of the seabed, its subsoil and the superjacent water column adjacent to the territorial sea, insofar as the Federal Republic of Germany exercises there sovereign rights and jurisdiction in conformity with international law and its national legislation;
• (b) the term "Republic of Latvia" means the Republic of Latvia and, when used in the geographical sense, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which, under the laws of the Republic of Latvia and in accordance with international law, the rights of the Republic of Latvia may be exercised with respect to the seabed and its subsoil and their natural resources;
• (c) the terms "a Contracting State" and "the other Contracting State" mean the Federal Republic of Germany or the Republic of Latvia, as the context requires;
• (d) the term "person" means an individual, a company and any other body of persons;
• (e) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;
• (f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
• (g) the term "national" means:
  • (a) in respect of the Federal Republic of Germany any German within the meaning of Article 116, paragraph (1), of the Basic Law for the Federal Republic of Germany and any legal person, partnership and association deriving its status as such from the law in force in the Federal Republic of Germany;
  • (b) in respect of the Republic of Latvia any individual possessing the nationality of the Republic of Latvia and any legal person, partnership or association deriving its status as such from the laws in force in the Republic of Latvia;
• (h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
• (i) the term "competent authority" means in the case of the Federal Republic of Germany the Federal Ministry of Finance, and in the case of the Republic of Latvia the Minister of Finance or his authorised representative.

(2) As regards the application of the Agreement by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Agreement applies.