On approval of the convention between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on avoidance of double taxation and Prevention of tax evasion on income and capital
Law of the Republic of Kazakhstan dated July 3, 1997 N 146-1
Approve the convention between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the avoidance of double taxation and the Prevention of tax evasion on income and Capital, signed in Moscow on October 18, 1996.
President Of The Republic Of Kazakhstan
Convention between the Government of the Republic of Kazakhstan and the governments of the Russian Federation on the elimination of double taxation of income and capital and the Prevention of tax evasion
(Entered into force on July 29, 1997-official website of the Ministry of foreign affairs of the Republic of Kazakhstan)
The Government of the Republic of Kazakhstan and the Government of the Russian Federation, guided by the desire to strengthen and develop economic, scientific, technical and cultural ties between the two states and expressing the desire to abolish double taxation of income and capital and prevent tax evasion, agreed to:
Article 1 persons to whom the Convention applies
This convention applies to persons who are residents of one or both Contracting States.
Article 2 taxes applicable to the convention
1.this convention applies to income and capital taxes levied by the contracting state or its administrative-territorial divisions or local authorities, regardless of the methods of obtaining them. 2. All taxes levied on the total amount of income or capital or on individual elements of income or capital, including taxes on income derived from the exclusion of movable and immovable property, taxes on the total amount of wages and wages paid by enterprises, as well as taxes levied on the income of capital gains, are considered as taxes levied on income and capital. 3. Taxes currently levied to which this convention applies are, in particular: A) in the Republic of Kazakhstan: (I) income tax levied on legal entities and individuals; (II) tax on property of legal entities and individuals; (hereinafter referred to as "Kazakhstan tax"); B) in the Russian Federation: (I) tax on profits (income) of enterprises and organizations; (II) income tax levied on individuals; (III) tax on property of enterprises; (IV) tax on property of individuals; (hereinafter referred to as the "Russian tax"). 4.this convention shall also apply to taxes in force from the date of signing of this convention by the Contracting States, or any taxes of the same or practically similar origin, which are additionally levied in their place. The competent authorities of the contracting states will inform each other of any significant changes to their tax laws.
Article 3 general definitions
1.for the purposes of this convention, if there is no other meaning other than the context: A) the following terms: (I) "Kazakhstan" means the Republic of Kazakhstan and, when used in a geographical sense, means its territory, as well as areas designated in accordance with international law, where the type of activity to which the tax laws of the Republic of Kazakhstan apply is carried out. (II)" Russia " means the Russian Federation and, when used in a geographical sense, means its territory, as well as areas in which the type of activity to which the tax laws of the Russian Federation apply is carried out, which are designated in accordance with international law. B) the term" person " means an individual, company or any other association of persons. C) the term" company "means any corporate association or any economic unit considered as a corporate entity for tax purposes and, in particular, includes a Joint-Stock Company (Limited Liability Company) or any other legal entity or organization; d) the terms" Contracting State "and "other" Contracting State " mean Kazakhstan or Russia, depending on the context. E) the term "enterprise of a Contracting State and" enterprise of another Contracting State "means, respectively, an enterprise managed by a resident of the Contracting State and an enterprise managed by a resident of another Contracting State; E) the term" international transportation " means any transportation carried out by sea, river, aircraft, rail or road transport used by an enterprise of the contracting state, except in cases where such transportation is carried out only between points of the other Contracting State; G) the term" National person " means: (I) any individual with the citizenship of the Contracting State; (II) any legal entity, company, partnership or any other association that has acquired its status on the basis of the current laws of the contracting state. H) the term" capital "means movable and immovable property and includes, but is not limited to, cash, shares or other documents confirming property rights, bills, bonds or other debt obligations, as well as patents, trademarks, copyrights or other such rights and property; I) the term" competent authority " means: (I) in Kazakhstan: the Ministry of Finance or its authorized representative; (II) in Russia: the Ministry of Finance or its authorized representative. 2. When a contracting state uses this convention, any term that is not defined in it shall have the same meaning as it is used under the laws of that state in respect of taxes to which the Convention applies, if it has no other meaning than the context.
Article 4 Resident
1.for the purposes of this convention, the term "resident of a Contracting State" means any person subject to taxation under the laws of this state on the basis of his or her place of residence, permanent location, place of Administration, registration or establishment, or any other criterion of such nature. However, the term does not cover any person who is subject to taxation in that state solely because of income from sources in that state or because of capital in it. 2. In accordance with the provisions of Paragraph 1, if an individual is a resident of both Contracting States, his status is determined as follows: a) he is considered a resident of the state in which permanent housing belongs to his property; if he has permanent housing in both Contracting States, he is considered a resident of the state with the closest personal and economic ties (center of vital interests; B) if it is not possible to determine the state in which he has a center of vital interests, or if he does not have permanent housing at his disposal in either of the contracting states, he is considered a resident of the Contracting State in which he usually lives: C) if he usually lives in either of the Contracting States or does not live in one of them, he is considered a resident of the state in which he is a citizen; D) if he is a citizen of both states or is not a citizen of either, the competent authorities of the Contracting States shall resolve the issue in mutual agreement. 3.if, for reasons related to the provisions of Paragraph 1, a person other than an individual is a resident of both Contracting States, then the competent authorities of the Contracting States shall try to resolve the issue in agreement with each other, but if the competent authorities cannot reach an agreement, such person shall not be considered a resident of one of the Contracting States for the purposes of obtaining benefits in accordance with this convention.
Article 5 permanent establishment (representation)
1.for the purposes of this convention, the term "permanent establishment (representation) means a permanent place of activity in which an enterprise of one Contracting State carries out business activities in whole or in part in another Contracting State. 2.in particular, the term "permanent establishment" includes: a) a place of management; b) a division; C) an office; D) a factory; e) a workshop; e) a mine, an oil or gas well, a mine or any other place that produces natural resources. 3. The term" permanent facility " also includes: a) only if such a site or facility has been in operation for more than 12 months, or if such services have been provided for more than 12 months, the construction site or the object of construction, installation or assembly or services related to the supervision of the performance of these works; B) if such use only lasts for more than 12 months, or if such services are provided only for more than 12 months, the installation or construction or services used for natural resources exploration or services related to the supervision of the performance of these works or the drilling rig or vessel used for Natural Resources Exploration; C) services provided by residents through employees or other employees hired by the resident for such purposes, including consulting, services, if services of this nature (for such or related project) are provided within the country for more than 12 months. 4. despite the previous provisions of this article, the term "permanent establishment" does not include: a) the use of structures only for the purposes of storage, display or shipment of goods or products belonging to the enterprise; B) maintain a stock of goods or products belonging to the enterprise only for the purposes of storage, display or shipment; C) maintain a stock of goods or products belonging to the enterprise only for the purposes of likeness of another Enterprise; D) maintain a permanent place of activity only for the purposes of purchasing goods or products or for the collection of information intended for the enterprise; e) maintain a permanent place of activity only for the implementation of any other activity of a preparatory or auxiliary nature for the enterprise; F) maintenance of a permanent place of service only for the implementation of any action of the specified types of activity from subitem A) to subitem d) in the event that the aggregate activity of a permanent place of service arising as a result of such an operation is of a preparatory or auxiliary nature. 5. Regardless of the provisions of Paragraphs 1 and 2, if a person other than an agent with independent status to which paragraph 6 applies acts on behalf of the enterprise, and the Contracting State has the authority to conclude contracts on behalf of the enterprise and normally uses it, then this enterprise is considered as an enterprise with a permanent institution in that state in respect of any, this shall not be included in the case of a limited activity that does not make this permanent place of service a permanent institution in accordance with the provisions of this paragraph, even if it is carried out through a permanent place of Service. 6.an enterprise shall not be considered as an enterprise with a permanent establishment in that state only for the implementation of entrepreneurial activity in the Contracting State through an intermediary commission agent or any other agent with independent status, if such persons are carried out within the framework of their usual activities. 7. The fact that a company that is a resident of a contracting state controls or controls a company that is a resident of another contracting state, or engages in business activities in that other state /or through a permanent institution or otherwise does not make one of these companies a permanent institution of the other.
Article 6 income from Real Estate
1.income received by a resident of a contracting state from real estate located in another contracting state (including income received from agriculture or forestry) may be taxed in this other state. 2.The term" real estate " shall have the same meaning as it has under the law of the Contracting State in which the property in question is located. The term in any case includes subsidiary property in relation to real estate, livestock and equipment used in agriculture and forestry, rights to which the provisions of law relating to land ownership apply, rights to floating or fixed payments as compensation for the development of real estate usurfruct and Mineral Resources, ore sources and other natural fossils, and the right to develop the above; sea and aircraft 3. The provisions of Paragraph 1 apply to income derived from the direct use, rental or use of real estate in any other way. 4.the provisions of Paragraphs 1 and 3 also apply to income from the real estate of the enterprise and income from real estate used for the provision of independent personal services.
Article 7 profit from entrepreneurial activity
1.if an enterprise of a contracting state does not or has not engaged in entrepreneurial activity in another contracting state through a permanent institution located there, the profit of such enterprise shall be taxed only in this state. If an enterprise, as mentioned above, is or has engaged in entrepreneurial activity, its profits may be taxed in another state, but only in the part relating to: a) such a permanent institution: B) the sale of goods or products similar to goods or products sold through a permanent institution in this other state; or C) other entrepreneurial activity carried out in this other state, 2. Taking into account the provisions of Paragraph 3, if an enterprise of a contracting state is engaged in or engaged in entrepreneurial activity through a permanent institution located there in another contracting state, then the profit that this permanent institution may receive in such or similar cases when it is engaged in the same or similar activity and acts completely independently from the enterprise of which it is a permanent institution is attributed to this permanent institution in each contracting state. 3. When determining the profit of a permanent establishment, it is possible to deduct the costs incurred for the purposes of a permanent establishment, confirmed by documents, including management and general administrative costs, regardless of whether the following costs were incurred in or outside the state in which the permanent establishment is located. In any case, such expenses should not include any amounts other than /reimbursed/ actually incurred by the enterprise or its other division by its permanent establishment, in the form of various payments for the use of patents or other rights, or in the form of a commission fee for services rendered or management, or in the form of interest on a loan for their permanent representation, with the exception of banks. 4. Only on the basis of the purchase of goods or products by a permanent institution for the enterprise, any profit to this permanent institution is not calculated. 5.if the profit includes the types of income and the increase in the value of property separately mentioned in other articles of this convention, the provisions of these articles shall not apply to the provisions of this article. 6.if there are no sufficient and valid reasons for changing such an order, the profit due to a permanent institution is determined year-by-year in a uniform manner.
Article 8 International Transportation
1.profits received by a resident of the contracting state from the use of sea, river, aircraft, rail or road transport in international transportation shall be taxed only in this state. 2.income received by a resident of the Contracting State from the rental of vehicles, as well as containers and equipment intended for their use in international transportation, shall be taxed only in that state. 3. The provisions of Paragraphs 1 and 2 also apply to profits from participation in a pool, joint venture or international vehicle operation organizations.
Article 9 associated enterprises
1. if: a) the enterprise of the Contracting State directly or indirectly participates in the management, control or capital of the enterprise of another Contracting State, or B) certain persons directly or indirectly participate in the management, control or capital of the enterprise of the Contracting State and the enterprise of the other Contracting State; and in each case, if conditions are created or established between two enterprises that differ from those that may occur between two independent enterprises, any income that is not credited to it due to the occurrence of these conditions may be included in the income of this enterprise and taxed on it accordingly. 2. If an enterprise of another contracting state adds its taxable income in that other state to the income of the enterprise of that state and taxes accordingly, and the income added in this way is income that can be credited to the enterprise of the first said state, if the relationship between the two enterprises is the same as between independent enterprises, then this other state may make appropriate adjustments to the amount of tax levied on this income. When determining such amendments, other provisions of this convention shall be considered, and the competent authorities of the Contracting States shall consult each other if necessary.
Article 10 Dividends
1.dividends paid by a company that is a resident of a contracting state to a resident of another contracting state may be taxed in this other state. 2.however, such dividends may also be taxed in accordance with the laws of this state in the Contracting State, which is a resident of the company paying dividends, but if the recipient is the actual owner of the dividends, then the tax levied in this way does not exceed 10 percent of the total amount of dividends. This clause does not affect the taxation of the company in relation to the profit from which dividends are paid. 3. The term" dividends", when used in this article, means income from shares or other rights that are not debt claims, income from participation in profits, as well as income from other corporate rights subject to the same tax regulation as income from shares in accordance with the laws of the state in which the company is a resident. 4. If the actual holder of dividends, who is a resident of the contracting state, carries out business activities in it through a permanent institution located in another contracting state in which the dividend-paying company is a resident, or provides personal services independent of the permanent base located there in this other state, and the holding company related to the dividends being paid actually relates to such a permanent institution or permanent base, then the provisions of Paragraphs 1 and 2 do not apply. In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order. 5. If a company that is a resident of a contracting state receives profit or income from another contracting state, this other state may not tax dividends paid by the company in any way, except in cases where such dividends are paid to a resident of that other state, or a holding company in respect of which dividends are actually paid to a permanent institution or permanent base located in that other state. 6. The profit of a company that is a resident of one of the contracting states and carries out business activities in another Contracting State through a permanent institution located there, after being taxed under Article 7 (profit from entrepreneurial activity), the rest of it may be taxed in the same Contracting State where the permanent institution is located and in accordance with the laws of that state, but the tax rate withheld in this way may not exceed the rate specified in Paragraph 2.
Article 11 percentages
1.interest arising in the Contracting State and paid to a resident of another contracting state may be taxed in this other state. 2.however, such interest may also be taxed in the Contracting State in which they occur and in accordance with the laws of this state, but if the recipient is the actual owner of the interest, then the tax received in this way will not exceed 10 percent of the total amount of interest. 3. Interest paid on a loan granted by a bank that is a resident of one of the contracting states to its permanent institution in another contracting state, regardless of the provisions of Paragraph 1 of this article, may be taxed in this other state, subject to the provisions of Paragraph 2 of this article. 4. Interest arising in a contracting state, regardless of the provisions of Paragraph 2 of this article, shall be exempt from taxation in that state if they are received and owned by another Contracting State, its administrative-territorial subdivision or local authority or any other agency of that state, its administrative-territorial divisions or local authority. 5. The term" interest", when used in this article, means income from any debt claims secured or unsecured, granting or not the right to participate in favor of debtors, in particular income from government securities and income from these bonds or debt obligations, including interest and winnings paid on these securities, bonds or debt obligations. Penalties for late payments are not considered as percentages for the purposes of this article. 6. The provisions of Paragraphs 1 and 2 shall not apply if the actual holder of interest, who is a resident of the contracting state, is engaged in business activities through a permanent institution located there in another Contracting State where the interest occurs, or provides personal services independent of a permanent base located there in that other state, and the debt claim on which the interest In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent and services) apply, depending on the order. 7.if the payer is the contracting state itself, its administrative-territorial division, local authorities of this state or a resident of this state, the interest is considered to appear in this state. However, if the person paying interest is a resident of the contracting state or not - regardless of whether the contracting state has a permanent institution or permanent base on which the interest is paid, and such interest is paid by such a permanent institution or permanent base, then such interest is considered to have originated in the state in which such a permanent institution or permanent base is located. 8. If the interest is related to a debt claim due to the existence of a special relationship between the payer and its actual owner or between the two and any other person, and the amount of interest paid on its basis exceeds the amount so that the interest can be agreed between the payer and their actual owner in the absence of such relations, the provisions of this article apply only to the last specified amount. In this case, the excess of the beginning of the payment must be taxed in accordance with the laws of each contracting state, subject to other provisions of this convention. 9. The provisions of this article shall not apply if the main purpose of any person associated with the occurrence or transfer of any debt claims against which interest is paid is to create rights to such claims and make a profit by transferring them.
Article 12 royalty
1.royalties arising in the Contracting State and paid to a resident of another Contracting State may be taxed on this other state. 2.however, such royalties may also be taxed in the Contracting State in which it occurs and in accordance with the laws of that state, but if the recipient of the royalty and its actual owner are residents of another Contracting State, then the tax levied in this way shall not exceed 10 percent of the total amount of the royalty. 3. The term" royalty", when used in this article, refers to any form of payment charged as a reward for the use or transfer of any copyright to works of literature, art and science, including computer programs, cinematographic films and television films, videos or recordings for radio and television, any patent, trademark, design or model, plan, secret formula or process, or information (know-how) related to, means payments made for the use or transfer of the right to use commercial or scientific equipment. 4.the provisions of Paragraph 1 shall not apply if the actual owner of the royalty, who is a resident of the contracting state, engages in business activities through a permanent institution located there in another contracting state where the royalty originated, or provides personal services there independently from a permanent base located in that other state, and the rights or property in respect of which the royalty In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order. 5.if royalty is paid for the use of rights or property in the Contracting State or for the right to use them, it is considered to have originated in that state. 6. If, due to the existence of a special relationship between the payer and the actual owner of the royalties or between the two and any other person, the amount of royalties in respect of the use, rights or information to be paid on the basis of it exceeds the amount that can be agreed between the payer of the royalties and its actual owner in the absence of such relations, the provisions of this article shall apply only to the last specified amount. In this case, the excess of the beginning of the payment must be taxed in accordance with the laws of the contracting state, taking into account the other provisions of this convention. 7.the provisions of this article shall not apply if the main purpose of any person existing in connection with the creation or transfer of a right to which royalties are paid is to benefit from this article by the creation or transfer of such rights.
Article 13 income from the name of the value of property
1.income received by a resident of a contracting state from the exclusion of real estate referred to in Article 6 (income from real estate) and located in another Contracting State, or from the exclusion of shares of companies whose assets consist mainly of such property, or a share in a partnership or trust consisting mainly of real estate located in another contracting state, may be taxed in this other state. 2. Income from the withdrawal of movable property, which is part of the permanent facility property owned by the contracting state's enterprise in another Contracting State, or movable property in respect of a permanent base under the jurisdiction of a resident of the contracting state located in the contracting state for the purposes of providing independent personal services, including income from the withdrawal of such a permanent facility (including an individual or entire enterprise) or such a permanent base may be taxed in that other state. 3. Income received by a resident of a contracting state from the withdrawal of sea, river, aircraft, rail or road transport used in international transportation, or movable property related to the use of such vehicles, shall be taxed only in that Contracting State. 4.income from the removal of any property not specified in Paragraphs 1 and 2 shall be taxed only in the Contracting State in which the person removing the property is a resident.
Article 14 independent private services
1.income received by a resident of the contracting state from the provision of professional services or other services of an independent nature shall be taxed only in this state, except in cases where he has a permanent base of his permanent access in another Contracting State for the purposes of carrying out this activity. If it has such a base, income can be taxed in another state, but only in the part related to this permanent base. 2. The term" professional services " includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as independent and activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15 income from Hired work
1.in accordance with the provisions of Article 16 (directors ' remuneration), Article 18 (Pensions), Article 19 (state service), wages and other such remuneration received by a resident of a Contracting State in connection with the work he has been hired shall be taxed only in this state, unless such work is carried out in another contracting state. If hired work is carried out in this way, the remuneration received in this regard may be taxed in this other state. 2. Regardless of the provisions of Paragraph 1, if: a) the recipient travels in that other state for a period or for periods not exceeding 183 days in total for any 12-month period; and B) the remuneration is paid by a tenant who is not a resident of another state or is paid on behalf of the tenant; and C) the remuneration 3. Regardless of the preceding provisions of this article, the remuneration received in connection with the work employed on the vehicle, referred to in subparagraph F) of Paragraph 1 of Article 3 (general definitions) and used in international transportation, may be taxed in the Contracting State, which is the resident of the enterprise carrying out these transportation.
Article 16 remuneration of Directors
Directors ' Remuneration and other such payments that a resident of a contracting state receives as a member of the board of directors or such body of a company that is a resident of another contracting state may be taxed in that other state.
Article 17 artists and athletes
1.regardless of the provisions of Article 14 (independent personal services) and Article 15 (income from Hired work), income received by a resident of a contracting state as an artistic worker, such as a theater, film, radio or television artist or composer, or as an athlete, may be taxed in that other state. 2. If the income of an art worker or athlete in relation to his personal activities carried out in this nature is not credited to the art worker or athlete himself, but to another person, then this income, regardless of the provisions of Article 7 (profit from entrepreneurial activity), Article 14 (independent personal services) and Article 15 (income from Hired work), may be taxed in the Contracting State 3. Regardless of the provisions of Paragraphs 1 and 2, if this activity is financed to a large extent by the public funds of another Contracting State, or if this activity is carried out on the basis of a cultural cooperation agreement concluded between the contracting states, the income specified in this article is exempt from taxation in the contracting state in which the activity of an artist or athlete is carried out.
Article 18 pensions and other payments
1.subject to the provisions of Article 19 (Civil Service) paragraph 2, pensions and other such benefits paid to a resident of a Contracting State in respect of previous employment and any annuity paid to that resident shall be taxed only in that state. 2.The term" annuity " means a fixed amount that is regularly paid to an individual at a specified time during his entire life or for a certain or specified period of time, if there is an obligation to pay such a payment instead of an alternative and full remuneration. 3. Alimony and other similar payments arising in the Contracting State and paid to a resident of another Contracting State are taxed only in this other state.
Article 19 Public Service
1. (a) remuneration other than a pension paid to an individual by a contracting state or its administrative-territorial subdivision, or a local authority in respect of services rendered to that state or its administrative-territorial subdivision, or a local authority shall be taxed only in that state. B) however, if the activity is carried out in this state and an individual who is a resident of this state: (I) is a citizen of this state; or (II) such remuneration shall be taxed only in another Contracting State, if it is not a resident of that state only for the purpose of carrying out activities. 2. (A) any pension paid to an individual from funds paid by the contracting state or its administrative-territorial subdivision or a local authority or created by them for activities carried out by this state or its administrative-territorial subdivision or a local authority shall be taxed only in this state. B) if an individual is a resident and citizen of this state, such a pension is taxed only in this other Contracting State, regardless of the provisions of subparagraph a). 3.the provisions of Article 15 (income from Hired work), Article 16 (remuneration of Directors) and Article 18 (pensions and other payments) apply to remuneration and pensions related to activities carried out in connection with the involvement of the contracting state or its administrative-territorial subdivision or local government body in entrepreneurial activity.
Article 20 students, graduate students and interns
Payments received by a student, graduate student or trainee who has or is a resident of another contracting state prior to coming to one of the contracting states and is residing in the first mentioned state only for the purpose of education or practice, shall not be taxed in that first mentioned state, provided that such payments come from sources in the other Contracting State.
Article 21 other income
1.types of income of a resident of a Contracting State not mentioned in the preceding articles of this convention shall be taxed only in this state, regardless of the source of their occurrence. 2. The provisions of Paragraph 1 do not apply to such income if the recipient of income other than income from real estate, as defined in Paragraph 2 of Article 6 (income from real estate), is a resident of the contracting state, engages in business activities through a permanent institution located there in another contracting state, or provides independent personal services through a permanent base located there in this other state, and the right or property that served as the basis for receiving income is actually associated with such a permanent institution or permanent base. In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order.
Article 22 Capital
1.capital, which is the property of a resident of the contracting state and is located in another Contracting State, presented in the form of real estate referred to in Article 6 (income from real estate), may be taxed in this other state. 2. Capital may be taxed in this other state in the form of movable property, which is part of the property of a permanent establishment owned by an enterprise of a contracting state in another contracting state, or movable property in respect of a permanent base under the jurisdiction of a resident of the contracting state in another contracting state for the purposes of providing independent personal services. 3. Capital provided in the form of sea, river, aircraft, rail and Road Transport and movable property related to the use of such vehicles, which are the property of a resident of the contracting state and are used in international transportation, is subject to tax only in this contracting state. 4.all other elements of the capital of a resident of a Contracting State are taxed only by this state.
Article 23 elimination of double taxation
1.in the case of Kazakhstan, double taxation shall be abolished as follows: a) if a resident of Kazakhstan earns, or has capital, which may be taxed in Russia in accordance with the provisions of this convention, Kazakhstan shall: I) deduct from the income tax of this Resident an amount equal to the income tax paid in Russia; II) deduct from the tax on capital of this Resident an amount equal to the tax on capital paid in Russia. The amount of the tax amount to be calculated should in any case not exceed the amount of tax that can be calculated in Kazakhstan on income or capital, which can be taxed in Russia at the rates applicable in Kazakhstan. B) if a resident of Kazakhstan earns or has capital taxable only in Russia in accordance with the provisions of this convention, Kazakhstan may include this income or capital in the tax base, but only for the purposes of setting the tax rate on such other income or capital taxable in Kazakhstan. 2. In the case of Russia, double taxation is abolished as follows: If a resident of Russia earns or has capital in Kazakhstan that can be taxed in Kazakhstan in accordance with the provisions of this convention, the amount of tax payable in Kazakhstan on such income or capital may be deducted from the tax levied on this resident in Russia. Such a deduction, however, does not exceed the Russian tax calculated in Russia on such income or capital in accordance with its tax laws and regulations.
Article 24 Non-Discrimination
1.national persons of the contracting state shall not be subject in another contracting state to a tax or related obligation that is different or more burdensome than the taxation or related obligations to which national persons of that other state are or may be subject in such cases. 2. Stateless persons who are residents of the contracting state must not be subject to any taxation or any related obligations that are different or more burdensome than the taxation and related obligations to which national persons of the state are or may be subject in such cases in any of the contracting states. 3. Taxation of a permanent institution owned by an enterprise of one of the contracting states in another Contracting State should not be inconvenient from taxation of an enterprise of this other state engaged in exactly the same activity in this other state. 4. Interest, royalties and other payments paid by an enterprise of a contracting state to a resident of another contracting state for the purposes of determining the taxable profit of this enterprise must be deducted in the same cases as they were paid to a resident of the first named state, except in cases where the provisions of Paragraph 1 of Article 9 (associated enterprises), paragraph 6 of Article 11 (percentages), paragraph 6 of Article 12 (royalties) apply. Any debt of an enterprise of such a contracting state to a resident of another contracting state must be deducted in the same cases as the debt of a resident of the first mentioned state is deducted for the purposes of determining the taxable capital of this enterprise. 5. Enterprises of the Contracting State, whose capital is fully or partially owned by one or more residents of another Contracting State or is directly or indirectly controlled by them, shall not be subject to taxation other than any obligations related to it, or to more burdensome taxation or any obligations related to it, in the first mentioned state. 6. No provision referred to in this article shall be considered as such a provision obliging the contracting state to grant any individual benefits, exemptions and deductions granted to its residents for tax purposes to residents of another Contracting State.
Article 25 mutual consent procedure
1.if a person who is a resident of a Contracting State considers that the actions of one or both contracting states incur or incur taxation that does not comply with the provisions of this convention, he may submit his case for consideration by the competent authorities of the contracting state in which he is a resident, regardless of the means of protection provided for by the internal laws of these states. The application must be submitted within three years from the date of the first notification of actions subject to taxation that do not comply with the provisions of the convention. 2.The Competent Authority shall seek to resolve the issue in mutual agreement with the Competent Authority of another contracting state in order to avoid taxation that does not comply with the convention, if it considers the complaint reasonable and cannot come to a satisfactory solution. Any agreement reached must be implemented regardless of any temporary restrictions existing in the domestic laws of the contracting states. 3. The competent authorities of the contracting states may communicate directly with each other in order to achieve agreement and understanding of the preceding points.
Article 26 exchange of information
1.the competent authorities of the Contracting States shall obtain information necessary for the implementation of the provisions of this convention or these laws relating to the taxes to which the Convention applies to such extent that taxation under the domestic laws of the Contracting States does not contradict this convention. The exchange of information is not limited to Article 1. Any information received by a contracting state is considered confidential information, as is information obtained within the framework of the internal laws of that state, and may be communicated only to persons or bodies (including courts and administrative bodies) related to the determination, collection, forcible collection, judicial prosecution or consideration of complaints in respect of taxes to which the Convention applies. Such persons or bodies use information only for these purposes. They can disclose this information during an open court session or when making Court decisions. 2. In no event shall the provisions of Paragraph 1 be construed in such a way as to impose on the contracting states: A) the application of administrative measures contrary to the laws and administrative practices of this or that contracting state; b) the provision of information that cannot be obtained under the laws of this or that contracting state or in the course of
Article 27 employees of diplomatic and consular institutions
No provision of this convention shall affect the tax advantages of employees of diplomatic and consular institutions granted by the general norms of international law or granted in accordance with the provisions of special agreements.
Entry into force of Article 28
Each Contracting State shall notify the other state through diplomatic channels of the completion of the internal procedure for drafting the entry into force of this convention in accordance with its laws. This convention shall enter into force on the day of the last of these notices and shall thereafter: A) with respect to taxes on dividends, interest or royalties withheld from the source of income on amounts payable or accrued from or after January 1 of the year following the year of entry into force of the convention; (B) for taxable periods beginning on or after January 1 of the year following the year of entry into force of the Convention, other taxes shall be applied.
Article 29 termination of validity
1.this convention shall remain in force until one of the Contracting States terminates its validity. Each Contracting State may terminate the convention by notifying in writing through diplomatic channels of the termination of the convention at least six months before the end of any calendar year, 5 years after the entry into force of the convention. In such a case, the Convention applies to: a) taxes withheld from the source of income from or after January 1 of the year that comes after the end of the six-month period for amounts to be paid or payable; and B) cease to be valid in relation to other taxes for periods of taxation beginning on or after January 1 of the year that comes after the end of the six-month period. In Moscow, on October 18, 1996, two copies were made, each in Kazakh and Russian, and both texts have the same power. In case of disagreement in the interpretation of texts, the Russian text becomes decisive.
For the Government of the Republic of Kazakhstan for the Government of the Russian Federation
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases
