On ratification of the Convention between the Government of the Republic of Kazakhstan and the Swiss Federal Council for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital and the Protocol to the Convention between the Government of the Republic of Kazakhstan and the Swiss Federal Council for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital
Law of the Republic of Kazakhstan dated July 5, 2000 No. 64
To ratify the Convention between the Government of the Republic of Kazakhstan and the Swiss Federal Council for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital and the Protocol to the Convention between the Government of the Republic of Kazakhstan and the Swiss Federal Council for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital, done in Bern on October 21, 1999.
President of the Republic of Kazakhstan
Convention * between the Government of the Republic of Kazakhstan and the Swiss Federal Council for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital
*(Entered into force on November 24, 2000 - Bulletin of International Treaties of the Republic of Kazakhstan, 2003, No. 8, art. 52)
The Government of the Republic of Kazakhstan and the Swiss Federal Council, wishing to conclude a Convention for the Avoidance of Double Taxation with respect to taxes on Income and on capital, have agreed as follows:
Article 1 Persons to whom the Convention applies
This Convention applies to persons who are residents of one or both of the Contracting States.
Article 2 Taxes covered by the Convention
1. This Convention applies to taxes on income and on capital imposed on behalf of a Contracting State or its political and administrative subdivisions or central or local authorities, regardless of the method of their collection. 2. Taxes on income and on capital are all types of taxes levied on total income, on total capital, or on individual elements of income or capital, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of wages or salaries paid by enterprises, as well as taxes on value gains capital. 3. The existing taxes to which the Convention applies are in particular: (a) in the Republic of Kazakhstan: (I) income tax on legal entities and individuals; (II) the corporate and individual property tax; (hereinafter referred to as the "Kazakhstan Tax"); (b) in Switzerland: federal, cantonal and municipal taxes (i) on income (total income, labor income, income from capital, income from industrial and commercial activities, income from capital gains property value and other types of income); and (II) on capital (total property, movable and immovable property, business property, paid-in portion of share capital and reserves, and other types of capital); (hereinafter referred to as the "Swiss Tax"). 4. The Convention also applies to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to or in place of the existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes in their respective tax laws. 5. The Convention does not apply to Federal provisional taxes levied on lottery winnings sources. The footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Article 3 General definitions
1. For the purposes of this Convention, unless the context otherwise requires: (a) Terms: (i) the term "Kazakhstan" means the Republic of Kazakhstan. For geographical purposes, the term "Kazakhstan" means the State territory of the Republic of Kazakhstan and the zones in which Kazakhstan may exercise its sovereign rights and jurisdiction, in accordance with its legislation and international law, including international treaties to which it is a party; (II) "Switzerland" means the Swiss Confederation; (b) The term "person" includes an individual, a company and any other body of persons; (c) The term "company" means any corporate body or any economic unit which, for tax purposes, is treated as a corporate body; (d) The terms "Contracting State" and "the other Contracting State" mean Kazakhstan or Switzerland, in particular depending on the context; (e) The term "enterprise of a Contracting State" and "enterprise of the other Contracting State" means respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State; (f) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft It is operated exclusively between locations in the other Contracting State.; (g) The term "competent authority" means: (i) in the case of Kazakhstan: the Minister of Finance or his authorized representative; (ii) in the case of Switzerland: The Director of the Federal Tax Administration or his authorized representative; h) the term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, partnership or any other association that has obtained such status on the basis of the applicable legislation of a Contracting State. (I) The term "capital" for the purposes of this Convention means movable and immovable property and includes (but is not limited to) cash, securities or other documents confirming rights, promissory notes, bonds or other debentures, as well as patents, trademarks, copyrights or other similar right or property. 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that Contracting State in respect of taxes to which the Convention applies. The footnote. Article 3 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Article 4 The resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that Contracting State, is liable to tax there on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature. The term also includes a Contracting State or its political and administrative subdivisions or local authorities. It also includes any pension or other employee benefit plan, and any charitable organization established in accordance with the law of a Contracting State and whose income is normally exempt from taxation in that Contracting State. This term, however, does not include any person who is liable to tax in that Contracting State solely in respect of income from sources in that Contracting State or capital located therein. 2. If, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) He shall be deemed to be a resident of the Contracting State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident of the State in which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; (c) If he has an habitual abode in both Contracting States; or If he does not reside in any of them, he shall be deemed to be a resident of the Contracting State of which he is a national.; (d) If his status cannot be determined in accordance with subparagraphs (a) to (c), the competent authorities of the Contracting States shall resolve the matter by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the Contracting State in which his place of effective management is situated. The footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Article 5 Permanent establishment
1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part. 2. The term "permanent establishment" specifically includes: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop, and (f) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: (a) A construction site or a construction, installation, or assembly facility in a Contracting State, or services related to the supervision of such work, if such a site or facility has existed for more than 12 months or such services have been provided for more than 12 months.; and (b) an installation or structure used for the exploration of natural resources in a Contracting State, or services related to the supervision of such work, or a drilling rig or vessel used for the exploration of natural resources in a Contracting State, unless such use lasts for more than 12 months, or such services are provided for more than 12 months; and c) the provision of services in a Contracting State, including consulting services, by a resident of the other Contracting State through employees or other personnel residing in the first-mentioned Contracting State and employed by such resident for such purposes, but only if the provision of such services continues for more than 12 months. 4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" is not considered to include: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) the maintenance of a stock of goods or products belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of advertising, providing information, scientific research or similar activities that are preparatory or auxiliary to the enterprise; (f) The maintenance by an enterprise of a Contracting State of an installation facility in another In a Contracting State in connection with the delivery of machinery or equipment manufactured by that enterprise; (g) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts on behalf of an enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect of any activity that that person carries out for that enterprise, except in cases where the activity of such person is limited to the activities referred to in paragraph 4, which, if carried out through a permanent place of business, do not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that Contracting State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other Contracting State (either through a permanent establishment or otherwise) does not in itself transform one of these companies into a permanent establishment of the other.
Article 6 Income from immovable property
1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other Contracting State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop mineral resources, sources and other natural resources; ships and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.
Article 7 Profit from business activities
1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business as described above, the profits of the enterprise may be taxed in the other Contracting State, but only in that part which relates to such permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment shall include the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, under such circumstances under the same or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the Contracting State in which the permanent establishment is located or elsewhere. 4. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. If profits include types of income that are specifically mentioned in other Articles of this Convention, the provisions of these Articles are not affected by the provisions of this Article. 6. For the purposes of the preceding paragraphs, profits attributable to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure.
Article 8 Sea and air transport
1. Profits earned by a resident of a Contracting State from the operation of ships and aircraft in international traffic are taxable only in that Contracting State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, in a joint venture or in an international operating agency.
Article 9 Associated companies
1. If (a) an enterprise of one Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one Contracting State and an enterprise of the other Contracting State, and in any case, the two enterprises are established or conditions are established in their commercial or financial relationships that differ from those, which would have been created between two independent enterprises, then any profit that could have been credited to one of them, but due to these conditions was not credited to him, can be included in the profit of this enterprise and, accordingly, taxed. 2. If the profits on which an enterprise of a Contracting State is taxed in that Contracting State are also included in the profits of an enterprise of the other Contracting State and are taxed accordingly in that other State, and the profits thus included are profits that would have accrued to such enterprise of the other Contracting State if the conditions created between the two enterprises there would be those that exist between independent enterprises, The competent authorities of the Contracting States may then consult jointly with a view to reaching agreement on profit adjustments in both Contracting States. 3. A Contracting State shall not change the profits of an enterprise under the conditions referred to in paragraph 1 after the expiration of the limitation period provided for in its national legislation and in any case after the expiration of five years from the end of the year in which the profits subject to such changes would have been credited to the enterprise of that Contracting State. This clause does not apply in case of fraud or intentional non-fulfillment of obligations.
Article 10 Dividends
1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, such dividends may also be taxed in the Contracting State in which the company paying the dividends is resident and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the dividends, the tax so charged should not exceed: a) 5 percent of the total amount of dividends if the actual owner is a company (other than a partnership) that directly owns at least 10 percent of the capital of the company paying the dividends; b) 15 percent of the total amount of dividends in all other cases. 3. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in that other State if the beneficial owner is: a) a pension fund or other similar institutions that provide pension schemes in which individuals can participate for the purpose of providing pensions, disability and survivor benefits. At the same time, such a pension fund or other similar institutions are recognized for tax purposes and controlled in accordance with the laws of another State, or b) the central (national) bank of that other State. 4. The competent authorities of the Contracting States shall decide by mutual agreement on the manner of application of these restrictions. Paragraphs 2 and 3 do not affect the taxation of the company in respect of profits from which dividends are paid. 5. The term "dividends", when used in this Article, means income from shares, shares of jouissance or rights to jouissance, shares of mining enterprises or other rights that are not debt claims, income from profit sharing, as well as income from other corporate rights that are subject to the same tax regulation as income from shares in accordance with the laws of the Contracting State in which the company distributing the profits is a resident. 6. The provisions of paragraphs 1 to 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there, or provides independent personal services in that other Contracting State from a permanent base located there, and the holding company in respect of which dividends are paid, is indeed associated with such a permanent establishment or fixed base. In this case, the following provisions apply: Articles 7 or Article 14, as the case may be. 7. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may exempt from tax dividends paid by that company, except in cases where such dividends are paid to a resident of that other Contracting State or where the holding company in respect of which the dividends are paid is actually associated with a permanent establishment or permanent base located in that other Contracting State, and the company's undistributed profits shall not be taxed on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income generated in that other Contracting State. 8. The profits of an enterprise owned by a resident of a Contracting State obtained through a permanent establishment situated in the other Contracting State may, after they have been taxed in accordance with the provisions of Article 7 and after deduction of any amount reinvested in that permanent establishment, be taxed on the remaining amount in that other Contracting State, but an additional tax The interest calculated in this way must not exceed the interest rate provided for in subparagraph (a) of paragraph 2 of this Article. However, if the profit of a permanent establishment does not exceed $100,000 in the relevant fiscal year, this additional tax is not charged. The footnote. Article 10 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Article 11 Interest
1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 per cent of the total amount of the interest. The competent authorities of the Contracting States shall decide by mutual agreement on the manner of application of these restrictions. 3. Notwithstanding the provisions of paragraph 2: (a) Interest arising in one of the Contracting States and paid in respect of bonds, debentures or other similar obligations of the Government of that State, the Central Bank of that Contracting State, its administrative subdivision or local authority, shall be exempt from tax in that Contracting State.; (b) Interest arising in one of the Contracting States and paid in respect of bonds, debentures or other similar obligations to the Government of the other Contracting State, the Central Bank of the other Contracting State, its administrative subdivision or a local authority, shall be exempt from tax in the first-mentioned Contracting State.; (c) Interest arising in one of the Contracting States and paid in respect of loans guaranteed or insured by the Government of the other Contracting State, the Central Bank of the other Contracting State, or any authority or institution (including a financial institution) owned or controlled by that Government shall be exempt from tax in the first-mentioned Contracting State.; (d) Interest arising in a Contracting State shall be taxable in the other Contracting State of which the recipient is a resident if such recipient is the beneficial owner of the interest and if such interest is paid: (i) in connection with the sale on credit of any industrial, commercial or scientific equipment, or (ii) in connection with the sale on credit of any goods one company to another company. 4. The term "interest", as used in this Article, means income from debt claims of any kind, secured or unsecured and giving or not giving the right to participate in debtors' profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on such securities. bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this Article. 5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services in that other Contracting State from a permanent base located there, and a debt claim in respect of which the interest is paid on, really refers to such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, its political and administrative subdivisions, local authorities or a resident of that Contracting State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such The interest shall arise in the Contracting State in which such permanent establishment or fixed base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this Article shall apply only to the last mentioned amount. In such a case, the excess part of the payment is subject to taxation in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.
Article 12 Royalties
1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and in accordance with the laws of that Contracting State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the royalties. 3. The term "royalties", as used in this Article, means payments of any kind received as remuneration for the use or grant of the right to use: a) any copyright in works of literature, art or scientific work, including cinematographic films, any patent, trademark, design or model, plan, secret formula or process, or for information (know-how) related to industrial, commercial or scientific experience; and (b) industrial, commercial or scientific equipment. 4. Notwithstanding paragraph 2 of this Article, the beneficial owner of royalties in respect of leasing, as defined in subparagraph (b) of paragraph 3 of this Article, may, at his option, be taxed in the Contracting State in which the royalties arise, as if the right or property in respect of which such royalties are paid were actually connected with a permanent establishment or a permanent base in that Contracting State. In this case, the provisions of Article 7 or Article 14 of this Convention, as appropriate, shall apply to income and deductions (including depreciation charges) relating to such right or property. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there or provides independent personal services in that other Contracting State from a permanent base located there and the right or property in respect of which royalties are paid that are actually associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 6. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, its political and administrative subdivision or local authority, or a resident of that Contracting State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen, and such royalties are associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in a Contracting State., where a permanent establishment or permanent base is located. 7. If, as a result of a special relationship between the payer and the actual owner or between both of them and any other person, the amount of royalties related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalties in the absence of such a relationship, the provisions of this Article apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.
Article 13 Income from the increase in the value of property
1. Income earned by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and located in the other Contracting State may be taxed in that other Contracting State. 2. Gains from the sale of shares in a company whose assets consist primarily of immovable property located in a Contracting State may be taxed in that Contracting State. 3. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other Contracting State. 4. Income earned by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State. 5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14 Independent personal services
1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that Contracting State, unless such services are provided or have been provided in the other Contracting State; and (a) income relates to a fixed base that an individual has or has had on a regular basis in that other Contracting State.; or (b) Such individual is present or has been present in that other Contracting State for a period or periods exceeding a total of 183 days in any period of twelve months beginning or ending in the relevant tax year. In such a case, income related to services may be taxed in that other Contracting State in accordance with similar principles contained in Article 7 for determining the amount of profits and attributing business profits to a permanent establishment. 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15 Dependent personal services
1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that Contracting State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other Contracting State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned Contracting State if: (a) the recipient resides in that other Contracting State for a period or periods not exceeding a total of 183 days in any other Contracting State. a twelve-month period beginning or ending in the relevant tax year; and (b) the remuneration is paid by, or on behalf of, the employer who is not a resident of the other Contracting State; and (c) the remuneration is not paid by a permanent establishment or fixed base which the employer has in the other Contracting State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship or aircraft is a resident.
Article 16 Directors' fees
Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the Board of Directors or a similar body of a company that is a resident of the other Contracting State may be taxed in that other Contracting State.
Article 17 Artists and athletes
1. Notwithstanding the provisions of Articles 14 and 15, income earned by a resident of a Contracting State as a theater, motion picture, radio or television artist, or as a musician, or as an athlete from his personal activities carried on in the other Contracting State may be taxed in that other Contracting State. 2. Where income from personal activities exercised by an entertainer or Athlete in that capacity accrues not to the entertainer or Athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the entertainer or Athlete's activities are carried on. This paragraph does not apply if it is established that neither the artist or athlete himself or persons associated with them directly participate in the profits of such a person. 3. Paragraphs 1 and 2 do not apply to income from activities performed by artists or athletes if such income is derived directly or indirectly in a substantial way from public funds.
Article 18 Pensions
1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid for past work to a resident of a Contracting State and any annuities paid to such a resident shall be taxable only in that Contracting State. 2. The term "annuities" means fixed amounts that are periodically paid to an individual at a fixed time during their lifetime or for a specified or fixed period of time in accordance with an obligation to make payments in return for adequate and full compensation in monetary or monetary terms. 3. Alimony and other similar payments (including child support payments) arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other Contracting State.
Article 19 Public service
1. (a) Salaries, salaries and other similar remuneration, other than pensions, paid by a Contracting State or its political and administrative subdivisions or local authorities to an individual in respect of services rendered to that Contracting State or its administrative subdivisions or authorities, shall be taxable only in that Contracting State. (b) However, such salaries, salaries and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that Contracting State and an individual who is a resident of that Contracting State: (i) is a national of that Contracting State; or (ii) has not become a resident of that Contracting State only since the purpose of the service. 2. (a) Any pension paid by a Contracting State or its political and administrative subdivisions or local authorities, or from funds created by them, to an individual in respect of services rendered to that Contracting State or its subdivisions or authorities, shall be taxable only in that Contracting State. (b) However, such pension is taxable only in the other Contracting State if the individual is a resident of and a national of that Contracting State. 3. The provisions of Articles 15, 16 and 18 shall apply to salaries, wages and other similar remuneration and pensions in respect of services related to business activities carried on by a Contracting State or its political and administrative subdivisions or local authorities.
Article 20 Students
Payments that a student or trainee who is or was immediately prior to arrival in a Contracting State a resident of the other Contracting State and who is located in the first-mentioned Contracting State solely for the purpose of education or internship, receives for the purposes of his maintenance, education or internship, shall not be taxed in that Contracting State, provided that The sources of these amounts are located outside this Contracting State.
Article 21 Other income
1. The income of a resident of a Contracting State, irrespective of its source, which is not mentioned in the preceding Articles of this Convention, shall be taxable only in that Contracting State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property defined in paragraph 2 of Article 6 if the recipient of such income, being a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located there and provides independent personal services in that other Contracting State through a permanent establishment located there. the bases and the right or property in connection with which the income was paid, indeed, they are associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
Article 22 Capital
1. Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other Contracting State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base used by a resident of a Contracting State in the other Contracting State for the provision of independent personal services, may be taxed in that other Contracting State. 3. Capital represented by ships or aircraft operated by a resident of a Contracting State in international traffic and movable property pertaining to the operation of such ships or aircraft shall be taxable only in that Contracting State. 4. All other elements of the capital of a resident of a Contracting State are taxable only in that Contracting State.
Article 23 Elimination of double taxation
1. In the case of Kazakhstan, double taxation is eliminated as follows: (a) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Switzerland, Kazakhstan will allow: (i) as a deduction from the income tax of that resident an amount equal to the income tax paid in Switzerland; (ii) as a deduction from the capital tax of this resident, an amount equal to the capital tax paid in Switzerland. The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be charged on the same income or capital in Kazakhstan according to the applicable rates. (b) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Switzerland, Kazakhstan may include that income or capital in the tax base, but only for the purpose of determining the tax rate on such other income or capital as is taxable in Kazakhstan. 2. In the case of Switzerland, double taxation is eliminated as follows: (a) If a Swiss resident receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, Switzerland will exempt such income or capital from tax, subject to the provisions of paragraph 2, paragraph (b), but subject to tax on the remaining income or the capital of this resident may apply the tax rate that would have been applicable if the exempt income or capital had not been exempt. b) If a Swiss resident receives dividends, interest or royalties that, in accordance with the provisions of Articles 10, 11 or 12, may be taxed in Kazakhstan, Switzerland will allow, upon request, a discount for such a resident. The discount may include: (i) a deduction from the tax on the income of that resident of an amount equal to the tax levied in Kazakhstan in accordance with the provisions of Articles 10, 11 and 12; such deduction, however, may not exceed that portion of the Swiss Tax accrued prior to the deduction, which corresponds to the income that may be taxed in Kazakhstan. In Kazakhstan; or (ii) a one-time deduction of Swiss tax; or (iii) partial exemption of such dividends, interest or royalties from Swiss Tax, in any case including at least a deduction of tax levied in Kazakhstan from the total amount of dividends, interest or royalties. Switzerland determines the applicable discount and regulates the procedure in accordance with the provisions of Swiss law relating to the implementation of the international conventions of the Swiss Confederation for the avoidance of double taxation. c) A company that is a resident of Switzerland and that receives dividends from a company that is a resident of Kazakhstan is entitled, for Swiss Tax purposes in respect of such dividends, to the same discount that would be given to the company if the company paying the dividends were a resident of Switzerland.
Article 24 Non-discrimination
1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation or related obligations to which nationals of that other Contracting State are or may be subjected in the same circumstances, in particular with respect to residency. This provision, notwithstanding the provisions of Article 1, also applies to persons who are not residents of one or both of the Contracting States. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other Contracting State engaged in similar activities. This provision should not be interpreted as obliging a Contracting State to grant residents of the other Contracting State any personal tax benefits, discounts and deductions for tax purposes based on their civil status or marital status, which it grants to its residents. 3. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 7 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if they were paid to a resident of the first of the said Contracting State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purposes of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned Contracting State. 4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned Contracting State to any taxation or any obligations related thereto that are other or more burdensome than taxation and related obligations to which they are or may be subject. other similar enterprises of the first-mentioned Contracting State may be affected. 5. The provisions of this Article, notwithstanding the provisions of Article 2, shall apply to taxes of any kind and type.
Article 25 Mutual agreement procedure
1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those Contracting States, submit his case to the competent authority of the Contracting State of which he is a resident, or, if his case falls within the scope of paragraph 1 of article 24, to the competent authority of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Convention. 2. The competent authority shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with this Convention. 3. The competent authorities of the Contracting States will endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement within the meaning of the preceding paragraphs. If, in order to reach an agreement, it is advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a Commission consisting of representatives of the competent authorities of the Contracting States. 5. Where, (a) in accordance with paragraph 1, a person has submitted a case to the competent authority of a Contracting State on the basis that the actions of one or both Contracting States have resulted in the taxation of that person not in accordance with the provisions of this Convention, and (b) the competent authorities cannot agree to resolve the case in accordance with in accordance with paragraph 2, within three years from the date of submission of the case to the competent authority of the other Contracting State, all outstanding issues, The issues arising from the case must be submitted to arbitration if the person so requests. However, these unresolved issues should not be submitted to arbitration if decisions on them have already been rendered by a court or an administrative tribunal of some kind. States. Except if the person directly involved in the case does not agree to a mutual agreement that implements the award, the award will be binding on both States and will be carried out regardless of the time limits provided for by the national legislation of those States. The competent authorities of the Contracting States shall decide by mutual agreement on the manner of application of this paragraph. The Contracting States may disclose to the Arbitration Board established in accordance with the provisions of this paragraph such information as is necessary for the conduct of the arbitration procedure. The members of the Arbitration Board are subject to the restrictions on disclosure described in paragraph 2 of Article 26 with respect to disclosed information. The footnote. Article 25 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Article 26 Information exchange
1. The competent authorities of the Contracting States shall exchange information that may be relevant for the implementation of the provisions of this Convention or for the administration or enforcement of national legislation in respect of taxes covered by The Convention, to the extent that the basis for taxation does not contradict the Convention. The exchange of information is not limited to Article 1.2. Any information received by a Contracting State pursuant to paragraph 1 shall be considered confidential in the same way as information obtained under the national legislation of that State and will be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution, or consideration of appeals concerning taxes referred to in paragraph 1. Such persons or authorities should use the information only for these purposes. They may disclose this information during court proceedings or when making court decisions. Nevertheless, information received by a Contracting State may be used for other purposes if that information is used in accordance with the laws of both States and the competent authority of the other Contracting State authorizes such use. 3. In no case shall the provisions of paragraphs 1 and 2 be interpreted as imposing an obligation on a Contracting State.: (a) To take administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or the other Contracting State; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (public practice). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State should use its information collection measures to obtain the required information, even though that other State may not need such information for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but in no case should such a restriction be interpreted as allowing a Contracting State to deviate from providing information simply because the Contracting State has no domestic interest in such information. 5. In no case shall the provisions of paragraph 3 be interpreted as allowing a Contracting State to refuse to provide information solely because the information is held by a bank, other financial institution, candidate or a person acting for an agency or in the position of a trustee, or because it relates to the ownership of the person. In order to obtain such information, the tax authority of the requested Contracting State must have the authority to ensure the disclosure of the information provided for in this paragraph, notwithstanding paragraph 3 or any conflicting provisions of its national legislation. The footnote. Article 26 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Article 27 Employees of diplomatic missions and consular offices
1. Nothing in this Convention affects the tax privileges of employees of diplomatic missions and consular institutions to whom such privileges are granted by the general rules of international law or in accordance with the provisions of special agreements. 2. Notwithstanding the provisions of Article 4, an individual who is an employee of a diplomatic mission, consular post or permanent mission of a Contracting State located in the other Contracting State or a third State shall, for the purposes of this Convention, be considered a resident of the sending State if: (a) in accordance with international law, he is not subject to taxation in the receiving Contracting State In that State, in respect of income from sources outside that Contracting State or capital, located outside that State, and (b) he has the same obligations in the sending State with respect to taxes on his total income or capital as residents of that State. 3. The Convention does not apply to international organizations, bodies or its officials and persons who are employees of diplomatic missions, consular posts or permanent missions of a third State located in a Contracting State and who are not considered residents of either Contracting State with respect to taxes on income or on capital.
Article 28 Entry into force
1. This Convention is subject to ratification and shall enter into force on the thirtieth day after the date of the last notification indicating that both Contracting States have completed the procedures provided for by the domestic law of each State for its entry into force. The Convention applies to: (a) Taxes withheld at source in respect of amounts paid or deductible on or after 1 January of the calendar year in which the Convention enters into force.; and (b) Other taxes in respect of the taxable period beginning on or after 1 January of the calendar year in which the Convention enters into force.
Article 29 Termination
This Convention shall remain in force until terminated by one of the Contracting States. Any Contracting State may terminate the Convention by giving written notice of termination through diplomatic channels at least six months before the end of any calendar year. In such a case, the Convention shall cease to apply: (a) With respect to taxes withheld at source for amounts paid or deductible on or after 1 January of the year following the year of the notification of termination.; (b) In respect of other taxes, for the taxable period beginning on or after January 1 of the year following the year in which the notice of termination was filed.
In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention.
Done in Bern, October 21, 1999, in two copies in the Kazakh, German, Russian and English languages, all texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Convention, the Contracting States will be guided by the English text.
For the Government of the Swiss Republic of Kazakhstan The Federal Council
Protocol The Government of the Republic of Kazakhstan and the Swiss Federal Council
We have agreed to sign in Bern on October 21, 1999, a Convention for the Avoidance of Double Taxation with respect to taxes on Income and on Capital in accordance with the following provisions, which are an integral part of the above-mentioned Convention:
With regard to Article 7
It is understood that in the case of abuse, paragraph 1 of Article 7 also applies if an enterprise sells goods or products or carries out business activities that coincide or are similar to the sale or business activities undertaken by a permanent establishment, if it can be confirmed that this permanent establishment has taken a decisive part in these activities.
With regard to Article 10
a) It is understood that dividends paid by a company that is a resident of a Contracting State to a company that is a resident of the other Contracting State, which owns directly or indirectly at least 50 percent of the capital of the company paying the dividends, are exempt from taxation in the first of the said Contracting States, provided that the company receiving the dividends has made investments to a company paying dividends in the amount of at least one million US dollars, These investments are fully guaranteed or fully insured by the Government of the other Contracting State, the Central Bank of that State, or any body or institution (including financial institutions) owned or controlled by that Government and approved by the Government of the first of the said Contracting States. If the amount of the investments mentioned above exceeds one million US dollars, but the full amount of the investment is not fully guaranteed or fully insured, then this provision applies only to that part of the dividends in which the guaranteed or insured part of the investment relates to the entire amount of the investment. b) It is understood that the additional tax provided for in paragraph 6 is not levied if the amount invested in a permanent establishment exceeds 500,000 US dollars and such investments are fully insured or guaranteed in full by the Government of the State of which the enterprise is a resident, the Central Bank of that State or any body or institution (including financial) owned by or controlled by the Government of that State and approved by the Government of another Contracting State. If the amount of the investments mentioned above exceeds 500,000 US dollars, but the full amount of the investment is not fully guaranteed or fully insured, then this provision applies only to that part of the additional tax base in which the guaranteed or insured part of the investment relates to the entire amount of investment. (d) In subparagraph (a) of paragraph 3 of Article 10 (Dividends), the term "pension fund or other similar institution whose type of activity is pension provision" includes the following other similar schemes established in accordance with legislation effective after the date of signature of this Protocol: (i) including plans and schemes of the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan" dated June 20, 1997 No. 136. (ii) including plans and schemes of Switzerland (aa) Federal Law on Pension Insurance for Survivors dated December 20, 1946; (bb) Federal Law on Insurance for the Disabled dated June 19, 1959; (cc) Federal Law on Pension Provision, Insurance for Survivors and the Disabled dated October 6, 2006; (dd) The Federal Law on Pension Provision for Persons with Disabilities in accordance with Seniority, including Employment and Sole Proprietorship, dated June 25, 1982, including unregistered voluntary pension Contributions under an Individual Occupational Pension Plan, and (ee) self-employment of citizens are compared with occupational pension schemes in accordance with article 82 of the Federal Law on Pension Insurance for the Remaining The living and the disabled are paid in respect of employment or self-employment dated June 25, 1982. In addition, the term "pension fund" or pension plan includes investment funds, trusts and associations representing the interests of pension funds, trusts or associations that are auxiliary to pension funds and schemes. (c) If, and for the time being, a convention for the avoidance of double taxation is in force between Kazakhstan and a State that is currently a member of the Organization for Economic Cooperation and Development, which does not provide for an additional tax such as that provided for in paragraph 6 of Article 10 of this Convention, enterprises that are resident in Switzerland shall not be subject to additional tax; the mentioned additional tax. The footnote. Paragraph 2 as amended by the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
With regard to Articles 11 and 12
If, after December 15, 1998, Kazakhstan signed a Convention for the Avoidance of Double Taxation with a State that is currently a member of the Organization for Economic Cooperation and Development, which provides for a lower effective interest or royalty rate (including zero), then in this case such a lower rate is automatically applied to residents of Switzerland.
In relation to Articles 18 and 19
This means that the term "pensions" is used in Articles 18 and 19, respectively, and applies not only to periodic payments, but also includes payments of a lump sum. The footnote. The Protocol was supplemented by paragraph 4 in accordance with the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
In relation to Articles 26
(a) The exchange of information will take place only after the requesting Contracting State has exhausted its usual procedures under national law for the right to receive information. b) It should be understood that the "appropriateness" standard is intended for the exchange of information on tax matters to the maximum extent possible and at the same time clarifies that Contracting States do not have the right to request information that is unlikely to be relevant to the taxation of a taxpayer. (c) It should be understood that the tax authorities of the requesting Contracting State provide the following information to the tax authorities of the requested Contracting State when making a request for information in accordance with Article 26 of the Convention: (i) Full name and address of the person(s) under review or investigation, and other necessary identifying information about the person, such as date of birth, marital status, taxpayer identification number; (ii) the time period for which the information is requested; (iii) a statement of the need for information, including its nature and the form in which the requesting Contracting State would like to receive information from the requested Contracting State; (iv) the tax purposes for which the information is requested; (v) The full name and address of any person believed to have the necessary information in relation to the requested information. information. (d) It is understood that Article 26 of the Convention does not require Contracting States to exchange information on an automatic or arbitrary basis. f) It should be understood that in the case of an exchange of information, the administrative and procedural rules regarding the rights of a taxpayer provided for in the requested Contracting State remain applicable until the information is transmitted to the requesting Contracting State. In the future, it should be understood that this provision is intended to guarantee the taxpayer the fairness of the procedures, as well as to prevent or unreasonably delay the exchange of information. The footnote. The Protocol was supplemented by paragraph 5 in accordance with the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
For all Articles
Both Contracting States hope that the provisions of The Conventions, which are drawn up in accordance with the relevant provisions of the OECD Model Convention on Income and on Capital, have the same meaning as those presented in the OECD Comments in relation to and in accordance with those applied in each of the Contracting States. Commentary - subject to change from time to time – is a means of interpretation Vienna Convention on the Law of Treaties of May 23, 1969. The footnote. The Protocol was supplemented by paragraph 6 in accordance with the Law of the Republic of Kazakhstan dated 11.02.2014 No. 173-V.
Done in Bern on October 21, 1999, in two originals, each in the Kazakh, German, Russian and English languages, all texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Convention, the Contracting States will be guided by the English text.
For the Government of the Swiss Republic of Kazakhstan The Federal Council
President
Republic of Kazakhstan
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