On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital Gains

Home / RLA / On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital Gains

On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital Gains

Law of the Republic of Kazakhstan dated June 26, 1996 No. 12-1

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital Gains, signed in London on March 21, 1994.

President of the Republic of Kazakhstan  

application

The Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland on the Elimination of Double Taxation and the Prevention of tax evasion on income and Capital Gains*

(Bulletin of International Treaties, Agreements and individual legislative acts of the Republic of Kazakhstan, 1998, No. 3, art. 21)

The Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland, wishing to conclude a Convention on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Property Gains, have agreed on the following.  

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 to which the Convention applies 1. This Convention applies to taxes on income and on capital gains imposed on behalf of a Contracting State, regardless of the manner in which they are levied. 2. Taxes on income and income from property appreciation are all types of taxes imposed on the total amount of income or part of income, including taxes on income from the alienation of movable or immovable property and taxes on the total amount of salaries or salaries paid by enterprises. 3. The taxes to which this Convention applies are: a) in the case of the Republic of Kazakhstan, taxes on income and profits provided for by the following laws: (i) the Law "On Taxes on Enterprises, Associations and Organizations"; and (ii) the Law "On Income Tax on Citizens of the Republic of Kazakhstan, Foreign Citizens and Stateless Persons" (hereinafter referred to as "taxes of Kazakhstan"). (b) In the case of the United Kingdom: (i) Income tax; (ii) corporation tax; and (iii) the property Appreciation Tax (hereinafter referred to as the "taxes of the United Kingdom"). 4. This Convention shall also apply to any identical or substantially similar taxes which are imposed by each Contracting State after the date of signature of this Convention in addition to or in place of the taxes of that Contracting State provided for in paragraph 3 of this Article. The competent authorities of the Contracting States will notify each other of any significant changes in their respective tax laws.

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) The term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes the territorial sea, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the laws governing taxes of Kazakhstan apply.; (b) The term "United Kingdom" means the United Kingdom and Northern Ireland and includes any area outside the territorial sea of the United Kingdom which, in accordance with international law, has been defined or may be further defined under the legislation of the United Kingdom relating to the continental shelf as a zone where the rights of the United Kingdom with respect to the seabed and its subsoil may be exercised and natural resources; c) the term "citizen" means: (i) in relation to Kazakhstan, any citizen of Kazakhstan; (ii) in relation to the United Kingdom, any British citizen or any British subject who is not a citizen of any other country or territory of the British Commonwealth, provided that he has the right to reside in the United Kingdom; (d) the terms "Contracting State" and "other Contracting State" mean Kazakhstan or the United Kingdom, depending on from the context; (e) The term "person" means an individual, a company or any other association of persons, but, subject to paragraph 2 of this article, does not include a partnership or joint venture; (f) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity or for tax purposes, and in the case of Kazakhstan, includes a joint-stock company, a limited liability company, or any other corporate entity or organization subject to income tax; (q) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State; (h) 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.; (i) The term "competent authority" means, in the case of the Republic of Kazakhstan, the Ministry of Finance of the Republic of Kazakhstan or its authorized representative and, in the case of the United Kingdom, the Office of Internal Revenue or its authorized representative. 2. A partnership or joint venture that obtains its status under the laws of Kazakhstan and is considered a taxable entity under the laws of Kazakhstan shall be treated as persons for the purposes of this Convention. 3. As regards the application of this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State in respect of taxes to which this Convention applies.

Article 4 Residency 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there by reason of his domicile, residence, place of management or other criterion of a similar nature. However, the term does not include any person who is liable to tax in that Contracting State only if he receives income or income from the appreciation of property from sources located there. 2. If, by reason of the provisions of paragraph 1 of this article, an individual is a resident of both Contracting States, his status shall be determined in accordance with the following rules: (a) He shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State in which he has closer personal and economic relations (center of vital interests); (b) If the Contracting 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 neither In one of them, he is considered to be a resident of the Contracting State of which he is a national.; (d) If he is a national of both Contracting States or is a national of neither of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 3. If, by reason of the provisions of paragraph 1 of this article, a person other than an individual is a resident of both Contracting States, then he shall be deemed to be a resident of the Contracting State in which his place of effective management is located.

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" includes, in particular:: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, an oil or gas well, a 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, or services related to the supervision of these works, only 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 or services related to the supervision of these works, as well as a drilling rig or vessel used for the exploration of natural resources, only if such use lasts for more than 12 months, or such services are provided for more than 12 months. months; and c) the provision of services, including consulting services, by residents through employees or other personnel employed by the resident for such purposes, but only if activities of this nature have been ongoing (for such or a related project) within the country 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 supplying goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or products belonging to the enterprise solely for the purposes of storage, demonstration or delivery; (c) the maintenance of stocks 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 products, or for collecting information for the enterprise; (e) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise; (f) 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) of this paragraph, 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 of this article, if the person is other than an agent with an independent status to whom paragraph 6 of this article applies - acts on behalf of the 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 State in respect of any activity that that person undertakes for the enterprise, unless the activity of such person is limited to that referred to in paragraph 4 of this article, which, if is carried out through a permanent place of business, does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise is not considered to have a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or 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 State (either through a permanent establishment or otherwise) By itself, it does not turn 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 State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property 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 the right to develop mineral reserves, sources and other natural resources; ships and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 of this article 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 of this article 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 entrepreneurial activity 1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out or has carried out business activities, as mentioned above, then profits may be taxed in another State, but only in the part that relates to such a permanent establishment. 2. Subject to the provisions of paragraph 3 of this article, if an enterprise of a Contracting State carries on or has carried 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 an independent and separate enterprise engaged in the same or similar activities. under the same or similar conditions, and acted 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 may be deducted, including the reasonable allocation of administrative and general administrative expenses incurred for the purposes of the enterprise as a whole, as in the Contracting State in which the permanent establishment is located or wherever. 4. No profit is attributed to a permanent establishment solely on the basis of the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. If the profit includes types of income or income from the increase in the value of property, which are separately mentioned in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article. 6. The profit from business activities related to a permanent establishment is 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 or aircraft in international traffic shall be taxable only in that State. 2. For the purposes of this article, profits from the operation of ships or aircraft in international traffic include: (a) Income from the rental of ships or aircraft without crew; and b) profits from the use, maintenance or rental of containers (including trailers and related equipment related to the transportation of containers) used to transport goods and merchandise; if such rental or use, maintenance or rental is a non-core activity in relation to the operation of marine or aircraft in international transportation. 3. If profits within the limits of paragraphs 1 or 2 of this article are earned by a resident of a Contracting State from participation in a pool, joint venture or international exploitation agency, the profits attributable to that resident shall be taxable only in the Contracting State of which he is a resident.

Article 9 Associated companies 1. Where: (a) an enterprise of a 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 a Contracting State and an enterprise of the other Contracting State; and, in any case, conditions are created or established between two enterprises in their commercial and financial relations that differ from those created between independent enterprises, then any profit that could have been credited to one of them, but because of these conditions was not credited to him, may be included by the Contracting State. It is included in the profits of this enterprise and is taxed accordingly. 2. In the case where a Contracting State includes in the profits of an enterprise of that State, and accordingly taxes the profits on which an enterprise of the other Contracting State is taxed in that other State, and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises were If they were the same as those that exist between independent enterprises, then this other State should make an appropriate adjustment to the amount of tax., charged on this profit. In determining such an adjustment, the other provisions of this Convention should be considered, and the competent authorities of the Contracting States will consult with each other, if necessary.  

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 State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident in accordance with the laws of that State, but if the recipient is the beneficial owner of the dividends who is subject to taxation in respect of the dividends in that other Contracting State, the tax levied shall not exceed: (a) 5 per cent of the total amount of the dividends if the actual owner is a company, which controls, directly or indirectly, at least 10 per cent of the voting shares in the capital of the company paying the dividends; b) 15 per cent of the total amount of the dividends in all other cases. 3. The term "dividends", as used in this article, means income from shares or other rights other than debt claims, profit-sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares under the tax laws of the Contracting State of which the company distributing the profits is a resident, as defined in article 11 of this Convention, which, under the laws of the Contracting State of which the company paying the dividend is a resident,, It is considered as a dividend or distribution of the company. In the case of Kazakhstan, this term, in particular, includes profits transferred abroad to a foreign participant in a joint venture established in accordance with the legislation of Kazakhstan. 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the dividends, who is 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 State from a permanent base located there and a holding company, including in respect of which dividends are paid, is actually associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by the company, except if such dividends are paid to a resident of that other State or if the holding company in respect of which the dividends are paid is actually affiliated with a permanent establishment or permanent No taxes on retained earnings are levied on the company's undistributed profits based in this other State., even if the dividends paid or retained earnings consist wholly or partly of profits or income arising in that other State.

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 State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that 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. 3. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral, giving or not giving the right to participate in the debtor's profits and, in particular, income from government securities and income from bonds or debentures. The term "interest" does not include any other type of income that is considered a dividend in accordance with the provisions of article 10 of this Convention. 4. The provisions of paragraphs 1 and 2 of this article 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 State from a permanent base located there, and a debt claim in respect of which the interest paid is actually related to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 5. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a political and administrative subdivision, a local authority or a resident of that 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 interest arises in the State in which such a permanent establishment or permanent base is located. 6. If, due to a special relationship between the payer and the actual owner, or between both of them and any other person, the amount of interest paid exceeds for any reason the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article shall apply only to the last-mentioned amount of interest. 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. 7. No provision of the legislation of each Contracting State relating only to interest paid to a non-resident company shall be interpreted as obliging it to treat interest paid to a company resident in the other Contracting State as dividends or profits distributed by the company paying such interest. The preceding sentence does not apply to interest paid to a company that is a resident of one of the Contracting States and in which more than 50 percent of the voting rights are controlled directly or indirectly by a person or persons who are residents of the other Contracting State. 8. The tax relief provided for in paragraph 2 of this article shall not apply if the beneficial owner of the interest is: (a) exempt from tax on such income in the Contracting State of which he is a resident.; and b) sells or enters into a contract for the sale of the holding company from which such beneficial owner receives such interest, within three months from the date on which he became the owner of such holding company. 9. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person engaged in the creation or transfer of a debt claim in respect of which interest is paid is to seek to take advantage of this article through such creation or transfer. 10. Notwithstanding the provisions of paragraph 2 of this article, interest arising in a Contracting State shall be exempt from taxation in that Contracting State if it is received and actually owned by the Government of the other Contracting State or its local authorities, or any other authority of that Government or local authorities. 11. Notwithstanding the provisions of article 7 of this Convention and paragraph 2 of this article, interest arising in Kazakhstan that is paid to a resident of the United Kingdom who is its beneficial owner shall be exempt from taxation in Kazakhstan if it is paid in connection with a loan granted, guaranteed or insured, or any other debt claim or loan, guaranteed or insured The Department for the Guarantee of Export Credits of the United Kingdom.

12 Royalty 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the total amount of the royalties. 3. Notwithstanding paragraph 2 of this article, the beneficial owner of the royalties, in respect of the lease as defined in subparagraph (B) of paragraph 4 of this article, may optionally be taxed in the Contracting State in which the royalties originated, as if the right or property in respect of which the royalties are paid were actually connected with a permanent an establishment or permanent base in that Contracting State. In such a case, the provisions of article 7 or 14 of this Convention shall apply, as the case may be, to income and deductions (other than depreciation charges) relating to such right or property. 4. The term "royalties", as used in this article, means payments of any kind received as compensation for the use or for the right to use: a) any copyright in works of literature, art or science, (including cinematographic films and films, or recordings of radio or television broadcasts) any patent, trademark, design or a model, plan, secret formula or process, or for information (know-how) concerning industrial, commercial or scientific experience; and (b) industrial, commercial or scientific equipment. 5. The provisions of paragraphs 1, 2 or 3 of this article 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 State from a permanent base located there, and the right or property in respect of which royalties are paid, is actually associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 6. Royalties shall be deemed to have arisen in one of the Contracting States if they are paid for the use or for the transferred right to use rights or property in that State. 7. If, due to a special relationship between the payer and the beneficial owner or between both of them and any other person, the amount of royalties paid exceeds, for any reason, the amount that would have been agreed between the payer and the beneficial owner in the absence of such a relationship, the provisions of this article shall apply only to the latter-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. 8. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid is to seek to take advantage of this article through such creation or transfer.

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 as defined in article 6 of this Convention and located in the other Contracting State may be taxed in that other State. 2. Income earned by a resident of a Contracting State from the alienation of: a) shares, with the exception of shares that are traded on a substantial and regular basis on an officially designated stock exchange, whose value or most of it is directly or indirectly related to immovable property located in the other Contracting State, or b) participation in a partnership or trust fund (trans), whose property consists mainly of immovable property located in the other Contracting State or of shares referred to in subparagraph (a) above, may be taxed in that other 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 available to 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 together with the entire enterprise) or such permanent base may be taxed in that other State. 4. Income earned by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State, or movable property related to the operation of such aircraft or ships, shall be taxable only in that Contracting State. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 of this article shall be taxable only in the Contracting State of which the alienator is a resident. 6. The provisions of paragraph 5 of this article shall not affect the right of a Contracting State to levy, in accordance with its laws, a tax on gains in value of property derived from the alienation of any property by an individual who is a resident of the other Contracting State and was a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property..

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 State, except in cases where 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 regularly available basis in that other State.; or (b) Such individual is present or has been present in that other State for a period or periods exceeding 183 days in any consecutive 12-month period. If he has or has had such a permanent base, or is present, or has been present in this way, the income may be taxed in the other Contracting State, but only to the extent that relates to that permanent base or to professional services rendered in that Contracting State during that twelve-month period. 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, 19 and 20 of this Convention, 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 State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1 of this article, 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 State if: (a) the recipient resides in the other State for a period or periods not exceeding a total of 183 days within any State. a 12-month period; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State; and (c) The remuneration is not paid by a permanent establishment or fixed base that the employer has in another 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 in question 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 of a company that is a resident of the other Contracting State may be taxed in that other State.  

Article 17 Artists and athletes 1. Notwithstanding the provisions of articles 14 and 15 of this Convention, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities carried on in the other Contracting State may be taxed. in this other State. 2. If income in respect of personal activities carried on by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15 of this Convention, be taxed in the Contracting State in which the activities of that entertainer or sportsman are carried on..

Article 18 Pensions 1. Subject to the provisions of paragraph 2 of article 19 of this Convention, pensions and other similar remuneration paid in respect of past employment to a resident of a Contracting State and any annual annuity paid to such resident shall be taxable only in that State. 2. The term "annual annuity" means a fixed amount that is periodically paid to an individual at a fixed time during his lifetime or for a certain or determinable period of time, with an obligation to make such payments in return for adequate and full remuneration in money or monetary terms.  

Article 19 Public service 1. (a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to an individual in respect of services rendered to that State or a political subdivision or local authority thereof shall be taxable only in that State. (B) Notwithstanding the provisions of subparagraph (a) of this paragraph, such remuneration shall be taxable only in the other Contracting State if the service is performed in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) has not become a resident of that State solely for the purpose of performing such service. 2. (a) Any pension paid by, or from funds created by, a Contracting State or a political subdivision or local authority thereof to an individual in respect of services rendered to that State or its political subdivision or local authority shall be taxable only in that State. (B) Notwithstanding the provisions of subparagraph (a) of this paragraph, such pension shall be taxable only in the other Contracting State if the individual is a resident of and a national of that State. 3. The provisions of articles 15, 16 and 18 of this Convention shall apply to remuneration and pensions in respect of services rendered in connection with business activities of a Contracting State or its political and administrative subdivision or local authority.  

Article 20 Students Payments received by 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 in the first-mentioned State solely for the purpose of study or education, and intended for the purposes of residence, study and education, shall not be taxed in that first-mentioned State, provided that that such payments originate from sources located outside this State.

Article 21 Other income 1. Types of income whose beneficial owner is a resident of a Contracting State, regardless of the source of origin, which are not dealt with in the preceding articles of this Convention, with the exception of income paid from trust funds or estates of deceased persons in the course of administration, shall be taxable only in that Statecle 21 Other income 1. Types of income whose beneficial owner is a resident of a Contracting State, regardless of the source of origin, which are not dealt with in the preceding articles of this Convention, with the exception of income paid from trust funds or estates of deceased persons in the course of administration, shall be taxable on that State. 2. The provisions of paragraph 1 of this article shall not apply to income other than income from immovable property, as defined in paragraph 2 of Art provisions of paragraph 1 of this article shall not apply to income other than income from immovable property, as defined in paragraph 2 of Article 6 of this Convention, if the recipient of such income, who is a resident of the Contracting States, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State. services from a permanent base located there, and the right or property in respect of which income is paid, in fact, they are associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 3. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person engaged in the creation or transfer of rights in respect of which income is paid is to seek to take advantage of this article through such creation or transfer.  

Article 22 Elimination of double taxation 1. Subject to the provisions of the legislation of Kazakhstan, which considers the discount as a set-off against Kazakh tax from tax paid outside Kazakhstan (which does not affect the general principles), the tax of the United Kingdom paid, in accordance with the legislation of the United Kingdom and in accordance with this Convention, regardless of whether directly or by deduction, on profits, income or taxable income from value gains from sources in the United Kingdom (excluding, in the case of divSubject to the provisions of the legislation of Kazakhstan, which considers the discount as a set-off against Kazakh tax from tax paid outside Kazakhstan (which does not affect the general principles), the tax of the United Kingdom paid, in accordance with the legislation of the United Kingdom and in accordance with this Convention, regardless of whether directly or by deduction, on profits, income or taxable income from value gains from sources in the United Kingdom (excluding, in the case of dividends, tax payable in the United Kingdom in respect of profits, from which the dividends are paid) are considered to be offset against any Kazakh tax calculated in respect of the same profit, income or taxable income from value gains that the United Kingdom tax is calculated against. 2. Subject to the provisions of the law of the United Kingdom, with respect to the authorization of a set-off against the tax of the United Kingdom, a tax paid outside its territory (which does not affect the general principle): a) A tax of Kazakhstan paid under its law and in accordance with this ConSubject to the provisions of the law of the United Kingdom, with respect to the authorization of a set-off against the tax of the United Kingdom, a tax paid outside its territory (which does not affect the general principle): a) A tax of Kazakhstan paid under its law and in accordance with this Convention, directly or by deduction, on profits, income or taxable income from value added property received from sources in Kazakhstan (excluding, in the case of payment of dividends, the tax paid in Kazakhstan in respect of profits, from which such dividends are paid), must be offset against any United Kingdom tax assessed on the same profits, income or taxable income from property appreciation; b) in the event that the dividends are paid by a company that is a resident of Kazakhstan, to a company that is a resident of the United Kingdom and which controls, directly or indirectly, at least 10 percent of the voting rights of the company paying the dividends, the offset amount will include (in addition to any Kazakhstan tax that may ben the event that the dividends are paid by a company that is a resident of Kazakhstan, to a company that is a resident of the United Kingdom and which controls, directly or indirectly, at least 10 percent of the voting rights of the company paying the dividends, the offset amount will include (in addition to any Kazakhstan tax that may be offset in accordance with in accordance with subparagraph (a) of this paragraph), the tax paid by the company in respect of profits from which dividends are paid. 3. For the purposes of paragraphs 1 and 2 of this article, profits, gains and gains from the appreciation of property belonging to a resident of a Contracting State that may be taxed in the other Contracting State in accordance with this Convention shall be deemed to have originated from sources in that other Contracting State.

Article 23 Limitation of benefits 1. If, under any provision of this Convention, any income is exempt from tax in a Contracting State and under the laws in force in the other Contracting State, the person in respect of that income is taxable in respect of the amount that he has received or transferred to that other Contracting State, and not in respect of the full amount of that income, then the benefit which is due under this Convention in the first-mentioned Contracting State, appIf, under any provision of this Convention, any income is exempt from tax in a Contracting State and under the laws in force in the other Contracting State, the person in respect of that income is taxable in respect of the amount that he has received or transferred to that other Contracting State, and not in respect of the full amount of that income, then the benefit which is due under this Convention in the first-mentioned Contracting State, applies only to that part of this income., which is taxed in the other Contracting State. 2. Notwithstanding the provisions of any other article of this Convention, a resident of a Contracting State who, according to national legislation relating to the promotion of foreign investment, is not taxed or is subject to a reduced rate of taxation in that Contracting State on income or income from property appreciation, shall not benefit from any reduction or exemption from tax provided for in this Convention. The Convention, if the main purpose or one of the main purposes of thiNotwithstanding the provisions of any other article of this Convention, a resident of a Contracting State who, accordnational legislation relatg to the promotion of foreign investment, is not taxed or is subject to a reduced rate of taxation in that Contracting State on income or income from property appreciation, shall not benefit from any reduction or exemption from tax provided for in this Convention. The Convention,main purpose or one of the main purposes of this resident was to obtain the benefits of this Convention.  

Article 24 Partnerships If, under any provision of this Convention, a partnership, joint venture or other economic entity is entitled, as a resident of Kazakhstan, to be exempt from tax in the United Kingdom on any income or income fromArticle 24 Partnerships If, under any provision of this Convention, a partnership, joint venture or other economic entity is entitled, as a resident of Kazakhstan, to be exempt from tax in the United Kingdom on any income or income from property appreciation, this provision shall not be considered as limiting the right of the United Kingdom to tax any member of the partnership, joint venture or other economic entity. who are residents of the United Kingdom, in respect of his share in such income or income from the appreciation of property; but any such income or income from appreciation shall be considered, for the purposes of article 22 of this Convention, as income or income from appreciation derived from sources in Kazakhstan.

Article 25 Non-discrimination 1. Nationals of a Contracting State and any legal person, partnership, association or other Non-diination 1. Nationals of a Contracting State and any legal person, partnership, association or other economic entity deriving their status as such under the applicable law in that Contracting State will not be subject in the other Contracting State to any taxation or related obligation that is different or more burdensome than taxation and related obligation, which citizens of this other State and any legal entity, partnership, associonals of a Contracting State and any legal person, partnership, association or other economic entity deriving their status as such under the applicable law in that Contracting State will not be subject in the other Contracting Stan or related obligation that is different or more burdensome than taxation and related obligation, which citizens of this other State and any legal entity, partnership, association or other economic unit, Those who receive their status as such under the legislation in force in that other State are or may be subjected to the same circumstances. 2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to any taxation or any other related obligation that is different or more burdensome than taxation and other related obligations to which nationals of that State are or may be subjected in the same circumstances. 3. The taxation of a permanent establishment wThe 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 State engaged in similar activities. 4. Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11, paragraph 7 of Article 12 of this Convention apply, and subject to the provisions of paragraph 7 of Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11, paragraph 7 of Article 12 of this Convention apply, and subject to the provisions of paragraph 7 of Article 11, interest, royalties, and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State for the purposes

Article 26 Mutual agreement procedure 1. If a resident of a Contracting State 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 national legislation of those States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or if The case falls under paragraph 1 of article 25 of this Convention of the Contracting State of which he is a national. 2. The competent authority will endeavour, if it considers the claim to be well-founded and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with the Convention. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement within the meaning of the preceding paragraphs.

 Article 27 Exchange of information 1. The competent authorities of the Contracting States shall exchange information necessary to comply with the provisions of this Convention or the domestic laws of the Contracting States relating to taxes to which this Convention applies to the extent that taxation under that law does not conflict with the Convention, in particular with regard to the prevention of tax evasion and the facilitation of the implementation of the provisions of the law, directed against legal tax avoidance. Any information received by a Contracting State shall be considered confidential and may be disclosed only to persons or authorities (including courts and administrative authorities) involved in the determination, collection, enforcement, prosecution or consideration of appeals in respect of taxes covered by this Convention. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions. 2. In no case shall the provisions of paragraph 1 of this Article be interpreted as obliging any of the Contracting States to: (a) carry out administrative measures that deviate from the laws and administrative practices common in that or the other Contracting State; (b) 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.

Article 28 Members and staff of diplomatic and consular institutions of permanent missions Nothing in this Convention affects the tax privileges of members and staff of diplomatic and consular institutions or permanent missions to international organizations granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 29 Entry into force 1. Each Contracting State shall notify the other through diplomatic channels of the completion of the procedures required by its legislation for the entry into force of this Convention. 2. This Convention shall enter into force on the date of the last of these notifications and shall become effective as of: (a) In Kazakhstan: (i) with respect to taxes withheld at source on amounts paid or deducted on or after 1 January 1993; and (ii) with respect to other taxes for taxable periods beginning on or after January 1, 1993; (B) in the United Kingdom: (i) with respect to income tax and property gains tax for any taxable year beginning on or after April 6, 1993; (ii) with respect to corporation tax for any fiscal year beginning on or after April 1, 1993.  

Article 30 Termination This Convention shall remain in force until one of the Contracting States denounces it. Each of the Contracting States may denounce the Convention by sending through diplomatic channels a written notification of its denunciation no later than six months before the end of any calendar year after the expiration of five years from the date of entry into force of the Convention. In this case, the Convention shall cease to be in force: (a) in Kazakhstan: (i) with respect to taxes; withholding taxes - on amounts paid or accrued beginning on or after January 1 of the calendar year following the expiration of the six-month period; and (ii) in respect of other taxes - for taxable periods beginning on or after January 1 of the calendar year following the expiration of the six-month period; (b) in the United Kingdom: (i) with respect to income and capital gains taxes, for any taxable year beginning on or after April 6 of the calendar year following the year in which the notification is given.; (ii) in respect of corporation tax, for any fiscal year beginning on or after April 1 of the calendar year following the year in which the notification is given.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention.

Done in London on March 21, 1994, in two originals, in Russian and English, both texts being equally authentic.

The translation of this Convention into Kazakh will be carried out and agreed upon by the Contracting States, and the text in Kazakh will have the same validity as the texts in Russian and English.

President

Republic of Kazakhstan

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