On the ratification of the Convention between the Republic of Kazakhstan and the Kingdom of the Netherlands on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and Capital

Home / RLA / On the ratification of the Convention between the Republic of Kazakhstan and the Kingdom of the Netherlands on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and Capital

The Law of the Republic of Kazakhstan dated February 24, 1997 No. 70-I SAM

To ratify the Convention between the Republic of Kazakhstan and the Kingdom of the Netherlands on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and Capital, signed in Almaty on April 24, 1996.

President of the Republic of Kazakhstan

Convention between the Republic of Kazakhstan and the Kingdom of the Netherlands on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and Capital

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on April 27, 1997)

The Government of the Republic of Kazakhstan and the Government of the Kingdom of the Netherlands, wishing to conclude a Convention between the two States for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and on Capital, have agreed on the following:

CHAPTER I Scope of the Convention

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 imposed by a Contracting State or its political and administrative subdivisions or local authorities, regardless of the manner in which they are levied. 2. Taxes on income and on capital are all taxes levied on the total amount of income, on the total amount of 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 salaries or salaries paid by enterprises, as well as taxes levied on the increase of the cost of capital. 3. The existing taxes to which the Convention applies are in particular: a) in Kazakhstan: - income tax on legal entities and individuals; - property tax on legal entities and individuals; (hereinafter referred to as "Kazakhstan taxes"). b) in the Netherlands: - income tax; - payroll tax; - company income tax, including the Government's share of net profits from the extraction of natural resources, taxed according to Mijnwet 1810 (Mining Act 1810) in respect of concessions issued since 1967, or according to the Continental Plan of 1965 (Mining Act on the Dutch Continental Shelf 1965); - tax on dividends; - capital tax; (hereinafter referred to as "Dutch Taxes"). 4. The Convention also applies to any identical or substantially similar taxes that are imposed in addition to or in place of existing taxes after the date of signature of the Convention. The competent authorities of the Contracting States will notify each other of any significant changes that will be introduced into their respective tax laws.

 CHAPTER 2 Definitions

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) The terms "Contracting State" and "other Contracting State" mean the Republic of Kazakhstan (Kazakhstan) or the Kingdom of the Netherlands (Netherlands), depending on the context; the term "Contracting States" means the Republic of Kazakhstan (Kazakhstan) and the Kingdom of the Netherlands (Netherlands) b) the term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes territorial waters, 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 of Kazakhstan apply.; c) the term "Netherlands" means the part of the Kingdom of the Netherlands that is located in Europe, including its territorial sea and any area around the territorial sea in which the Netherlands, in accordance with international law, exercises jurisdiction or sovereign rights over the seabed, its subsoil and the waters lying above it and their natural resources; d) the term "person" includes an individual, a company, or any other association of persons; (e) The term "company" means any corporate entity or any economic unit which is treated as a corporate entity for tax purposes; (e) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively business activities carried on by a resident of a Contracting State and business activities carried on by a resident of the other Contracting State.; (g) 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 is operated exclusively between locations in the other Contracting State; (h) The term "national person" means: 1. any natural person having the nationality of a Contracting State; 2. any a legal person, company, partnership or any other association that has obtained its status on the basis of the current legislation of a Contracting State; i) the term "competent authority" means: 1. in Kazakhstan: the Ministry of Finance or its authorized representative; 2. in the Netherlands: the Minister of Finance or his authorized representative; 2. As regards the application of the 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 State in respect of taxes to which the Convention applies.  

Article 4 Resident 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, place of establishment or any other criterion of a similar nature. However, this term does not include any person who is subject to taxation in that State, only with respect to income from sources in that State or capital located therein. A Contracting State, its political and administrative subdivision or local authority, an organization of that State, a political and administrative subdivision or authority, as well as a pension fund or charitable organization recognized as such in a Contracting State and whose income is normally exempt from taxation in that State, shall be treated as residents of that State. Any pension fund recognized and controlled in accordance with the legal provisions of that State shall be considered a recognized pension fund of a Contracting State. 2. Where, in accordance with the provisions of paragraph 1, an individual is found to be a resident of both Contracting States, his status shall be determined as follows: (a) he is considered to be a resident of the State in which he has a permanent home available to him.; if he has a permanent home available to him in both States, he is considered 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 a center of vital interests cannot be determined, or if he does not have a permanent home available to him or in one of the States, he is considered to be a resident of the State in which he has an habitual abode; c) if he has an habitual abode in both States or in neither of them, he is considered to be a resident of the State. of which he is a national; d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall resolve the matter by mutual agreement. 3. Where by virtue of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, such person shall be deemed to be a resident of the State in which his place of effective management is situated.

Article 5 Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a fixed 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. a) A construction site or a construction, installation, or assembly facility in a Contracting State, or services related to the supervision of these works, constitute a permanent establishment in that Contracting State only if they last for more than 12 months.; (b) An installation or structure used for the exploration of natural resources in a Contracting State or services related to the supervision of the performance of such work, or a drilling rig or ship used for the exploration of natural resources in a Contracting State, shall constitute a permanent establishment in that Contracting State only if such use or services last for more than 12 months.; c) the provision of services within a Contracting State, including consulting services by a resident of the other Contracting State through employees or other personnel located within the first-mentioned State and employed by that resident for such purposes, shall constitute a permanent establishment in that Contracting State only if such services last 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 sale after an exhibition or fair of displayed goods or merchandise belonging to the enterprise; c) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for storage, demonstration, or delivery purposes.; (d) The maintenance of a stock of goods or products belonging to the enterprise solely for the purpose of processing by another enterprise; (e) the maintenance of a permanent place of business solely for the purpose of purchasing goods or products, or for collecting information, or for distributing information, or marketing, preparatory or auxiliary to the enterprise; (f) the maintenance of a permanent place of business solely for the purpose of implementation of any other preparatory or auxiliary activities for the 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 preparatory or auxiliary in nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if a person - other than an agent with an independent status to whom paragraph 6 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 a person is not limited to that referred to in paragraph 4, which, if 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 shall not be deemed to have a permanent establishment in a Contracting State solely because it carries on business in that 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 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.  

CHAPTER 3 Taxation of income  

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 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 for the right to develop mineral resources. sources and other natural resources; marine, river, and aircraft are not considered 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 entrepreneurial activity 1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out business activities as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to this 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 includes the profits that it could receive if it were an independent 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. When determining the profit of a permanent establishment, it is allowed to deduct expenses incurred for the purposes of the business activities of a permanent establishment, including administrative and general administrative expenses, regardless of whether they are incurred in the State in which the permanent establishment is located or in another place. However, such deduction is not permitted in respect of amounts, if any, paid (other than reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices by paying royalties, royalties or other similar payments in return for the use of patents or other rights, or by paying commissions for specific services provided. either for management, or, except in the case of banking enterprises, by paying interest for a loan of funds by a permanent institution. Also, when determining the profit of a permanent establishment, the amounts accrued (other than reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices by charging royalties, fees or other similar payments in return for the use of patents or other rights, or by charging commissions, for specific services provided or for management, or, except in the cases of banking enterprises, by charging interest on funds occupied by the head office of the enterprise or any other of its offices. 4. No profit will be credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there is a compelling and sufficient reason to change it. 6. Where profits include types of income that are referred to separately in other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article.

Article 8 Sea and air transport 1. Profits from the operation of ships or aircraft in international traffic are taxable only in the Contracting State of which the enterprise is a resident and in which the place of effective management of the enterprise is located. 2. For the purposes of this article, profits derived from the operation of ships and aircraft in international traffic include profits derived from the chartering of ships and aircraft when operating in international traffic, if such rental profits accompany the profits described in paragraph 1. 3. The provisions of paragraph 1 shall also apply to profits from participating in a pool, a joint venture, or an international vehicle operating organization.  

 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 each case, conditions are created or established between two enterprises in their commercial or financial relations that differ from those that would be created between two independent enterprises, then any profit that could have been credited to one of them, but due to the presence of these conditions was not credited to him, may be included It is included in the profits of this enterprise and is taxed accordingly. It is understood, however, that the fact that associates enter into arrangements such as cost-sharing agreements or general service agreements for or based on the allocation of management, general administrative, technical and commercial costs, research and development costs and other similar costs is not in itself a condition on which which is stated in the previous sentence. 2. If a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - 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 had been such, which exist between independent enterprises, then this other State will make appropriate adjustments to the amount of tax levied on this profit. In determining such an adjustment, the other provisions of this Convention should be taken into account, and the competent authorities of the Contracting States will, if necessary, consult with each other.  

 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, the tax so charged shall not exceed: (a) 5 per cent of the total amount of the dividends if the beneficial owner is the company that owns directly or indirectly by at least 10 percent of the capital of the company paying dividends; b) 15 percent of the total amount of dividends in all other cases. 3. The competent authorities of the Contracting States shall determine by mutual agreement the application of paragraph 2.4. The provisions of paragraph 2 shall 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 Juissance or rights of Juissance, mining shares, shares of founders or other rights that are not debt claims, 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 tax legislation of the State in which the company distributing profits is a resident. 6. The provisions of paragraphs 1 and 2 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 in respect of which dividends 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. 7. 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 the holding company in respect of which the dividends are paid is actually associated with a permanent establishment or fixed base, located in this other State, the company's undistributed profits are also not subject to taxation, even if the company's undistributed profits are, if dividends are paid or retained earnings consist wholly or partly of profits or income arising in such other State. 8. The profits of an enterprise of a resident of a Contracting State derived through a permanent establishment situated in the other Contracting State, after having been taxed in accordance with the provisions of Article 7 and after deducting any amount reinvested in that permanent establishment, may be taxed on the remaining amount in that other State, but the additional tax so levied, will not exceed the percentages provided for in subparagraph (a) of paragraph 2 of this article. However, if the profit of a permanent establishment does not exceed 100,000 US dollars in the relevant taxable year, this additional tax will not be collected.

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 of the interest 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 competent authorities of the Contracting States will determine by mutual agreement the method of application of paragraph 2. 4. The term "interest", as used in this article, means income from various types of debt claims, 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, including premiums and winnings on these 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 and 2 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 interest is paid, 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 when the payer is that State itself, its political and administrative subdivision, local authorities 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. 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 shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention. 8. Notwithstanding the provisions of paragraph 2: (a) Interest incurred in one of the States and paid in respect of bonds, debentures or other similar obligations of the Government of that State, the central bank of that State, its political and administrative subdivisions or local authorities are exempt from tax in that State; b) interest arising in one of the States and paid in respect of bonds, debentures or other similar obligations to the Government of another State, the central bank of another State, its political and administrative subdivision or a local authority, is exempt from tax in the first-mentioned State.; c) interest arising in one of the States and paid in respect of loans guaranteed and insured by the Government of another State, the central bank of another State, or any agency or institution (including a financial institution) with the proper or controlled by that other Government, shall be exempt from tax in the first-mentioned State.  

 Article 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 and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the total amount of the royalties. 3. The competent authorities of the Contracting States shall determine by mutual agreement the method of application of paragraph 2.4. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use and for the right to use: a) any copyright in works of literature, art or science, including cinematographic films, any patent, trademark, design or model, plan, secret formula or process, or for information (know-how) of an industrial, commercial or scientific nature; and b) industrial, commercial or scientific equipment. 5. Notwithstanding paragraph 2 of this article, the beneficial owner of royalties received in respect of leases as specified in subparagraph (b) of paragraph 4 of this article may choose the method of taxation in the Contracting State in which the royalties originated, as if the right or property in respect of which such royalties are paid were actually connected with a permanent establishment or fixed base in that State. The state. In such a case, the provisions of article 7 or article 14 of this Convention, as appropriate, may apply to income and deductions (including depreciation) relating to such right or property. 6. 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 State from a permanent base located there, and the right or property in respect of which royalties are paid, are indeed 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. 7. Royalties are deemed to have arisen in a Contracting State when 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 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 relate to such permanent establishment or permanent base, then such royalties shall be deemed to have arisen in the State where in which a permanent establishment or permanent base is located. 8. If, as a result of a special relationship between the payer and the actual owner of the royalty or between both of them and any other person, the amount of the royalty relating 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 royalty 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 as defined in Article 6 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 shares (other than shares listed on an officially recognized stock exchange) or other rights of a similar nature, the value of which consists mainly of the value of immovable property located in the other Contracting State, may be taxed in the other Contracting State. For the purposes of this paragraph, the term "immovable property" also includes shares of the company (or other similar rights), the value of which consists mainly of the value of real estate, but does not include property, through which the business activities of the company (or other economic unit) are carried out, unless the business activities of the company (or other economic unit) are primarily the ownership, purchase or sale, or lease of real estate. 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 belonging to a permanent base owned 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 in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State. 4. Gains from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such aircraft or ships shall be taxable only in the Contracting State of which the enterprise is a resident and in which the place of effective management of the enterprise is located. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident. 6. The provisions of paragraph 5 shall not affect the right of each of the Contracting States to tax, in accordance with their own laws, income from the alienation of shares or rights of Juissance in a company whose capital is fully or partially invested in shares and which, under the laws of that State, is a resident of that State, received by an individual who is a resident of the other Contracting State. and he was a resident of the first mentioned State for the last five years preceding the alienation of the shares or rights of Juissance.

Article 14 Independent personal services 1. Income earned by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent nature is taxable only in that State, unless such services are provided or have been provided in the other Contracting State; and (a) income relates to a fixed base that the individual has or has had on a regular basis. in another Country; or b) such individual is present or has been present in that other State for a period or periods exceeding a total of 183 days in any consecutive 12-month period. In such a case, income related to services may be taxed in that other State in accordance with principles similar to those set out in article 7 for determining the amount of profits from business activities and profits attributable to a permanent establishment. 2. The term "professional services" specifically includes 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, 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 derived therefrom may be taxed in that other 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 State if: (a) the recipient resides in the other State for a period or periods not exceeding a total of 183 days in any 12-month period. a period beginning or ending in the relevant fiscal year; and b) the remuneration is paid by the employer, or on behalf of the employer who is not a resident of another State; and c) the remuneration is not paid by a permanent establishment or a permanent base that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration derived by a resident of a Contracting State in respect of an employment performed on board a ship or aircraft operated in international traffic shall be taxable only in that State.  

 Article 16 Directors' fees Directors' fees or 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, the "bestuurder" or "commissaris" of a company that is a resident of the other Contracting State, and who are appointed as such by the general meeting of shareholders or any other competent authority of such company and whose duties include general management of the company or control over its activities, respectively, may be taxed in that other 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 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 that other State. 2. Where 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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are carried on.  

Article 18 Pensions and annuities 1. Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid in respect of past employment to a resident of a Contracting State and any annuity shall be taxable only in that State. 2. However, if such remuneration is not periodic and it is paid for past work performed in another Contracting State, or if a fixed amount is paid in return for the right of annuity, such remuneration or this large amount shall be taxed in the Contracting State in which it originated. 3. The term "annuity" means a fixed amount that is paid periodically at a fixed time throughout one's life or a defined or fixed period of time in accordance with an accepted commitment to make such payments in return for adequate and full compensation in money or monetary terms.  

Article 19 Public service and social security payments 1. (a) Remuneration, other than a pension, paid by a Contracting State or a political and administrative subdivision thereof or a local authority thereof to any natural person in respect of services rendered to that State or subdivision or authority may be taxed in that State. b) However, such remuneration shall be taxable only in the other Contracting State if the service is performed in that State and the individual, being a resident of that State, is also: 1. a national of that State; or 2. did not become a resident of that State solely for the purpose of performing the 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 subdivision or authority may be taxed in that State. b) However, such a pension is taxable only in the other Contracting State if the individual is a resident and a national of that State. 3. The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political and administrative subdivision thereof or a local authority. 4. Any pension and other payment paid in accordance with the provisions of the social insurance system of a Contracting State to a resident of the other Contracting State may be taxed in the first-mentioned State.  

Article 20 Professors and teachers 1. Payments made by a professor or lecturer who is a resident of a Contracting State and is located in the other Contracting State for the purposes of teaching or scientific research for a maximum period of two years at a university, college or other educational or research institution in the other Contracting State for the purpose of conducting such teaching or research shall be taxable only in the first mentioned State. 2. This Article does not apply to income from research activities if such research is not undertaken in the public interest, but primarily for the personal benefit of an individual or individuals.

 Article 21 Students, interns and researchers 1. An individual who is a resident of a Contracting State at the beginning of his visit to another Contracting State and who is temporarily staying in that other State for the main purpose of: a) studying at a University or other recognized educational institution in that other State, or b) completing an internship necessary to work in a specialty or obtain a qualification; or c) studying or conducting research, while being a recipient of scholarships, allowances or other similar payments from governmental, religious, charitable, scientific, literary or educational organizations; is exempt from tax in that other State in respect of payments received from abroad for the purposes of his residence, education, studies, conducting research or internship, as well as in relation to scholarships, allowances or other similar payments. 2. The benefit provided for in paragraph 1 applies only for such a period of time as is normally necessary for the completion of studies, internships or research; however, the internship benefit will not last more than 2 years and the period for study or research will not exceed 5 years. 3. This article does not apply to income from research activities, if such research is not undertaken in the public interest, but mainly for the personal benefit of an individual or persons.

Article 22 Other income 1. Types of income of a resident of a Contracting State, regardless of where they originated, which are not considered in the preceding articles of this Convention, are taxable only in that 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 is a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent individual services in that other State through a permanent base located there., and the right or property in connection with which the income is received is 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.

CHAPTER 4 Taxation of capital

Article 23 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 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 held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State. 3. Capital represented by ships and aircraft operated in international traffic and movable property related to the operation of such ships and aircraft shall be taxable only in the Contracting State of which the enterprise is a resident and in which the place of effective management of the enterprise is located. 4. All other elements of the capital of a resident of a Contracting State are taxable only in that State.

 chapter 5 Elimination of double taxation  

Article 24 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 the Netherlands, Kazakhstan will allow: (i) deduction from the income tax of that resident an amount equal to the income tax paid in the Netherlands; (ii) deduction from the tax on the capital of this resident, an amount equal to the capital tax paid in the Netherlands. These deductions, however, should in any case not exceed the portion of income or capital tax calculated before the deduction is granted, relating, as appropriate, to income or capital that may be taxed in the Netherlands. b) If a resident of Kazakhstan earns income or owns capital that, in accordance with the provisions of this Convention, is taxable only in the Netherlands, Kazakhstan may include this income or capital in the tax base, but only for the purpose of determining the tax rate on such income or capital that is subject to taxation in Kazakhstan. 2. When taxing its residents, the Netherlands may include in the basis on which such taxes are levied items of income or capital that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan. 3. However, if a resident of the Netherlands receives income items that, in accordance with Article 6, Article 7, paragraph 6 of Article 10, paragraph 5 of Article 11, paragraph 6 of Article 12, paragraphs 1 and 3 of Article 13, article 14, paragraph 1 of Article 15, paragraphs 1 (subparagraph a), 2 (subparagraph a) and 4 of Article 19, paragraph 2 of Article 22 of this Convention, may be taxed in Kazakhstan and included in the base specified in paragraph 1, the Netherlands shall exempt such income items from tax by providing a discount from its tax. This discount is calculated in accordance with the provisions of the Dutch Law on the Elimination of Double Taxation. For this purpose, these income items are considered to be included in the total amount of income items that are exempt from Dutch tax under these provisions. 4. Furthermore, the Netherlands grants a deduction from the Netherlands Tax on items of income or capital that, in accordance with paragraph 2 of Article 10, paragraph 2 of Article 11, paragraph 2 and 5 of Article 12, paragraph 2 and 6 of Article 13, article 16, Article 17, paragraph 2 of Article 18 and paragraphs 1 and 2 of Article 23 of this Convention, may be taxed in Kazakhstan to the extent that these items are included in the base specified in paragraph 1. The amount of such deduction is equal to the amount of tax paid in Kazakhstan on these items of income or capital, but it should not exceed the amount of the discount that would have been provided if the items of income or capital included in this way were the only items of income or capital that are exempt from Dutch tax according to the provisions of the Dutch Law on the Elimination of Double Taxation.  

 CHAPTER 6 Special provisions  

CHAPTER 4 Taxation of capital

 chapter 5 Elimination of double taxation  

 CHAPTER 6 Special provisions  

Article 25 Offshore activities 1. The provisions of this article shall apply independently of any other provisions of this Convention. However, this article does not apply if the offshore activity of a person constitutes a permanent establishment for that person in accordance with the provisions of article 5 or a permanent base in accordance with the provisions of article 14.2. For the purposes of this article, the term "offshore activity" means activities that are carried out at a certain distance from the coast in connection with the exploration or exploitation of the seabed and its subsoil and their natural resources located in a Contracting State. 3. An enterprise of a Contracting State carrying on offshore activities in the other Contracting State shall be deemed, in respect of such activities, subject to paragraph 4 of this Article, to be carrying on business through a permanent establishment located there, unless such offshore activities are carried out in the other State for a period or periods not exceeding a total of 30 days. in any 12-month period. For the purposes of this paragraph: (a) If an enterprise carrying out offshore activities in the other Contracting State is associated with another enterprise and that other enterprise continues, as part of the same project, the same offshore activities carried out or carried out by the first-mentioned enterprise, and also the above-mentioned activities carried out by both enterprises - when combined - exceed the period in 30 days, then each enterprise is considered to be operating for a period exceeding 30 days in a 12-month period.; b) an enterprise is considered to be related to another enterprise if one enterprise owns, directly or indirectly, at least one third of the capital of the other enterprise or if a person owns, directly or indirectly, at least one third of the capital of both enterprises. 4. However, for the purposes of paragraph 3 of this article, the term "offshore activity" does not include: (a) one or any combination of the activities referred to in paragraph 4 of article 5; b) towing or anchoring ships that are primarily built for this purpose, and any other operations performed by such ships; c) transportation of supplies or personnel by ships or aircraft in international traffic. 5. A resident of a Contracting State who carries out offshore activities in the other Contracting State consisting of professional services or other activities of an independent nature is considered to be carrying out these activities from a permanent base in the other Contracting State if the offshore activity lasts for a period of 30 days or more. 6. Salaries, salaries and other similar remuneration derived by a resident of a Contracting State in respect of work related to offshore activities carried out through a permanent establishment in the other Contracting State may, to the extent that such offshore work is performed in that other State, be taxed in that other State. 7. If documentary evidence is provided that the tax was paid in Kazakhstan on items of income that may be taxed in Kazakhstan in accordance with Article 7 and Article 14 in connection with paragraph 3 and paragraph 5 of this article, respectively, as well as paragraph 6 of this article, the Netherlands shall provide a discount from its tax, which is calculated in accordance with the provisions provided for in paragraph 2 of article 24.

Article 26 Non-discrimination 1. Nationals of a Contracting State shall not be subject in the other Contracting State to taxation other or more burdensome or related obligations than taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances. This provision also applies, notwithstanding the provisions of article 1, 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 State engaged in similar activities. This provision should not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with any personal benefits, deductions and tax rebates based on their civil status or family obligations, which it provides to its own residents. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of article 11, paragraph 8 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 purpose of determining the taxable profits of such enterprise, be deductible on the same terms as if they had been paid to a resident of the first the mentioned State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned 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 State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State. 5. Notwithstanding the provisions of article 2, the provisions of this article shall apply to taxes of any kind and type.

 Article 27 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 States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his case It falls under paragraph 1 of article 26 of the Contracting State of which it 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 the Convention. 2. The competent authority shall endeavour, if it considers the claim to be justified 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. Any agreement reached must be implemented regardless of any time limits available in the domestic laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to 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 agreement within the meaning of the preceding paragraphs. 5. If any difficulties or doubts arising in connection with the interpretation or application of this Convention cannot be resolved by the competent authorities within a two-year period, the matter may, with the consent of the taxpayer(s), be submitted to arbitration, subject to the written consent of the taxpayer(s) to submit to the decision of the arbitral tribunal. The decision of the arbitral tribunal in each specific case is binding on both Contracting States in respect of this case. All procedural issues are discussed through diplomatic channels. After a period of three years after the entry into force of this Convention, the competent authorities will consult on the need to exchange diplomatic notes. The provisions of this paragraph shall enter into force upon the agreement of the States reached through the exchange of diplomatic notes.

 Article 28 Exchange of information 1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation is not contrary to the Convention. The exchange of information is not limited to article 1. Any information received by a Contracting State shall be considered as confidential as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution of, or consideration of appeals concerning taxes subject to The Convention. Such persons or authorities will use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions. 2. The Contracting States may disclose to the arbitral tribunal established in accordance with the provisions of paragraph 5 of article 27 the information necessary for the conduct of the arbitration procedure. Such disclosure of information must comply with the provisions of article 30. The members of the arbitral tribunal must be guided by the disclosure authorization described in paragraph 1 of this article in respect of information disclosed in this way.  

Article 29 Assistance in tax collection 1. States agree to provide each other with assistance and support in tax collection, in accordance with their respective laws or administrative practices, for the taxes to which this Convention applies and for any tax increases, additional charges, late payments, interest and costs related to the said taxes. 2. At the request of the Applicant State, the executing State collects the tax obligations of the first-mentioned State in accordance with the law and administrative practices related to the collection of its own tax obligations. However, such obligations do not enjoy any priority in the State fulfilling these obligations, and cannot be recovered by imprisoning the debtor for his debts. The State executing the request is not obliged to take any enforceable measures that are not provided for in the laws of the applicant State. 3. The provisions of paragraph 2 apply only to tax obligations that are the basis of a document allowing their enforcement in the applicant State and, unless otherwise agreed between the competent authorities, they are not disputed. However, if the claim relates to a tax liability of a non-resident of the applicant State, paragraph 2 applies only, unless otherwise agreed by the competent authorities, in the case where the claim can no longer be disputed. 4. The obligation to assist in the collection of tax claims in respect of a deceased person or his estate is limited to the value of the estate or property acquired by each actual recipient of the estate, in accordance with whether the obligation is collected from the estate or its recipient. 5. The State executing the request is not obliged to agree to the request: a) if the applicant State has not used all the means available in its territory, with the exception of those means that could lead to disproportionate difficulties; b) if it considers that the tax claim is contrary to the provisions of this Convention or any other Convention concluded between the two States concerned. 6. The request for administrative assistance in collecting a tax claim shall be accompanied by: a) a declaration that the tax claim relates to the tax to which the Convention applies and the conditions of paragraph 3 have been met; b) an official copy of the document allowing the compulsory collection of tax in the applicant State; c) any other document required for tax collection; d) if necessary, a certified copy confirming any decision on tax collection made by an administrative body or a state court. 7. The applicant State shall indicate the amount of the tax claim to be collected both in the currency of the applicant State and in the currency of the State fulfilling this request. The exchange rate to be applied for the purposes of the previous offer is the latest currency sale rate established in the most representative exchange market or markets of the Applicant State. Each amount of tax collected by the requesting State is transferred to the Applicant State in the currency of the requesting State. The transfer of money is made within one month, starting from the date of collection. 8. At the request of the Applicant State, the State executing the request, in order to collect the amount of tax, takes "conservation" measures, even if the claim is disputed or is not yet the basis for a document allowing enforcement, insofar as it complies with the laws and administrative practices of the State executing the request. 9. A document allowing enforcement in the applicant State, if appropriate and consistent with the applicable provisions of the requesting State, shall be accepted, recognized, supplemented or replaced as soon as possible after receipt of the request for assistance by a document allowing enforcement in the requesting State. 10. Issues related to any period beyond which a tax liability cannot be collected are resolved in accordance with the law of the applicant State. The request for assistance in collecting the tax sets out the details regarding this period. 11. Recovery actions taken by the requesting State to comply with a request for such assistance, which, according to the laws of that State, would result in the suspension or termination of the period referred to in paragraph 10, must have the same result according to the laws of the applicant State. The requesting State shall inform the applicant State of such actions. 12. The requesting State may allow the payment or installment payment to be deferred if its laws or administrative practice provide for this in such circumstances; however, it must first inform the applicant State. 13. The competent authorities of the Contracting States shall, by mutual agreement, provide for provisions concerning the minimum amounts of tax obligations specified in the request for assistance. 14. States mutually waive reimbursement of the costs of the relevant assistance and support that they provide to each other in the application of this Convention. In any case, the applicant State remains responsible to the requesting State for the financial consequences of recovery actions that have proved unjustified in relation to the reality of the relevant tax claim or the legality of the document allowing enforcement in the applicant State.  

Article 30 Limitation of articles 28 and 29 The provisions of articles 28 and 29 shall in no case be interpreted in such a way as to impose on one of the Contracting States the obligation: (a) to carry out administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (b) to provide information that is not provided in accordance with the laws or customary administrative practices 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 dissemination of which would be contrary to government policy (public practice).  

 Article 31 Diplomatic agents and consular staff Nothing in this Convention affects the tax privileges of diplomatic agents or consular staff granted by the general rules of international law or in accordance with the provisions of special agreements.  

 CHAPTER VII Final provisions  

Article 32 Entry into force This Convention shall enter into force on the thirtieth day after the last date on which the respective Governments notify each other in writing that the formal constitutional requirements in their respective State have ended and its Provisions will apply for taxable years and periods beginning on or after January 1 of the year preceding the year in which the Convention enters into force. but not earlier than January 1st, 1995.

Article 33 Termination This Convention shall remain in force until terminated by one of the Contracting States. Each State may terminate the Convention through diplomatic channels by submitting a notice of termination no later than six months before the end of any calendar year after a period of 5 years after the date of its entry into force. In this case, the Convention will cease to apply for taxable years and periods starting from the end of the calendar year in which the termination notice was filed.

IN WITNESS WHEREOF, the undersigned representatives, duly authorized, have signed this Convention.

DONE in Almaty on the 24th of April 1996 in two copies, in the Kazakh, Dutch, Russian and English languages, all four texts being equally authentic. In case of any differences in interpretation between the Kazakh, Dutch and Russian texts, the English text will be decisive.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN OF THE KINGDOM OF THE NETHERLANDS

protocol During the signing of the Convention concluded on that day between the Republic of Kazakhstan and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Income and Capital Taxes, the undersigned agreed that the following provisions form an integral part of the Convention.

I. With regard to article 4, if the State of residence of an individual residing on board a ship without any fixed permanent residence in any of the Contracting States cannot be determined on the basis of Article 4 of the Convention, he will be deemed to be a resident of the Contracting State in which the ship has its home harbor.  

II. With respect to article 5, for the purposes of paragraph 4 (f) and (g), it is understood that the facilitation (including the signing itself) of contracts relating to loans, the supply of goods or merchandise, or technical services is considered a preparatory or auxiliary activity.

III. With respect to articles 5, 6, 7, 13 and 26 1. It is understood that the rights to explore and exploit natural resources are considered as immovable property located in a Contracting State with the seabed and subsoil of which they are connected, and these rights are considered to belong to the property of a permanent establishment in that State. In addition, it is understood that the above rights include rights to interest in or benefits from the material resources produced by such exploration or exploitation. 2. It is understood that the possession by a resident of a Contracting State of any such rights arising in the other Contracting State and which are considered, in accordance with the preceding paragraph, to belong to the property of a permanent establishment, leads to the establishment of a permanent establishment in that other State, for the purposes of applying all relevant provisions of the Convention.  

IV. With regard to article 7 1. It is understood that in the case of a contract performed by an enterprise of a Contracting State partly through a permanent establishment in another Contracting State, partly outside that other State, the Contracting State in which the permanent establishment is located does not have the right to tax all income received in connection with the performance of the contract, but must treat income and deductions in accordance with paragraphs 2 and 3 of article 7 as if the head office and permanent establishment of the enterprise were acting as independent economic units. It is further understood that in order to determine the true amount of income, the role and activities of a permanent establishment on the one hand, and the role and activities of an enterprise outside the country in which the permanent establishment is located on the other hand, must be taken into account. Income from such other activities, properly distributed, shall not be taxed in the Contracting State in which the permanent establishment is located. It is further considered that the above applies to contracts for preparatory work, supply, installation and installation of industrial, commercial and scientific equipment, premises or public works. 2. With respect to paragraph 1 of article 7, profits derived from the sale of goods and merchandise of the same or similar type as those being sold, or from other business activities of the same or similar type carried out through a permanent establishment, may be attributed to such a permanent establishment, provided that there is evidence that These income-related transactions were conducted in order to avoid taxation in the Contracting State in which the permanent establishment is located.

V. With respect to articles 7, 12 and 14 If, (i) the only important component of the contract is the performance of technical services, including research or reviews of a scientific, geological or technical nature, or consulting or control services, and not the transfer or provision of projects, plans, processes, scientific or commercial experiments, or other rights described in paragraph 4 of article 12, and (ii) part of the payment under the contract is not commensurate with the income or earnings (or other similar factors) of the recipient of income from services, and (iii) the value of any part of the contract, which can be attributed to the transfer of the rights described in paragraph 4 of article 12 does not exceed 10 percent of the total value of the contract, or 50,000 US dollars, then payments received in payment for such services will be considered payments to which article 7 or Article 14 apply. In other cases where the contract is of a "mixed" nature, the amounts paid under the contract may be distributed in such a way as to reflect the fact that one part of such payments should be considered payment for services, and the other part as royalties taxed under article 12.

VI. With respect to articles 7, 14 and 26 It is understood that in the case of Kazakhstan, when calculating taxes on profits and income under the current legislation applicable from the date of entry into force of the Convention until June 30, 1995, an enterprise that is a resident of Kazakhstan with more than 30% participation of residents of the Netherlands, or a permanent establishment of a Dutch enterprise (subject to the provisions of Article 7) is allowed to make deductions for actually paid salary and interest expenses, regardless of whether they are paid to the bank or not and regardless of the terms of the debt. Deductions may not exceed the limits under Kazakh tax law, if this limit is not less than the rate determined by the "arm's length rule," including, in the case of interest, a reasonable risk price.  

VII. With regard to article 10  

1. It is understood that dividends paid by a company resident in a Contracting State to a company resident in the other Contracting State that owns, directly or indirectly, at least 50 percent of the capital of the company paying dividends are exempt from tax in the first Contracting State, provided that the company receiving the dividends has made an investment in the company paying dividends in the amount of at least one million US dollars and this investment is fully guaranteed or insured by the Government of the other Contracting State, either by the central bank of that State, or by any body or organization (including financial organizations) owned or controlled by that Government, as well as approved by the Government of the first Contracting State. If the above-mentioned investment exceeds one million US dollars, but the entire amount of the investment is not fully guaranteed or insured, then this provision applies only to a portion of the dividends, in proportion to which the guaranteed or insured portion of the investment is to the total amount of the investment.

2. It is understood that the additional tax provided for in paragraph 8 is not levied if the amount invested in a permanent establishment exceeds 500,000 US dollars and such investment is fully insured or guaranteed by the Government of the State of which the enterprise is a resident, or the central bank of that State, or any body or organization (including financial institutions) located in owned or controlled by the Government of that State, as well as approved by the Government of another Contracting State. If the above-mentioned investment exceeds 500,000 US dollars, but the entire amount of the investment is guaranteed or partially insured, then this provision applies only to that part of the additional tax base that is proportional to the guaranteed or insured part of the investment in the total investment amount.

3. As soon as the current Convention for the Avoidance of Double Taxation between Kazakhstan and this member of the Organization for Economic Cooperation and Development does not provide for the additional tax referred to in paragraph 8 of Article 10 of this Convention, the additional tax referred to therein will not be levied on enterprises that are residents of the Netherlands.

VIII. With regard to articles 10 and 11 It is understood that in the case of the Netherlands, the term dividends includes income from profit-sharing bonds.  

IX. With respect to articles 10, 11 and 12, if the tax has been withheld at source in an amount exceeding the amount of tax levied in accordance with the provisions of articles 10, 11 or 12, the claims for the refund of the excess amount of tax shall be submitted to the competent authority of the State that withheld this tax for three years after the expiration of the calendar year in which it was tax withheld.

H. With regard to article 11 It is understood that the term "interest" also includes interest accrued by a bank to a permanent establishment of such bank in a Contracting State.

XI. With regard to articles 11 and 12 1. If, after April 28, 1995, Kazakhstan signs a Convention on the Avoidance of Double Taxation with a State that is a current member of the Organization for Economic Cooperation and Development, which will provide for a lower effective interest or royalty rate (including a zero rate), then such a lower rate will automatically apply to residents of the Netherlands. 2. It is understood that the provisions of articles 11 and 12 do not apply if a debt claim for which interest is paid or if, respectively, the right or property for which royalties are paid has been created or transferred accordingly for the primary purpose of taking advantage of the provisions of this article. If a Contracting State intends to bring such a provision into effect, its competent authority should consult in advance with the competent authority of the other Contracting State.

XII. With regard to article 12 It is understood that if the actual owner of the royalties paid in respect of the lease, in accordance with subparagraph (b) of paragraph 4 of Article 12, makes the choice provided for in paragraph 5 of Article 15, then any interest, the payment of which is determined by the right or property for which the royalties were received and which are deducted in determining the net base, as specified in paragraph 5 of Article 12, are considered to have a source in the Contracting State in which the lease payment originated. Any such interest payment, if made to a resident of the other Contracting State, shall be subject to the provisions of article 11 of this Convention. The selection made in accordance with paragraph 5 of Article 12 shall be communicated to the competent authority of the Contracting State which is the source of the rent payment.

XIII. With regard to article 18 During the period when Kazakhstan, under its national legislation, cannot exercise the tax rights provided for in paragraph 1 of Article 18, the provisions of this paragraph concerning pensions received by a resident of Kazakhstan in connection with work previously performed in the Netherlands will not apply. The national legislation of the Netherlands will continue to apply to such pensions. As soon as the competent authority of Kazakhstan informs the competent authority of the Netherlands that Kazakhstan, according to its legislation, can exercise the tax right provided for in paragraph 1, this provision of the protocol shall cease to be effective.  

XIV. With regard to article 19 It is understood that in the case of the Netherlands, the term "any pension and other payments made in accordance with the provisions of the social security system of a Contracting State" includes all payments and other benefits received under Dutch social insurance and social legislation, for example, relating to old age, death, illness, disability, unemployment, child benefits, widows and orphans.  

XV. With regard to article 23 It is understood that for the purposes of article 23, the term "capital" means movable and immovable property and includes (but is not limited to) cash, shares or other evidence of ownership, promissory notes, bonds or other evidence of debt and patents, trademarks, copyrights or other similar right or property.

XVI. With regard to article 24 It is understood that when calculating the discount provided for in paragraph 3 of Article 24, the value of the types of capital referred to in paragraph of article 23 is reduced by the amount of collateral received for this capital, and in respect of the types of capital referred to in paragraph of Article 23, the value is reduced by the amount of debts belonging to a permanent establishment or permanent base.

XVII. With regard to article 25 It is understood that the provisions of article 25 will be effective only if the status of the Caspian Sea is recognized as a "sea" under international law.

IN WITNESS WHEREOF, the undersigned representatives have signed this Protocol.

DONE in Almaty on April 24, 1996, in two copies, in the Kazakh, Dutch, Russian and English languages, all four texts being equally authentic. In case of disagreement in the interpretation of the Kazakh, Dutch and Russian texts, the English text is preferred.

For the Government For the Government of the Republic of Kazakhstan Kingdom of the Netherlands

President

Republic of Kazakhstan

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