On approval of the convention between the Government of the Republic of Kazakhstan and the Government of Canada on avoidance of double taxation of income and capital and Prevention of tax evasion

Home / RLA / On approval of the convention between the Government of the Republic of Kazakhstan and the Government of Canada on avoidance of double taxation of income and capital and Prevention of tax evasion

Law of the Republic of Kazakhstan dated February 24, 1997 No. 74

To approve the convention between the Government of the Republic of Kazakhstan and the government of Canada on the Prevention of double taxation of income and capital and the Prevention of tax evasion, signed in Almaty on September 25, 1996.

President Of The Republic Of Kazakhstan

Convention between the Government of the Republic of Kazakhstan and the Government of Canada on the abolition of double taxation of income and capital and the Prevention of tax evasion

(Entered into force on March 30, 1998-official website of the Ministry of foreign affairs of the Republic of Kazakhstan)

The Government of the Republic of Kazakhstan and the Government of Canada, guided by the desire to strengthen and develop economic, scientific, technical and cultural relations between the two states, and expressed their desire to conclude a convention on the abolition of double taxation of income and capital and the Prevention of tax evasion, agreed on the following issues:

Article 1 persons to whom the Convention applies

This convention applies to persons who are residents of one or both Contracting States.

Article 2 taxes applicable to the convention

1.this convention applies to these taxes levied on behalf of the contracting state, regardless of the methods of collecting income and capital taxes. 2.all taxes levied on the total amount of income, the total amount of capital, or the elements of income or capital, including taxes levied on income from the withdrawal of movable or immovable property, as well as taxes on income from the increase in the value of capital, shall be considered income and capital taxes.  3. The levied taxes to which the convention applies are, in particular, the following taxes: A) in the case of Kazakhstan: (i) tax on income of legal entities and individuals; (ii) tax on property of legal entities and individuals; (hereinafter referred to as the "Kazakhstan tax"); B) in the case of Canada: taxes levied by the Government of Canada under the "Income Tax" Act; (hereinafter referred to as the "Canada tax").  4. The convention also applies to any taxes of the same or in fact similar to those levied in addition to or in exchange for taxes in force after the date of its signing. The competent authorities of the contracting states shall inform each other of any significant changes to their current tax laws.

Article 3 general definitions

1.for the purposes of this convention, unless otherwise provided in the context: A) the following terms: (i) "Kazakhstan" means the Republic of Kazakhstan. When used in the coastal sense, the term" Kazakhstan " includes territorial waters, where, in accordance with international law, Kazakhstan can exercise sovereign rights and jurisdiction for certain purposes, and the laws governing the taxes of Kazakhstan apply, as well as an exclusively economic zone and continental shelf; (ii) "Canada" -when used in a coastal sense means the territory of Canada, including any region outside the territorial sea of Canada, where Canada may exercise its rights to the seabed and subsoil and their natural resources in accordance with international law and the laws of Canada; B) the term "person" includes an individual, company and any other association of persons, in the case of Canada; C) the term" company " means any corporate structure or any legal entity that is considered a corporate entity for tax purposes and, in particular, includes a Joint Stock Company, Limited Liability Company or any other legal entity or organization subject to profit tax in the case of Kazakhstan; d) the terms "Contracting State" and "other Contracting State", depending on the context, mean Kazakhstan and Canada; E) the term" international transportation "covers any trip of a sea or aircraft to transport passengers or property (and regardless of whether it is used or not by that resident), except in cases where the main purpose of the trip is to transport passengers or property between points within another contracting state, depending on the resident of the Contracting State; E) the term" competent authority": (i) in Kazakhstan: ; (ii) in Canada: means the minister of national income or his Plenipotentiary representative; G) the term "National person" means: (i) any individual who has acquired the citizenship of a Contracting State; (ii) any legal entity, partnership or any other association that has acquired their status on the basis of the applicable laws of the contracting state. 2. When a contracting state applies the convention at a given time, any term that is not defined in it shall have the same meaning as it has at that time in accordance with the laws of that state to which this convention applies, unless otherwise provided in the context.

Article 4 Resident

1.for the purposes of this convention, the term "resident of a Contracting State" shall mean: (a) any person subject to taxation under the laws of this state in connection with its place of residence, residence, place of Administration, place of establishment or any other measure of such nature; (B) the Government of this state or its political and administrative subdivision or local authority or It also includes a pension fund or other Employee Benefit Fund and any charitable organization established in accordance with the laws of this Contracting State. However, this term does not cover any person who is to be taxed in this state, referring only to income from sources in this state. 2. in accordance with the provisions of Paragraph 1, if an individual is a resident of both Contracting States, his status is determined as follows: a) he is considered a resident of only a state with permanent housing to which he belongs; if he has permanent housing under his jurisdiction in both Contracting States, he is considered a resident only of a state with closer personal and economic ties (the center of vital interests); B) if it is not possible to determine a state with a center of vital interests, or if one of the Contracting States does not have permanent housing under his jurisdiction, he is considered a resident only of the state in which he usually resides; C) if he usually resides in either of the States or does not reside in one of them, he is considered a resident only of the state of which he is a citizen; D) if he is a citizen of both states or is not a citizen of either of the competent authorities of the Contracting States shall resolve the issue in mutual agreement. 3. If, in connection with the provisions of Paragraph 1, the company is a resident of both Contracting States, its status is determined as follows: a) it is considered a resident of only the state of which it is a national Person; B) if it is not a national Person of either state, it is considered a resident of only the state in which its actual place of management is located. 4. If, due to the provisions of Paragraph 1, someone other than an individual or a company is a resident of both Contracting States, the competent authorities of the Contracting States shall attempt to resolve the issue in mutual agreement, but if the competent authorities fail to reach such agreement, the person shall not be considered a resident of either contracting state for the purposes of

Article 5 permanent establishment

1.for the purposes of this convention, the term "permanent establishment" means a permanent place of activity in which the business activity of a resident of a Contracting State is fully or partially integrated into the system.  2.the term" permanent establishment", in particular, includes: a) a place of management; b) a division; C) an office; D) a factory; e) a workshop; and e) a mine, an oil or gas well, a mine, or any other place related to the exploration or extraction of Natural Resources.  3. The term" permanent establishment " also includes: a) a construction site or construction, installation or assembly facility or services related to the supervision of the performance of these works, if such site or Project lasts more than 12 months or if such services are provided for more than 12 months; and B) an installation or construction used for natural resources exploration or services related to the supervision of the performance of these works, or a drilling rig used for natural resources exploration or a ship, if such use lasts more than 3 months, or if such services are provided for more than 12 months; (c) provision of services, including consulting services provided by residents through employees or other persons hired by a resident for such purposes, but (for such or related project) services of this nature must be provided within the country for more than 12 months. 4. In connection with a resident of a contracting state, regardless of the preceding provisions of this article, the term "permanent establishment" shall be deemed not to include: a) the use of buildings only for the purposes of storage, display or dispatch of goods or products belonging to the resident; B) Storage only for the purposes of storage, display or dispatch of the stock of goods or products belonging to the resident; C) storage; d) maintain a permanent place of service only for the purpose of purchasing goods or products to a resident or for collecting information; e) maintain a permanent place of service only for the purpose of carrying out any other activity of a preparatory or auxiliary nature by a resident; E) maintain a permanent place of service only for carrying out such an operation of the types of services provided from subparagraph A) to subparagraph 5. Regardless of the provisions of Paragraphs I and 2, if a person other than an agent with independent status to which paragraph 6 applies acts on behalf of a resident of a Contracting State and has the authority to conclude contracts on behalf of a resident in another Contracting State and normally uses it, he or she shall be treated as a resident with a permanent, this shall not include a situation restricted to activities that do not convert this permanent place of service into a permanent institution in accordance with the provisions of this paragraph, even if it is carried out through a permanent place of Service. 6.a resident of a contracting state shall not be considered as a person with a permanent establishment in this other Contracting State only for carrying out business activities in this other state through an intermediary, ordinary commission agent or any other agent with independent status, provided that such persons act within the framework of their usual activities. 7. The fact that a company that is a resident of a contracting state controls or controls a company that is a resident of another contracting state or is engaged in business activities in that other state (either through a permanent institution or otherwise) cannot turn one of these companies into a permanent institution of the other.

Article 6 income from Real Estate

1.income received by a resident of a Contracting State from real estate located in another contracting state (including income received from agriculture or forestry) may be taxed in that other state.  2.The term" real estate " shall have the same meaning as it has under the laws of the Contracting State in which the property in question is located. The term in any case includes subsidiary property in relation to real estate, livestock and equipment used in agriculture and forestry, rights to which common law rules apply in relation to land ownership, the right to floating or fixed payments to be paid as compensation for the right to develop or develop the usufruct of real estate and Mineral Resources, ore sources and other natural 3. The provisions of Paragraph 1 apply to income received from the direct use, lease or use of real estate in any other way, and income received from the exclusion of this property. 4.the provisions of Paragraphs 1 and 3 also apply to income from real estate used to carry out business activities or to provide independent personal services.

Article 7 profit from entrepreneurial activity

1.the profit earned by the resident from entrepreneurial activity shall be taxed in this state only if the resident of the contracting state is not engaged in entrepreneurial activity in it through a permanent institution located in another contracting state. If a resident is or has been engaged in entrepreneurial activity, as mentioned above, the resident's profits earned from entrepreneurial activity may be taxed in another state, but his / her: A) to such a permanent institution; B) the sale of goods and products that correspond to the goods or products sold through this permanent institution in this other state; or C) may be taxed only on the part related to other business activities that correspond to activities carried out through this permanent institution in this other state. 2. Subject to the provisions of Paragraph 3, if a resident of a contracting state is engaged in or engaged in entrepreneurial activity in another contracting state through a permanent institution located there, then the benefit that he may receive from entrepreneurial activity in such or similar conditions is attributed to this permanent institution in each contracting state, when he is an independent and individual engaged in such or similar activities and acts in a completely independent manner in his relations with a resident or any other persons. 3. When determining the profit of a permanent institution from business activities, it is possible to deduct the costs incurred for the purposes of a permanent institution, including management costs and general administrative costs incurred, regardless of whether they were spent in the state or elsewhere where the permanent institution is located. It is not allowed to deduct the amounts paid to the head office or other office of the company (other than the amount to reimburse the actual costs) in the form of royalties, fees or similar payments for the use of patents or other rights to a permanent institution, in the form of commission payments for specific services rendered or management, or in the form of interest 4.the profit earned by one party from entrepreneurial activity is not credited to this permanent institution only for the purchase of goods or products for the left of the permanent institution. 5.if the information available to the Competent Authority of one of the Contracting States or easily obtained by it is not sufficient to determine the profit or loss of a permanent institution from business activities, the profit may be calculated in accordance with the tax laws of that state. For the purposes of this paragraph 5, if the taxpayer submits the information to the competent authority that requested it within 91 days from the date of the written request by the competent authority, such information shall be considered as easily obtained information. 6. If the profit from entrepreneurial activity includes the types of income mentioned separately in other articles of this convention, then the provisions of these articles do not affect the provisions of this article. 7.for the purposes of the previous paragraphs, profit from entrepreneurial activity in relation to a permanent institution is determined in the same way Year-by-year, if there are no sufficient and valid reasons for changing such an order.

Article 8 Sea and air transport

1.profit received by a resident of the Contracting State from the use of sea or aircraft in international transportation shall be taxed only in this state. 2.regardless of the provisions of Paragraph 1 and Article 7 (profit from business activities), if the main purpose of the trip is the transportation of passengers or property between points in another Contracting State, the profit received by a resident of the contracting state from a trip by sea or aircraft may be taxed in this other state. 3. The provisions of Paragraphs 1 and 2 also apply to the profits referred to in these paragraphs, which a resident of a contracting state receives from participation in a pool, joint venture or international use agency. 4. in this article: A) the term "profit" includes gross revenues and income received directly from the use of sea and aircraft in international transportation; B) the term "use of sea or aircraft in international transport" includes: (i) the Charter of sea or aircraft or their lease, and (ii) the lease of containers and related equipment by this person, provided that such charter or lease is related to the use of sea and aircraft in international transport.

Article 9 associated persons

1. If: a) a resident of a Contracting State directly or indirectly participates in the management, control or capital of a resident of another Contracting State, or B) only one person directly or indirectly participates in the management, control or capital of a resident of a Contracting State and a resident of another Contracting State, and in each case conditions are created or established between the two persons in their commercial and financial relations, in the absence of these conditions in it, one of them can be credited, but due to the absence of these conditions, any income not credited to it can be included in the income of this person and subject to the corresponding tax. 2. If the Contracting State adds the taxable benefit of a resident of another contracting state to the benefit of a resident of this other state and taxes accordingly, and the profit added in this way is such that it is credited to the first person mentioned, if the circumstances concluded between the two persons are such that they are stable between independent persons, then this other state may make appropriate adjustments to the amount of tax levied on this benefit. When determining such an amendment, other provisions of this convention must be considered and the competent authorities of the Contracting States shall consult with each other if necessary.

Article 10 Dividends

1.dividends paid by a company that is a resident of a contracting state to a resident of another contracting state may be taxed in this other state. 2. However, such dividends may also be taxed in a Contracting State in which a dividend-paying company is a resident in accordance with the laws of that state, but if a resident of another Contracting State is the actual owner of the dividends, then the tax levied in this way is: a) except for dividends paid by an investment corporation that is a resident of Canada owned by a non-resident party, if the actual owner of the dividends levied is a company that directly or indirectly controls at least 10 percent of voting rights in the dividend-paying company, 5 percent of the total amount of dividends; B) in all other cases, no more than 15 percent of the total amount of dividends. This clause does not apply to the taxation of the company in relation to the profits for which dividends are paid. 3. The term" dividends", when used in this article, means income from shares or other rights that are not debt claims, income from participation in profits, as well as income from other rights subject to the same tax regulation, such as income from shares in accordance with the laws of the state in which the company is a resident. 4. If the actual owner of dividends, who is a resident of the contracting state, carries out business activities in it through a permanent institution located in another contracting state in which the dividend-paying company is a resident, or provides personal services independent of the permanent base located there in this other state and relates to such a permanent institution or permanent base in the In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order. 5. If a company that is a resident of a contracting state receives profit or income from another Contracting State, this other state may not impose any tax on dividends paid by the company, except in cases where such dividends are paid to a resident of that state or a holding holding company in respect of which dividends are actually paid to a permanent institution or permanent base in that other state, even if the dividends or retained earnings paid as a whole or partially consist of profits or income generated in this other state, the retained earnings of the company cannot be taxed on retained earnings. 6. Nothing in this convention shall be construed to prevent the contracting state from taxing the income of a company belonging to a permanent institution of that state as an addition to the tax on the income of a company that is a national Person of that state, in which case any additional tax calculated in this way shall not exceed 5 percent of the amount of such income that was not subject to such additional taxation in the previous tax years. For the purposes of this paragraph, the term "income" means any increase in income, including in relation to a permanent institution in the Contracting State in the same year and in the preceding years, in which case all taxes that this state imposes on such profit, except for the additional tax mentioned above, are deducted from the profit.

Article 11 percentages

1.interest arising in the Contracting State and paid to a resident of another contracting state may be taxed in this other state. 2.however, such interest may also be taxed in the Contracting State in which they occur and in accordance with the laws of that state, but if a resident of another Contracting State is the actual owner of the interest, then the tax levied in this way will not exceed 10 percent of the total amount of interest. 3. Regardless of the provisions of Paragraph 2: (A) the interest arising in the Contracting State and paid in respect of the debt of the Government of that state or its political and administrative division or local government body shall be taxed only in this other state if the actual owner is a resident of another Contracting State; b) interest arising in Kazakhstan and paid to a resident of Canada shall be taxed only in Canada if they are paid in respect of a loan granted, guaranteed or insured by the Export Development Corporation for a period of at least 3 years, or a loan granted, guaranteed or insured for a period of at least three years; (c) interest arising in Canada and paid to a resident of Kazakhstan shall be taxed only in Kazakhstan if they are paid in respect of a loan issued, guaranteed or insured by the Export-Import Bank of Kazakhstan or any other export credit organization established after the signing of this convention and agreed upon by correspondence between the competent authorities of the Contracting States, or a loan issued, guaranteed or insured by them. 4. The term" interest", when used in this article, refers to income derived from any type of debt claim secured or unsecured, and, in particular, income derived from government securities and income derived from bonds or debt obligations, including those securities, refers to gifts and winnings paid on bonds or debt obligations, and they are the same as income subject to the same taxation regime, such as income from the loan money of a cash loan issued under the laws of the state in which this income occurs. However, the term" interest " does not include income provided for in Article 10 (Dividends). 5. The provisions of Paragraph 2 shall not apply if the actual holder of interest, who is a resident of the contracting state, is engaged in business activities through a permanent institution located there in another Contracting State where the interest occurs, or provides personal services independent of a permanent base located there in that other state, and the debt claim against which the interest is paid actually applies to such a permanent institution or permanent base. At the same time, the provisions of Article 7 (profit from business activities) or Article 14 (independent personal services) apply, depending on the situation. 6.if the payer is a resident of the Contracting State, the interest is considered to have originated in this state. However, if the person paying interest is a resident of the Contracting State or not - regardless of whether the contracting state has a permanent institution or permanent base in which interest is paid, and such interest is paid by such a permanent institution or permanent base, then such interest is considered to have originated in the state where the permanent institution or permanent base is located. 7. If the interest is related to a debt claim due to the existence of a special relationship between the payer and their actual owner, or between the two and any other person, and the total amount of interest paid on its basis exceeds such an amount that the interest can be agreed between the payer and their actual owner in the absence of such relations, then the provisions of this article apply only to the last specified amount. In this case, the excess of the beginning of the payment must be taxed in accordance with the laws of each contracting state, subject to other provisions of this convention.  8.the provisions of this article shall not apply if the main purpose or one of the main goals of any person related to the drawing up or filing of debt claims, in respect of which interest is paid, is to profit from this article by drawing up or submitting such debt claims.

Article 12 royalty

1.royalties arising in the contracting state and paid to a resident of another Contracting State may be taxed in that other state. 2.however, such royalties may also be taxed in accordance with the laws of that state in the Contracting State in which it occurs, but if a resident of another Contracting State is the actual owner of the royalties, the tax levied in this way shall not exceed 10 percent of the total amount of royalties. 3. The term" royalty " is used in this article for the use or granting the right to use any copyright granted to works of literature, art or scientific works, including works made in computer programs, cinematographic films and other viewing media used on film, viewing tape or television, any patent, trademark, design or model, plan, secret formula, or process., refers to any type of payments that are charged as a reward for Information (know-how) related to commercial or scientific practice, and payments for the use or transfer of the right to use industrial, commercial or scientific equipment. 4. The provisions of Paragraph 2 shall not apply if the actual owner of the royalty, who is a resident of the contracting state, engages in business activities through a permanent establishment located there in another contracting state where the royalty originated, or provides personal services there independently from a permanent base located in that other state, and the right or property in respect of which the royalties At the same time, the provisions of Article 7 (profit from business activities) or Article 14 (independent personal services) apply, depending on the situation. 5.royalties are considered to have originated in this state if the payer is a resident of the Contracting State. However, if the royalty - paying person is a resident of the contracting state or not-regardless of whether he or she has a permanent institution or permanent base in the contracting state, in connection with which there is an obligation to pay royalties, and such royalties are associated with this permanent institution or permanent base, then such royalties are considered to have originated in the state where the permanent institution or permanent base is located. 6. If, due to the existence of a special relationship between the payer and his real owner, or between the two and any other person, the amount of royalties in respect of use, rights or information in relation to him exceeds the amount that can be agreed between the payer of royalties and his real owner in the absence of such relations, the provisions of this article shall apply only to the last specified amount. In this case, the excess of the beginning of the payment must be taxed in accordance with the laws of each contracting state, taking into account the other provisions of this convention. 7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person related to the creation or transfer of a right in respect of which royalties are paid is to benefit from this article by the creation or transfer of this right.

Article 13 income from the increase in the value of property

1.income received from the withdrawal of immovable property referred to in Article 6 (income from real estate) by a resident of the contracting state located in another Contracting State may be taxed in this other state. 2. A resident of a contracting state may be taxed in that contracting state: (a) Other shares other than shares sold on a substantial and permanent basis on an officially recognized stock exchange, which directly or indirectly receive a large part of the value or value of real estate located in another contracting state, or (B) income from the exclusion of a share in a partnership or trust consisting mainly of real estate located in another contracting state, or shares specified in subparagraph a) Above. For the purposes of this paragraph, the term "real estate" shall include the shares of the company referred to in subparagraph A), or a share in a partnership or trust referred to in subparagraph B), but shall not include any other property other than the property leased and on the basis of which the business activity of the company, partnership or trust is carried out. 3. Income received from the withdrawal of movable property, which constitutes part of the business property of a permanent facility of a resident of a contracting state in another Contracting State, or for the purposes of providing personal services independent of movable property of a resident of a contracting state in respect of a permanent base in another contracting state, including income from the withdrawal of such a permanent facility (individually or 4. Income received by a resident of a contracting state from the withdrawal of sea or aircraft used in international transportation, or movable property related to the use of such air or sea vessels, may be taxed only in that Contracting State. 5.income from the removal of any property other than those referred to in Paragraphs 1, 2, 3 and 4 shall be taxed only in the Contracting State in which the person removing the property is a resident. 6. The provisions of Paragraph 5 do not affect the right of the contracting state to tax under its own laws on the increase received by an individual who is a resident in another contracting state and has been a resident of the first said State at any moment within 6 years directly preceding the removal of property.

Article 14 independent private services

1. income received by an individual who is a resident of a Contracting State in respect of professional or other services of an independent nature shall be taxed only in that Contracting State if such services are not provided or provided in another Contracting State; and (a) Income is taxed in respect of a permanent base that the individual has or has; or B) such individual shall be taxed only in that Contracting State if he or she has been present or has been present in that other state for a period or periods of more than 183 days in total duration in a twelve-month period of any time. In this case, income related to services may be taxed in this other state in accordance with the same principles as in Article 7 (profit from entrepreneurial activity), which determines the amount of profit from entrepreneurial activity and profit from entrepreneurial activity related to a permanent institution. 2. The term "business services" includes, in particular, independent scientific, literary, artistic, educational or teaching services, as well as independent services of doctors, lawyers, engineers, architects, dentists and accountants.

Article 15 dependent personal services

1.in view of the provisions of Article 16 (directors ' remuneration), Article 18 (pensions and other payments), Article 19 (civil service), wages, wages and other such remuneration received by a resident of a Contracting State in connection with hired work shall be taxed only in this state, if the hired work is not performed in another contracting state. If hired work is done in this way, such remuneration received from there may be taxed in this other state. 2. If: a) the remuneration recipient is in this other state for a period or periods of no more than 183 days in a 12-month period of any time, and B) the remuneration is paid by a tenant who is not a resident of another state or is paid on behalf of the tenant, and C) the remuneration is not paid by the tenant's permanent institution or permanent base in another state, the remuneration received by a resident of the contracting state in connection with the hired work performed in another contracting state, regardless of the provisions of Paragraph 1, shall be taxed only in the first named state. 3.remuneration received in respect of hired work performed on board a sea or aircraft used by a resident of a Contracting State in international transport, regardless of the previous provisions of this article, shall be taxed only in that state, if the remuneration has not been received by a resident of another contracting state.

Article 16 remuneration of Directors

Directors ' Remuneration and other such payments received by a resident of the contracting state as a member of the board of directors or a similar body of a company that is a resident of another Contracting State may be taxed in that other state.

Article 17 artists and athletes

1.regardless of the provisions of Article 14 (independent personal services) and Article 15 (dependent personal services), income received by a resident of a contracting state as an art worker, such as a theater, film, radio or television artist or composer, or from personal activities of an athlete, may be taxed in this other state. 2. If the income in relation to the personal activities carried out by an art worker or athlete in this type of his / her activity is calculated not to the art worker or athlete himself, but to another person, then this income may be taxed in the Contracting State in which the activities of the art worker or athlete are carried out, regardless of the provisions of Article 7 (profit from entrepreneurial activity), Article 14 (dependent personal services). 3. If neither an employee of art or an athlete, nor persons related to them, directly or indirectly participate in favor of the person referred to in Paragraph 2, then the provisions of this paragraph do not apply. 4.the provisions of Paragraphs 1 and 2 shall not apply to the income received by a resident of another Contracting State from services rendered in the contracting state within the framework of a visit to the first mentioned state by an organization that does not benefit from another state, if the visit is largely supported by public funds.

Article 18 pensions and other payments

1.pensions and annuities arising in the Contracting State and paid to a resident of another contracting state may be taxed in this other state. 2.pensions and annuities arising in the contracting state and paid to a resident of another Contracting State may also be taxed in the state in which they originated and in accordance with the laws of that state. However, in the case of periodic pension payments other than social protection benefits, the tax collected in this way should not exceed 15 percent of the total amount of payment. 3.regardless of any provisions of this convention: (a) any pension paid by the Government of Kazakhstan or one of its political and administrative divisions or local authorities, or one of the funds established by them in relation to activities carried out for the Government of Kazakhstan or a subdivision or authority of the government of Kazakhstan shall be taxed only in Kazakhstan. However, such pensions are taxed only in Canada if the individual is a resident and citizen of Canada; B) benefits paid in the contracting state under the Social Protection Act are taxed only in that state; and C) alimony and other similar payments arising in the Contracting State and paid to a resident of another contracting state are taxed only in that other state.

Article 19 Public Service

1. (a) Other than pensions, wages and similar remuneration paid by the contracting state or its political and administrative division or local authority to any individual in respect of services rendered to that state or political and administrative division or local authority shall be taxed only in that state. B) however, if the activity is carried out in this state and the individual is a resident of this state and: i) is a citizen of this state; (II) if he ceases to be a resident of this state only for the purpose of carrying out activities, the fee, salary or similar remuneration shall be taxed only in another Contracting State.  2.the provisions of Paragraph 1 shall not apply to remuneration for activities related to business activities carried out by the contracting state or its political and administrative division or local government body.

Article 20 students

Payments for residence, training and education received by a student, a professional trainee or a trainee who is or is a resident of another contracting state before coming to the contracting state and is in the first mentioned state solely for the purpose of training or education are not taxed in this state, provided that such payments arise from sources outside this state.

Article 21 other income

1.types of income of a resident of a Contracting State not provided for in the previous articles of this convention, wherever they arise, shall be taxed only in this state, subject to the provisions of Article 2. 2.however, if a resident of a contracting state receives such income from sources in another Contracting State, then such income may also be taxed in the state in which it originated and in accordance with the laws of that state.

Article 22 Capital

1.capital presented in the form of real estate referred to in Article 6 (income from real estate) owned by a resident of the contracting state and located in another Contracting State may be taxed in this other state. 2. For the purposes of providing independent personal services, a resident of a contracting state may be taxed in that other state in the form of movable property constituting part of the business property of a permanent institution owned by another contracting state, or capital presented in the form of movable property in respect of a permanent base under the jurisdiction of a resident of a contracting state in another contracting state. 3. Capital provided in the form of sea and aircraft used by a resident of the contracting state in international transportation and movable property related to the use of such Sea and aircraft shall be taxed only in this state. 4.all other elements of the capital of a resident of a Contracting State shall be taxed only in this state.

Article 23 elimination of double taxation

1. in the case of Kazakhstan, double taxation shall be abolished as follows: a) if a resident of Kazakhstan earns or has capital that may be taxed in Canada in accordance with the provisions of this convention, Kazakhstan shall: i) deduct from income tax of this Resident an amount equal to income tax paid in Canada; ii) deduct from capital tax of this Resident an amount equal to; These deductions must in any case not exceed the tax that may be levied on such income and capital in Kazakhstan; B) if a resident of Kazakhstan earns or has capital income taxable only in Canada in accordance with the provisions of this convention, Kazakhstan may include this income or capital in the tax base, but only for the purposes of setting the tax rate on such other income or capital taxable in Kazakhstan. 2. In the case of Canada, double taxation is abolished as follows: a) taking into account the current provisions of Canadian law relating to the deduction of taxes paid in Canada from taxes paid in Canada outside Canada, and any further changes to these rules that are not related to their general principle-and only if Canadian law does not provide for a larger deduction or exemption - the tax paid in Kazakhstan; B) taking into account the current provisions of the laws of Canada regarding the taxation of income received from a foreign branch and any subsequent changes to these rules that are not related to their general principle, for the purposes of calculating Canadian tax, a company that is a resident of Canada is granted a deduction when calculating the taxable income of any of its dividends received from the tax-free profit of a foreign branch that is a resident of Kazakhstan; C) if, in accordance with any provision of the convention, the income or capital received by a resident of Canada is tax-exempt in Canada, Canada may nevertheless account for the income or capital released when calculating the amount of tax on the remaining income or capital of such resident. 3.for the purposes of this article, the profit, income or increase in value of a resident of a contracting state taxed in another Contracting State in accordance with this convention shall be deemed to have originated from sources in that other Contracting State.

Article 24 Non-Discrimination

1.national persons of the contracting state shall not be subject in another contracting state to a tax or related obligation that is different or more burdensome than the taxation or related obligations to which national persons of that other state are or may be subject in such cases. 2.taxation of a permanent institution owned by a resident of a contracting state in another Contracting State shall not be less favorable in this other state than taxation of residents of this other state engaged in such activities. 3. Nothing in the content of this article shall oblige the contracting state to grant to residents of another contracting state such individual tax benefits, tax exemptions or reductions granted to its residents in connection with their civil status or family obligations. 4. Companies that are residents of the contracting state, whose capital is fully or partially considered or directly or indirectly controlled by one or more residents of another Contracting State, are residents of the first said State, other such companies, whose capital fully or partially addresses one or more residents of a third state, or which they directly or indirectly control, shall not be subject to any taxation or related obligations that are different or more burdensome than the taxation or related obligations to which they may or may be subject.

Article 25 mutual consent procedure

1.if a person believes that the actions of one or both contracting states incur or incur taxation that does not comply with the provisions of this convention, he may submit his case for consideration by the competent authorities of the contracting state in which he is a resident, regardless of the means of protection provided for by the internal laws of these states, with a written request justifying the requirement to review such taxation. The application is accepted if it is submitted within two years of the first notification of actions that have caused taxation not in accordance with the provisions of the convention. 2.The Competent Authority shall seek to resolve the issue in mutual agreement with the Competent Authority of another contracting state in order to avoid taxation that does not comply with the convention, if it considers the claim reasonable and cannot come to a satisfactory solution. 3. The competent authorities of the contracting states seek to resolve in mutual agreement any difficulties or doubts arising in the reasoning or application of the convention. 4.the competent authorities of the contracting states may consult with each other to eliminate double taxation in cases not taken into account by the Convention and communicate directly with each other for the purpose of applying the convention. 5. If any difficulties or suspicions arising in connection with the judgment or application of this convention cannot be resolved by the competent authorities in accordance with the preceding paragraphs of this article, both the competent authorities and the taxpayer consent, the matter may be referred to the arbitration court for consideration if the taxpayer gives written consent to recognize the decision of the arbitration court as binding. The decision of the arbitration court on a specific issue is binding on both states on this issue. States establish the procedure for considering such issues by exchanging notes with diplomatic channels. Three years after the entry into force of this convention, the competent authorities consult with each other to determine the correctness of the exchange of diplomatic notes. The provisions of this paragraph come into force after States have reached an agreement through the exchange of diplomatic notes.

Article 26 information exchange

1.the competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this convention and the internal laws of the contracting states with respect to the taxes to which it applies, to the extent that taxation does not contradict the provisions of this convention. The exchange of information is not limited to Article 1 (persons to whom the Convention applies). Any information received by a contracting state is considered confidential information, as is information obtained within the framework of the internal laws of that state, and is communicated only to persons or bodies (including courts and administrative bodies) engaged in assessing or collecting taxes to which this convention applies, collecting them forcibly, as well as prosecuting and handling complaints related to these taxes. Such persons or bodies use information only for such purposes. They can report this information during an open court session or when making Court decisions. 2. in no event shall the provisions of Article 1 apply to the contracting states: A) the application of administrative measures contrary to the laws and administrative practices of this or that Contracting State; B) the provision of information that cannot be obtained under the laws or customary administrative practices of this or that Contracting State; (c) any trade, business, industrial, commercial or professional secret, or information that may disclose the trade process, or information whose disclosure may contradict state practice (Public Practice). 3.if the information is requested by the Contracting State in accordance with this article, the other Contracting State should seek to obtain the requested information to the extent that the request relates to its own taxation and should not pay attention to the fact that such information is not necessary for it at that moment. If the application of the Competent Authority of the contracting state clearly specifies the form in which such information should be provided, then the Competent Authority of the other Contracting State shall seek to provide the information in accordance with this article in the required form, such as witness testimony and copies of uncorrected originals of documents (including accounting books, documents, reports, records, accounts and records) in accordance with the laws and administrative practices of this state regarding its taxes.

Article 27 diplomatic agents and consular officers

Nothing in this convention shall affect the tax privileges of diplomatic agents or consular officers granted by the general provisions of international law or granted in accordance with the provisions of special agreements.

Article 28 other provisions

1.the provisions of this convention shall not be considered as a limitation in any case of any exemptions, permits, accruals or other deductions permitted by the laws of that state when determining the amount of tax levied in the Contracting State.  2.nothing in the Convention shall be considered as a barrier to this contracting state to tax the amount to be included in the income of this person in respect of a partnership, trust or company with a share of a resident of the contracting state. 3. If the amount of tax levied on the income or capital of a company, trust or partnership is much less than the amount that can be calculated in this state, if all shares of the company's share capital or all shares in the trust or partnership are actually owned by one or more individuals who are residents of this state, The convention does not apply to any company, trust or partnership that is directly or indirectly controlled by or actually owned by one or more persons who are residents of the Contracting State and are not residents of that state.

Entry into force of Article 29

1.this convention shall be ratified in each Contracting State and the exchange of instruments of ratification shall be carried out as soon as possible... will. 2.this convention shall enter into force on the day of exchange of the instruments of ratification and its provisions shall apply to: (i) taxes levied on the source of income for amounts payable or accrued on or after 1 January 1996; and (ii) other taxes for the tax period commencing on or after 1 January 1996.

Article 30 termination of validity

This convention shall remain in force until one of the Contracting States terminates its validity. Each Contracting State may terminate the validity of the convention through diplomatic channels by sending a note of termination at least 6 months before the end of any calendar year following the expiration of five years after the entry into force of the convention. In this case, the Convention applies to taxes levied on the source of income for amounts paid or accrued from or after the first January of the year, which: A) comes after the end of the six-month period; and B) cease to be valid in relation to other taxes for tax periods starting from or after the first of January of the year that comes after the end of the six-month period.  As a confirmation of this, the following signatory representatives, duly authorized by the respective governments, signed this convention.  On September 25, 1996 in Almaty, all texts were written in Kazakh, Russian, English and French, and all texts are equally powerful.

The Republic of Kazakhstan for the Government of the Government of Canada

Protocol

Today, with the signing of the convention between the Government of the Republic of Kazakhstan and the Government of Canada on the abolition of double taxation of income and capital and the Prevention of tax evasion, the following signatories have agreed on the following provisions that constitute an integral part of this convention: 1. In connection with Article 12, if, at the time of signing the convention, Kazakhstan has agreed to a rate lower than the royalty rate specified in Paragraph 2 of the treaty with another state that is a member of the Organization for Economic Cooperation and development, the two Contracting States shall: A) any literary, dramatic, royalties and other similar payments for copyrights related to the production or re-display of a Musical or artistic work (but not including royalties related to movies and royalties paid for the use of works on film or video viewing tape or other recording media for television broadcasts); or B) royalties paid for the right to use or use computer software; or C) if the royalty payer and its actual owner are not related to persons within the meaning of subparagraphs A) or B) of Article 9 (associated persons), any patent or any information relating to industrial, commercial or scientific practice (but any such information provided in connection with the lease or franchise agreement is not included in this) shall apply this lower rate than the rate specified in Paragraph 2 2. For the purposes of Article 22 (Capital) in connection with Article 22, the term "capital" means movable and immovable property and includes (but is not limited to) cash, shares or other documents confirming property rights, bills of exchange, bonds or other debt obligations, as well as patents, trademarks, copyrights or other similar rights or property. 3. In connection with Article 28, the contracting states have agreed that any dispute between them may be submitted for consideration by the Council on trade in services only with the consent of the two Contracting States, as provided for in paragraph 3 above, if the Republic of Kazakhstan joins the General Agreement on trade in services and upon its accession to it, and regardless of Article XXII paragraph 3 of this Agreement,  As a confirmation of this, the following signatory representatives, duly authorized by the relevant governments, signed this protocol.  On September 25, 1996 in Almaty, all texts were written in Kazakh, Russian, English and French, and all texts are equally powerful.

The Republic of Kazakhstan for the Government of the Government of Canada

President

Republic of Kazakhstan

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