On Ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital

Home / RLA / On Ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital

On Ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital

The Law of the Republic of Kazakhstan dated July 3, 1997 No. 147-1.

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, signed on December 9, 1996 in New Delhi.

President of the Republic of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of India on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on August 28, 1997)

The Government of the Republic of Kazakhstan and the Government of the Republic of India,

Desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on capital,

We have agreed on the following:

Article 1 Persons to whom the Convention applies

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

Article 2 Taxes covered by the Convention

1. This Convention applies to taxes on income and on capital imposed on behalf of a Contracting State or of its political and administrative subdivisions or local authorities, regardless of the method of their collection.

2. Taxes on income and on capital are all types of 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, charged on income from capital appreciation.

3. The existing taxes to which the Convention applies are, in particular:

a) in the Republic of Kazakhstan:

(i) Corporate income tax;

(ii) Individual income tax;

(iii) property tax on legal entities and individuals;

(hereinafter referred to as the "Kazakhstan Tax");

b) in the Republic of India:

(i) income tax, including any supplement thereto; and

(ii) Capital tax (wealth tax);

(hereinafter referred to as the "Indian Tax").

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.

The footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

Article 3 General definitions

1. For the purposes of this Convention, unless the context otherwise requires:

a) terms:

(i) "Kazakhstan" means the Republic of Kazakhstan, and when used geographically, the term "Kazakhstan" includes the State territory of the Republic of Kazakhstan and the zones in which Kazakhstan exercises its sovereign rights and jurisdiction in accordance with its legislation and international law;

(ii) "India" means the territory of India and includes the territorial sea and the airspace above it, as well as any other coastal area in which India has sovereign rights, other rights and jurisdiction consistent with Indian law and in accordance with international law, including the United Nations Convention on the Law of the Sea;

(b) The term "person" includes an individual, a company, an association of persons or any other economic unit which is treated as a taxable unit under the applicable tax laws of the respective Contracting States.;

c) the term "company" means any corporate association or any economic unit that is considered as a corporate association for tax purposes.;

d) the terms "Contracting State" and "other Contracting State" mean Kazakhstan or India, depending on the context.;

e) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State;

(e) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State;

g) the term "competent authority" means:

(i) in Kazakhstan: the Ministry of Finance or its authorized representative;

(ii) in India: The General Directorate of the Ministry of Finance (Department of Taxes and Duties) or its authorized representative;

h) the term "national person" means:

(i) any natural person having the nationality of a Contracting State;

(ii) any legal person, partnership or any other association which has acquired its status on the basis of the applicable legislation of a Contracting State;

i) the term "financial year" means:

(i) in the case of India, the "preceding year" as defined by section 3 of the Income Tax Act, 1961;

(ii) in the case of Kazakhstan, the calendar year;

(k) The term "tax" means an Indian or Kazakh tax, depending on the context, but does not include any amount that is paid in case of non-payment or improper payment of taxes to which this Convention applies, or which constitutes penalties imposed in respect of those taxes.

2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that State in respect of taxes to which the Convention applies. Any meaning under the tax laws of that Contracting State shall prevail over the meaning given to the term under the other laws of that Contracting State.

The footnote. Article 3 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

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 Contracting State, is liable to tax there on the basis of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature, and also includes a Contracting State and any administrative-territorial subdivision or local authority.

However, this term does not include any person who is liable to tax in that Contracting State solely in respect of income from sources in that Contracting State or capital located therein.

2. Where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, his status shall be determined as follows:

a) He shall be deemed to be a resident of the State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident of the State in which he has closer personal and economic relations (center of vital interests);

(b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the State in which he has an habitual abode.;

c) if he habitually resides 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 settle the matter by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the State in which his place of effective management is situated. If the State in which the place of effective management is located cannot be determined, the competent authorities of the Contracting States shall resolve this issue by mutual agreement.

The footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

Article 5 Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part.

2. The term "permanent establishment" includes, in particular::

a) place of management;

b) separation;

c) the office;

d) the factory;

e) the workshop;

f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;

g) a point of sale;

h) a warehouse in relation to a person who represents a place for storage to other persons; and

i) a farm, plantation or other place where agriculture, forestry, plantation is located, or where related activities are carried out.

3. The term "permanent establishment" also includes:

a) a construction site or a construction, installation or assembly facility or services related to the supervision of the performance of these works, if only such a site, facility or services have existed for more than 6 months, and

b) an installation or structure used for the exploration of natural resources or services related to the supervision of the performance of these works, or a drilling rig or vessel used for the exploration of natural resources, if only such use or services last for more than 12 months;

(c) The provision of services, including consulting services, by the enterprise through employees or other personnel employed by the enterprise for such purposes, but only if activities of that nature continue (for such or a related project) within a Contracting State for a period or periods exceeding 90 days within any 12-month period.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include:

a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise;

b) the maintenance of stocks of goods or products belonging to the enterprise solely for the purposes of storage, demonstration or delivery;

c) the maintenance of a stock of goods or products belonging to an enterprise solely for the purposes of processing by another enterprise;

d) the maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise;

e) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise;

(e) 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 the person is other than an agent with an independent status to whom paragraph 7 applies - acts on behalf of an enterprise of the other Contracting State 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 with respect to any activity that that person undertakes for the enterprise, except if the activities of such person are limited to those referred to in paragraph 4. which, if carried out through a permanent place of activity, does not transform this permanent place of activity into a permanent institution, according to the provisions of this paragraph.

6. Notwithstanding the preceding provisions of this article, an insurance company of a Contracting State, except in cases of reinsurance, shall be deemed to have a permanent establishment in the other Contracting State if it collects insurance premiums in the territory of that other State or insures risks located there through a person other than an agent with an independent status to whom paragraph 7.

7. An enterprise shall not be considered as having 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. However, if the services of such an agent are rendered entirely or almost entirely on behalf of this enterprise, then he will not be considered an agent with an independent status within the meaning of this paragraph.

8. 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.

The footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

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 apply in relation to land ownership, the usufruct of immovable property and rights to variable or fixed payments as compensation for mining or the right to develop mineral resources. resources, sources and other natural resources; ships and aircraft are not considered as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form.

4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.

Article 7 Profit from 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. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere in accordance with the provisions, subject to the limitations of the tax laws of that State.

It is not allowed to deduct to a permanent establishment the amounts paid to its head office or any of the other offices of the resident by paying royalties, fees or other similar payments in return for the use of patents or other rights, or by paying commissions for specific services provided or for management, or by paying interest on the amount lent to the permanent establishment.

4. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise.

5. If profits include types of income that are specifically mentioned in other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article.

6. 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 are sufficient and compelling reasons to change this procedure.

7. If it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a proportional distribution of the total profits of the enterprise among its various divisions, then nothing in paragraph 2 of this article prohibits that Contracting State from determining taxable profits by such distribution based on customary practice, but the method of distribution chosen should produce results, consistent with the principles contained in this article.

The footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

Article 8 Sea and air transport

1. Profits derived by an enterprise which is a resident of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.

2. Profits earned by a transport enterprise that is a resident of a Contracting State from the use, maintenance or rental of containers (including trailers and other equipment intended for the transportation of containers) used for the transportation of goods or merchandise in international traffic shall be taxable only in that Contracting State, unless the containers are used exclusively in the other Contracting State..

3. For the purposes of this article, interest on funds related to the operation of ships or aircraft in international traffic shall be considered as profits derived from the operation of such ships or aircraft, and the provisions of article 11 shall not apply to such interest. However, the provisions of this paragraph do not apply to interest on term deposits of the bank.

4. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international organization for the operation of vehicles.

Article 9 Associated enterprises

1. If:

(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 between independent enterprises, then any profit that, in the absence of these conditions, could be credited to one of the enterprises, but due to the presence of these conditions was not credited to it, may to be included in the profits of this enterprise and taxed accordingly.

2. If a Contracting State includes in the profits of an enterprise of that Contracting State and, accordingly, taxes the profits on which an enterprise of the other Contracting State is taxed in that other Contracting State and the profits thus included are profits that would accrue to an enterprise of the first-mentioned Contracting State if the relationship between the two enterprises were such which exist between independent businesses, that other Contracting State will then make an appropriate adjustment to the amount of tax calculated on such profits. In determining such an adjustment, the other provisions of this Convention should be taken into account and the competent authorities of the Contracting States should consult with each other, if necessary.

The footnote. Article 9 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

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 and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged will not exceed 10 percent of the total amount of the dividends. This clause does not affect the taxation of the company in respect of the profits from which the 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 profit-sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company is a resident, distributing profits.

4. 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 and holding company located there, in respect of which the dividends are paid to, 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.

5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may neither 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 does belong to a permanent establishment or permanent base. located in that other State, nor tax the company's undistributed profits with a tax on undistributed profits, even if dividends are paid or retained earnings consist wholly or partly of profits or income arising in such other State.

6. The profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment located there, after taxation under Article 7, may be taxed on the remaining amount in the Contracting State in which the permanent establishment is located at a rate not exceeding the rate established in paragraph 2 of this article.

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 and beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the interest. The competent authorities of the Contracting States will decide by mutual agreement on the application of this restriction.

3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from taxation in that State provided that it is earned and its beneficial owner is:

(i) The Government, political and administrative subdivision or local authority of the other Contracting State; or

(ii) The Central Bank of the other Contracting State, or any other government bank, or financial institution/agency, as may be mutually agreed between the two Contracting States.

4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in debtors' profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities. 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, it really refers to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State if the payer is 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 paid has arisen and such interest is associated with such permanent establishment or permanent base, such interest shall be deemed to be originated 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.

The footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

Article 12 Royalties and remuneration for technical services

1. Royalties or fees for technical services 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 or fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed 10 percent of the total amount of royalties or fees for technical services. services.

3. (a) The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or for granting the right to use any copyright in works of literature, art or science, including software, cinematographic films, any patent, trademark, design or model, plan, a secret formula or process, or for information relating to industrial, commercial or scientific experience and payments for the use or grant of the right to use industrial, commercial or scientific equipment;

(b) The term "remuneration for technical services" means payments of any kind as remuneration for the provision of any managerial, technical or consulting services, including the provision of technical services by a technical or other person, but does not include payments for services referred to in articles 14 and 15 of this Convention.

4. 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, they 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.

5. Royalties or fees for technical services shall be deemed to have arisen in a Contracting State if the payer is a resident of that Contracting State. If, however, the person paying royalties or fees for technical services, 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 an obligation has arisen to pay royalties or fees for technical services, and such royalties or fees for technical services are related to by this permanent establishment or permanent base, then such royalties or fees for technical services are considered to have originated in the State, in which a permanent establishment or permanent base is located.

6. If, as a result of a special relationship between the payer and the actual owner or between both of them and any other person, the amount of royalties or fees for technical services related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalties in the absence of such a relationship, then 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.

The footnote. Article 12 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

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 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 movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State.

3. Income earned by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State.

4. Gains from the alienation of shares in the authorized capital of a company whose assets consist directly or indirectly of immovable property located in a Contracting State may be taxed in that State.

5. Gains from the sale of shares in a company that is a resident of a Contracting State other than those referred to in paragraph 4 may be taxed in that State.

6. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 Independent personal services

1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that State, except in the following circumstances, when such income may also be taxed in the other Contracting State:

(a) if he has a fixed base regularly owned by him in the other Contracting State for the purposes of carrying on his business; in this case, only that part of the income which relates to that fixed base may be taxed in that other State; or

(b) if his presence in another State continues for a period or periods of 183 days or more in any 12-month period beginning or ending in the relevant fiscal year; in this case, only that part of the income derived from his activities carried out in that other State may be taxed. in this other State.

2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, surgeons, dentists and accountants.

Article 15 Dependent personal services

1. Subject to the provisions of articles 16, 18 and 19, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that 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 is in another State for a period or periods not exceeding a total of 183 days in any 12-month period beginning or ending in the relevant fiscal year, and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State, and

3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship or aircraft is a resident.

Article 16 Directors' fees

Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors or a similar body of a company that is a resident of the other Contracting State may be taxed in that other 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 exercised 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 exercised.

3. The provisions of paragraphs 1 and 2 shall not apply to income from activities carried out by art workers or athletes in a Contracting State if the visit to that State is actually supported by public funds of one or both Contracting States, or political and administrative divisions, or local authorities. In such a case, the income is taxable only in the Contracting State in which the art worker or athlete is a resident.

Article 18 Pensions and other payments

1. Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid in respect of past work to a resident of a Contracting State and any annuity paid to such resident shall be taxable only in that State.

2. The term "annuity" means a fixed amount that is periodically paid to an individual at a fixed time throughout his life or a certain or fixed period of time with the obligation to make such payments in return for adequate and full compensation in money or monetary terms.

Article 19 Public service

1. (a) Salaries, salaries and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority to any natural person in respect of services rendered to that State or subdivision or authority, shall be taxable only in that State.

(b) However, such salaries, salaries and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) has not become a resident of that State solely for the purpose of performing service.

2. (a) Any pension paid by, or from funds created by, a Contracting State or a political subdivision or a local authority to an individual in respect of services rendered to that State or its subdivision or authority shall be taxable only 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 salaries, salaries and other similar remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political administrative subdivision or a local authority.

Article 20 Students and students of vocational schools

1. A student or a student of a vocational school who is or was a resident of the other Contracting State immediately prior to his arrival, and who is in that other Contracting State solely for the purpose of education or vocational training, other than grants, loans and scholarships, shall be exempt from taxation in that other State for:

(a) payments received by him from persons located outside that other State for the purposes of his residence, education or vocational training; and

(b) remuneration for employment in that other State in the amount of an amount not exceeding the amount that is exempt from taxation under the laws of that other Contracting State in any fiscal year.,

provided that such employment is directly related to education or training, or is carried out in order to obtain funds for living.

2. The benefit provided for in this article shall apply only for the period of time required for obtaining an education or completing training in a chosen specialty, and such benefit may not be granted for a period of more than seven consecutive years from the date of first arrival in that other Contracting State.

Article 21 Teachers of universities, schools and full-time postgraduate students

1. A university or school teacher who is or has been a resident of a Contracting State immediately prior to coming to the other Contracting State for the purpose of teaching or conducting research, or both, at a university, college, school or other similar institution recognized in the other Contracting State, shall be exempt from taxation in the other Contracting State on the basis of any remuneration for conducting the specified classes or research for a period of no more than two years, counting from the date of the first arrival in the other Contracting State.

2. This article does not apply to income earned from conducting research if such research is conducted primarily for the benefit of a private individual or individuals.

3. For the purposes of this article and article 20, an individual shall be deemed to be a resident of a Contracting State if he is a resident of that State in the financial year in which he visits the other Contracting State or in the financial year immediately preceding that financial year.

4. For the purposes of paragraph 1, a "recognized institution" is an institution officially recognized as such by the competent authorities of the State concerned.

The footnote. Article 21 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

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 personal services in that other State through a permanent base located there, and the right or property in connection with which the income was paid is actually connected 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.

3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, income of a resident of a Contracting State not specified in the preceding articles of the Convention and arising in the other Contracting State shall be taxed in the other Contracting State.

The footnote. Article 22 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

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 pertaining to the operation of such ships or aircraft shall be taxable only in that Contracting State in which the enterprise operating such ships and aircraft is a resident.

Article 24 Elimination of double taxation

1. The applicable laws of each Contracting State will continue to regulate the taxation of income in the respective Contracting States, except in cases where the relevant provisions of this Convention are different.

2. In the case of Kazakhstan, double taxation is eliminated as follows:

a) if a resident of Kazakhstan earns income or owns capital that, in accordance with the provisions of this Convention, may be taxed in India, Kazakhstan will allow:

i) deduct from the income tax of this resident an amount equal to the income tax paid in India;

ii) deduct from the capital tax of that resident an amount equal to the capital tax paid in India.

The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be charged on the same income at the rates applicable in Kazakhstan.

3. In the case of India, double taxation will be eliminated as follows:

a) if a resident of India earns income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, India will allow:

i) deduct from the income tax of this resident an amount equal to the income tax paid in Kazakhstan;

ii) deduct from the capital tax of this resident an amount equal to the capital tax paid in Kazakhstan.

The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be assessed on the same income at the rates applicable in India.

4. Income or capital which, in accordance with the provisions of this Convention, is not subject to taxation in a Contracting State may be included in the calculation for the purpose of determining the rate of tax levied in that Contracting State.

5. A tax paid in a Contracting State shall be deemed to include tax that would have been paid if it had not been for any benefit or reduction of tax provided in accordance with the provisions of the legislation of that Contracting State on incentives intended to enhance economic development, taking into account that such benefit or reduction is provided in respect of profits derived from industrial or processed activities or from agriculture, fishing or tourism (including restaurants and hotels), provided, that the activities were carried out within that Contracting State.

Article 25 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, in particular with respect to residency. 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 shall not be interpreted as preventing a Contracting State from taxing the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a tax rate exceeding that at which the tax is levied on the profits of the same company of the first-mentioned Contracting State, and shall not contradict the existing provisions of paragraph 3 of Article 7 of this Convention..

3. 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.

4. Except where the provisions of article 9, paragraph 7 of Article 11 or paragraph 6 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 a resident of the first 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.

5. Notwithstanding the provisions of article 2, the provisions of this article shall apply to taxes of any kind and type.

Article 26 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 falls under paragraph 1 of article 25 of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of 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 an agreement and understanding of the preceding paragraphs. If, in order to reach an agreement, it would be advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a commission consisting of representatives of the competent authorities of the Contracting States.

Article 27 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 administration or application of national legislation relating to taxes of any kind and description levied on behalf of the Contracting States or their administrative-territorial subdivisions, central or local authorities to the extent that taxation does not contradict this Convention. Conventions. The exchange of information is not limited to articles 1 and 2 of this Convention.

2. Any information received by a Contracting State in accordance with paragraph 1 of this Article shall be considered confidential, as well as information received in accordance with the national legislation of that Contracting State, and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in both assessment or collection, enforcement, or prosecution, or the consideration of appeals in respect of taxes referred to in paragraph 1 of this article, as well as the supervision of all of the above. Such persons or authorities may use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions.

Regardless of the above, information received by a Contracting State may be used for other purposes if such information is used in accordance with the laws of both States and the competent authority of the State that provided the information authorizes such use.

3. The provisions of paragraphs 1 and 2 of this article may not be interpreted as imposing an obligation on a Contracting State.:

(a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State;

b) to provide information that cannot be obtained under the laws or in the ordinary course of the administration of that or another Contracting State;

c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (ordre public).

4. If information is requested by one Contracting State in accordance with this Article, the other Contracting State shall take measures to collect the requested information, even if such information is not required by that other Contracting State for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3 of this article, but such limitations cannot be interpreted as allowing a Contracting State to refuse to provide information solely because of a lack of domestic interest in such information.

5. The provisions of paragraph 3 of this Article may not be interpreted as authorizing a Contracting State to refuse to provide information solely because the holder of the information is a bank, another financial institution, a nominee holder or a person acting as an agent or attorney, or because the information concerns a person with ownership rights.

The footnote. Article 27 as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

Article 28 Assistance in tax collection

1. The Contracting States shall assist each other in fulfilling income requirements. Such assistance is not limited to articles 1 and 2 of this Convention. The competent authorities of the Contracting States shall establish procedures for the application of this article by mutual agreement.

2. The term "income claim" used in this article means the amount of arrears due in respect of taxes of any kind and description levied on behalf of Contracting States or their administrative-territorial subdivisions or local authorities, to the extent that taxation does not conflict with this Convention or any other instrument to which they are parties. Contracting States, including interest, administrative fines and costs of collecting or imposing interim measures related to such amount.

3. If a revenue claim of a Contracting State is enforceable under the laws of that Contracting State and the debtor thereof is a person who, under the laws of that Contracting State, does not prevent its enforcement, such revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for the purposes of enforcement by the competent authority of the other Contracting State. Such income claim shall be fulfilled by the other Contracting State in accordance with the provisions of its legislation applicable to the compulsory collection of its own taxes, as if this income claim were a revenue claim of the other Contracting State.

Article 29 Members of diplomatic missions and consular posts

Nothing in this Convention affects the tax privileges of members of diplomatic missions and consular posts granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 30 Entry into force

1. The Contracting States shall notify each other in writing through diplomatic channels of the completion of the procedures required by their respective legislation for the entry into force of this Convention. This Convention shall enter into force on the 30th day following the date of receipt of the last such notification.

2. The provisions of this Convention shall apply:

(a) in India, in respect of income earned or capital held in any financial year beginning on or after the first of April following the calendar year in which the Convention entered into force; and

(b) in Kazakhstan, in respect of income earned or capital held in any financial year beginning on or after the first of January following the calendar year in which the Convention entered into force.

Article 31 Termination

This Convention shall remain in force until terminated by one of the Contracting States. Each Contracting State may terminate the Convention after the end of 5 years from the date of entry into force of the Convention by notifying in writing through diplomatic channels of the termination of the Convention at least six months before the end of any calendar year. In this case, the Convention is terminated.:

(a) in India, in respect of income arising in any preceding year on or after the first of April following the calendar year in which the notification was given, and in respect of capital held after the expiration of any preceding year beginning on or after the first of April following the calendar year in which the notification was given a notice of termination has been given; and

(b) in Kazakhstan, in respect of income arising in any financial year on or after the first of January following the calendar year in which the notification was given, and in respect of capital held after the expiration of any financial year beginning on or after the first of January following the calendar year in which the notification was given a notice of termination has been given.

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

Done in duplicate, in New Delhi, on the 9th of December 1996, in the Kazakh, Hindi, English and Russian languages, all texts are equally authentic. If there is a discrepancy in the texts, the English text will be decisive.

For the Government

Republic of Kazakhstan

Republic of India

Protocol

The footnote. Protocol as amended by the Law of the Republic of Kazakhstan dated 02/06/2018 No. 138-VI.

When signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, the undersigned agreed that the following provisions will form an integral part of the Convention.

With regard to article 7:

With respect to paragraphs 1 and 2 of Article 7, if an enterprise of one of the Contracting States is engaged in the sale of goods or merchandise or carries on business in the other Contracting State through a permanent establishment located there, the profits of that permanent establishment will not be determined on the basis of the total amount received by the enterprise, but will be determined only on the basis of remuneration that relates to to the actual activity of a permanent establishment for such sales or business activities. Especially in the case of contracts for the exploration, supply, installation or assembly of industrial, commercial or scientific equipment or premises, or public works, when an enterprise has a permanent establishment, the profit of such permanent establishment will not be determined on the basis of the total amount of the contract, but will be determined only on the basis of that part of the contract that was actually carried out by a permanent an institution in the Contracting State where the permanent establishment is located.

In witness whereof, the undersigned representatives, duly authorized thereto, have signed this Protocol.

Done in duplicate, in New Delhi, on the 9th of December 1996, in the Kazakh, Hindi, English and Russian languages, all texts are equally authentic. In case of discrepancies in the texts, the English text will be decisive.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases