On Ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed in Almaty on October 24, 1993, Memorandum of Understanding on Certain Provisions of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and the Exchange of Notes on the Tax Convention and the General Agreement on Trade in Services (GSTU)

Home / RLA / On Ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed in Almaty on October 24, 1993, Memorandum of Understanding on Certain Provisions of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and the Exchange of Notes on the Tax Convention and the General Agreement on Trade in Services (GSTU)

On Ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed in Almaty on October 24, 1993, Memorandum of Understanding on Certain Provisions of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and the Exchange of Notes on the Tax Convention and the General Agreement on Trade in Services (GSTU)

Law of the Republic of Kazakhstan dated June 26, 1996 No. 14-1

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, signed in Almaty on October 24, 1993, Memorandum of Understanding on Certain Provisions of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and the exchange of Notes on the Tax Convention and the General Agreement on Trade in Services (GSTU).

President of the Republic of Kazakhstan

Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on 12/30/1996)

The Government of the Republic of Kazakhstan and the Government of the United States of America, confirming their desire to develop and strengthen economic, scientific, technical and cultural cooperation between the two Countries and desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to taxes on Income and Capital, have agreed as follows: Article 1 General scope of the Convention 1. This Convention applies to persons who are residents in one or both of the Contracting States and to other persons, if this is specifically provided for by the Convention. 2. The Convention does not limit in any way any exceptions, exemptions, deductions, offsets or other tax benefits currently or subsequently granted by: (a) the laws of each of the Contracting States; or (b) any other agreement between the Contracting States. 3. Notwithstanding any provisions of the Convention, with the exception of paragraph 4 of this Article, any Contracting State may tax, in accordance with its national law, residents (as defined in Article 4 (Residency), as well as nationals or former nationals of that State. 4. Notwithstanding the provisions of paragraph 3, each Contracting State will provide the following benefits: (a) provided for in paragraph 2 of Article 7 (Associated enterprises), paragraph 5 of Article 18 (Pensions, etc.), as well as Articles 23 (Elimination of double taxation), 24 (Non-discrimination) and 25 (Mutual Agreement procedure); and (b) Provided for in Articles 17 (Civil Service), 19 (Students, trainees and researchers) and 27 (Diplomatic agents and consular officials) for persons who are not citizens of this State or, in the case of the United States, do not have the appropriate immigration status. Article 2 Taxes covered by the Convention 1. Taxes to which this Convention applies: a) in the Republic of Kazakhstan: taxes on profits and income provided for by the Laws "On Taxes on Enterprises, Associations and Organizations" and "On Income Tax on Citizens of the Republic of Kazakhstan, Foreign citizens and Stateless Persons" (hereinafter referred to as the "Kazakhstan Tax"); b) In the United States of America: federal income taxes levied in accordance with the Internal Revenue Code, with the exception of the accumulated income tax, personal holding company tax, and social Security taxes (hereinafter referred to as the United States tax). 2. This Convention shall also apply to any substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, existing taxes, including taxes substantially similar to those currently imposed by one Contracting State but not imposed by the other Contracting State, and which are subsequently imposed by another State.. The competent authorities of the Contracting States will notify each other of any significant changes in their tax laws and of any official published materials concerning the application of the Convention, including explanations, instructions, rules or judicial decisions. 3. The Convention shall also apply to any capital tax provided for in subparagraph (g) of paragraph 1 of Article 3 (General definitions), which is established by any of the Contracting States on or after the date of signature of the Convention, but only if such capital tax is provided for by federal or national legislation.

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) the term "Contracting State" means the Republic of Kazakhstan (Kazakhstan) or the United States of America (United States), depending on the context; (b) the term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes the territorial sea, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the laws relating to the tax of the Republic of Kazakhstan apply; (c) The term "United States" means the United States The United States of America, but does not include Puerto Rico, the Virgin Islands, Guam, or any other possession or territory of the United States. When used in a geographical sense, the term "United States" includes the territorial sea, as well as the exclusive economic zone and the continental shelf, in which the United States may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the laws relating to the tax of the United States apply; d) the term "person" means an individual, a foundation, a trust fund, a partnership, a company, and any other association of persons; f) the term "company" means any entity considered as a corporate association for tax purposes. In relation to Kazakhstan, the term "company" means a joint-stock company, a limited liability company, or any other legal entity or other organization that is subject to income tax; f) the term "international carriage" means any carriage by sea or aircraft, except in cases where such carriage is carried out exclusively between locations in the other Contracting State. The State; (g) For the purposes of Article 22 (Capital), the term "capital" means movable and immovable property and includes (but is not limited to) cash, shares or other documents confirming property rights, promissory notes, bonds or other debentures, as well as patents, trademarks, copyrights or other similar rights (h) The term "competent authority" means: (i) in Kazakhstan: the Minister of Finance or his authorized representative; (ii) in the United States: the Minister of Finance or his authorized representative. 2. As regards the application of this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires or the competent authorities agree in accordance with the procedure provided for in Article 25 (Mutual Agreement Procedure), have the meaning which it has under the laws of that State concerning taxes to which it applies. The Convention.

Article 4 Residency 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, nationality, place of management, place of incorporation as a legal entity or any other criterion of a similar nature: (a) However, this term does not include any person which is subject to taxation in that State only in respect of income from sources in that State or capital located there; b) in the event that income is earned by a partnership, trust fund or foundation, residency is determined in accordance with the residence of the person subject to taxation in respect of such income. 2. If 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 is considered to be a resident of the State in which he has a permanent home belonging to him.; if he has a permanent home belonging to him in both States, he is considered to be a resident of the State in which he has the closest personal and economic ties (center of vital interests); b) if the State in which he has a center of vital interests cannot be determined, or if he does not have a permanent home belonging to him in none of the States, he is considered to be a resident of the State in which he normally resides.; (c) If he has an habitual abode in both States, or if he has an habitual abode in neither of them, he shall be deemed to be a resident of the State of which he is a national; (d) If each State considers him to be its national, or if he is not a national of either of them, the competent authorities of the Contracting States the issue will be resolved by mutual agreement. 3. If, by reason of the provisions of paragraph 1, the company is a resident of both Contracting States, the competent authorities of the Contracting States will seek to resolve the matter by mutual agreement, but if the competent authorities are unable to reach an agreement, the company will not be considered a resident of either Contracting State for the purposes of obtaining benefits under this Convention. 4. If, by reason of the provisions of paragraph 1, a person other than an individual or a company is a resident of both Contracting States, the matter shall be settled by mutual agreement and the procedure for the application of the Convention to such persons shall be determined.

Article 5

Permanent Representative Office 1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which a resident of one of the Contracting States, whether or not a legal entity, carries on business in the other Contracting State.

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

a) place of management;

b) separation;

c) the office;

d) the factory;

f) a workshop; and

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

3. The term "permanent establishment" also includes: a) a construction site, or an object of construction, installation or assembly work, services related to the supervision of these works, as well as an installation or drilling rig, or a vessel used for the exploration and development of natural resources, but only if such a site, object or the installation exists or such services have been ongoing for more than 12 months.; c) provision of services by residents, including consulting services, by their employees or other personnel hired by residents for such purposes, but only if activities of this nature within the State last (for this or a related project) for a period of more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is considered, but does not include: a) the use of facilities solely for the purpose of storing, displaying or supplying goods or merchandise belonging to a resident; (b) The maintenance of a stock of goods or products belonging to a resident solely for the purposes of storage, display or delivery; (c) the maintenance of a stock of goods or products belonging to a resident solely for the purposes of processing by another person; (d) the maintenance of a permanent place of business solely for the purpose of purchasing goods or products or collecting information for a resident;) maintenance of a permanent place of business for a resident solely for carrying out any other preparatory or auxiliary activities; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any set of activities referred to in subparagraphs (a) to (e). 5. Notwithstanding the provisions of paragraphs 1 and 2, if a resident of one of the Contracting States carries on business in the other Contracting State through an agent, the resident will be considered as having a permanent establishment in that other State in connection with any activity that the agent carries on for that resident if the agent meets each of the following conditions: a) he has the authority to enter into contracts in that other State on behalf of that resident; b) he normally uses these powers; (c) He is not an agent with an independent status to whom the provisions of paragraph 6 apply; and (d) his activities are not limited to the activities referred to in paragraph 4.6. A resident of one Contracting State will not be considered as having a permanent establishment in the other Contracting State solely by virtue of the fact that he carries on business in that other State through a broker, commission agent or any other agent with an independent status, provided that these persons act within the framework of their ordinary business activities. 7. The fact that a company that is a resident of one of the Contracting States 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 (through a permanent establishment or otherwise), does not in itself transform one of these companies into a permanent establishment of the other.

Article 6 Profit from entrepreneurial activity 1. Profits from the business activities of a resident of one of the Contracting States shall be taxable only in that State, unless that resident carries on or has carried on business activities in the other Contracting State through a permanent establishment located there. If a resident of one of the Contracting States carries on or has carried on the above-mentioned business activities, the profits of that resident may be taxed in the other State, but only in so far as they relate to: (a) such permanent establishment; (b) sales in that other State of goods and merchandise which, in their nomenclature, coincide with the goods and merchandise which are sold through a permanent representative office; or (c) Other business activities carried on in that other Contracting State which are of the same nature as the business activities carried on through that permanent establishment. 2. Subject to the provisions of paragraph 3, if a resident of one of the Contracting States carries on or has carried on business in the other Contracting State through a permanent establishment located there, in each Contracting State the profits of such permanent establishment shall be deemed to be the profits that he could have received as a separate or independent person engaged in the same or similar activities in the same or similar conditions. 3. When determining the profit of a permanent establishment, expenses incurred for the needs of the permanent establishment may be deducted. In this case, a reasonable distribution of documented expenses incurred for the purposes of a resident's business activities is allowed between a resident of one of the Contracting States and his permanent mission located in the other Contracting State. Such distributable expenses include administrative and general administrative expenses, research and development expenses, interest and management fees, consultations or technical assistance incurred both in the State in which the permanent establishment is located and in any other place. A permanent Mission is not allowed to deduct the amount paid to its head office or any of the other resident offices by paying royalties, fees or other similar payments 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 mission. The profit of a permanent establishment is determined annually in the same way, unless there is a compelling and sufficient reason for its change. 4. A permanent establishment is not considered to have made a profit solely by virtue of the permanent establishment's purchase of goods and merchandise for a resident. 5. If the information available to the competent authority of one of the Contracting States or which may be readily available to it is not sufficient to determine the expenses of a permanent establishment, the profit may be calculated in accordance with the tax laws of that State. For the purposes of this paragraph 5, information will be considered as easily accessible if the taxpayer provides the information to the requesting competent authority within 91 days from the date of the written request by the competent authority for such information. 6. For the purposes of this article, the term "profit from entrepreneurial activity" means profit earned in connection with the active implementation of entrepreneurial activity. It includes, for example, profits from manufacturing, trading, transportation, communications, or resource extraction activities, as well as from the provision of services by another person. It does not include income earned by an individual for personal services rendered (either as an employee or on an independent basis). The income of an individual from work is considered in Article 15 (Income earned at the place of work). The income of an individual from the provision of services on an independent basis is considered in Article 14 (Independent personal services). 7. If profits include types of income from entrepreneurial activities that are separately regulated by other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article.

Article 7 Associated enterprises 1. When: a) a person who is a resident of one of the Contracting States participates directly or indirectly in the management, control or capital of a resident of the other Contracting State; or (b) the same persons are directly or indirectly involved in the management, control or capital of a resident of a Contracting State and any other person, and (c) in any of these cases, conditions exist or have been imposed between the two persons in their commercial or financial relations that differ from those that would take place between independent persons, then any income that would have been credited to one of the persons in the absence of such conditions, but was not credited due to such conditions, may be included in that person's income and, accordingly, taxed. 2. If a Contracting State includes in the profits of its resident and, accordingly, taxes profits in respect of which tax has been levied on a resident of the other Contracting State in that other State, and the profits thus included are profits that would be due to a resident of the first-mentioned State if there were the same agreement between the two persons as between two independent However, in this case, this other State will make the necessary adjustments to the amount of tax accrued on such profits. In determining such an adjustment, due account shall be taken of the other provisions of this Convention, and the competent authorities of the Contracting States shall consult with each other, as appropriate.

3. When determining the profit of a permanent mission, expenses incurred for the needs of the permanent mission may be deducted. In this case, a reasonable distribution of documented expenses incurred for the purposes of a resident's business activities is allowed between a resident of one of the Contracting States and his permanent mission located in the other Contracting State. Such distributable expenses include administrative and general administrative expenses, research and development expenses, interest and management fees, consultations or technical assistance incurred both in the State in which the permanent establishment is located and in any other place. A permanent Mission is not allowed to deduct the amount paid to its head office or any of the other resident offices by paying royalties, fees or other similar payments 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 mission. The profit of a permanent establishment is determined annually in the same way, unless there is a compelling and sufficient reason for its change. 4. A permanent establishment is not considered to have made a profit solely by virtue of the permanent establishment's purchase of goods and merchandise for a resident. 5. If the information available to the competent authority of one of the Contracting States or which may be readily available to it is not sufficient to determine the expenses of a permanent establishment, the profit may be calculated in accordance with the tax laws of that State. For the purposes of this paragraph 5, information will be considered as easily accessible if the taxpayer provides the information to the requesting competent authority within 91 days from the date of the written request by the competent authority for such information. 6. For the purposes of this article, the term "profit from entrepreneurial activity" means profit earned in connection with the active implementation of entrepreneurial activity. It includes, for example, profits from manufacturing, trading, transportation, communications, or resource extraction activities, as well as from the provision of services by another person. It does not include income earned by an individual for personal services rendered (either as an employee or on an independent basis). The income of an individual from work is considered in Article 15 (Income earned at the place of work). The income of an individual from the provision of services on an independent basis is considered in Article 14 (Independent personal services). 7. If profits include types of income from entrepreneurial activities that are separately regulated by other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article.

Article 8 Sea and air transportation 1. The income of a resident of one of the Contracting States from the use of ships or aircraft in international traffic is taxable only in that State. 2. The income of a resident of one of the Contracting States from the following activities is taxable only in that State: a) income from the rental of ships and aircraft used by the lessee in international traffic; (b) Income from the rental of ships and aircraft, regardless of their use in international traffic, if such rental is irregular compared to the lessor's use of ships or aircraft in international traffic; (c) Income (including demurrage) from the use or rental for use in international transportation of containers (including trailers, barges and equipment related to container transportation). 3. The provisions of paragraphs 1 and 2 also apply to income from participation in a pool, joint venture or international transport agency.

Article 9 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. For the purposes of this Convention, the term "immovable property" includes any rights of a natural or legal person based on ownership or holding of land, crops on the root, as well as any structures erected on the land (buildings, structures, etc.), as well as other property considered to be immovable property under the laws of a Contracting State, in which it is located. Sea, air and river vessels are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use in any other form of immovable property. 4. A resident of one of the Contracting States who is subject to taxation in the other Contracting State in respect of income from immovable property located in that other State may, in accordance with the procedure provided for by the national legislation of that other State, calculate tax on such income on the basis of net income, as if such income were attributed to a permanent establishment in that other State. in this other State. Any such method of tax calculation will be mandatory in the taxable year in which it was adopted and in all subsequent taxable years, unless it is replaced in accordance with the procedure provided for by the domestic law of the Contracting State in which the property is located.

4. A resident of one of the Contracting States who is subject to taxation in the other Contracting State in respect of income from immovable property located in that other State may, in accordance with the procedure provided for by the national legislation of that other State, calculate tax on such income on the basis of net income as if such income were classified as permanent a representative office in that other State. Any such method of tax calculation will be mandatory in the taxable year in which it was adopted and in all subsequent taxable years, unless it is replaced in accordance with the procedure provided for by the domestic law of the Contracting State in which the property is located.

Article 10 Dividends 1. Dividends paid by a company that is a resident of a Contracting State and which are the preferred property of a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the first Contracting State in accordance with its laws, and the tax levied in such a case should not exceed: (a) 5 percent of the total amount of the dividends if the beneficiary is a company that holds at least 10 percent of the voting shares in the capital of the company paying dividends; and (b) 15 per cent of the total amount of dividends in all other cases. This clause does not affect the taxation of the company from whose profits the dividends are paid. 3. The term "dividends" used in this Article means income from shares or other rights that are not debt claims, income from profit-sharing and other corporate participation rights in a company that is subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company distributing the dividends is a resident.. The term "dividends" also includes income from contracts, including debt obligations, which grant the right to participate in profits, if this is provided for by the legislation of the Contracting State in which the income arises. In relation to Kazakhstan, this term includes, in particular, income transferred abroad by a foreign participant in a joint venture established under the legislation of the Republic of Kazakhstan. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficiary of the dividends, being a resident of one of the Contracting States, carries on or has carried on business in the other Contracting State, of which the company paying the dividends is a resident by virtue of its permanent establishment located there, or provides or has provided independent personal services in that other State from a permanent base located there, at the same time, dividends are associated with such a permanent establishment or permanent base. In this case, the provisions of Article 6 (Business profits) or Article 14 (Independent personal services), as appropriate, apply. 5. A company that is a resident of a Contracting State and which has a permanent establishment in the other Contracting State, or is subject to taxation in that other State on the basis of net income in accordance with paragraph 4 of Article 9 (Income from immovable property), paragraphs 2 and 3 (b) of Article 12 (Royalties), or paragraphs 1 and 2 of Article 13 (income from the alienation of property) may be taxed in that other State, in addition to income tax. Such tax, however, may not exceed 5 percent of the portion of the company's profits taxable in the other Contracting State, which is the "equivalent of the amount of dividends" of such profits.

Article 11 Interest 1. Interest arising in a Contracting State and received by 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 beneficiary of the interest is a resident of the other Contracting State, the tax levied in such case will not exceed 10 percent of the total amount due. 3. Notwithstanding the provisions of paragraph 2: (a) Interest due or paid by one of the Contracting States, its subdivision or local authorities, as well as governmental authorities determined by agreement of the competent authorities, shall be taxable only in that State.; (b) Interest arising in one of the Contracting States and paid to a resident of the other Contracting State in respect of a loan granted for a period of at least 3 years, guaranteed or secured by any export credit agency wholly owned by that other State, shall be taxable only in that other State. 4. The provisions of paragraphs 1, 2 and 3 shall not apply if the person receiving interest, being a resident of one of the Contracting States, carries on or has carried on business in the other Contracting State through a permanent establishment located there, or provides or has provided independent personal services with a permanent base located there in that other State and the interest is related to such permanent mission or permanent base. In this case, the provisions of Article 6 (Business profits) or Article 14 (Independent personal services) apply, depending on the circumstances. 5. Interest shall be deemed to have arisen in a Contracting State if the payer is that State itself, a political subdivision, a local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of one of the Contracting States or not, has a permanent establishment or permanent base in one of the Contracting States or receives profits taxable in that State on the basis of net income in accordance with Article 9, paragraph 4 (Income from immovable property), Article 12, paragraph 2 and paragraph 3 (b) (Royalties) and Article 13, paragraphs 1 or 2 (Income from alienation of property), and such interest relates to such permanent establishment or commercial or business activities subject to taxation on the basis of net income, these interests are considered to have arisen in the State in which the permanent establishment is located. a representative office or is engaged in trade or business activities. 6. If, as a result of a special relationship between the payer and the recipient of interest or between both of them and any other person, the amount of interest payable on debt obligations exceeds the amount that would have been agreed between the payer and the recipient of 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 payments will continue to be taxed in accordance with the laws of each of the Contracting States, taking into account the other provisions of this Convention. 7. A resident of one of the Contracting States may be taxed in the other Contracting State in respect of the amount of interest in addition to the business income tax levied in accordance with the other provisions of this Convention. Such additional tax, however, should not exceed 10 percent of the "excess amount of interest."

Article 12 Royalty 1. Royalties arising in one of the Contracting States and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the State in which they arise and in accordance with the laws of that State, but if the beneficiary of the royalties is a resident of the other Contracting State, the tax levied in such a case should not exceed 10 percent of the total amount of the royalties. In the case of royalties described in subparagraph (b) of paragraph 3, the beneficiary of the royalties may calculate the tax on these incomes on the basis of net income, as if these incomes were received by a permanent establishment or permanent base in the Contracting State in which the royalties arise. 3. The term "royalties" as used in this article means: a) any payments received as remuneration for the use or for the right to use any copyrights to works of literature, art or science, including computer programs, videotapes, motion pictures and films for television and radio broadcasts, any patent, trademark, drawing or a model, schematics, secret formula, or process, or other similar rights or property, or for information relating to industrial, commercial, or scientific expertise; and b) payments for the use or for the right to use industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficiary of the royalties is a resident of one of the Contracting States and carries on or has carried on business in the other Contracting State through a permanent establishment located there, or provides or has provided independent personal services in that other State from a permanent base located there, and the royalties are associated with such permanent establishment. or a permanent base. In this case, the provisions of Article 6 (Business profits) or Article 14 (Independent personal services), as appropriate, apply. 5. Royalties are considered to have arisen in one of the Contracting States if they are paid for the use or for the transferred right to use rights or property in that State. 6. If, as a result of a special relationship between the payer of royalties and the beneficiary or between both of them and any other person, the amount of royalties paid for the use, transferred right or information for which they are paid exceeds the amount that would have been agreed between the payer and the recipient of royalties in the absence of such a relationship, the provisions of this Article apply only to the last mentioned amount. In such a case, the excess part of the payments will continue to be taxed in accordance with the laws of each of the Contracting States, taking into account the other provisions of this Convention.

Article 13 Income from alienation of property 1. Income earned by a resident of one of the Contracting States as a result of the alienation of immovable property referred to in Article 9 (Income from immovable property) and located in the other Contracting State may be taxed in that other State. 2. Income received as a result of the alienation of: a) shares, participation rights or other rights in the capital of a company or other legal entity (regardless of whether they are residents of a Contracting State), whose property mainly consists of immovable property located in a Contracting State; or (b) Interests in a partnership, trust fund or foundation (regardless of whether they are residents), in so far as they are related to immovable property located in a Contracting State, may be taxed in that State. For the purposes of this paragraph, the term "immovable property" includes shares of companies referred to in subparagraph (a), or interests in a partnership, trust fund, or fund referred to in subparagraph (b), and in the case of the United States, includes units entitling to U.S. real estate as defined in article 897 of the Internal Revenue Code. Income, or in any law that replaces it). 3. In addition to income from the alienation of shares referred to in paragraph 2 of this Article, income earned by a resident of one of the Contracting States from the alienation of shares, participation rights or other rights in the capital of a company or other legal entity that is a resident of the other Contracting State may be taxed in that other Contracting State if the recipient income, at any time during the 12-month period preceding such alienation, had direct or indirect involvement, representing at least 25 percent of the voting rights or capital of a company or other legal entity. Such income is considered to have originated in that other State if it is necessary to avoid double taxation. 4. Income from the alienation of personal property that is related to a permanent establishment that an enterprise of one of the Contracting States has established in the other Contracting State or that is related to a permanent base held by a resident of one of the Contracting States in the other Contracting State for the provision of personal independent services, as well as income from the alienation of such permanent establishment (separately or collectively with the entire enterprise) or such permanent base may be taxed in that other State. 5. Income earned by a resident of one of the Contracting States from the alienation of ships, aircraft or containers used in international traffic shall be taxable only in that State. 6. Gains from the alienation of any property not mentioned in paragraphs 1-5 shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 Independent personal services 1. Income earned by an individual who is a resident of one of the Contracting States from the provision of independent personal services is taxable only in that State, except in cases where: (a) such services are provided or have been provided in the other Contracting State; and or (b) the income is related to a fixed base that the individual has or had at your disposal on a regular basis in this other State; or (c) That individual is or has been in that other State for a period or periods totaling more than 183 days in any continuous 12-month period. In such a case, income related to services may be taxed in that other State in accordance with principles similar to those contained in Article 6 (Profits from business activities), which determines the amount of profits from business activities and profits related to a permanent establishment. 2. The term "independent personal services" means, in particular, independent scientific, literary, artistic, teaching and training activities, as well as the independent services of doctors, lawyers, engineers, architects, dentists and accountants.

Article 15 Income earned at the workplace 1. Subject to the provisions of Articles 16 (Directors' fees), 17 (Public service) and 18 (Pensions, etc.), salaries, salaries and other similar remuneration derived by a resident of one of the Contracting States at his place of work shall be taxable only in that State, except in cases where the employment duties are performed in the other Contracting State. The state. If the work obligations are performed in this way, then the remuneration received from there may be taxed in this other State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with the performance of work duties in the other State shall be taxable only in the first-mentioned State if: (a) the recipient resides in the other State for a period or periods not exceeding a total of 183 days out of any 12-month period; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State; and c) the remuneration costs are not borne by a permanent establishment or a permanent base that the employer has in another State. 3. Remuneration derived by a resident of one of the Contracting States which would otherwise be taxable in the other Contracting State in accordance with the preceding provisions of this article may be taxed only in the former State if the remuneration is paid in connection with the performance of work duties as a member of the permanent crew of a ship or aircraft used in international traffic.

Article 16 Directors' fees Directors' fees and similar payments derived 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 resident in the other Contracting State may be taxed in that other State.

Article 17 Public service 1. (a) Remuneration, with the exception of pensions, paid from public funds of a Contracting State, its subdivision or local authorities to an individual for duties performed in the course of public service, shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the service takes place in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) has not become a resident of that State solely for the purpose of performing such service. 2. Regardless of the provisions of paragraph 1, the provisions of Article 14 (Independent personal services) or Article 15 (Income earned at the workplace) in certain cases apply to remuneration due for services rendered in connection with business activities.

Article 18 Pensions, etc. 1. Subject to the provisions of paragraph 2, (a) pensions and similar remuneration received or due to a resident of a Contracting State for previous employment may be taxed only in that State; and (b) social security benefits and other State pensions paid by a Contracting State may be taxed only in that State. 2. a) Any pension paid to an individual for services rendered by him to that Contracting State, its administrative-territorial subdivision or local authority for the performance of functions of a governmental nature and paid by that State, administrative-territorial subdivision or local authority from funds created by them shall be taxable only in that Contracting State. (b) However, such pension is taxable only in the other Contracting State if the individual is a resident of and a national of that other Contracting State. 3. An annuity earned and owned by an individual who is a resident of a Contracting State shall be taxable only in that State. The term "annuity", as used in this subparagraph, means a certain amount of money that is paid periodically at a certain time over a certain number of years, in accordance with an obligation to make payments against appropriate and full compensation (other than the provision of services). 4. Alimony payments paid to a resident of one of the Contracting States shall be taxable only in that other State. The term "alimony", when used in this paragraph, means periodic payments made in accordance with a written separation agreement or a divorce decree, separate maintenance or mandatory support, which are included in the tax base of the recipient of these payments in accordance with the laws of the State of which he is a resident. 5. Periodic payments for the purpose of financial support of a minor child, paid by a resident of one of the Contracting States to a resident of the other Contracting State in accordance with a written agreement on separation, divorce, separate maintenance or compulsory financial support, are subject to taxation only in the first-mentioned State.

Article 19 Students, interns and researchers 1. A natural person who is a resident of one of the Contracting States at the beginning of his visit and who is temporarily staying in that other State mainly for the purposes of: a) studying at a University or other recognized educational institution in that other State; or b) completing an internship necessary to work in a specialty or obtain a qualification; or c) studying or conducting research as a scholarship holder or by virtue of receiving benefits or similar payments from governmental, religious, charitable, scientific, literary or educational organizations, is exempt from tax in that other State in respect of payments received from abroad for the purposes of residence, education, study, research or internship, as well as in relation to scholarships, allowances or other similar payments. 2. The benefit provided for in paragraph 1 applies only for such a period of time as is normally necessary to complete studies, internships or research; however, the benefit for internships and/or research will not last more than five years. 3. This Article does not apply to income from research activities, if such research is not undertaken in the public interest, but mainly for the personal benefit of an individual or persons.

Article 20 Other income Items of income of a resident of one of the Contracting States arising in the other Contracting State that are not regulated by the preceding articles of this Convention may be taxed in that other State.

Article 21 Limitation of benefits 1. A resident of one of the Contracting States who earns income in the other Contracting State will be entitled, in accordance with this Convention, to exemption from taxation in that other State only if such person: (a) is a natural person; (b) Carries out active business activities in the first-mentioned State (other than investment activities or investment management activities, unless such activities are banking or insurance activities carried out by a bank or insurance company), and income earned in that other State is derived from such activities or related activities; c) is a company whose shares are sold and bought in the first-mentioned State in a significant volume and on a regular basis on an officially recognized stock exchange, or which is wholly owned, directly or indirectly, by another company resident in the first-mentioned State and whose shares are sold and bought in the specified manner; (d) Is a commercial organization that is normally exempt from income tax in the Contracting State in which it has its headquarters, provided that more than half of the beneficiaries, members or participants of that organization, if any, are entitled, in accordance with this article, to the benefits provided for in this Convention.; or (e) The person satisfies each of the following conditions: (i) More than 50 per cent of the ownership interest in such person or, in the case of a joint-stock company, more than 50 per cent of each type of shares in the company's shares belong, directly or indirectly, to persons entitled to the benefits provided by this Convention in accordance with subparagraphs (a), (c), d); and (ii) not more than 50 per cent of such person's gross income is used, directly or indirectly, to fulfill obligations (including obligations in respect of interest or royalties) to persons who are not entitled to the benefits provided for in this Convention in accordance with paragraphs (a), (c), (d). 2. A person who is not entitled to In accordance with paragraph 1, a person may nevertheless receive the benefits provided by the Convention if the decision to do so is taken by the competent authority of the State in which the income arises. 3. For the purposes of subparagraph (e) (ii) of paragraph 1, the term "gross income" means the amount of proceeds from sales or, if a person is engaged in an activity that includes the manufacture or manufacture of goods, proceeds from sales reduced by the amount of direct labor and materials related to such manufacture or production that have been paid or are due to be paid. of this revenue.

Article 22 Capital 1. Capital represented by immovable property referred to in Article 9 (Income from immovable property) owned by a resident of one of the Contracting States and located in the other Contracting State may be taxed in that other State. 2. Capital represented by movable property forming part of the property of a permanent establishment which a resident of one of the Contracting States has in the other Contracting State, or movable property relating to a permanent base available to a resident of one of the Contracting States in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State. 3. Capital represented by ships, aircraft and containers owned by a resident of a Contracting State and operated in international traffic, as well as movable property related to the operation of such ships, aircraft and containers, shall be taxable only in that State. 4. All other elements of the capital of a resident of one of the Contracting States (as provided for in Article 4 (Residency)) are taxable only in that State.

Article 23 Elimination of double taxation In accordance with the provisions and subject to restrictions established by the laws of each of the Contracting States (which may change from time to time, while maintaining general principles), each State authorizes its residents (and, in the case of the United States, its citizens) to calculate income tax in that State: a) income tax, paid to the other Contracting State by or on behalf of such residents or nationals; and (b) In the case of a company holding at least 10 per cent of the voting shares in a company that is a resident of the other Contracting State and from which the first-mentioned company receives dividends, income tax paid to the other State by or on behalf of the distributing company on the income from which the dividends are paid. For the purposes of this Article, the taxes of the United States referred to in paragraphs 1 (a) and 2 of Article 2 (Taxes to which the Convention applies) and the taxes of Kazakhstan referred to in paragraphs 1 (b) of Article 2 (Taxes to which the Convention applies), as described in paragraph 8 of the Protocol to this Convention, they are considered income taxes.  

Article 24 Non-discrimination 1. A citizen of one of the Contracting States will not be subject in the other Contracting State to any taxation or related requirements that are different or more burdensome than taxation and related requirements to which citizens of that other State or a third State in the same circumstances are or may be subject in the same circumstances. This provision applies to persons who are not residents of one of the Contracting States or both of the Contracting States. This provision will not be interpreted as obliging one Contracting State to provide citizens of the other Contracting State with tax benefits granted to citizens of third States by virtue of special agreements. 2. A resident of one of the Contracting States who has a permanent establishment in the other Contracting State will not be subject in that other State to a more burdensome taxation of income related to a permanent establishment than that to which residents of that other State or a third State engaged in the same activity are normally subjected. This provision will not be interpreted as obliging one of the Contracting States to provide permanent missions of residents of the other Contracting State with tax benefits provided by special agreements to permanent missions of residents of third States. 3. Except in cases where the provisions of paragraph 1 of Article 7 (Associates), paragraph 4 of Article 11 (Interest) or paragraph 6 of Article 12 (Royalties) apply, interest, royalties and other payments paid by a resident of one of the Contracting States to a resident of the other Contracting State for the purposes of determining the taxable profits of the first-mentioned resident will be deducted under the same conditions conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debt owed by a resident of one of the Contracting States to a resident of the other Contracting State will, for the purposes of determining the taxable capital of the first-mentioned resident, be deducted under the same conditions as if it were owed to a resident of the first-mentioned State. 4. A company which is a resident of one of the Contracting States and whose capital is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, will not be subject in the first-mentioned State to taxation or related requirements more burdensome than taxation and related requirements to which it is or may be subject. other similar companies are residents of the first mentioned State, owned by residents of that State or a third State. 5. Nothing in this Article shall prevent a Contracting State from levying the tax referred to in paragraph 5 of Article 10 (Dividends) or paragraph 7 of Article 11 (Interest). 6. The provisions of this Article, notwithstanding the provisions of Article 2 (Taxes to which the Convention applies), apply to taxes of any kind and character.

Article 25 Mutual agreement procedure 1. If a person considers that the actions of one or both of the Contracting States result or will result in taxation not complying with the provisions of this Convention, he may, regardless of the remedies provided for by the national legislation of those States, submit his question to the competent authority of the Contracting State of which he is a resident or national. 2. The competent authority will endeavour, if it considers the claim to be well-founded and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with the Convention. Any agreement reached will be executed regardless of any time or other procedural restrictions provided for by the national legislation of the Contracting States. 3. The competent authorities of the Contracting States will endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of the Convention. In particular, the competent authorities of the Contracting States may agree on: (a) the uniform allocation of income, deductions, offsets or benefits of a resident of one of the Contracting States to his permanent establishment located in the other Contracting State; (b) the uniform distribution of income, deductions, offsets or benefits between persons; (c) Uniform definition of individual income items; (d) uniform application of the rules for determining the source in relation to specific income items; (e) uniform understanding of individual terms; and (f) application of the provisions of national legislation relating to fines, penalties and interest, in accordance with the objectives of the Convention. They may also hold joint consultations on the elimination of double taxation in cases not provided for in this Convention. 4. The competent authorities of the Contracting States may communicate directly with each other for the purpose of reaching an agreement within the meaning of the preceding paragraphs. 5. If any difficulties or doubts arising in connection with the interpretation or application of this Convention cannot be resolved by the competent authorities in accordance with the preceding paragraphs of this article, with the consent of the competent authorities and the taxpayer (taxpayers), the issue may be referred to arbitration if the taxpayer gives written consent to recognize the arbitration award as binding.. The arbitration decision on a specific issue is binding on both States. The procedure for consideration of such issues by States is established through the exchange of notes through diplomatic channels. After the expiration of the three-year period following the entry into force of this Convention, the competent authorities shall consult with each other to determine the appropriateness of the exchange of diplomatic notes. The provisions of this paragraph will enter into force after the States have reached an agreement through the exchange of diplomatic notes.

Article 26 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 national legislation of the Contracting States relating to taxes to which the Convention applies, to the extent that taxation under this legislation does not contradict the Convention. The exchange of information is not limited to Article 1 (General scope of the Convention). Any information received by a Contracting State will be considered confidential to the same extent as information received in accordance with the national legislation of that State, and will be disclosed only to persons or authorities (including courts and administrative authorities) related to the calculation, collection, management, enforcement or enforcement of decisions, or the consideration of applications in respect of taxes covered by the Convention. Such persons or authorities will use the information only for these purposes. They may disclose this information during an open court hearing or when making court decisions. 2. None of the provisions of paragraph 1 shall be interpreted as obliging a Contracting State to: (a) apply administrative measures contrary to the laws and administrative practices of that or another State; (b) provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or another Contracting State.; (c) To provide information that discloses a business, commercial, industrial, trade or professional secret or production process, or information the disclosure of which would be contrary to the public interest. 3. If one of the Contracting States requests information in accordance with this Article, the other Contracting State will receive the information to which the request relates in the same manner and to the same extent as if the tax of the first-mentioned State were a tax of that other State and levied by that other State. At the special request of the competent authority of one of the Contracting States, the competent authority of the other Contracting State will ensure the provision of information pursuant to this Article in the form of witness statements and notarized copies of complete original documents (including accounting books, documents, reports, records, accounts and notes), to the extent that these statements and documents may be received according to the legislation and administrative practice of this other State in relation to its own taxes. 4. For the purposes of this Article, the Convention applies, notwithstanding the provisions of Article 2 (Taxes to which the Convention applies), to taxes of any kind levied by a Contracting State.

Article 27 Diplomatic agents and consular officers None of the provisions of this Convention affects the tax privileges of employees of diplomatic missions, officials and employees of consular institutions granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 28 Entry into force 1. This Convention is subject to ratification in each of the Contracting States, and the instruments of ratification will be exchanged as soon as possible. 2. The Convention will enter into force on the date of the exchange of instruments of ratification, and its provisions will apply: (a) with respect to taxes levied at the source of dividends, interest or royalties, to amounts paid or due on or after the first day of the second month following the month of entry into force of the Convention.; (b) In respect of other taxes, for taxable periods beginning on or after the first of January following the date of entry into force of the Convention.

Article 29 Termination 1. This Convention shall remain in force until terminated by one of the Contracting States. Each Contracting State may terminate the Convention at any time after 5 years from the date of entry into force of the Convention by notifying the other Contracting State in writing through diplomatic channels of the termination of the Convention at least six months in advance. In such a case, the Convention shall cease to apply: (a) with respect to taxes levied at the source of income, to amounts paid or accrued on or after the first of January following the expiration date of the 6-month period.; b) in respect of other taxes, for taxable periods beginning on or after the first of January following the expiration date of the 6-month period. In witness whereof, the undersigned representatives, being duly authorized thereto by their respective Governments, have signed this Convention. Done in Almaty on October 24, 1993, in two originals, in Russian and English, both texts being equally authentic. A text in Kazakh will be prepared, which will be confirmed through the exchange of diplomatic notes confirming its compliance with the English text. Protocol At the signing today of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, the undersigned have agreed on the following provisions forming an integral part of this Convention: 1. With regard to Article 5: It is understood that a permanent place of business through which a resident of one of the Contracting States carries on business in the other Contracting State forms a permanent establishment, regardless of whether such place of business belongs to the resident or not. For example, the operation of a mine, an oil or gas well, a mine or any other place of extraction of natural resources forms a permanent representative office of the operator, regardless of whether this company owns the site on which natural resources are extracted. 2. With regard to Article 10: (a) In the case of dividends, an American company considered as a Regulated Investment Company is adopted by subparagraph (b), rather than subparagraph (a) of paragraph 2. In the case of dividends, an American company considered as a Trust Fund for Investing in Real Estate is subject to the withholding tax rate in accordance with domestic law. (b) The term "amount equivalent to dividends", as used in paragraph 5, refers to that part of the profits of a permanent establishment that is taxable in accordance with Article 6 (Business profits), or to that part of the profits of a resident of one State that is net taxable in another State in accordance with paragraph 4 of Article 9 (Income from immovable property), or paragraphs 2 and 3 (b), Article 12 (Royalties), or paragraphs 1 and 2 of Article 13 (Income from alienation of property), comparable to the amount that would be distributed as dividends, if such income had been received by a local branch registered as a legal entity. In the case of the United States, the term "amount equivalent to dividends" has the same meaning as it has under United States law, which may change from time to time without changing the basic principle of this paragraph 2 (b) of the Protocol. 3. With regard to Article 11: (a) If Kazakhstan agrees in a contract with another country that is a member of the Organization for Economic Cooperation and Development to charge a lower rate of interest than the rate specified in paragraph 2, both Contracting States will apply this lower rate instead of the rates specified in paragraph 2. (b) For the purposes of paragraph 3 (b), the agencies and authorities are the Export-Import Bank and the Corporation for Foreign Private Investment of the United States and similar agencies of each of the Contracting States, as may be agreed upon in the future by the competent authorities. The provisions of this paragraph will apply provided that the lender does not have the right to seek assistance in paying the principal amount or interest from any person other than the borrower or the government agency of the borrower's country. (c) Notwithstanding the provisions of paragraph 1, the United States may tax an excess amount in respect of a Real Estate Mortgage Company (REMIC) in accordance with its domestic law. d) If a resident of Kazakhstan carries out business in the United States through a permanent establishment in the United States or receives income subject to taxation in the United States on a net basis on the basis of paragraph 4 of Article 9 (Income from immovable property), paragraphs 2 and 3 (b) of Article 12 (Royalties), paragraphs 1 or 2 of Article 13 (Income from the alienation of property) or Article 14 (Independent personal services), then the "excess amount of payment" will be any excess, i) interest, income received by the permanent establishment or from trading or business activities that are taxable on a net basis in the United States over (ii) interest paid by such permanent establishment or from trading or business activities that are taxable on a net basis.

4. With respect to Articles 10, 11 and 12: Taxes may be withheld at source in one of the Contracting States at the rates prescribed by national law, but any excess amount will be reimbursed to the taxpayer in a timely manner upon filing an application if the right to levy the said taxes is waived or limited by the provisions of this Convention. 5. With regard to Articles 9 and 12: If a resident of one of the Contracting States prefers to calculate the tax due in accordance with Articles 9 or 12 on the basis of net income, as provided for in these Articles, the competent authorities of each Contracting State may adopt reasonable rules for determining and reporting taxable income. Each competent authority may also adopt procedures that ensure that the person receiving such income submits accounting records and documents, if necessary, to determine the correct amount of tax. 6. With regard to paragraph 3 of Article 13 (Proceeds from alienation of property). If one of the Contracting States imposes such a tax, it will promptly notify the other Contracting State and also agree to consult with that other State on the appropriateness of amending the agreement, which makes it possible in certain cases to consider the contract invalid. 7. With regard to

Article 21: In the United States, the term "officially recognized stock exchange" refers to the NASDAQ system owned by the National Association of Stock Dealers (NASD, Ins.), and any stock exchange registered by the Securities and Exchange Commission as a national stock exchange in accordance with the Stock Exchange Act of 1934. 8. With respect to Article 23: (a), It is understood that in the case of a natural person resident in Kazakhstan who is also a citizen of the United States, the offset required to be presented against the Kazakh income tax includes the offset of income tax paid by such individuals to the United States, levied solely by reason of nationality, subject to the limitation of such offset under the Kazakh income tax from all sources located outside of Kazakhstan. b) The Republic of Kazakhstan confirms that when calculating taxes on profits and income, in accordance with applicable law, a legal entity that is a resident of Kazakhstan and joint ventures involving residents of the United States or which are wholly owned by residents of the United States or a permanent mission (subject to the provisions of Article 6) is allowed to deduct the wages actually paid and interest expenses, regardless of whether the payment has been made to the bank or not, and without taking into account the term of the debt. The deduction may not exceed the limits in accordance with the tax legislation of Kazakhstan as long as the limits are not less than the "arm's length" rate, which takes into account a reasonable risk premium. (c) It is understood that income tax paid by a Kazakhstani person who is treated as a partnership in accordance with the provisions of the United States federal income tax is, for the purposes of this article, treated as paid by an American partner in accordance with the Internal Revenue Code. d) Both Parties agree that a set-off for the amount of unpaid tax is not currently provided for in Article 23 (Elimination of double taxation) of the Convention. However, the Convention will be immediately amended with respect to the provision for the creation of a set-off for the amount of unpaid taxes if the United States in the future changes its legislation regarding the provisions for the set-off for the amount of unpaid loans, or the United States reaches an agreement on the provisions for the set-off for the amount of unpaid taxes with any other country. 9. With regard to Article 25: If the competent authority of one of the Contracting States considers that the legislation of the other Contracting State applies or may be applied in such a way as to eliminate or significantly limit the benefits provided for in this Convention, that State shall promptly inform the other Contracting State and may offer consultations on restoring the balance of benefits provided by this Convention. If so proposed, the other Contracting State will initiate such consultations within three months from the date of receipt of such request. If the Contracting States are unable to agree on ways to amend the Convention in order to restore the balance of benefits, the State concerned may terminate this Convention in accordance with the procedures of paragraph 1, despite the 5-year period provided for in this paragraph, or take such other measures with respect to this Convention consistent with the general principles of international law. 10. With regard to Article 28:

If any legal rules applicable at the date of entry into force of this Convention provide for greater tax advantages than those provided for in this Convention, the taxpayer may choose to apply these rules in their entirety for the first taxable year in respect of which the provisions of this Convention apply. Otherwise, the Conventions will enter into force under paragraph 2.

Law of the Republic of Kazakhstan dated June 26, 1996 No. 14-1

President

Republic of Kazakhstan

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