On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income

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On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income

Law of the Republic of Kazakhstan dated June 2, 2003 No. 421

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on the Avoidance of Double Taxation and the Prevention of Tax Evasion in Respect of Taxes on Income, concluded in Astana on September 12, 2001.

 President of the Republic of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and Agreement between the Government of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

The Government of the Republic of Kazakhstan and the Government of the People's Republic of China, Desiring to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, Have agreed on the following:

Article 1 Persons to whom the Agreement applies

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

Article 2 Taxes covered by the Agreement

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or its local authorities, regardless of the method of their collection. 2. Income taxes are all types of taxes levied on the total amount of income or on individual elements of income, including taxes on income from the alienation of movable or immovable property, as well as taxes on capital gains. 3. The existing taxes to which the Agreement applies are, in particular: a) in Kazakhstan: (i) Corporate income tax; (ii) personal income tax; (hereinafter referred to as the "Kazakhstan Tax");

b) in China: (i) Personal income tax; (ii) income tax on enterprises with foreign investments and on foreign enterprises; (hereinafter referred to as the "Chinese Tax"). 4. This Agreement shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of this Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes in their respective tax laws, within the time period appropriate for them after such changes.

Article 3 General definitions

1. For the purposes of this Agreement, unless the context otherwise requires: a) the term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes the 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 agreements and in which its tax legislation applies; b) the term "China" means the People's Republic of China.; When used in a geographical sense, it means the entire territory of the People's Republic of China, including its territorial waters, in which Chinese legislation related to taxation applies, and any area outside its territorial waters in which the People's Republic of China, in accordance with international law, has sovereign rights to explore and exploit the resources of the seabed and its subsoil. (c) The terms "Contracting State" and "other Contracting State" mean China or Kazakhstan, depending on the context.; (d) The term "tax" means a Chinese tax or a Kazakh tax, depending on the context; (e) The term "person" includes an individual, a company and any other association of persons; (f) The term "company" means any corporate association or any economic unit that is considered a corporate association for tax purposes.; (g) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean, respectively, an enterprise operated by a resident of one Contracting State and an enterprise operated by a resident of the other Contracting State; (h) The term "national person" means: (i) any natural person who has the nationality of a Contracting State; (ii) any legal person, partnership or association which has obtained such status on the basis of the applicable legislation of a Contracting State; (i) The term "international carriage" means any carriage by sea, aircraft or land transport operated by an enterprise of a Contracting State, except when the ship, aircraft or land transport is operated exclusively between locations in the other Contracting State; (j) The term "competent authority" means, in the case of China, the State Tax Administration or its authorized representative, and in the case of Kazakhstan, the Ministry of Finance or its authorized representative. 2. As regards the application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State in respect of taxes to which the Agreement applies.

Article 4 Resident

1. For the purposes of this Agreement, 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, location of head office, place of management, or any other similar criterion. 2. If, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then 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 at his disposal; if he has a permanent home at his disposal in both States, he is considered to be a resident of the State in which he has closer personal and economic ties (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 has an habitual abode in both States or in neither Of these, he is considered to be a resident of the State of which he is a citizen.; (d) If each State considers him to be its national or if he is not a national of any of them, the competent authorities of the Contracting States will resolve the matter by mutual agreement. 3. If by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall settle the matter by mutual agreement.

Article 5 Permanent establishment

1. For the purposes of this Agreement, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part. 2. The term "permanent establishment" includes, in particular:: (a) A place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (f) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: (a) A construction site, facility, assembly or assembly facility, or related observational activities, but only if such site, facility or activity continues for a period of more than 12 months; (b) an installation, drilling rig or vessel used for the exploration, exploitation or transportation of natural resources, but only if such use lasts for more than 12 months; and 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 this nature continue (for such or a related project) within the country for a total period of more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purposes of storage, display or delivery; (c) The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or collecting information for the enterprise; (e) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts in a Contracting State on behalf of an enterprise of the other Contracting State, and has and habitually exercises the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activity that that person carries out for the enterprise, unless the activities of such person are limited to the activities referred to in paragraph 4, which, if carried out through a permanent place of business, do not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise of one Contracting State shall not be considered as having a permanent establishment in the other Contracting State solely because it carries on business in that other State through a broker, a general commission agent or any other agent with an independent status, provided that such persons act within the framework of their ordinary business activities. However, if the activity of such an agent is carried out entirely or almost entirely on behalf of this enterprise, he will not be considered an agent with an independent status within the meaning of this paragraph. 7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) By itself, it does not turn one of these companies into a permanent establishment of the other.

Article 6 Income from immovable property

1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture and forestry) located in the other Contracting State may be taxed in that other State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop mineral 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 business activities

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 therein, then in each Contracting State that permanent establishment shall include the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, provided 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 profits of a permanent establishment, expenses incurred for the purposes of the business activities of the permanent establishment, including such managerial and general administrative expenses, may be deducted, regardless of whether these expenses are incurred in the State in which the permanent establishment is located or in any other place. However, such deduction is not permitted in respect of any amounts paid (other than in reimbursement of actual expenses) by a permanent establishment to the head office of the enterprise or any of its other offices through royalties, royalties or other similar payments in return for the use of patents or other rights, or through the payment of commissions for special services or management rendered, or, except in the cases of a banking organization, by paying interest on a loan provided to a permanent establishment. Similarly, when determining the profit of a permanent establishment, the amounts provided by the permanent establishment to the head office of the enterprise or any of its other offices through royalties, fees or other similar payments in return for the use of patents or other rights, or by paying commissions for special services rendered, will not be taken into account. or management, or, except in the cases of a banking organization, by paying interest on a loan provided to the head office of the enterprise or any of its other offices. 4. To the extent that it is customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of a proportional distribution of the total profits of the enterprise among its various divisions, nothing in paragraph 2 prohibits that Contracting State from determining taxable profits by such distribution as is customary. However, the chosen method of proportional distribution should produce results consistent with the principles contained in this article. 5. No profit is attributed to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 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 the profit includes types of income that are specifically mentioned in other articles of this Agreement, the provisions of these articles are not affected by the provisions of this article.

Article 8 Sea and air transport

1. Profits earned by a resident of a Contracting State from the operation of ships, aircraft or land vehicles in international traffic shall be taxable only in that State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, in a joint business or in an 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 one Contracting State and an enterprise of the other Contracting State, and in any case between the two enterprises in their commercial or financial relationships create or establish conditions different from those that would take place between two independent enterprises., then any profit that could have been credited to one of the enterprises, but was not credited to it due to these conditions, can be included in the profit of this enterprise and, accordingly, taxed. 2. If one Contracting State includes in the profits of an enterprise of that State and, accordingly, taxes the profits on which the enterprise of the other Contracting State was taxed in that other State, and the profits thus included are profits that would have accrued to the enterprise of the first-mentioned State if the relationship between the two enterprises were such which exist between independent enterprises, then this other State can make an appropriate adjustment of the tax amount, charged on such profits. In determining such an adjustment, the other provisions of this Agreement should be taken into account, and the competent authorities of the Contracting States will consult with each other, if necessary.

Article 10 Dividends

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed 10 per cent of the total amount of the dividends. The competent authorities of the Contracting States shall establish by mutual agreement the method of application of this restriction. 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 but give the right to participate in profits, as well as income from other corporate rights that are subject to the same tax regulation as income from shares in accordance with the laws of the State of which you are a resident. a company that distributes profits. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the holding company, in respect of which pays dividends, is indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 5. If a company that is a resident of one Contracting State receives profits or income from the other Contracting State, that other State may not impose any taxes on dividends paid by that company, except in cases where such dividends are paid to a resident of that other State or the holding company in respect of which the dividends are paid is actually associated with a permanent establishment or permanent The company's undistributed profits are not subject to taxes on undistributed profits based in this other State., even if the dividends paid or retained earnings consist wholly or partly of profits or income arising in that other State. 6. Nothing in this Agreement may be interpreted as preventing a Contracting State from imposing additional taxes on the profits of a company relating to a permanent establishment in that State in addition to the income tax, provided that such additional taxes do not exceed 5 per cent of the amount of such profits, which have not been subject to such additional taxation in previous taxable years. For the purposes of this paragraph, profits shall be determined after deduction of all taxes other than the additional tax referred to in this paragraph levied in the Contracting State in which the permanent establishment is located.

Article 11 Interest

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 per cent of the total amount of the interest. The competent authorities of the Contracting States shall establish by mutual agreement the method of application of this restriction. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and received by the Government of the other Contracting State, a local authority and its Central Bank, or any financial institution wholly owned by the Government of that other State, or by any other resident of that other State, in respect of debt claims indirectly financed by the Government of that other State, a local authority the Government and its Central Bank or any financial institution, in full, owned by the Government of that other State, are exempt from tax in the first-mentioned State. 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, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of one 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 is being paid interest, is indeed associated with such a permanent establishment or fixed 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 the Government of that State, its local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is paid has arisen and such interest is paid by a permanent establishment or permanent base, such interest shall be deemed to be arise in the State in which the 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 this case, the excess part of the payment is subject to taxation in accordance with the laws of each Contracting State, taking into account the other provisions of this Agreement.

Article 12 Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax levied shall not exceed 10% of the total amount of the royalties. The competent authorities of the Contracting State shall, by mutual agreement, determine the manner of application of this restriction. 3. The term "royalties", as used in this article, means payments of any kind received as compensation for the use or for granting the right to use any copyright in works of literature, art or science, including cinematographic films, or films or films for radio or television, any patent, trademark, design or model, plan, a secret formula or process, or for the use, or for granting the right to use industrial, commercial or scientific equipment, or for information related to industrial, 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of one Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the right or property in respect of which royalties are paid is actually connected with such 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 shall be deemed to arise in a Contracting State if the payer is the Government of that State, a local authority, or a resident of that Contracting State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen, and such royalties are paid by that permanent establishment or permanent base, then such royalties shall be deemed to arise in the State in which where 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 related to the use, right or information for which it is paid exceeds the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article apply only to the last mentioned amount. In such a case, the excess part of the payment will continue to be subject to taxation in accordance with the laws of each Contracting State, with due regard to the other provisions of this Agreement.

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 one Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of one 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 together with the entire enterprise), or from such a permanent base, may be taxed in that other State. 3. Gains from the alienation of ships, aircraft or land transport operated in international traffic or movable property related to the operation of such ships, aircraft or land transport shall be taxable only in the Contracting State of which the enterprise operating the ships, aircraft or land transport is a resident. 4. Gains from the alienation of shares in the capital of a company whose property mainly consists, directly or indirectly, of immovable property located in a Contracting State may be taxed in that Contracting State. 5. Gains from the alienation of any property other than that referred to in paragraphs 1-4 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 for one of the following conditions, when such income may also be taxed in the other Contracting State: (a) If he has a permanent base at his disposal on a regular basis in another Contracting State for the purpose of carrying out his activities; in this case, only that part of the income relating to that fixed base may be taxed in that other State; b) if he resides in the other Contracting State for a period or periods totaling or exceeding 183 days in the relevant calendar year; in this case, only that part of the income derived from his activities in that other State may be taxed in that 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, dentists and accountants.

Article 15 Dependent personal services

1. Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, 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 stays in another State for a period or periods not exceeding a total of 183 days in the relevant calendar year; and (b) the remuneration is paid by or on behalf of an employer who is not a resident of another State, and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration derived in connection with an employment performed on board a ship, aircraft or land transport operated in international traffic shall be taxable only in the Contracting State of which the enterprise operating the ship, aircraft or land transport is a resident.

Article 16 Directors' fees

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

Article 17 Artists and athletes

1. Notwithstanding the provisions of articles 14 and 15, income earned by a resident of a Contracting State as a theater, motion picture, radio or television artist, or as 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 from personal activities exercised by an entertainer or Athlete in that capacity accrues not to the entertainer or Athlete 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 entertainer or Athlete's activities are carried on. 3. Notwithstanding the preceding provisions of this article, income earned by an artist or athlete who is a resident of a Contracting State from activities carried out in the other Contracting State under a cultural exchange plan between the Governments of both Contracting States shall be exempt from tax in that other State.

Article 18 Pensions

1. Subject to the provisions of paragraph 2 of article 19, pensions and other similar payments paid in respect of past employment to a resident of a Contracting State shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1, pensions and other similar payments paid by the Government of a Contracting State or local authorities within the framework of a public welfare project of the social security system of that State shall be taxable only in that State.

Article 19 Public service

1. (a) Remuneration, other than a pension, paid by the Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that State or a local authority thereof in the performance of functions of a governmental nature, shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that other State.: (i) is a national of that State; or (ii) has not become a resident of that State solely for the purpose of performing military service. 2. (a) Any pension paid by the Government of a Contracting State or a local authority, or from funds to which they contribute, to an individual in respect of services rendered to the Government of that State or a local authority, shall be taxable only in that 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 State. 3. The provisions of articles 15, 16, 17 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by the Government of a Contracting State or a local authority thereof.

Article 20 Teachers and researchers

1. Remuneration paid to an individual who is or was immediately before arriving in one Contracting State a resident of the other Contracting State and is located in the first-mentioned State for the primary purpose of teaching, lecturing or conducting scientific research at a university, college, school or educational institution or research institute officially recognized by the Government of the first-mentioned State. Of the State, receives for the purpose of such teaching, lecturing or conducting research, are exempt from taxation in the first-mentioned State for a period of 3 years from the date of his first arrival in the first-mentioned State. 2. The provisions of paragraph 1 of this article shall not apply to income received as a result of research, if such research is conducted not in the public interest, but mainly for the personal benefit of a particular person or persons.

Article 21 Students and interns

1. Payments that a student or trainee who is or was immediately prior to arrival in one Contracting State a resident of the other Contracting State and is located in the first-mentioned State solely for the purpose of education or internship, receives for the purposes of his maintenance, education or internship, shall not be taxed in that State, provided that the sources these amounts are located outside this State. 2. With respect to grants, scholarships and remuneration in connection with employment not provided for in paragraph 1, the student, intern or intern described in paragraph 1 shall, in addition, during such training or internship, be entitled to the same exemptions, discounts or tax reductions as are granted to residents of the State that he visits.

Article 22 Other income

1. The types of income of a resident of a Contracting State, regardless of the source of their origin, which are not mentioned in the preceding articles of this Agreement, 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, being a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located there, or provides independent individual services in that other State through a permanent establishment located there. permanent base, and the right or property in connection with which the income is paid is actually connected with such permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.

Article 23 Methods of eliminating double taxation

1. In Kazakhstan, double taxation is eliminated as follows: a) If a resident of Kazakhstan earns income that, in accordance with the provisions of this Agreement, may be taxed in China, Kazakhstan will allow deduction from the income tax of this resident an amount equal to the income tax paid in China. The amount of tax deductible in accordance with the above provision should not exceed the tax that would be accrued on the same income in Kazakhstan at the rates applicable there. b) If a resident of Kazakhstan receives income that, in accordance with the provisions of this Agreement, is taxable only in China, Kazakhstan may include this income in the tax base, but only for the purpose of determining the tax rate on such other income as is subject to taxation in Kazakhstan. 2. In China, double taxation is eliminated as follows: If a Chinese resident earns income in Kazakhstan, a deduction may be provided for the amount of income tax payable in Kazakhstan in accordance with the provisions of this Agreement against the Chinese tax levied on that resident. However, the amount of the deduction should not exceed the amount of Chinese tax on such income, accrued in accordance with the tax laws and conditions of China.

Article 24 Non-discrimination

1. Nationals of one Contracting State shall not be subjected in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of the other State are or may be subjected in the same circumstances. This provision, notwithstanding the provisions of article 1, also applies to persons who are not residents of one or both of the Contracting States. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision should not be interpreted as obliging one Contracting State to grant to residents of the other Contracting State such personal benefits, discounts and deductions for tax purposes based on their civil status or marital status, which it grants to its residents. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of one Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if they were paid to a resident the first mentioned State. 4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any related obligations that are other or more burdensome than taxation and related obligations to which others are or may be subject. similar enterprises of the first mentioned State.

Article 25 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 Agreement, he may, regardless of the remedies provided for by the domestic law of those States, submit his case to the competent authority of the Contracting State of which he is a resident, or, if his case is subject to paragraph 1 of article 24 of the 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 this Agreement. 2. The competent authority shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in accordance with the Agreement. Any agreement reached will be executed regardless of any time limits provided for by 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 in the interpretation or application of the Agreement. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Agreement. 4. The competent authorities of the Contracting States may contact each other directly in order to reach an agreement within the meaning of paragraphs 2 and 3 above. If it is appropriate to reach an agreement, representatives of the competent authorities of the Contracting States may meet for an oral exchange of views.

Article 26 Exchange of information

1. The competent authorities of the Contracting States shall exchange the information necessary to comply with the provisions of this Agreement or the domestic laws of the Contracting States relating to taxes to which this Agreement applies to the extent that taxation under this law does not conflict with this Agreement, in particular to prevent the evasion of such taxes. The exchange of information is not limited to article 1. Any information received by a Contracting State shall be considered confidential and shall be communicated only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution of or consideration of appeals concerning taxes provided for in this Agreement. Such persons or authorities use this information only for these purposes. They may disclose this information during an open court hearing or when making court decisions. 2. In no case shall the provisions of paragraph 1 be interpreted as imposing an obligation on the Contracting States.: (a) To take administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or the other Contracting State; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to public policy (public order).

Article 27 Employees of diplomatic missions and consular institutions

Nothing in this Agreement affects the tax privileges of employees of diplomatic missions or consular institutions to whom such privileges are granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 28 Entry into force

This Agreement shall enter into force on the thirtieth day after the date of the exchange of diplomatic notes indicating the completion of the procedures required by domestic law in each country for the entry into force of this Agreement. This Agreement will apply to income earned during taxable years beginning on or after the first of January following the year in which this Agreement enters into force.

Article 29 Termination

This Agreement remains in force indefinitely, but any of the Contracting States may, up to and including the thirtieth of June of any calendar year beginning after the expiration of a period of five years from the date of entry into force of this Agreement, send through diplomatic channels a written notification of the termination of this Agreement to the other Contracting State. In such a case, this Agreement shall terminate with respect to income earned during the tax years beginning on or after the first of January of the calendar year following the year of notification of termination.

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

Done on the 12th of September 2001 in two copies, in the Kazakh, Chinese and English languages, all texts are equally authentic. In case of a discrepancy between the texts, the English text is decisive.

For the Government For the Government of the Republic of Kazakhstan of the People's Republic of China

(Note. RCPI: the text of the Agreement in English is attached below)

President

Republic of Kazakhstan

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