On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on the Avoidance of Double Taxation of Income and Property

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on the Avoidance of Double Taxation of Income and Property

The Law of the Republic of Kazakhstan dated February 24, 1997 No. 71-I SAM.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on the Avoidance of Double Taxation of Income and Property, signed in Almaty on June 12, 1996.

President

Republic of Kazakhstan

AGREEMENT between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on avoidance of double taxation of income and Property

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on April 21, 1997)

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

Desiring to conclude an Agreement on the avoidance of double taxation of income and property, and in order to promote the further development of bilateral economic cooperation,

Have agreed on the following:

Article 1 Scope of application

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 applies to taxes on income (profits) and on property levied on behalf of each Contracting State, its administrative divisions or local authorities, regardless of the manner in which they are levied.

2. Income (profit) and property taxes include all taxes levied on total income or on a portion of income, including taxes on income from the alienation of movable or immovable property, taxes on total wages or remuneration, and taxes on property appreciation.

3. The taxes to which this Agreement applies are:

-in the Republic of Kazakhstan:

(I) Corporate income tax;

(II) Individual income tax;

(III) the corporate and individual property tax (hereinafter referred to as the "taxes of Kazakhstan");

- in the Republic of Uzbekistan:

(I) Corporate income tax;

(II) Personal income tax;

(III) Property tax

(hereinafter referred to as "taxes of Uzbekistan").

4. This Agreement shall also apply to any similar or substantially similar taxes that are imposed by either Contracting State after the date of signature of this Agreement in addition to or in place of the taxes referred to in paragraph 3 of this Article. The competent authorities of the Contracting States will notify each other of any significant changes in their tax laws.

The footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 3 General definitions

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

a) terms:

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

- "Uzbekistan" means the Republic of Uzbekistan and, when used in a geographical sense, includes its territory, internal waters, and airspace above them, where the Republic of Uzbekistan can exercise sovereign rights and jurisdiction, including rights to use subsurface resources and natural resources, in accordance with international law and where the legislation of the Republic of Uzbekistan applies.;

(B) The terms "Contracting State" and "other Contracting State" mean Uzbekistan or Kazakhstan, depending on the context.;

(c) The term "person" includes an individual, any legal entity and any other body of persons established in accordance with the laws of a Contracting State and which is treated for tax purposes as a legal entity.;

d) the term "company" means any corporate association or any organization that, for tax purposes, is considered a corporate association, including a joint-stock company, a limited liability company, or any other legal entity or organization that is subject to income (profit) taxes;

(e) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise which is a resident of a Contracting State and an enterprise which is a resident of the other Contracting State;

(f) The term "international carriage" means any carriage by sea, river, aircraft, railway or road vehicle carried out by an enterprise of a Contracting State, except in cases where such carriage is carried out between locations located in the territory of another Contracting State.;

(h) The term "national person" includes:

(I) any natural person who is a national of a Contracting State;

(II) any legal entity and association that has acquired its status in accordance with the applicable laws of a Contracting State;

(g) The term "competent authority" means:

- in the Republic of Kazakhstan - the Ministry of Finance of the Republic of Kazakhstan or its authorized representative;

- in the Republic of Uzbekistan - the State Tax Committee of the Republic of Uzbekistan.

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

The footnote. Article 3 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

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, permanent residence, place of incorporation, location of an actual governing body or any other criterion of a similar nature. However, this term does not include a person who is liable to tax in that Contracting State solely on the basis that he receives income from sources or from property in the same State.

The term also includes the Government of a Contracting State or its administrative divisions, local authorities. It also includes any pension or other form of employee benefits, as well as any charitable organization established in accordance with the laws of a Contracting State.

2. In the case where, in accordance with the provisions of paragraph, an individual is a resident of both Contracting States, his status shall be determined as follows:

a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State in which he has closer personal and economic ties (center of vital interests);

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

(c) If a person has an habitual abode in both Contracting States or does not have an habitual abode in either of them, he shall be deemed to be a resident of the Contracting State of which he is a national.;

(d) If each of the Contracting States considers him to be its resident or none of the Contracting States considers him to be such, the competent authorities of the Contracting States shall settle the matter by mutual agreement.

3. Where by reason of the provisions of paragraph 1 of this article a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident only of the Contracting State in which his place of effective management is located.

The footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 5 Permanent establishment

1. For the purposes of this Agreement, the term "permanent establishment" means a permanent place through which an enterprise of a Contracting State carries on business in the other Contracting State.

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

a) place of management;

B) separation;

c) office;

d) the factory;

f) workshop;

(f) A mine, a mine, an oil or gas well, a quarry, an installation, a construction (including a drilling rig), a marine vessel or any other place of exploration or extraction of natural resources, as well as related observational services;

g) warehouse or other place of sale of goods.

3. The term "permanent establishment" also includes:

a) a construction site or a construction, installation or assembly facility or services related to the supervision of the performance of these works, if only such a site or facility has existed for more than 12 months, or such services have been provided for more than 12 months; and

(b) The provision of services, including consulting or management services, by an enterprise of a Contracting State through employees or other personnel employed by the enterprise for such purpose, but only if activities of that nature continue (for one or a related project) in the territory of the other Contracting State for a period or periods exceeding a total of 12 months.

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

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

B) the maintenance of stocks of goods or merchandise belonging to that enterprise solely for the purpose of storage, display or delivery;

(c) The maintenance of stocks of goods or merchandise belonging to that enterprise solely for the purpose of processing them by another enterprise;

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

(e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities in the exclusive interests of that enterprise;

(f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities referred to in subparagraphs (a) to (e), provided that the combined activities of that permanent place resulting from such combination are of a preparatory or auxiliary nature.

5. Notwithstanding the provisions of paragraphs 1 and 2, if a person other than an agent with an independent status to whom the provisions of paragraph 6 of this article apply, acting on behalf of an enterprise, has and habitually uses in a Contracting State the right to conclude contracts on behalf of that enterprise, such enterprise will be considered as having a permanent establishment in that State. in respect of any activity that that person carries out for the enterprise, unless that person's activities are limited to those referred to in paragraph 4, which, although it is carried out through a permanent place of business, according to the provisions of this paragraph, it does not make this permanent place of business a permanent establishment.

6. An enterprise of one Contracting State shall not be considered as having a permanent establishment in the other Contracting State solely by virtue of the fact that it 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 normal activities. However, when the activity of such an agent is carried out entirely or almost entirely on behalf of such an enterprise, it is not considered an agent with an independent status in accordance with this paragraph.

7. The fact that a company that is a resident of one Contracting State controls or is controlled by a company that is a resident of the other Contracting State or 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.

8. Notwithstanding the preceding provisions of this article, an insurance organization of one Contracting State, excluding reinsurance, forms a permanent establishment in the other Contracting State if it collects contributions in the territory of the other Contracting State or insures risks while there through a person other than an agent with an independent status to whom the provisions of paragraph 6 apply. this article.

The footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 6 Income from immovable property

1. Income earned by a resident of one Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed only in that other State.

2. In this Agreement, the term "immovable property" will have 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 or 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 considered as compensation for the development or grant of the right to development of natural resources. Sea, river and air vessels, railway and motor vehicles will not be considered as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use of immovable property, 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 income from immovable property used for independent personal services.

Article 7 Profit from business activities

1. Profits earned in one Contracting State by an enterprise of the other Contracting State shall be taxable in the first-mentioned State unless they are earned through a permanent establishment located there and only to the extent that they relate to:

(a) Such permanent establishment;

(b) Sales in that other State of goods or merchandise that match or resemble goods or merchandise that are sold through a permanent establishment; or

(c) Other business activities carried on in that other State which are identical or similar in nature to business activities carried on through such a permanent establishment.

2. Subject to the provisions of paragraph 3, if an enterprise of one Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State such permanent establishment shall include the profits that it could receive if it were a separate and independent enterprise carrying on the same or similar activities, under such circumstances under the same or similar conditions, and acting completely independently of the enterprise of which it is a permanent establishment.

3. When determining the income (profit) of a permanent establishment, deductions must be made of documented expenses incurred for the purposes of the activities of this permanent establishment, including administrative and general administrative expenses, regardless of whether these expenses are incurred in the State in which the permanent establishment is located or outside it.

It is not allowed to deduct to a permanent establishment the amounts paid to its parent institution (office) or any of the other institutions (offices) of a resident 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 a permanent establishment the institution. Similarly, the profits of a permanent establishment should not include amounts received by the permanent establishment from the head office or any of its other resident institutions in the form of royalties, fees or other similar payments for the use of patents or other rights, in the form of commissions for specific services or management provided, or interest on the amount of, narrowed to the head office or any of its other offices.

4. No profit shall be attributed to a permanent establishment of a Contracting State solely on the basis of the purchase by the permanent establishment of goods or merchandise for that enterprise.

5. For the purposes of the preceding paragraphs, income (profit) related to a permanent establishment will be determined annually using the same method, unless there is a compelling and sufficient reason to change it.

6. If the profit includes the types of income mentioned separately in other articles of this Agreement, the provisions of these articles are not affected by the provisions of this article.

The footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 8 International transport

1. Income (profits) of a resident of a Contracting State derived from the use of sea, river, and aircraft, railway, or motor vehicles in international traffic, shall be taxable only in that State.

2. For the purposes of this Agreement, income from the use of sea, river, and aircraft, rail, or motor vehicles in international transportation includes income from the direct use, rental, or any other form of use of vehicles, including the use, maintenance, or rental of containers (including trailers and related container transportation equipment).

3. The provisions of paragraphs 1 and 2 shall also apply to profits from participation in a pool, joint venture or international vehicle operating organization.

Article 9 Associated enterprises

1. In cases where:

(a) An enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

B) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one Contracting State and an enterprise of the other Contracting State, and in any case circumstances arise or are established between the enterprises in their commercial and financial relations that differ from those that would occur between independent enterprises, then the profit that it would have been credited to one of the enterprises, but due to the existence of such a relationship it was not credited to him, it can be included in the income of this enterprise and, accordingly, taxed.

2 2. If one Contracting State includes in the profits of an enterprise of that Contracting State and, accordingly, taxes profits in respect of which an enterprise of the other Contracting State is taxed in that other Contracting State, and thus the profits included are profits that would have accrued to an enterprise of the first-mentioned Contracting State if conditions between the two enterprises had been would be the kind that exist between independent bIf one Contracting State includes in the profits of an enterprise of that Contracting State and, accordingly, taxes profits in respect of which an enterprise of the other Contracting State is taxed in that other Contracting State, and thus the profits included are profits that would have accrued to an enterprise of the first-mentioned Contracting State if conditions between the two enterprises had been would be the kind that exist between independent businesses, that other Contracting State will make an appropriate adjustment to the amount of tax calculated on such profits. When determining such an adjustment, the other provisions of this Agreement shall be taken into account, and the competent authorities of the Contracting States, if necessary, shall consult with each other.

The footnote. Article 9 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 10 Dividends

1. Dividends paid by a com. Dividends paid by a company which is a resident of one 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 in accordance with the laws of that State, but if the recipient of the dividends is actually entitled to them, the tax levied shall not exceed 10 per cent of the gross amount of the dividends.

This paragraph does not relate to taxation in respect of profits from which dividends are paid.

3. The term "dividends", as used in this article, means income from shares or other rights that are not debt claims that 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 in which you are a resident. is a company that distributes profits.

4. The provisions of paragraphs 1 and 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the person actually entitled to 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 from a permanent base located there, and the holding company in respect of which the dividends are paid is actually associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Agreement, as the case may be, shall apply.

5. In the event that a company that is a resident of a Contracting State makes profits in the other Contracting State, that other State may not tax the 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 divi5. In the event that a company that is a resident of a Cocate makes profits in the other Contracting State, that other State may not tax the dividends paid by that company, except in casesch dividends are paid to a resident of that other State, or the holding company in respect of which the dividends are paid is actually associated with a permanent establishment or fixed base., located in this other State.

6. The pr6. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or distribution of shares or other rights in respect of which dividends are paid is to obtain benefits in accordance with this article through such creation or distribution.

The footnote. Article 10 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

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 gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest generated in a Contracting State will be exempt from tax in that State if:

(a) The actual recipient of the interest is the Government of the other Contracting State, or local authorities, or any other authorities of that Government or local authorities;

b) the actual recipient of interest is the National Bank of the Republic of Kazakhstan or the Central Bank of the Republic of Uzbekistan, the organization for guaranteeing state export and import loans or other financial organizations wholly owned by the Government of the other Contracting State.

4. The. The term "interest", as used in this Agreement, means income from debt claims of any kind, regardless of mortgage security and ownership of the right to participate in profits, in particular, income from government securities and debentures, including premiums and winnings on these securities and debentures.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of one Contracting State, carries on busine 5. The provisions of paragraphs 1 and 2 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 through a permanent base located there, and debt claims on the basis of which the interest is paid., really belong to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Agreement, as the case may be, shall apply.

6. Int 6. Interest shall be deemed to have arisen in a Contracting State if the payer is a resident of that Contracting State. However, if 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 obligation to pay interest arises, and the costs of such interest are borne by a permanent establishment or permanent base, the interest shall be de, if the person paying the interest, regardless of whether he is a resident of a Contracting State has a permanent establishment or permanent base in a Contracting State in conneion with which the obligation to pay interest arises, and the costs of such interest are borne by a permanent establishment or permanent base, the inte shall be deemed to have arisen in that Contracting State. The State in which such a permanent establishment or permanent base is located.

7. If, as a result of a special relationship between the payer and the person actually entitled to interest, or between both of them and any other person, the amount of interest related to the debt claim in respect of which they are paid exceeds the amount that would have been agreed between the payer and the person actually entitled to them, in the absence of such However, 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 taxed in accordance with the laws of each Contracting State, taking into account h a case, the excess part of the payment will continue to be taxed in accordance with the laws of each Contracting State, taking into account the other provisions of this Agreement.

8. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this article by creating or transferring rights.

The footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 12 Royalties

1. Royalties arising in one Contracting State and paid to a resident of the other Contracting State may be taxed in that other State if that resident is the beneficial owner of those royalties.

2. However, these royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State. However, these royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State, the tax may not exceed 10 percent of the gross amount of the royalties. The competent authorities of the Contracting States shall, by mutual agreement, establish a method of applying such restrictions.

3. The term "royalties", as used in this article, includes payments of any kind received as compensation for the use or for granting the right to use copyrights to any work of literature, art or science, including motion pictures and recordings for radio and television and videotapes, any patents, trademarks, design or model, blueprint, computer programs, secret formulas or processes, or for information regarding industrial, commercial or scientific experience and payments for the use or grant of the right to use The term "royalties", as used in th

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of one Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment or base located therein, and the right or property in respect of which the royalties are paid is actually associated with such permanent establishment. or a base. In such a case, the provisions of article 7 or article 14 of this Agreement, as the case may be, shall apply.

5. Royalties shall be deemed to have arisen in a Contracting State if the payer is a resident of that Contracting State. However, if 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 an obligation to pay royalties arises, and the costs of such royalties are borne by a permanent establishment or permanent base, the royalties shall be deemed to have arisen in that Contracting State., where a permanent establishment or permanent base is located.

6. If, as a result of a special relationship between the payer and the person actually entitled to royalties, or between both of them and any third party, the amount of royalties paid related to the use, right of use, or information for which they are paid exceeds the amount that would have been agreed between the payer and the person actually entitled to In the absence of such relations, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the payment will continue to be taxed in accordance with the laws of each Contracting State, subject to the other provisions of this Agreement.

7. The provisions of this article shall not apply if the primary purpose or one of the primary purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid was to benefit from this article through such creation or transfer of rights.

The footnote. Article 12 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 13 Increase in the value of property

1. Income earned by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 located in the other Contracting State may be taxed in that other Contracting 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 available to a resident of one Contracting State in the other Contracting State for the purpose of providing independent personal services, including income from the alienation of such permanent establishment (separately or together with the company), or such a permanent base, may be taxed in that other Contracting State.

3. Income earned by a resident of a Contracting State from the alienation of ships, aircraft, rail or motor vehicles used in international traffic by an enterprise of a Contracting State or movable property related to the operation of such vehicles shall be taxable only in that Contracting State.

4. Income earned by a resident of a Contracting State from the alienation of shares, interests or other rights in the capital of a company deriving more than 50 percent of its value, directly or indirectly, from immovable property located in the other Contracting State may be taxed in that other Contracting State.

5. Gains from the alienation of any property other than that provided for in the preceding paragraphs of this article shall be taxable only in the Contracting State of which the alienator is a resident.

The footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 14 Independent personal services

1. Income earned by a resident of a Contracting State from the provision of professional services or other services of an independent nature is taxable only in that State. However, such income may also be taxed in the other Contracting State, but only if:

(a) An individual has or has had at his disposal a permanent base in the other Contracting State for the purpose of carrying out his business, in this case only that part of the income which relates to that permanent base; or

(b) An individual resides or has resided in the other Contracting State for a period or periods exceeding a total of 183 days in any 12-month period, in this case only in the part relating to services provided in that other Contracting State.

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

The footnote. Article 14 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 15 Employment

1. Subject to the provisions of articles 16, 18 and 19 of this Agreement, salaries and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State, unless such work is performed in the other Contracting State. If the employment is carried out in this way, the remuneration received in connection with it may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

(a) The recipient remains in the other Contracting State for a period or periods not exceeding a total of 183 days in any 12-month period; and

(B) The remuneration is paid by or on behalf of the employer who is not a resident of the other Contracting State; and

(c) The remuneration costs are not borne by a permanent establishment or fixed base that the employer has in another State.

3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, salaries and other similar remuneration derived by a resident of a Contracting State in respect of an employment performed on board a ship, river, aircraft, railway or motor vehicle used in international traffic may be taxed in that State of which the enterprise is a resident. operating these vehicles.

Article 16 Income received by members of the Boards of Directors

Royalties and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors or a similar body of a company or any other legal entity that is a resident of the other Contracting State may be taxed in that other Contracting State.

Article 17 Income of artists and athletes

1. Notwithstanding the provisions of articles 14 and 15 of this Agreement, income earned by a resident of a Contracting State as an artist, such as a theater, film, radio or television artist, or a musician, or as an athlete, from his personal activities carried on in the other Contracting State, may be taxed in that other State..

2. Where income from personal activities exercised by an entertainer or an 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 of this Agreement, be taxed in the Contracting State in which the activities of the entertainer or athlete are carried on.

3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities carried on in a Contracting State by art workers or athletes if those activities are financed by the other Contracting State, its entities or local authorities. In this case, such income shall be taxable only in the Contracting State of which the entertainer or athlete is a resident.

Article 18 Pensions and other similar payments

1. Pensions (including State pensions and social security payments) and annuities paid to a resident of a Contracting State shall be taxable only in that Contracting State.

2. The term "annuity" means a fixed amount paid to an individual periodically at a certain time during his life or for a certain period of time under an obligation to pay in return for adequate and full compensation (other than the services provided).

3. Alimony or other similar payments in favour of a resident of a Contracting State may be taxed in that Contracting State.

Article 19 Remuneration for public service

1. Remuneration, other than a pension, paid by a Contracting State, its administrative subdivisions or local authorities to an individual in respect of services rendered to that State, its administrative subdivisions or local authorities shall be taxable only in that State.

2. 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 State.:

(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.

Article 20 Students, teachers and researchers

1. Payments received by a student, graduate student or intern who is or was immediately prior to arrival in a Contracting State a resident of the other Contracting State and is located in the first-mentioned State solely for the purpose of obtaining education or internship, and intended for the purposes of his maintenance, education or internship, shall not be taxed in the first-mentioned State, if the sources of these payments are located outside this Country.

2. Similarly, remuneration derived by a teacher or researcher who is, or was, a resident of the other Contracting State immediately prior to his arrival in a Contracting State and is present in the first-mentioned State primarily for the purpose of teaching or conducting research, shall be exempt from tax in that State for a period of two years in respect of remuneration for such teaching or conducting research..

Article 21 Other income

1. Types of income of a resident of a Contracting State, regardless of where they arise, which are not provided for in other articles of this Agreement, shall be taxable only in that Contracting State.

2. The provisions of paragraph 1 of this article shall not apply to income, with the exception of income from immovable property defined in paragraph 2 of Article 6 of this Agreement, 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 personal services in that other Contracting State with a permanent base located in it, and the right or property in respect of which income is paid, indeed, it is connected with such a permanent establishment or permanent base. In such a case, the provisions of articles 7 or 14 of this Agreement, as appropriate, shall apply.

The footnote. Article 21 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 22 Property

1. Immovable property owned by a resident of one Contracting State and located in the other Contracting State may be taxed in that other State.

2. Movable property that is part of the (business) property of a permanent establishment that an enterprise of one Contracting State has in the other Contracting State, or represented by movable property belonging to a permanent base available to a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State.

3. Property represented by ships, aircraft, railways and motor vehicles that are the property of a resident of a Contracting State and are operated in international traffic, and movable property related to such transportation, shall be taxable only in that Contracting State.

4. All other elements of the property of a resident of a Contracting State are taxable only in that State.

Article 23 Elimination of double taxation

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

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

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

ii) deduct from the property tax of this resident an amount equal to the property tax paid in Uzbekistan;

In any case, these deductions should not exceed the portion of income or property tax calculated before the deduction is granted, which, depending on the circumstances, relates to income or property that may be taxed in Uzbekistan.;

B) If a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, is taxable only in Uzbekistan, 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 the case of Uzbekistan, double taxation will be eliminated as follows:

If a resident of a Contracting State receives income in the other Contracting State which, in accordance with the provisions of this Agreement, may be taxed in the other State, the amount of tax on that income payable in that other State may be deducted from the tax levied on such person in connection with the income in the first-mentioned State.. Such a deduction, however, will not exceed the amount of the tax of the first State on the specified income, calculated in accordance with its tax laws and regulations.

Article 24 Non-discrimination

1. Nationals of one Contracting State shall not be subject in the other Contracting State to any taxation or related obligation other or more burdensome than taxation and related obligations to which nationals of the other Contracting State are or may be subject in the same circumstances. This provision, notwithstanding the provisions of article 1, applies to natural persons who are not residents of one or both of the Contracting States.

2. The taxation of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State shall not be less favourable in that other Contracting State than the taxation of enterprises of that other State engaged in the same activity.

3. Except where the provisions of articles 9, 11 or 12 of this Agreement apply, interest, royalties and other reimbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deducted on the same terms as if they had been paid to a resident of the first-mentioned State. Similarly, any debts owed by an enterprise of one Contracting State to a resident of the other Contracting State will have to be deducted under the same conditions as debts owed by a resident of the first-mentioned State for the purposes of determining the property of that enterprise to be taxed.

4. Enterprises of a Contracting State whose property 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 any taxation or related obligation other or more burdensome than taxation and related obligations to which similar enterprises of the first-mentioned State are or may be subject. States.

5. Nothing contained in this article shall be interpreted as obliging each Contracting State to grant to residents of the other Contracting State any personal benefits, exemptions and discounts for tax purposes that are granted to its residents.

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 this Agreement, he may, regardless of the remedies provided for by the domestic law of those States, submit his application to the competent authority of the Contracting State of which he is a resident, or, if his situation falls under the paragraph 1 of Article 24, to the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Agreement.

2. The competent authority shall endeavour, if it considers the application to be justified and if it is not itself able to reach 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 Agreement. Any agreement reached will be implemented regardless of any time limits provided for in the national legislation of the Contracting States.

3. The competent authorities of the Contracting States will seek to resolve by mutual agreement any issues arising from 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 in this Agreement.

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 Agreement or the administration or application of national legislation relating to taxes of any kind and description levied on behalf of the Contracting States or their administrative divisions or local authorities, insofar as taxation does not conflict with this Agreement. The exchange of information is not limited to articles 1 and 2 of this Agreement.

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

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

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

(b) To provide information that cannot be obtained under the laws or in the ordinary course of the administration of that or 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 government policy.

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

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

The footnote. Article 26 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 27 Assistance in tax collection

1. The Contracting States shall provide mutual assistance in the recovery of tax obligations due to them. Such assistance is not limited to the provisions of articles 1 and 2 of this Agreement. The competent authorities of the Contracting States shall determine the procedure for the application of this article by mutual agreement.

2. The term "tax liability", as used in this article, means the amount payable as taxes of any kind and description levied on behalf of each of the Contracting States, their administrative divisions or local authorities, to the extent that the imposition of the relevant taxes does not contradict this Agreement or any other international treaty to which the parties are Contracting States, as well as interest related to such taxes, administrative fines and costs of collection or enforcement.

3. If a tax obligation owed to one of the Contracting States is recoverable in accordance with the laws of that Contracting State and must be paid by a person who is currently unable, according to the laws of that Contracting State, to prevent its recovery, such tax obligation shall, at the request of the competent authorities of that Contracting State, be accepted for collection by the competent authorities of the other Contracting State. Such tax liability shall be collected by that other Contracting State in accordance with the provisions of its laws applicable to the collection of its own taxes, in the same way as if the obligation were a tax liability owed to that other Contracting State.

4. If a tax obligation owed to one of the Contracting States is an obligation for the recovery of which that Contracting State may, in accordance with its legislation, apply interim measures, such obligation, at the request of the competent authorities of that Contracting State, must be accepted by the competent authorities of the other Contracting State for the purpose of interim measures. That other Contracting State must take interim measures in respect of such a tax obligation in accordance with the provisions of its legislation, just as if the obligation were owed to that other Contracting State itself, even if, at the time of application of such measures, the tax obligation is not recoverable in the first-mentioned Contracting State or is subject to repayment by a person who has the right to prevent his recovery.

5. Notwithstanding the provisions of paragraphs 3 and 4 of this article, the time limits and the order of priority that, according to the legislation of one of the Contracting States, are applicable to a tax obligation by virtue of the nature of such obligation, shall not apply to a tax obligation assumed by that Contracting State for the purposes provided for in paragraphs 3 or 4 of this Article. In addition, a tax obligation assumed by one of the Contracting States for the purposes provided for in paragraphs 3 or 4 of this Article may not be subject in that Contracting State to the priority procedure provided for by the legislation of the other Contracting State.

6. Procedures for establishing the existence, validity or amount of a tax liability to one of the Contracting States shall not be submitted for consideration by the judicial or administrative authorities of the other Contracting State.

7. If at any time after one of the Contracting States submits a request in accordance with paragraphs 3 or 4 of this Article, and before the other Contracting State collects and transfers to the first Contracting State the amount of the relevant tax liability due to it, such tax liability ceases to be:

(a) Upon filing a request in accordance with paragraph 3 of this article, a tax liability to one of the Contracting States that is recoverable in accordance with the laws of that Contracting State and must be settled by a person who, according to the laws of that Contracting State, is currently unable to prevent its recovery.;

(b) When submitting a request in accordance with paragraph 4 of this article, a tax liability to the first-named Contracting State, for the recovery of which that Contracting State may, in accordance with its legislation, apply interim measures., -

the competent authorities of the first-mentioned Contracting State shall immediately notify the competent authorities of the other Contracting State and the first Contracting State, at the discretion of the other Contracting State, shall suspend or withdraw its request.

8. The provisions of this article may not be interpreted as imposing obligations on a Contracting State.:

a) to take administrative measures contrary to the legislation and administrative practice of this or another Contracting State;

b) take measures threatening public order;

(c) To provide assistance if the other Contracting State, in each particular case, has not taken all reasonable measures to recover or enforce penalties that were at its disposal in accordance with its legislation or administrative practice;

(d) Provide assistance if the administrative costs imposed on the Contracting State providing such assistance are clearly disproportionate to the benefits that the other Contracting State may receive as a result.

The footnote. Article 27 as amended by the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 27-1 Limitation of benefits

The provisions of this Agreement may not be interpreted as preventing a Contracting State from applying the provisions of its domestic legislation on the prevention of tax evasion.

The footnote. The Agreement is supplemented by Article 27-1 in accordance with the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 28 Employees of diplomatic missions and consular institutions

No provisions of this Agreement will affect the tax privileges of employees of diplomatic missions and employees of consular institutions granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 28-1 The procedure for making changes and additions

By mutual agreement, the Contracting States may introduce amendments and additions to this Agreement, formalized by separate protocols, which are integral parts of this Agreement and enter into force in accordance with Article 29 of this Agreement.

The footnote. The Agreement is supplemented by Article 28-1 in accordance with the Law of the Republic of Kazakhstan dated 18.09.2018 No. 182-VI.

Article 29 Entry into force

This Agreement shall enter into force on the date of receipt of the last notification on the implementation of domestic procedures, and its provisions will apply.:

(a) With respect to taxes levied at source on amounts paid or accrued on or after the first day of the third month following the month in which the Agreement enters into force;

B) in respect of other taxes, for taxable periods beginning on or after the first of January of the calendar year following the year in which the Agreement enters into force.

Article 30 Termination

This Agreement remains in force until terminated by one of the Contracting States. Each Contracting State may terminate the Agreement by sending through diplomatic channels a notice of termination at least six months before the end of any calendar year beginning after the end of the 5-year period from the date of entry into force of the Agreement. In this case, the Agreement is terminated.:

a) in respect of taxes levied at source, on amounts paid or accrued on or after the first of January of the calendar year following the year in which the notification is transmitted;

B) in respect of other taxes on income or property - for tax periods beginning on or after the first of January of the calendar year following the year in which the notification is transmitted.

Done in Almaty, June 12, 1996, in two originals, each in the Kazakh, Uzbek and Russian languages, all texts being equally authentic. In cases of disagreement in the interpretation of the provisions of this Agreement, the text in Russian is used as the basis.

For the Government For the Government

Republic of Kazakhstan Republic of Uzbekistan

protocol

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on April 21, 1997)

When signing the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan on the Avoidance of Double Taxation of Income and Property, the undersigned have agreed on the following provision, which forms an integral part of this Agreement:

With respect to article 10 (Dividends):

Agreed that in the event of the introduction of a branch tax by any of the Contracting States, the following provision will apply:

- a company which is a resident of a Contracting State and which has a permanent establishment in the other Contracting State may be taxed in that other State in addition to income tax. Such tax, however, shall not exceed 10 per cent of the share of the company's profits to be taxed in the other Contracting State.

For the Government

Republic of Kazakhstan

Republic of Uzbekistan

President

Republic of Kazakhstan

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