On the ratification of the Agreement between the Republic of Kazakhstan and the Kyrgyz Republic on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and on Capital

Home / RLA / On the ratification of the Agreement between the Republic of Kazakhstan and the Kyrgyz Republic on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and on Capital

On the ratification of the Agreement between the Republic of Kazakhstan and the Kyrgyz Republic on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and on Capital

The Law of the Republic of Kazakhstan dated July 11, 1997 No. 153-I.

To ratify the Agreement between the Republic of Kazakhstan and the Kyrgyz Republic on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and on Capital, signed on April 8, 1997 in Almaty.

President

Republic of Kazakhstan application

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

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - entered into force on March 31, 1998)

The Republic of Kazakhstan and the Kyrgyz Republic, guided by the desire to strengthen and develop economic, scientific, technical and cultural ties between the two Countries and desiring to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to taxes on income and on capital,

We 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 and on capital imposed on behalf of a Contracting State or its local authorities in accordance with the laws of each of the Contracting States, regardless of the method of their collection.

2. Taxes on income and on capital are all types of taxes levied on the total amount of income, on the total amount of capital, or on individual elements of income or capital, including taxes on income from the alienation of movable or immovable property, taxes levied on the payroll paid by enterprises, as well as taxes levied on income from capital appreciation.

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

a) in the Republic of Kazakhstan:

I) income tax on legal entities and individuals;

II) property tax on legal entities and individuals.

(hereinafter referred to as "Kazakhstan Taxes")

b) in the Kyrgyz Republic:

I) corporate income and profit tax;

II) personal income tax.

(hereinafter referred to as "Kyrgyz Taxes").

4. The Agreement also applies to any identical or substantially similar taxes that will be levied in addition to or in place of the existing taxes after the date of signature of the Agreement. The competent authorities of the Contracting States will notify each other of any significant changes that will be introduced into their respective tax laws.

Article 3 General definitions

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

a) terms:

(I) "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and continental shelf, in which Kazakhstan may exercise sovereign rights and jurisdiction for certain purposes in accordance with international law and in which the tax legislation of Kazakhstan applies;

(II) "Kyrgyzstan" means the Kyrgyz Republic. When used in a geographical sense, the term "Kyrgyzstan" includes the territory in which the Kyrgyz Republic exercises sovereign rights and jurisdiction in accordance with international law and in which the tax legislation of the Kyrgyz Republic applies.;

(b) The term "person" includes an individual, a company, and any other body of persons;

(c) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes and, in particular, includes a joint-stock company, a limited liability company, or any other legal entity or organization.;

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

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

(f) The term "international carriage" means any carriage by ship, aircraft, rail or road operated by an enterprise of a Contracting State, except when the ship, aircraft, rail or road transport is operated exclusively between locations in the other Contracting State.;

(g) The term "competent authority" means:

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

II) in Kyrgyzstan: the Ministry of Finance or its authorized representative;

(h) The term "national person" means:

(I) Any natural person having the nationality of a Contracting State;

(II) Any legal person, partnership or any other association which has acquired its status in accordance with the applicable laws of a Contracting State;

I) the term "capital" means movable and immovable property and includes (but is not limited to) cash, shares or other documents confirming property rights, promissory notes, bonds or other debentures, as well as patents, trademarks, copyrights or other similar right or property.

2. As regards the application at any time of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that State in respect of taxes to which the 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, place of management or place of establishment, or any other criterion of a similar nature.

However, this term does not include any person who is subject to taxation in that State, only in respect of income from sources in that State or in respect of capital held therein.

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

a) he is considered a resident of the State in which he has a permanent home; if he is considered a resident of the State in which he has closer personal and economic relations (center of vital interests);

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

(c) If he has his habitual residence in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national.;

(d) If, in accordance with subparagraphs (a) to (c), the resident status cannot be determined, the competent authorities of the Contracting States shall resolve the issue by mutual agreement.

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

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) place of management;

b) separation;

c) the office;

d) the factory;

e) workshop;

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

(g) Agricultural, pasture or forest property;

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

(i) An installation or structure used for the exploration of natural resources or services related to the supervision of these works, or a drilling rig or vessel used for the exploration of natural resources, if such use lasts for more than 12 months, or such services are provided for more than 12 months; and

j) provision of services, including consulting services, by residents through employees or other personnel hired by the resident for such purposes, but only if activities of this nature have been ongoing (for such or a related project) within the country for more than 12 months.

3. 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 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 an enterprise solely for the purposes of processing by another enterprise;

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

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

(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.

4. Notwithstanding the provisions of paragraphs 1 and 2, if a person other than an agent with an independent status to whom paragraph 5 applies acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State, in respect of any activities that this person undertakes for the enterprise, except, if only the activities of such a person are limited to those referred to in paragraph 4, which, if carried out through a permanent place of business, does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph.

5. An enterprise shall not be deemed to have a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or any agent of an independent status, provided that such persons are acting in the ordinary course of their business.

6. 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) does not in itself transform 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 or forestry) located in the other Contracting State may be taxed in that other State.

2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law 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, aircraft, rail and road transport 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. If the ownership of shares or other rights of an enterprise allows the holder of those shares or rights to use immovable property belonging to the enterprise, income from the direct use, lease or use of such right in any form may be taxed in the Contracting State in which the immovable property is located.

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

Article 7 Profit from entrepreneurial activity

1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out or has carried out entrepreneurial activities as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates 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 a Contracting State carries on or has carried on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were an independent and separate enterprise engaged in the same or similar activities, under the same or similar conditions, and operated in complete independence from the enterprise of which it is a permanent establishment.

3. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere.

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

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

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

6. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure.

Article 8 International transport

1. Profits earned by a resident of a Contracting State from the operation of ships, aircraft, rail or road transport in international traffic shall be taxable only in that State.

2. Profits of a resident of a Contracting State from the rental of vehicles, as well as containers and related equipment for their operation in international traffic, shall be taxable in that State.

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

Article 9 Associated enterprises

1. In the case when

(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 enterprises of a Contracting State and enterprises of the other Contracting State;

and in each case, conditions are created or established between two enterprises in their commercial or financial relations that differ from those that would be between two independent enterprises, then any profit that could have been credited to one of them, but due to the presence of these conditions was not credited to him, can be included in the profits of this enterprise are taxed accordingly.

2. If a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - the profits on which an enterprise of the other Contracting State is taxed in that State and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises had been such that There are differences between independent enterprises, then this other State can make appropriate adjustments to the amount of tax levied on this profit. In determining such an adjustment, other provisions of this Agreement should be considered, 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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the dividends.

This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid.

3. The term "dividends", when used in this article, means income from shares or other rights that are not debt claims, income from profit-sharing, as well as income from other corporate rights that are tax-equivalent to income from shares in accordance with the laws of the State in which the company distributing profits is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there or provides or has provided independent personal services in that other State from a permanent base located there and a holding company in respect of which dividends are paid, does refer to such a permanent establishment or permanent base. In this case, the provisions of article 7 (business profits) or article 14 (Independent personal services), as appropriate, shall apply.

5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by the company, except if such dividends are paid to a resident of that other State or the holding company in respect of which the dividends are paid actually relates to a permanent establishment or permanent base located in in this other State.

6. Nothing in this Convention may be interpreted as preventing a Contracting State from taxing the profits of a company relating to a permanent establishment in that State in addition to the tax assessed on the profits of a company that is a national of that State, provided that any additional tax so assessed does not exceed 10 per cent. the amount of such profit that was not subject to such additional taxation in previous taxable years. For the purposes of this paragraph, profits are determined in accordance with the laws of 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 a Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient and beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State provided that it is received and actually belongs to the Government or the National Bank of the other Contracting 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., bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this article.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there, or provides or has provided independent personal services in that other State from a permanent base located there, and a debt claim, in respect of which interest is paid, it really refers to such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 14 (Independent personal services), as appropriate, shall apply.

6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, its local authorities 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 being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such interest arises in the State in which such a permanent establishment or permanent base is located.

7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In 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.

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 these debt claims.

Article 12 Royalties

1. Royalties arising in a Contracting State and paid to a resident of a 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 and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the total amount of the royalties.

3. The term "royalties", as used in this article, means payments of any kind received as remuneration for:

a) the use or granting of the right to use any copyright in works of literature, art or science (computer programs, film, television, video films or recordings for radio and television);

b) any patent, design or model, plan, secret formula or process, trademark, or for information (know-how) related to industrial, commercial or scientific experience;

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides or has provided independent personal services in that other State from a permanent base located there, and the right to or the property in respect of which royalties are paid is actually associated with such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 14 (Independent personal services), as appropriate, shall apply.

5. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, its local authorities or a resident of that 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 associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in the State where in which a permanent establishment or permanent base is located.

6. If, as a result of a special relationship between the payer and the actual owner of the royalties or between both of them and any other person, the amount of royalties related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalties in the absence of such a relationship, the provisions of this The articles 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, with due regard 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.

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 (Income from immovable property) and located in the other Contracting State may be taxed in that other State.

2. Income earned by a resident of a Contracting State from alienation:

(a) Shares other than shares that are traded on a substantial and regular basis on an official stock exchange, deriving their value or most of their value directly or indirectly from immovable property located in the other Contracting State, or

(b) Shares in a partnership or trust whose assets consist mainly of immovable property located in the other Contracting State or of shares referred to in subparagraph (a) above,

may be taxed in that other Contracting State.

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

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

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

Article 14 Independent personal services

1. Income earned by a resident of a Contracting State from the provision of professional services or other similar activities of an independent nature shall be taxable only in that State, unless he has a permanent base regularly available to him in the other Contracting State to carry out such activities. If he has such a permanent base, income may be taxed in another State, but only in the part related to this permanent base.

2. The term "professional services" specifically includes 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 (Directors' fees), 18 (Pensions), and 19 (Public service), 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 way, the 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 is present in that State for a period or periods not exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year; and

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

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

Article 16 Directors' fees

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

Article 17 Artists and athletes

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

2. If income in relation to personal activities carried out by an art worker or athlete in this capacity is accrued not to the art worker or athlete himself, but to another person, then this income may, despite the provisions of articles 7 (Profits from entrepreneurial activities), 14 (Independent personal services) and 15 (Dependent personal services) be taxed. in the Contracting State in which the activities of the art worker or athlete are carried out.

3. Notwithstanding the provisions of paragraphs 1 and 2, income referred to in this Article shall be exempt from taxation in the Contracting State in which the activities of the entertainer or athlete are carried out if those activities are financed to a significant extent (more than 50 per cent) from public funds of the other Contracting State, or if those activities are carried out on the basis of agreements on cultural cooperation concluded between the Contracting States.

Article 18 Pensions and other payments

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

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

3. Alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

Article 19 Public service

1. (a) Remuneration, other than pensions, paid by a Contracting State or its local authorities to any natural person in respect of services rendered to that State or its local authority 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 State and the individual is a resident of that State who:

(I) Is a national of that State; or

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

2. (a) Any pension paid by a Contracting State or its local authorities, or from funds created by them, to an individual in respect of services rendered to that State or its authorities, 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 State.

3. The provisions of articles 15 (Dependent personal services), 16 (Directors' fees) and 18 (Pensions and other payments) shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or its local authority.

Article 20 Students, postgraduates, interns

Payments received by a student, graduate student or intern who are or were immediately prior to arrival in one Contracting State residents of the other Contracting State and who are in the first-mentioned State solely for the purpose of education or internship are not taxable in that State, if the sources of these payments are located in another State.

Article 21other incomes

1. Types of income of a resident of a Contracting State, regardless of where they originated, which are not considered in the previous 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 as defined in paragraph 2 of Article 6 (Income from immovable property) if the recipient of such income is a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located therein and provides independent personal services in that other State. services through a permanent base located there, and the right or property in connection with which income was paid, indeed, they are associated with such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 14 (Independent personal services), as appropriate, shall apply.

Article 22 Capital

1. Capital represented by immovable property referred to in Article 6 (Income from immovable property) owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that State.

2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State.

3. Capital represented by ships, aircraft, rail and road vehicles operated by a resident of a Contracting State in international traffic and movable property pertaining to the operation of such ships, aircraft, rail or road vehicles shall be taxable only in that Contracting State.

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

Article 23 Elimination of double taxation

1. If a resident of a Contracting State earns income or owns capital that, in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned State will allow:

I) deduct from the income tax of that resident an amount equal to the income tax paid in that other State;

(II) Deduct from the capital tax of that resident an amount equal to the capital tax paid in that other State.

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

2. If, in accordance with the provisions of this Agreement, the income or capital earned by a resident of a Contracting State is exempt from tax in that State, that State may nevertheless take into account the tax-exempt income or capital when determining the tax rate on the remainder of that resident's income or capital.

Article 24 Non-discrimination

1. Nationals of a Contracting State shall not be subject in the other Contracting State to taxation other or more burdensome or related obligations than taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances, in particular the provisions of Article 1 (Persons to whom the Convention applies). Agreement), to persons who are not residents of one or both of the Contracting States.

2. Stateless persons who are residents of a Contracting State shall not be subjected in any of the Contracting States to any taxation or related obligation other or more burdensome than the taxation and related obligations to which national persons are or may be subjected.

3. 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 a Contracting State to provide residents of the other Contracting State with any personal benefits, deductions and tax rebates based on their civil status or family obligations, which it provides to its own residents.

4. Except where the provisions of paragraph 1 of Article 9 (Associated enterprises), paragraph 7 of Article 11 (Interest), paragraph 6 of Article 12 (Royalties) apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable profits of such enterprise, be subject to deductions on the same terms as if they had been paid to a resident of the first-mentioned State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned State.

5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State.

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 for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his case falls under paragraph 1 of article 24 (Non-discrimination) of the Contracting State of which he is a national, The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Agreement.

2. The competent authority shall endeavour, if it considers the claim to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with the Agreement. Any agreement reached must be implemented regardless of any time limits available in the domestic laws of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising 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 enter into direct contact with each other in order to reach agreement and understanding of the preceding paragraphs.

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 domestic laws of the Contracting States concerning taxes to which the Agreement applies, insofar as taxation does not conflict with the Agreement. The exchange of information is not limited to article 1 (Persons to whom the Agreement applies). Any information received by a Contracting State is considered confidential in the same way as information obtained under the domestic law of that State and is disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution or dissemination of appeals concerning taxes covered by the Agreement. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions.

2. In no case should 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 another Contracting State;

(b) To provide information that cannot be obtained under the laws or customary administrative practices 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 (public practice).

Article 27 Assistance in tax collection

1. The competent authorities of the Contracting States undertake to assist each other in the collection of taxes, together with interest, costs and civil penalties, relating to such taxes referred to in this article as "income claim".

2. Requests for assistance by the competent authorities of the Contracting States in collecting a revenue claim include confirmation by such authority that, according to the legislation of that State, the revenue claim has been definitively established. For the purposes of this article, a revenue claim is definitively established if the Contracting State, in accordance with its domestic law, has the right to collect the revenue claim and the taxpayer has no further rights to maintain such collection.

3. The requirements that are the subject of a request for assistance shall not take precedence over taxes due in the Contracting State providing such assistance and the provisions of paragraph 1 of Article 25 (Mutual Agreement Procedure) shall also apply to any information that, by virtue of this article, is provided by the competent authority of a Contracting State.

4. A revenue claim of a Contracting State which has been accepted for collection by the competent authority of the other Contracting State shall be collected by the other State as if such claim were a revenue claim of that State definitively established in accordance with the provisions of its laws relating to the collection of its taxes.

5. The amount of taxes collected by the competent authority of a Contracting State in accordance with this article shall be forwarded to the competent authority of the other Contracting State. Expenses incurred in connection with tax collection assistance are covered by the first mentioned State.

6. According to this article, a Contracting State shall make a request only if a taxpayer who has tax arrears does not have sufficient property in that State to collect the taxes due.

7. According to this article, tax collection assistance is not provided to a Contracting State in respect of a taxpayer to the extent that the tax claim relates to a period during which the taxpayer was not a resident of one or the other Contracting State.

8. Nothing in this Article shall be interpreted as imposing obligations on any Contracting State to apply administrative measures of a nature different from those applied in the collection of its own taxes or those that would be contrary to its public policy (public practice).

Article 28 Employees of diplomatic and consular services

Nothing in this Agreement affects the tax officers of diplomatic and consular services provided by the general rules of international law or on the basis of special agreements.

Article 29 Entry into force

This Agreement is subject to ratification and will enter into force on the date of receipt of the last notification sent through diplomatic channels on the completion of all necessary domestic procedures.

The agreement applies:

(a) Taxes withheld at source in respect of amounts paid or deductible on or after the first of January of the calendar year following the year of entry into force of the Agreement; and

(b) Other taxes in respect of taxable periods beginning on or after the first of January of the calendar year following the year in which the Agreement entered into force.

Article 30 Termination

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

(a) In respect of taxes withheld at source for amounts paid or deductible on or after the first of January of the year following the year in which the notice of termination was given; and

(b) In respect of other taxes, for taxable periods beginning on or after the first of January of the year following the year in which the notice of termination was given.

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

Done in two copies in Almaty on the 8th of April 1997 in the Kazakh, Kyrgyz and Russian languages, all texts are equally authentic. In case of discrepancies in the texts, the Russian text will be decisive.

President

Republic of Kazakhstan

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