On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Italy on the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion
Decree of the President of the Republic of Kazakhstan dated April 21, 1995 N 2225
In accordance with Article 2 of the Law of the Republic of Kazakhstan dated December 10, 1993 Z933600_ "On the temporary delegation of additional powers to the President of the Republic of Kazakhstan and heads of local administrations", I decree:
1. To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Italy on the Elimination of Double Taxation in
with respect to taxes on income and the prevention of tax evasion,
Signed in Rome on September 22, 1994.
2. This Decree shall enter into force from the date of publication.
President
Republic of Kazakhstan
application
The Convention
between the Government of the Republic of Kazakhstan and
By the Government of the Republic of Italy
on the elimination of double taxation in relation to
taxes on income and prevention of tax evasion
taxation*
(Bulletin of International Treaties, Agreements and Individual Legislative Acts of the Republic of Kazakhstan, 1998, No. 3, art. 22)
The Government of the Republic of Kazakhstan and the Government of the Republic of Italy,
Reaffirming their desire to develop and strengthen economic, scientific, technical and cultural cooperation between the two States and desiring to conclude a Convention on the Elimination of double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion, we have agreed as follows:
Chapter 1 Scope of the Convention
Article 1 Persons to whom the Convention applies This Convention applies to persons who are residents of one or both of the Contracting States.
Article 2 Taxes to which the Convention applies 1. This Convention applies to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivision or local authority, regardless of the manner in which they are levied.
2. Income taxes are all taxes levied on total income.
or elements of income, including taxes on income from the alienation of movable or immovable property, taxes on the total amount of salary or salary paid by enterprises, as well as taxes on capital gains.
3. Existing taxes to which, in particular, will be applied
this Convention:
a) in the case of the Republic of Italy:
1 - personal income tax;
2 - Corporate income tax;
3 - local income tax;
regardless of whether they are collected at the source (hereinafter referred to as the "Italian Tax").
b) in the case of the Republic of Kazakhstan: taxes on profits and income in accordance with the following laws:
1 - Presidential Decree "On taxation of income and profits of enterprises";
2 - Presidential Decree "On taxation of personal income";
regardless of whether they are collected at the source (hereinafter referred to as the "Kazakhstan Tax").
2. This Convention shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of this Convention in addition to or in place of the existing taxes.
The competent authorities of the Contracting States will notify each other of any significant changes that will be made to their existing tax laws.
Chapter 2 Definitions Article 3 General definitions 1. In this Convention, unless the context otherwise requires: (a) The term "Italy" means the Republic of Italy and includes any area outside the territorial waters of Italy which, in accordance with customary international law and the laws of Italy concerning the exploration and exploitation of natural resources, may be considered as a zone within which Italian rights may be exercised with respect to subsurface natural resources and the resources of the seabed; (b) The term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan may exercise sovereign rights for certain purposes in accordance with international law and in which the laws relating to taxes of the Republic of Kazakhstan apply; c) the term "Contracting State" and "other Contracting State State" means Italy or Kazakhstan, depending on the context.; (d) The term "person" includes an individual, a company, and any other body of persons; e) the term "company" means any corporate entity or any economic unit that is considered a corporate entity for tax purposes, and in the case of Kazakhstan includes, for example, a joint-stock company, a limited liability company, or any other legal entity or other entity subject to income tax; (f) 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; (g) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft operated exclusively between localities in the other Contracting State; h) the term "nationals" means: (i) All natural persons having the nationality of a Contracting State; (ii) all legal persons, partnerships and associations obtaining their status as such under the applicable legislation of a Contracting State; (i) The term "competent authority" means: i) in the case of Italy: the Ministry of Finance; ii) in the case of Kazakhstan: the Minister of Finance or his authorized representative. 2. As regards the application of this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State in respect of taxes to which the Convention applies.
Article 4 Resident 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there by reason of his domicile, residence, place of management, establishment or any other criterion of a similar nature. But this term does not include any person who is subject to taxation in that State with respect only to income from sources located in that State. 2. If, by reason of the provisions of paragraph 1, an individual is a resident of both States, then his status will be determined as described below: a) he will be considered a resident of the State in which he has permanent housing belonging to him. If he has permanent housing belonging to him in both States, he will be considered a resident of the State in which he has the closest personal and economic ties (center of vital interests); (b) If the State in which he has his center of vital interests cannot be determined, or if he does not have permanent housing available to him in either State, he will be considered a resident of the State in which he habitually resides; (c) If he habitually resides in both States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national.; (d) If he is a national of both States or is not a national of either of them, the competent authorities of the States will resolve the issue by mutual agreement. 3. If, by reason of the provisions of paragraph 1, a person other than an individual,
is a resident of both Contracting States, then it will be
be considered a resident of the State in which the place of effective
management.
Article 5
Permanent establishment
1. For the purposes of this Convention, the term "permanent establishment"
means a permanent place of business through which fully or partially
The business activity of the enterprise is partially carried out.
2. The term "permanent establishment" includes, in particular::
a) place of management;
b) separation;
c) the office;
d) the factory;
f) workshop;
f) a mine, an oil or gas well, a quarry or any other place
extraction of natural resources;
g) a construction site or a construction, installation, or assembly facility, or services related to the supervision of these works, only if such a site or facility lasts for more than 12 months, or such services are provided for more than 12 months; h) 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, only if such use lasts for more than 12 months, or such activity lasts for more than 12 months.; and i) the provision of services, including consulting services, by the resident through employees or other personnel employed by the resident for such purposes, but only if activities of this nature continue (for this or a related project) in the country for a period longer than 12 months. 3. The term "permanent establishment" will not be considered to include: a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or products belonging to the enterprise solely for the purposes of storage, demonstration or delivery; (c) the maintenance of stocks of goods or products belonging to the enterprise solely for the purposes of processing by another enterprise; (e) The maintenance of a permanent place of business solely for the purpose of purchasing goods or products or collecting information for the enterprise; d) the maintenance of a permanent place of business solely for the purposes of advertising, information gathering, scientific research or other similar activities of a preparatory or auxiliary nature. 4. A person acting in a Contracting State on behalf of an enterprise of the other Contracting State, other than an agent with an independent status to whom paragraph 5 applies, will be considered to have a permanent establishment in the first-mentioned State if he has and habitually uses in that State the authority to conclude contracts on behalf of the enterprise, if his activities are not limited to the purchase of goods or products for the company. 5. An enterprise will not be considered as having a permanent establishment in a Contracting State simply because it carries on business in that State through brokers, commission agents or any other agent of an independent status, provided that these 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 in any other way) will not in itself transform one of these companies into a permanent establishment of the other.
Chapter 3 Taxation of income 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" will have the meaning that it has under the laws of the Contracting State in which the property in question is located. The term will, in any case, include property ancillary to immovable property, livestock and equipment used in agriculture and forestry, and 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 paid as compensation for the development or right to exploit mineral reserves, springs and other natural resources are also considered "immovable property". Ships and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 also apply to income from immovable property of an enterprise and income from immovable property used to perform independent personal services.
Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business activities, as mentioned above, the profits of the enterprise may be taxed in another State, but only in the part that relates to: a) this permanent establishment; (b) Sales in that other State of goods and merchandise similar to those sold through that permanent establishment; or (c) other business activities carried on in that other State that are similar in nature to those carried on by that permanent establishment. 2. Subject to the provisions of paragraph 3, when an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, in each Contracting State, that permanent establishment shall include the profits that it could have received if it had been an independent and separate enterprise engaged in the same or similar activities, if under the same or similar conditions and operated in complete independence from the company of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, it is allowed to deduct expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses incurred both in the Contracting State in which the permanent establishment is located and elsewhere. 4. Profits will not be credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. If the information available or readily available to the competent authority of a Contracting State is insufficient to determine the profits or expenses of a permanent establishment, the profits or expenses may be calculated in accordance with the tax laws of that State. For the purposes of this paragraph 5, information will be considered easily accessible if the taxpayer provides information to the requesting competent authority within 91 days from the date of transmission of a written request by the competent authority for such information. 6. For the purposes of the preceding paragraphs, profits attributable to a permanent establishment will be determined using the same method annually, unless there are sufficient and compelling reasons to change it. 7. If profits include types of income that are specifically mentioned in other articles of this Convention, the provisions of those articles shall not be affected by the provisions of this article.
Article 8 Sea and air transport 1. Profits earned by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic are taxable only in that State. 2. If the place of effective management of a maritime enterprise is located on board a ship, it shall be deemed to be located in the Contracting State in which the ship's home port is located or, if there is no such home port, in the Contracting State in which the ship is managed by a resident. 3. The provisions of paragraph 1 will also apply to profits from participation in a pool, joint venture or international operations agency.
Article 9 Associated companies 1. If: (a) An enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in any case, conditions are created or established between two enterprises in their commercial and financial relations that differ from those created between independent enterprises, then any profit that could have been credited to one of them, but because of these conditions was not credited to him, may be included by the Contracting State in the profit. this company is taxed accordingly.
Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged will not exceed: a) 5 percent of the total amount of dividends if the actual owner is a company that directly or indirectly owns at least 10 percent of the capital of the company paying the dividends; b) 15 percent of the total amount of dividends in all other cases. The competent authorities of the Contracting States will decide by mutual agreement on the application of the method of such restriction. This paragraph will 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, shares of Juissance or rights of Juissance, shares of founders or other rights that are not debt claims, profit sharing, as well as income from other corporate rights that are subject to the same tax regime as income from shares, according to according to the tax laws of the Contracting State of which the company distributing the 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 independent personal services in that other State from a permanent base located there and a block of shares in respect of which dividends are paid, and is indeed associated with such a permanent establishment or permanent base. In such a case, the dividends shall be taxed in that other Contracting State in accordance with its domestic law. 5. If a company that is a resident of a Contracting State receives profits or income from the other Contracting State, that other State may exempt from taxes in full the dividends paid by the company, except if such dividends are paid to a resident of that other State or if such a block of shares in respect of which the dividends are paid is actually associated with a permanent establishment or permanent No taxes on retained earnings are levied on the company's undistributed profits, even if they are based in this other State., if dividends are paid or retained earnings consist wholly or partly of profits or income arising in that other State. 6. Notwithstanding the last sentence of paragraph 5 of this article, a company which is a resident of a Contracting State and has its permanent establishment in the other Contracting State may be taxed in that other State in addition to the income tax. Such tax, however, may not exceed 5 percent of the portion of the company's profits taxable in the other Contracting State.
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 originated and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged will not exceed 10 percent of the total amount of the interest. The competent authorities of the Contracting States will decide by mutual agreement on the method of such restriction. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from taxation in that State if: (a) The payer of the interest is the Government of that Contracting State or a local authority; or (b) the interest is paid to the Government of the other Contracting State or a local authority.; c) interest is paid to any other agency or assistance body (including a financial institution) related to loans issued for the implementation of agreements concluded between the Governments of the Contracting States. 4. The term "interest", when used in this article, means income from Government securities, loans or debentures secured or unsecured by collateral, giving or not giving the right to participate in profits and debt claims of each type, as well as all income similar to income from borrowed money, according to the tax legislation of the State in which the income arises. 5. The provisions of paragraphs 1 to 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there and a debt claim in respect of which interest is paid, indeed, it is connected with such a permanent establishment or permanent base. In such a case, the interest shall be taxed in that other Contracting State in accordance with its domestic laws. 6. Interest shall be deemed to have arisen in a Contracting State if the payer is that State itself, a political or administrative subdivision, a local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of 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, such interest shall be deemed to have arisen in The Contracting State in which the permanent establishment or permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim for which it is being 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 apply only to the last mentioned amount. In such a 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 Convention.
Article 12 Royalty 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they originated, according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged will not exceed 10 percent of the total amount of the royalties. The competent authorities of the Contracting States will decide by mutual agreement on the method of such restriction. 3. The term "royalties", as used in this article, means: payments of any kind received as compensation for the use or for granting the right to use any copyright in works of literature, art or science, including computer programs, cinematographic films, any patent, trademark, design or model, plan, secret formula or process., or for information ("know-how") related to industrial, commercial or scientific experience, and payments for use, or granting the right to use industrial, commercial or scientific equipment. 4. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there and the right or property in respect of which the royalties are paid is indeed associated with such a permanent establishment or permanent base. In such a case, the royalties shall be taxed in that other Contracting State in accordance with its domestic law. 5. Royalties shall be deemed to have arisen in a Contracting State if the payer is the State itself, a political or administrative subdivision, a local authority 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 in a Contracting State a permanent establishment or permanent base with which the right or property in respect of which the royalties are paid is actually connected, and such royalties are paid by such permanent establishment or permanent base, then Such royalties will be deemed to have originated in the State in which the permanent establishment or permanent base is located. 6. If, due to 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 for which they are paid exceeds the amount that would have been agreed between the payer and the actual owner, in the absence of such a relationship, the provisions of this article will be apply only to the last mentioned amount. In such a case, the excess part of the payment will be subject to taxation in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.
Article 13 Income from capital gains 1. Gains from the alienation of immovable property referred to in paragraph 2 of Article 6 may be taxed in the Contracting State in which such property is located. 2. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or from the alienation of movable property relating 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, including income such as income from the alienation of such permanent establishment (one or together with the entire enterprise) or such a permanent base, may be taxed in this other State. 3. Income earned by an enterprise of a Contracting State from the alienation of ships, aircraft operated by such enterprise in international traffic or movable property related to the operation of such ships or aircraft, shall be taxable only in that Contracting State. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14 Independent personal services 1. Income earned by a resident of a Contracting State in respect of professional services or other independent activities of a similar nature shall be taxable only in that State unless he has a permanent base regularly available to him in the other Contracting State for the purpose of performing such activities, if he has such a permanent base, income may be taxed in the other State, but only in the part that is attributed to this permanent base. 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15 Dependent personal services 1. Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is carried out in the other Contracting State. If the employment is carried out in this way, such remuneration received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (a) The recipient stays in another State for a period or periods not exceeding a total of 183 days during any twelve-month period beginning or ending in the fiscal year in question.; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State; and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship or aircraft is a resident.
Article 16 Directors' fees Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors or a similar body of a company that is a resident of the other Contracting State may be taxed in that other State.
Article 17 Artists and athletes 1. Notwithstanding the provisions of articles 14 and 15, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist or musician, or as an athlete from his personal activities carried on in the other Contracting State may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
Article 18 Pensions and annuities 1. Subject to the provisions of paragraph 2 of article 19, pensions, annuities and other similar remuneration paid to a resident of a Contracting State as compensation for past activities and any annuity paid to such a 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 during his lifetime or for a specific or specified period of time, with an obligation to make such payments in return for adequate and full remuneration in money or monetary terms.
Article 19 Public service 1. (a) Remuneration, other than a pension, paid by a Contracting State or a political or administrative subdivision or local authority thereof to any natural person in respect of services rendered to that State or its subdivision or 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 a political or administrative subdivision or a local authority, or from funds created by them, to an individual in respect of services rendered to that State or its subdivision or authority, shall be taxable only in that State. (b) However, such pensions are taxable only in the other Contracting State if the individual is a resident and a national of that State. 3. The provisions of articles 15, 16 and 18 shall apply to remuneration or pensions in respect of services rendered in connection with business activities of a Contracting State or of its political or administrative subdivision or local authority.
Article 20 Professors and teachers 1. A professor or lecturer who makes a temporary visit to a Contracting State for a period not exceeding two years for the purpose of teaching or conducting research at a university, college, school or other educational institution and who is or was immediately prior to such visit a resident of the other Contracting State shall be exempt from taxation in the first-mentioned Contracting State in respect of payments for such teaching or research. 2. This article does not apply to research income if such research is not undertaken in the public interest, but mainly for the private benefit of a particular person or persons.
Article 21 Students Payments received by a student or trainee who is or was, prior to arrival in a Contracting State, a resident of the other Contracting State and located in the first-mentioned State solely for the purpose of study or education, and intended for residence, study or education, shall not be taxed in that State, provided that such payments arise from sources located outside this State.
Article 22 Other income 1. Types of income of a resident of a Contracting State, regardless of where they originated, not considered in the preceding articles of this Convention, shall be 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, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there., and the right or property in respect of which income is being paid is actually associated with such a permanent establishment or fixed base. In such a case, the types of income shall be taxed in that other Contracting State in accordance with its domestic law. 3. If, due to the special relationship between persons engaged in activities that generate income related to paragraph 1, payments for such activities exceed the amount that would have been agreed upon by independent persons, the provisions of paragraph 1 will apply only to the last specified amount. In this case, the part exceeding the payments will be taxed in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.
Chapter 4 Methods of eliminating double taxation Article 23 Elimination of double taxation 1. It is agreed that double taxation will be eliminated in accordance with the following paragraphs of this article. 2. In the case of Italy: a) if an Italian resident owns types of income that are taxable in Kazakhstan, Italy, when determining his income subject to taxation specified in Article 2 of this Convention, may include the mentioned types of income in the taxable base, unless otherwise provided by the special provisions of this Convention. In this case, Italy will deduct from the taxes accrued on such income the tax paid in Kazakhstan, but in an amount not exceeding the corresponding Italian tax mentioned above, which is similarly taken from such income classified as full income. However, a deduction will not be granted if the type of income is subject to final withholding tax in Italy at the request of the recipient of the above income in accordance with Italian law. 3. In the case of Kazakhstan: a) if a resident of Kazakhstan earns income that, in accordance with the provisions of this Convention, may be taxed in Italy, Kazakhstan will grant a deduction from the income tax of that resident of an amount equal to the tax on income paid in Italy. However, such a deduction will not exceed the portion of income tax calculated before the deduction is granted, which is due to income that can be taxed in Italy. b) if a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, is taxable only in Italy, 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 taxable in Kazakhstan.
Chapter 5 Special provisions Article 24 Non-discrimination 1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or related obligation that is different or more burdensome than taxation and related obligation to which nationals of that other State are subject or may be subject in the same circumstances. This provision will, notwithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises carrying on similar activities in that other State. This provision shall not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with any personal benefits, discounts and reductions in taxation based on the civil status or family circumstances that it provides to its residents. 3. Except where the provisions of article 9, paragraph 7 of Article 11 or paragraph 4 of Article 12 apply, interest, royalties and other payments 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 deductible on the same terms as if they had been paid to a resident of the first-mentioned State. States. 4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto other or more burdensome than taxation and related obligations to which others are or may be subject. similar enterprises of the first mentioned State. 5. The provisions of this article shall apply, notwithstanding the provisions of article 2, to taxes of any kind and grade.
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 Convention, he may, regardless of the remedies provided for by the national legislation 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 to the Contracting State of which he is a national. The case must be submitted within 2 years from the date of the first notification of actions leading to taxation that do not comply with the provisions of the Convention. 2. The competent authority shall endeavour, if it considers the claim to be well-founded and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State, with a view to eliminating taxation not in accordance with the Convention. 3. The competent authorities of the Contracting States will endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement within the meaning of the preceding paragraphs. If it is advisable to exchange oral views in order to reach agreements, such an exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.
Article 26 Exchange of information 1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the national laws of the Contracting States concerning taxes to which the Convention applies, to the extent that taxation does not contradict this Convention, as well as for the prevention of tax evasion. The exchange of information will not be limited to article 1. Any information received by a Contracting State is considered confidential in the same way as information obtained under the national 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 of or consideration of appeals concerning taxes provided for in the Convention. Such persons or authorities use the information only for these purposes. They may disclose this information during public court sessions or when making court decisions. 2. In no case shall the provisions of paragraph 1 be interpreted as imposing obligations on a Contracting State.: (a) To carry out administrative measures contrary to the laws and administrative practices of this or another Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of this or another Contracting State; c) provide information that would disclose any trade, business, industrial, commercial, or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (public order).
Article 27 Diplomatic agents and consular officers Nothing in this Convention affects the tax privileges of diplomatic agents or consular employees established by general rules of international law or on the basis of special agreements.
Article 28 Reimbursement of expenses 1. Taxes withheld from a source in a Contracting State shall be refunded at the request of the taxpayer or the State of which he is a resident, if the right to levy such taxes is determined by the provisions of this Convention. 2. The request for refund shall be satisfied within the time prescribed by the legislation of the Contracting State obliging the refund, accompanied by an official document of the Contracting State of which the taxpayer is a resident confirming the conditions giving the right to require the application of permits provided for in this Convention. 3. The competent authorities of the Contracting States shall decide by mutual agreement on the manner of application of this Article in accordance with the provisions of Article 25 of this Convention.
Article 29 Limitation of benefits A person who is a resident of a Contracting State and receives income from a Contracting State will not be eligible for exemption from taxation in that other State, despite the agreement in this Convention, if the main purpose or one of the main purposes of any person with respect to the creation or distribution of such income was to take advantage of the provisions of this Convention. In making a decision under this article, the relevant competent authority or authorities will have the right to consider, among other factors, the amount and nature of the income, the circumstances in which the income arose, the determined intention of the parties to the transaction, the authenticity and residence of persons who legally or actually, directly or indirectly, control or actually own (i) income, or (ii) persons who are residents of the Contracting State States(a) and which are related to payments or to the receipt of such income.
Chapter 6 Final provisions Article 30 Entry into force 1. This Convention will be ratified and the instruments of ratification will be exchanged as soon as possible. 2. The Convention will enter into force on the date of the exchange of instruments of ratification, and its provisions will apply.: (a) In respect of taxes withheld at source to amounts received on or after 1 January 1994; (b) In respect of other taxes on income, taxes payable in any taxable period beginning on or after January 1, 1994. 3. Claims for refund or set-off arising under this Convention in respect of any taxes paid by residents of each Contracting State relating to periods beginning on or after January 1, 1994 and prior to the entry into force of this Convention shall be filed within two years from the date of entry into force of this Convention or from the date of collection of the tax. No matter how late it is.
Article 31 Termination This Convention shall remain in force until terminated by one of the Contracting States. Each of the Contracting States may terminate the Convention through diplomatic channels by giving notice of termination no later than six months before the end of any calendar year following the expiration of 5 years from the date of entry into force of the Convention. In this case, the Convention is terminated.: (a) In respect of taxes withheld at source, to amounts received on or after January 1 in the calendar year following the year in which the notification is filed; and (b) in respect of other taxes on income, to taxes payable in any taxable period beginning on or after January 1 of the calendar year following for the year in which the notification was submitted. In witness whereof, the undersigned representatives, duly authorized by their respective Governments, have signed this Convention. Done in In Rome on September 22 in Kazakh, Italian, English and Russian, all texts have the same validity. In case of doubt, the English text will be decisive. * * *
President
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