On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Poland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital

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On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Poland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital

Decree of the President of the Republic of Kazakhstan dated April 21, 1995 N 2223

In accordance with Article 2 of the Law of the Republic of Kazakhstan dated December 10, 1993 "On the temporary delegation of additional powers to the President of the Republic of Kazakhstan and heads of local administrations", I hereby decree:

1. To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Poland on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital, signed in Almaty on September 21, 1994.

2. This Decree shall enter into force from the date of publication.

President of the Republic of Kazakhstan

The Convention

between the Government of the Republic of Kazakhstan and

By the Government of the Republic of Poland on the elimination of

double taxation and prevention

tax evasion on income and capital

The Government of the Republic of Kazakhstan and the Government of the Republic of Poland, guided by their desire to strengthen and develop economic, scientific, technical and cultural ties between the two Countries and desiring to conclude a Convention on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital, have agreed as follows:

Article 1 Persons to whom the Convention applies This Convention applies to persons who are residents of one or both of the Contracting States and to other persons, if provided for by the Convention.

Article 2 Taxes covered by the Convention

1. This Convention shall apply to taxes on income and on capital imposed by a Contracting State or by its administrative subdivisions or local authorities, irrespective of the manner in which they are levied.

2. Taxes on income and 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 total amount of salaries or salaries paid by enterprises, as well as taxes levied on income from capital gains. 3. The existing taxes to which the Convention applies are, in particular: a) in the Republic of Kazakhstan: (i) corporate income tax; (ii) personal income tax; (iii) the personal property tax; (hereinafter referred to as the "Kazakhstan Tax") b) in the Republic of Poland: (i) corporate income tax; (ii) personal income tax; (hereinafter referred to as the "Polish Tax")

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

Article 3 General provisions

1. For the purposes of this Convention, unless the context otherwise requires: (a) The term: (i) "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, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the laws governing taxes of Kazakhstan apply.; (ii) "Poland" means the Republic of Poland, including any territory outside its territorial waters in which, under Polish law and in accordance with international law, Poland may exercise sovereign rights over the seabed, its subsoil and their natural resources; (b) the term "person" includes an individual, a company or any other association of persons; (c) The term "company" means any corporate entity or any economic unit which 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 person or organization which is subject to income tax; (d) The terms "Contracting State" and ""other Contracting State" means Kazakhstan or Poland, 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 Poland: the Minister of Finance or his authorized representative; (h) The term "national" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, company, partnership or any other association which has acquired its status on the basis of the applicable legislation of a Contracting State; (i) The term "capital" for the purposes of article 22 (Capital) means movable and immovable property and includes (but is not limited to) cash, shares or other documents confirming property rights, promissory notes, bonds or other debentures, as well as patents, trademarks, copyrights or other similar rights or property.

2. As regards the application of the 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 State in respect of taxes to which the Convention applies.

Article 4 The 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 or place of establishment, or any other criterion of a similar nature. The term also includes the Government of a Contracting State, its administrative subdivision or local authorities and financial institutions used by any such Government or authorities. However, this term does not include any person who is subject to taxation 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 shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the 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 an habitual abode 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 he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement.

3. If, by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to resolve the matter by mutual agreement, but if the competent authorities are unable to reach such agreement, such person shall not be deemed to be a resident of either Contracting State for the purposes of obtaining benefits in accordance with this Convention. By convention.

Article 5 Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part.

2. The term "permanent establishment" includes, in particular:: (a) A place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (f) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: a) a construction site 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.; and b) 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 c) the provision of services, including consulting services, by residents through employees or other personnel employed by the resident for such purposes, but only if activities of this nature have been ongoing (for such or a related facility) within the country for more than 12 months.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not be considered as including: (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 and merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) the maintenance of inventory of goods and products 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 activities for the enterprise; (f) The maintenance of a fixed place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the fixed place of business resulting from such combination are of a preparatory or auxiliary nature.

5. Notwithstanding the provisions of paragraphs 1 and 2, if a person other than an agent with an independent status to whom paragraph 6 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 activity which that person undertakes for the enterprise, unless the activity of such person is limited to that referred to in paragraph 4, which, if carried out through a permanent place of business, does not exceed this permanent place of business in a permanent establishment in accordance with the provisions of this paragraph.

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

7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) By itself, one of these companies does not exceed the 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 apply in relation to land ownership, the usufruct of immovable property and rights to variable or fixed payments as compensation for mining or the right to develop mineral resources. resources, sources and other natural resources; ships and aircraft are not considered as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form.

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

Article 7 Profit from business activities

1. The profits of an enterprise of a Contracting State shall be taxable only in that State if the enterprise does not carry on or has not carried on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out or has carried out business activities, as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to: a) such permanent establishment; (b) Sales in that other State of goods or merchandise that are identical or similar to goods or merchandise that are sold through a permanent establishment; or (c) other business activities carried on in that other State that 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 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. 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 elsewheredetermining thet of att, 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 locatedr 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 for the use of patents or oIt 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 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 the i5. If the information available to the competent authority of one of the Contracting States or which can be easily obtained by it is not sufficient to determine the profits or expenses of a permanent establishment, the profits may be calculated in accordance with the tax laws of that State. For the purposes of this paragraph 5, information will be considered as easily obtainable if the taxpayer provides the information to the requesting competent authority within 91 days from the date of the written request by the competent authority for such information.

6. If profits include types of income or gains from the increase in the value of property, which are specifically mentioned in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.

7. 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 and road transport in international traffic shall be taxable only in that State.

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

Article 9 Associated companies

1. Where: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in each case, conditions are created or established between two enterprises in their commercial and financial relations that differ from those that were created 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 the enterprise of the other Contracting State is taxed in that other State, and the profits thus included are profits that would have accrued to the enterprise of the first-mentioned State if the conditions created between the two enterprises had been such which exist 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, the other provisions of this Convention 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 in accordance with the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed: (a) 10 per cent of the total amount of the dividends if the beneficial owner is a company that directly owns or indirectly by at least 20 percent of the capital of the company paying dividends; b) 15 percent of the total amount of dividends in all other cases. 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", as 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, which is subject to the same tax regulation as income from shares in accordance with the tax laws of the State in which the company is a resident., distributing profits.

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 holding company, in in respect of which dividends 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. 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 is actually affiliated with a permanent establishment or permanent base located in this other State.

6. A company which is a resident of a Contracting State and which 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, shall not exceed 10 per cent of the share of the company's profits to be taxed 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 arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 10 per cent of the total amount of the interest.

3. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured, giving or not giving the right to participate in the debtor's profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities. securities, bonds, or debentures. Penalties for late payments are not considered as interest for the purposes of this article.

4. 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 independent personal services in that State with a permanent base located there, and the debt claim in respect of which the the interest really applies 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. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, an administrative subdivision thereof, 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 has been incurred by such permanent establishment or permanent base, such interest shall be deemed to arise. in the State in which such a permanent establishment or permanent base is located.

6. If, due to a special relationship between the payer and the actual owner of interest, or between both of them and any other person, the amount of interest related 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 interest in the absence of such a relationship, the provisions of this The articles apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this article by creating or transferring rights. 8. Notwithstanding the provisions of paragraph 2 of this article, interest arising in a Contracting State shall be exempt from taxation in that State if it is received and it is owed to the Government of the other Contracting State or local authorities, or any other agencies of that Government or local authorities.

Article 12 Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent 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 the use or grant of rights 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 the use or grant of 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, 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 independent personal services in that other State from a permanent base located there, and the right or property in respect of which royalties are paid that are actually associated with such a permanent establishment or permanen4. The provisions of paragraph 1 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 independent personal services in that other State from a permanent base located there, and the right or property in respect of which royalties are paid that are 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 have arisen in a Contracting State if they are paid for the use or for the right to use rights or property in that State.

6. If, as a result of a special relationship between the payers and the actual owner of the royalties or between both of them and any other person, the amount 6. If, as a result of a special relationship between the payers 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 such a case, the excess part of the payment shall be taxable in accordance with the laws of I such a case, the excess part of the payment shall be taxable in accordance with the each Contracting State, with due regard to the other provisions of this Convention.

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 the alienation of: (a) shares other than shares traded on a substantial and regular basis on an officially recognized stock exchange that receive the 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, property which consist mainly of immovable property located in the other Contracting State or of shares referred to in subparagraph (a) abIncome earned by a resident of a Contracting State from the alienation of: (a) shares other than shares traded on a substantial and regular basis on an officially recognized stock exchange that receive the 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, property which 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 belonging to a permanent base owned 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 combination with the entire enterprise) o3. 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 belonging to a permanent base owned 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 combination with the entire enterprise) or such permanent base, may be taxed in another State.

4. Income earned by a resident of a Contracting State from the alienation of ships or aircraft, railway and motor transport operated in international traffic, or movable property related to the operation of such ships or aircraft, railway and motor transport, sha4. Income earned by a resident of a Contracting State from the alienation of ships or aircraft, railway and motor transport operated in international traffic, or movable property related to the operation of such ships or aircraft, railway and motor transport, shall be taxable only in the Contracting State. 5. 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. s 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 or other activities of an independent nature shall be taxable only in that State, unless such services are provided or have been provided in the o1. Income earned by a resident of a Contracting State in respect of professional or other activities of an independent nature shall be taxable only in that State, unless such services are provided or have been provided in the other Contracting State; and (a) the income relates to a permanent base that the individual has on a regular basis in the other State; or b) such individual is present or has been present in that other State for a period or periods exceeding a total of 183 days in any consecutive 12-month period. In such a case, income related to services may be taxed in that other State in accordance with principles similar to those contained in article 7 (Business profits), which determines the amount of profit associated with a permanent establishment.

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 (Directors' fees), 18 (Pensions), 19 (Public service), salaries, salaries and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is performed in the other Contracting State.. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived 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 resides in that other State for a period or periods not exceeding a total of 183 days within the limits of of any continuous 12-month period; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State; and c) the remuneration is not paid by a permanent establishment or a fixed base that the employer has in another State.

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 Stat3. 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 internation traffic may be taxed in the Contracting State of which the enterprise operating the ship, aircraft, railway or road transport is a resident.

Article 1Article 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 Article 14 (Independent personal services) and Article 15 (De1. 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 a musician, or as an athlete from his personal activities carried on in the other Contracting State May be taxed in that other State.

2. If income in relation to personal activities carried out by an art worker or athlete in this capacity is accrued not 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 (Profit from entrepren

3. Notwithstanding the provisions of paragraphs 1 and 2, the income referred to in this article will be exempt from taxation in the Contracting State in which the activities of the artist or athlete are carried out if these activities are financed from public funds of either State, or these activities are carried out on the basis of an agreement on cultural cooperation concluded between By 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 with the obligation to make such payments in return for adequate and full remuneration in money or monetary terms.

3. Alimony and other similar amounts (including child support 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 a pension, paid by a Contracting State or an administrative subdivision or a local authority thereof to any natural person in respect of services rendered to that State or an administrative subdivision or a local authority thereof shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the service is performed 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 the service.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or an administrative subdivision or local authority to an individual in respect of services rendered to that State or its administrative subdivision or local authority shall be taxable only in that State. (b) However, such pension shall be taxable 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 an administrative subdivision thereof, or a local authority.

Article 20 Students, interns, teachers, and researchers

1. An individual who is a resident of a Contracting State at the beginning of his visit to the other Contracting State and who is temporarily staying in that other State for the primary purpose of: (a) studying at a University or other recognized educational institution in that other State; or (b) completing an internship required for work in a specialty or advanced training; or c) studying or conducting research as a recipient of scholarships, allowances or other similar payments from governmental, religious, charitable, scientific, literary or educational organizations; is exempt from tax in that other State in respect of payments received from abroad for the purposes of his residence, education, study, research or internship, as well as in relation to scholarships, allowances or other similar payments.

2. The benefit provided for in paragraph 1 shall apply only for such period of time as is normally necessary for the completion of studies, internships or research; however, the benefit in respect of internships or research will not last more than five years.

3. An individual who is temporarily staying in a Contracting State for the purpose of teaching or conducting research at a university, higher and secondary school or other educational institution, who has or immediately prior to this visit had permanent residence in the other Contracting State, will be exempt from taxation in the first-mentioned Contracting State on remuneration for teaching or conducting research if the period of stay of this person does not exceed two years, counting from the date of his first arrival for this purpose.

4. This Article does not apply to income from research activities, if such research is not undertaken in the public interest, but mainly for the personal benefit of an individual or persons.

Article 21 Other income Items of income of a resident of a Contracting State arising in the other Contracting State which are not dealt with in the preceding articles of this Convention may be taxed in that other State.

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 other 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 available to a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State.

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

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

Article 23 Elimination of double taxation

1. If a resident of a Contracting State receives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State will allow: (a) to deduct from the income tax of that resident an amount equal to the income tax paid in that other State; (b) to deduct from the income tax the capital of this resident is an amount equal to the capital tax paid in that other State. In any case, these deductions shall not exceed the portion of income or capital calculated prior to the deduction and relating to income or capital that may be taxed in that other State.

2. If a resident of a Contracting State earns income or owns capital which, in accordance with the provisions of this Convention, is taxable only in the other Contracting State, the former Contracting State may include that income or capital in the tax base, but only for the purpose of determining the tax rate on such other income or capital as is taxable in the former The Contracting State.

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. This provision also applies, notwithstanding the provisions of article 1 (Persons to whom the Convention applies), 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 any related obligations other or more burdensome than taxation and related obligations to which national persons of the State are or may be subjected in the same circumstances.

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.

4. Except where the provisions of paragraph 1 of Article 9 (Associated enterprises), paragraph 6 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 shall, 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 which are other or more burdensome than the taxation and related obligations to which they are subject or other similar enterprises of the first mentioned State may be at risk.

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

7. Notwithstanding the provisions of article 2 (Taxes to which the Convention applies), the provisions of this article apply to taxes of all kinds and types.

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 domestic law of those States, submit his case for examination 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 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 Convention.

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 Convention. 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 may enter into direct contact with each other in order to reach an agreement and understanding of the preceding paragraphs. If, in order to reach an agreement, it would be advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a commission consisting of representatives of the competent authorities of the Contracting States.

Article 26 Information exchange

1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation does not conflict with the Convention. The exchange of information is not limited to article 1. Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic law of that State and shall be 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 for which The Convention is being extended. Such persons or authorities will 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 shall the provisions of paragraph 1 be interpreted as imposing obligations on Contracting States: (a) to take administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (b) to provide information that is not available 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 Employees of diplomatic missions and employees of consular institutions Nothing in this Convention affects the tax privileges of employees of diplomatic missions and consular employees or employees of consular institutions granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 28 Entry into force Each of the Contracting States will notify each other through diplomatic channels of the completion of the procedure required by domestic law for the entry into force of this Agreement. This Agreement shall enter into force on the date of the last such notification and thereafter shall have effect: (i) with respect to taxes withheld at source on dividends, interest or royalties in amounts paid or due on or after the first day of the second month following the month of entry into force of the Convention.; (ii) in respect of other taxes, for taxable periods beginning on or after 1 January of the year following the year in which the Convention entered into force.

Article 29 Termination

1. This Convention shall remain in force until terminated by one of the Contracting States. Each Contracting State may terminate the Convention after one year after the expiration of 5 years from the date of entry into force of the Convention by notifying in writing through diplomatic channels of the termination of the Convention at least six months before the end of any calendar year.

In such a case, the Convention shall terminate: (i) with respect to taxes withheld at source on amounts paid or due on or after 1 January of the year following the expiration date of the six-month period; and (ii) with respect to other taxes for the taxable period beginning on or after 1 January. the year following the expiration date of the six-month period. In witness whereof, the undersigned representatives, being duly authorized thereto by their respective Governments, have signed this Convention.

Done in Almaty on 21.09.1994 in the Kazakh, Polish and Russian languages, all texts being equally authentic. In case of a discrepancy in the texts, the Russian text will be decisive.

President

Republic of Kazakhstan

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