On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Hungary 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 Hungary 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 2224

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 Hungary on the Elimination of Double Taxation and the Prevention of Tax Evasion on Income and Capital, signed in Budapest December 7, 1994. 2. This Decree shall enter into force from the date of publication.

President of the Republic of Kazakhstan

application

The Convention

between the Republic of Kazakhstan and the Republic of Hungary

on the elimination of double taxation and the prevention of

tax evasion on income and capital*

(Bulletin of International Treaties, Agreements and Individual Legislative Acts of the Republic of Kazakhstan, 1998, No. 3, Article 20)

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

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 and on capital imposed by a Contracting State or its political and administrative subdivisions or local authorities, regardless of the manner in which they are levied. 2. Taxes on income and capital are all types of taxes levied on total income, on total 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, in particular, are: 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 Hungary: (i) personal income tax; (ii) corporate tax; (iii) land tax; (iv) building tax; (hereinafter referred to as the "Hungarian 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.

Chapter 2

Definitions Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) The term: (i) "Kazakhstan" means the Republic of Kazakhstan. When used geographically, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan can exercise sovereign rights and jurisdiction in accordance with international law and in which the laws governing taxes of Kazakhstan apply.; (ii) "Hungary", when used geographically, means the Republic of Hungary; (b) the term "person" includes an individual, a company, or any other body of persons; (c) the term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes, and in in the case of Kazakhstan, it includes a joint-stock company, a limited liability company, or any other legal entity or organization that is subject to income tax; (d) The terms "Contracting State" and "the other Contracting State" mean Kazakhstan or Hungary, 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 sea, river, aircraft or road operated by an enterprise of a Contracting State, except when the sea, river, aircraft or road transport is operated exclusively between locations in the other Contracting State; (e) The term "competent authority" means: (i) in In Kazakhstan: the Minister of Finance or his authorized representative; (ii) in Hungary: the Minister of Finance or his authorized representative; (h) The term "national person" (natinael) means: (i) any natural person who holds the nationality of a Contracting State; (ii) any legal person, partnership or association that has obtained its status on the basis of the applicable legislation of a Contracting State. 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 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, nationality, 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 political and administrative subdivision or local authority, or any other structure of such Government, political and administrative subdivision or local authority. However, this term does not include any person who is subject to taxation in that State, only in respect of income from sources in that State or in respect of capital held therein. 2. Where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, his status shall be determined as follows: (a) He 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, then he shall be deemed to be a resident of the State in which his place of effective management is located. If the place of effective management is not determined, the competent authorities of the Contracting States will make every effort to resolve the issue by mutual agreement.

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 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 only 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 hired by the resident for such purposes, but only if activities of this nature have been ongoing (for such or a related project) within the country for more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: (a) The use of facilities solely for the purpose of storing, displaying or supplying goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purposes of storage, display or delivery; (c) The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or collecting information for the enterprise; (e) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if 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 transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be considered 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, it does not turn one of these companies into a permanent establishment of the other.

Chapter 3 Taxation of income

Article 6 Income from real estate 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; 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; marine, river, aircraft or road transport are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.

Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State 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 that part which relates to: a) such permanent establishment; (b) Sales in that other State of goods or merchandise that match or resemble goods or merchandise that are sold through a permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were an independent and separate enterprise engaged in the same or similar activities, under such circumstances under the same or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. However, such deduction is not permitted in respect of amounts (other than reimbursement of actual expenses) transferred by a permanent establishment to the head office of the enterprise or any of the other offices 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, except in cases of banking enterprises, by paying interest for the loan of funds by a permanent establishment. Also, when determining the profit of a permanent establishment, the amounts (other than reimbursement of actual expenses) that are necessarily accrued by the permanent establishment to the head office of the enterprise or any of its other offices by paying royalties, fees or other similar payments for the use of patents or other rights, or in the form of commissions for services provided or for management, or, except in cases of banking, in the form of interest on loans provided to the company's head office or any of its other offices. 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 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, providing that the application of such laws will comply with the principles of this Convention. 6. If the profit includes types of income or income from the increase in the value of property, which are separately 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, boats, aircraft or motor vehicles in international traffic shall be taxable only in that State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, 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 would be 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 - profits on which an enterprise of the other Contracting State is taxed in that other State and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises had been such, 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) 5 per cent of the total amount of the dividends if the beneficial owner is the company that owns directly or indirectly at least 25 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 respect of which dividends are paid, and is actually associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. If a company that is a resident of 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 fixed base. located in this other State. 6. A company which is a resident of a Contracting State and which has a permanent establishment in the other Contracting State may be taxed in that other State in addition to income tax. Such tax, however, shall not exceed 5 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. Notwithstanding the provisions of paragraph 2 of this Article, those interests arising in a Contracting State that relate to loans fully provided, guaranteed or secured by the Government or the Central Bank of the other Contracting State or a local authority or any institution or structure of such Government or authority are exempt from taxation. 4. 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, bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this Article. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there, and the debt claim in respect of which the interest is paid, really refers to such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, its political and administrative subdivision, local authorities or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such interest arises in the State in which such a permanent establishment or permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this Article shall apply only to the last mentioned amount. In 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. 8. The provisions of this Article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this Article by creating or transferring rights.

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 arise and according to the laws of that State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the total amount of the royalties. 3. The term "royalties", as used in this Article, means payments of any kind received as remuneration for the use or grant of rights to use any copyright in works of literature, art or science, including computer programs, cinematographic films, films or tape recordings for radio and television, any patent, trademark, design or a model, plan, secret formula or process, or for information (know-how) related to an 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 paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides 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, are indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. 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 considered to have originated in the State in which the permanent establishment or permanent base is located. 6. If, as a result of a special relationship between the payer and the actual owner of the royalty or between both of them and any other person, the amount of the royalty relating 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 royalty in the absence of such a relationship, the provisions of this Article shall 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, 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 and located in the other Contracting State, or shares or other forms of participation in a company or partnership whose assets consist primarily of such property, may be taxed in that other State. 2. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State. 3. Income earned by a resident of a Contracting State from the alienation of ships, river, aircraft or road transport operated in international traffic or movable property related to the operation of such ships, river, aircraft or road transport 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 activities of an independent nature is taxable only in that State, unless such services are provided in the other Contracting State; and: (a) income relates to a permanent base that an individual has on a regular basis in the other State.; or (b) Such individual is 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, which determine 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, 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 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 earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if all of the following conditions are met: (a) The recipient is present in that other State for a period or periods not exceeding a total of 183 days within 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, river, aircraft or road transport operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship, river, aircraft or road transport is a resident.

Article 16 Directors' fees Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors 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 carried on 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 carried on. 3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, income referred to in this Article shall be exempt from tax in the Contracting State in which the activities of an artist or athlete are carried out, provided that such activities are provided, in large part, from public funds of that or another State or the activities are carried out within the framework of a cultural agreement or agreements between the Contracting States.

Article 18 Pensions and other payments 1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid in respect of past work 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 a political administrative subdivision or local government thereof to any natural person in respect of services rendered to that State or a political administrative subdivision or local government authority shall be taxable only in that State. 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 from funds created by, a Contracting State or a political subdivision or local authority to an individual in respect of services rendered to that State or its political subdivision or local authority shall be taxable only in that State. B) However, such a pension is 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 and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political and administrative subdivision or local authority thereof.

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 another Contracting State and who is temporarily staying in that other State for the main 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 obtaining a qualification; or is exempt from tax in that other State in respect of payments received from abroad for the purposes of his residence, education or study. 2. The benefit provided for in paragraph 1 shall apply only for such period of time as is normally necessary to complete the training or internship; however, the internship benefit will not last more than five years. 3. Payments received for teaching or scientific research by an individual who is or was, immediately prior to a visit to a Contracting State, a resident of the other Contracting State and who is located in the first-mentioned State for the purpose of conducting scientific research or teaching at a university or other accredited educational institution, shall be exempt from tax in the first State for a period not exceeding two years from the date of his/her first visit to the first mentioned State.

Article 21 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 with a permanent establishment located there. the bases, and the right or property in respect of which income is paid, are indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

Chapter 4

Taxation of capital Article 22 Capital

1. Capital represented by immovable property referred to in Article 6 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 held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State. 3. Capital represented by ships, river, aircraft, or 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, river, aircraft, or road transport, shall be taxable only in that Contracting State. 4. All other elements of the capital of a resident of a Contracting State are taxable only in that State.

Chapter 5 Methods of eliminating double taxation Article 23 Elimination of double taxation 1. In the case of Kazakhstan, double taxation is eliminated as follows: (a) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Hungary, Kazakhstan will allow: (i) deduction from the income tax of that resident an amount equal to the income tax paid in Hungary; ii) deduct from the capital tax of this resident an amount equal to the capital tax paid in Hungary. However, these deductions, in any case, should not exceed the portion of income or capital tax calculated before the deduction is granted, relating to income or capital that may be taxed in Hungary, depending on the circumstances. (b) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Hungary, Kazakhstan 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 Kazakhstan. 2. In the case of Hungary, double taxation is eliminated as follows: (a) If a resident of Hungary receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, such income or capital shall be exempt from tax in Hungary in accordance with subparagraphs (B) and (c). (b) If a resident of Hungary earns income that, in accordance with the provisions of Articles 10, 11 and 12, may be taxed in Kazakhstan, the amount of tax on that resident's income paid in Kazakhstan shall be counted towards the payment of the tax in Hungary. However, such a tax amount should not exceed the amount of tax accrued prior to the provision of the offset, which relates to such tax received in Kazakhstan. (c) If, in accordance with any provision of the Convention, income or capital owned by a resident of Hungary is exempt from tax in Hungary, Hungary may nevertheless take into account income or capital exempt from taxation when calculating the amount of tax on the remainder of such resident's income or capital.

Chapter 6 Special provisions 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 and 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, 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, paragraph 7 of Article 11, paragraph 6 of Article 12 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 deductible under the same conditions as if they were paid to a resident of the first mentioned State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned State. 5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State. 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, the provisions of this Article shall apply to taxes of any kind and type.

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 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 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 shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement and understanding of the preceding paragraphs. 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 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 domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation is not contrary to 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 should 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 another Contracting State; (b) to provide information that is not available under the laws or customary administrative practices of that 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 public practice (public order).

Article 27 Diplomatic agents and consular employees Nothing in this Convention affects the tax privileges of members of diplomatic missions and consular employees granted by the general rules of international law or in accordance with the provisions of special agreements.

Chapter 7 Final provisions

Article 28 Entry into force 1. The Contracting States shall notify each other of the completion of the procedures provided for in their constitutions for the entry into force of the Convention. 2. The Convention will enter into force on the date of the last notification referred to in paragraph 1, and its provisions will apply: (i) with respect to taxes withheld at source to amounts paid or due on or after January 1 of the calendar year following the year of entry into force of the Convention.; (ii) - in relation to other taxes on income and taxes on capital, on taxes levied for any taxable year beginning on or after January 1 of the year following the year of entry into force of the Convention.

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 the end 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 received on or after January 1 of the calendar year following the year in which the termination is notified; and (ii) with respect to other taxes on income and taxes on capital, for any taxable period the year starting from or after January 1 of the calendar year following the year in which the termination notice is submitted. In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention. Done in Budapest on December 7, 1994, in two originals in the Kazakh, Hungarian, Russian and English languages, all texts being equally authentic. In case of discrepancies in the texts, the English text will be decisive.

President

Republic of Kazakhstan

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