On approval of the agreement between the Government of the Republic of Kazakhstan and the Government of Mongolia on preventing double taxation of income and capital and preventing tax evasion

Home / RLA / On approval of the agreement between the Government of the Republic of Kazakhstan and the Government of Mongolia on preventing double taxation of income and capital and preventing tax evasion

Law of the Republic of Kazakhstan dated November 9, 1998 No. 288-I

To approve the agreement between the Government of the Republic of Kazakhstan and the Government of Mongolia, signed in Almaty on March 12, 1998, on the Prevention of double taxation of income and capital and the Prevention of tax evasion.

President Of The Republic Of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and the Government of Mongolia on preventing double taxation of income and capital and preventing tax evasion

The Government of the Republic of Kazakhstan, intending to conclude an agreement with the Government of Mongolia on preventing double taxation of income and capital and preventing tax evasion, agreed on the following:

Chapter I scope of the agreement

Article 1 persons to whom the agreement applies

This agreement applies to persons who are residents of one or both Contracting States.

Article 2 taxes applicable to the agreement

1.this agreement applies to income and capital taxes levied by the contracting state or its administrative divisions or local authorities, regardless of the methods of obtaining it. 2.all types of taxes levied on income derived from the withdrawal of movable and immovable property, taxes levied on the total amount of wages and wages paid by enterprises, taxes levied on the income of capital gains, including taxes on the total amount of income or capital, or on individual elements of income or capital, shall be considered income taxes. 3.the currently levied taxes to which this agreement applies are, in particular: A) in the Republic of Kazakhstan: (i) income tax on legal entities and individuals; (II) taxes on property of legal entities and individuals; (hereinafter referred to as the "Kazakhstan tax"); b) in Mongolia: (i) Personal Income Tax; (II) corporate income tax; (hereinafter referred to as the "Mongolian tax"). 4. The agreement also applies to taxes in force after the date of signing this Agreement, or to any taxes of the same or practically similar origin, which are additionally levied in their place. The competent authorities of the contracting states shall notify each other of any significant changes to their tax laws.

Chapter II definitions

Article 3 general definitions

1.for the purposes of this Agreement, unless otherwise provided by the context: A) the following terms: (i) the term "Kazakhstan" means the Republic of Kazakhstan. When used in the coastal sense, the term" Kazakhstan " means territorial waters, as well as an exclusive economic zone and continental shelf, where, in accordance with international law, Kazakhstan can exercise sovereign rights and jurisdiction for certain purposes and laws governing taxes of Kazakhstan apply; (ii) The term" Mongolia", when used in a geographical sense, means the territory of Mongolia and any region where Mongolian tax laws apply if Mongolia exercises sovereign rights to use its natural resources in accordance with international law in this region; (b) the term "person" means an individual, company or any other association of persons; (C) the term" company " means any corporate structure or any economic unit; d) the terms" Contracting State "and" other Contracting State "mean Kazakhstan or Mongolia, depending on the context; F) the terms" enterprise of the Contracting State "and" enterprise of the other Contracting State " mean an enterprise managed by a resident of the Contracting State and an enterprise managed by a resident of the other Contracting State, respectively; f) the term " international transport "means any transport carried out by sea, air, land or rail, used by an enterprise of a contracting state, except in cases where sea, air, land or rail transport is used only between points of another Contracting State; g) the term" competent authority " means: (i) in the Republic of Kazakhstan: the Ministry of Finance of Kazakhstan or its authorized representative; (ii) in Mongolia: the Ministry of Finance of Mongolia or its authorized representative; h) the term" National person " /National/ means: (i) any individual with the citizenship of the Contracting State; (II) any legal entity, partnership or any other association that has acquired its status on the basis of the laws in force of the contracting state. 2.when a Contracting State uses the agreement, any term not defined in it, if it has no other meaning than the context, shall have the same meaning as it is used under the laws of that state on the taxes to which this agreement applies.

Article 4 Resident

1.for the purposes of this Agreement, the term "resident of the Contracting State" means any person subject to taxation in it on the basis of his / her place of residence, residence, place of Administration, place of establishment or any other criterion of such nature under the laws of this state. The term also includes the government of the Contracting State or its administrative division, local authorities and institutions used by any such government or authority. It also includes any pension fund or other fund for employee benefits, as well as any charitable organization established in accordance with the laws of the Contracting State. However, this term covers any person who is subject to taxation in this state solely on the basis of income from sources in this state or the capital located in it. 2. In accordance with the provisions of Paragraph 1, if an individual is a resident of both Contracting States, his status is determined as follows: a) he is considered a resident of the Contracting State, where permanent housing belonging to his property is located; if he has permanent housing in both Contracting States, he is considered a resident of the state with the closest personal and economic ties (center of vital interests; (b) if it is not possible to determine the Contracting State in which he has a center of vital interests, or if he does not have permanent housing at his disposal in either of the contracting states, he is considered a resident of the Contracting State in which he usually resides; (C) if he usually resides in or does not reside in either of the contracting states, he is considered a resident of the state in which he is a citizen; (d) if he is a citizen of either of the Contracting States or is not a citizen of either of the contracting states, the competent authorities of the Contracting States shall resolve the matter in mutual agreement. 3.if, for reasons related to the provisions of Paragraph 1, a person other than an individual is a resident of both Contracting States, he is considered a resident of the state in which his real leadership is located.

Article 5 permanent establishment

1.for the purposes of this Agreement, the term "permanent establishment" means a permanent place of activity in which the entrepreneurial activity of the enterprise is carried out in whole or in part. 2.in particular, the term "permanent establishment" includes: a) a place of management; b) a division; C) an office; d) a factory; e) a workshop; f) A mine, oil or gas wells, a mine or any other place producing natural resources. 3. The term" permanent facility " also includes: a) only if such site, facility or facility has been in operation for more than 12 months or if such services have been provided for more than 12 months, construction site or construction, installation or assembly facility or services related to the supervision of the performance of these works, as well as installation or drilling rig or ship used for exploration and development of Natural Resources; b) services provided by residents through employees or other employees hired by the resident for such purposes, including consulting services, if services of this nature (for such or related project) are provided within the country for more than 6 months. 4. despite the previous provisions of this article, the term "permanent establishment" does not include: a) the use of buildings only for the purposes of storage, display or shipment of goods or products belonging to the enterprise; b) maintain a stock of goods or products owned by the enterprise only for storage, display or transfer purposes; C) maintain a stock of goods or products owned by the enterprise only for the purposes of likeness of another Enterprise; d) maintain a permanent place of activity only for the purposes of purchasing goods or products or for collecting information for the enterprise; F) maintain a permanent place of activity only for the implementation of any other activity of a preparatory or auxiliary nature for the enterprise; f) maintenance of a permanent place of service only for the implementation of any action of the specified types of activity from subitem A) to subitem F) in the event that the aggregate activity of a permanent place of service resulting from such action is of a preparatory or auxiliary nature. 5. Regardless of the provisions of Paragraphs 1 and 2 of this article, if a person other than an agent with independent status to which paragraph 6 applies acts on behalf of the enterprise and has the authority to conclude contracts on behalf of the enterprise in the Contracting State and normally uses it, then this enterprise shall be considered as an enterprise with a permanent institution in that state for any, but even if such a person is carried out through the place of permanent activity specified in paragraph 4, the situation that is limited to activities that do not turn this place of permanent activity into a permanent institution in accordance with the provisions of this paragraph is not included in this. 6. In addition to reinsurance, regardless of the previous provisions of this article, an insurance enterprise of the contracting state shall be considered as an enterprise with a permanent establishment in another contracting state if it collects insurance premiums in the territory of this other state or insures threats located in it through a person other than an agent with independent status to which the provisions of paragraph 7 apply. 7. An enterprise is considered as an enterprise with a permanent establishment in that state only for the fact that it carries out business activities in the Contracting State through an intermediary, commission agent or any other agent with independent status, if such persons act within the framework of their usual activities. 8. The fact that a company that is a resident of a contracting state controls or controls a company that is a resident of another contracting state or engages in entrepreneurial activity (or through a permanent institution or otherwise) in that other state does not make one of these companies a permanent institution of the other.

Chapter III taxation of income

Article 6 income from Real Estate

1.income received by a resident of a contracting state from real estate located in another contracting state (including income received from agriculture or forestry) may be taxed in this other state. 2.The term" real estate " shall have the same meaning as it has under the law of the Contracting State in which the property in question is located. The term in any case includes subsidiary property in relation to real estate, livestock and equipment used in agriculture and forestry, rights to which common law rules apply in relation to land ownership, rights to floating or lump sum payments as compensation for the development of real estate usufruct and Mineral Resources, ore sources and other natural fossils, and the right to develop the above; sea, aircraft, land and rail transport are not considered 3. The provisions of Paragraph 1 apply to income derived from the direct use, rental or use of real estate in any other way. 4.the provisions of Paragraphs 1 and 3 also apply to income from the real estate of the enterprise and income from real estate used for the provision of independent personal services.

Article 7 profit from entrepreneurial activity

1.if an enterprise of a contracting state does not engage in or has not engaged in entrepreneurial activity in another contracting state through a permanent institution located there, the profit of such enterprise shall be taxed only in this state. If an enterprise, as mentioned above, is or has been engaged in entrepreneurial activity, then its profits may be taxed in another state, but to the following: a) to such a permanent institution; (B) the sale of goods or products identical or similar to the goods or products sold through such a permanent establishment in this other state; or (C) may be built only in the part related to other business activities carried out in this other state, which in its nature coincides or is similar to the business activities carried out through such a permanent establishment. 2. Taking into account the provisions of Paragraph 3, if an enterprise of a contracting state is engaged in or engaged in entrepreneurial activity through a permanent institution located there in another contracting state, then the profit that this permanent institution may receive in the event of an absolutely independent action from an enterprise that is a permanent institution of humor in the same or similar conditions shall be attributed to this permanent institution in the contracting state. 3. When determining the profit of a permanent establishment, the costs incurred for the purposes of a permanent establishment can be deducted, including management and general administrative costs, regardless of whether the costs below are incurred in or outside the state in which the permanent establishment is located. Amounts paid by paying royalties, fees or other similar fees for the use of patents or other rights to the head office of a permanent institution or any of the resident's other offices, or by paying a commission for the provision of specific services or management, or by paying interest on the amount lent to a permanent institution, may not be deducted from the permanent institution. 4. If, as a rule, the determination of profit in relation to a permanent institution in the Contracting State is based on the balanced distribution of the total amount of its profit by various divisions of the enterprise, nothing in Paragraph 2 prohibits the determination of taxable profit by this Contracting State, as is usually accepted, by such distribution; however, the chosen method of balanced distribution must give results that meet the principles set forth in this article. 5.any profit to this permanent institution is not credited only as a result of the purchase of goods or products by a permanent institution for the enterprise. 6.if the profit includes the types of income separately mentioned in other articles of this Agreement, then the provisions of these articles do not apply to the provisions of this article. 7.if there are no sufficient and valid reasons for changing such an order, the profit in relation to a permanent institution is determined year-by-year in a uniform manner.

Article 8 Sea and air transport

1.profits received by a resident of the contracting state from the use of sea, aircraft, land or rail transport in international transportation shall be taxed only in this Contracting State. 2.the provisions of Paragraph 1 also apply to the benefit from participation in the pool, joint activity or international use agency.

Article 9 associated enterprises

1. if: a) an enterprise of a Contracting State directly or indirectly participates in the management, control or capital of an enterprise of another Contracting State, or b) certain persons directly or indirectly participate in the management, control or capital of an enterprise of a Contracting State and an enterprise of another Contracting State; and in each case, if it is concluded or established between the enterprise in different circumstances than those that may occur between two enterprises that are independent in their commercial or financial relations, then any profit that may be credited to one of them, but not credited to it due to the occurrence of these circumstances, may be added to the profit of this enterprise and taxed accordingly. If the Contracting State adds to the enterprise of another contracting state the profit taxable in this state to the profit of the enterprise of this state and taxes accordingly, and the profit added in this way can be credited to the enterprise of the first said state, if the conditions created between the two enterprises are the same as between independent enterprises, then this other state must make appropriate adjustments to the amount of tax levied on this profit. When determining such amendments, other provisions of this agreement must be considered and the competent authorities of the Contracting States shall consult each other if necessary.

Article 10 Dividends

1.dividends paid by a company that is a resident of a contracting state to a resident of another contracting state may be taxed in this other state. 2.however, such dividends may also be taxed in accordance with the laws of this state in the Contracting State, which is a resident of the dividend-paying company, but if the recipient is the actual owner of the dividends, then such levied tax does not exceed 10 percent of the total amount of dividends. This clause does not affect the taxation of the company in relation to the profit from which dividends are paid. 3. The term" dividends", when used in this article, means income from shares or other rights that are debt claims, income from participation in profits, as well as income from other corporate rights to participate in a company subject to the same tax regulation as income from shares in accordance with the laws of the state that is a resident of the company that distributes profits. 4. If the actual holder of dividends, who is a resident of the contracting state, carries out business activities in it through a permanent institution located in another contracting state in which the dividend-paying company is a resident, or provides personal services independent of a permanent base located there in this other state, and the holding Holding, which has a bottle of dividends paid, actually applies to such a permanent institution or permanent base, then the provisions of Paragraphs 1 and 2 do not apply. In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order. 5. If a company that is a resident of a contracting state receives profit or income from another Contracting State, this other state may not impose any tax on dividends paid by the company, except in cases where such dividends are paid to a resident of that other state, or a holding company in respect of which dividends are actually paid to a permanent institution or permanent base located in that other state, dividends paid or retained earnings may not tax the retained earnings of a company, even if they are fully or partially based on profits or income arising in another such state. 6.a company that is a resident of a contracting state and has a permanent establishment in another contracting state, regardless of other provisions of this Agreement, may be taxed in this other state in addition to income tax. But a similar tax cannot exceed 10 percent of the company's profit share, which must be taxed in another Contracting State.

Article 11 percentages

1.interest arising in the Contracting State and paid to a resident of another contracting state may be taxed in this other state. 2.however, such interest may be taxed, as well as in the Contracting State in which they occur, and in accordance with the laws of this state, but if the recipient is the actual owner of the interest, then the tax received in this way will not exceed 10 percent of the total amount of interest. 3. Regardless of the provisions of Paragraph 2: A) interest arising in Kazakhstan and paid to the government, administrative division or local authority of Mongolia or the Central Bank of Mongolia or the trade and Development Bank of Mongolia shall be exempt from the Kazakh tax; b) interest arising in Mongolia and paid to the government, administrative division or local authority of Kazakhstan or the National Bank of Kazakhstan or the Export-Import Bank of Kazakhstan shall be exempt from the Mongolian tax. 4. The term" interest " when used in this article means income from any debt claims secured or unsecured, granting or not the right to participate in favor of debtors, income from government securities and income from bonds or debt obligations, including interest and winnings paid on these securities, bonds or debt obligations. Penalties for late payments are not considered as percentages for the purposes of this article. 5.the provisions of Paragraphs 1 and 2 shall not apply if the actual owner of interest, who is a resident of the contracting state, is engaged in business activities through a permanent institution located there in another contracting state where the interest occurs, or provides personal services independent of a permanent base located there in this other state, and the debt claim on which the interest In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order. 6.if the payer is the contracting state itself, its political and administrative division, a local authority or a resident of this state, the interest is considered to appear in this state. However, if the person paying interest is a resident of the contracting state or not - regardless of whether the contracting state has a permanent institution or permanent base on which the interest is paid, and such interest is paid by such a permanent institution or permanent base, then such interest is considered to have originated in the state in which such a permanent institution or permanent base is located. 7. If the interest exceeds the amount so that the interest payable can be agreed between the payer and their actual owner due to the existence of special relations between the payer and its actual owner or between the two and any other person, then the provisions of this article apply only to the last specified amount. In this case, the excess of the beginning of the payment must be taxed in accordance with the laws of each contracting state, taking into account other provisions of this Agreement. 8. The provisions of this article do not apply if the main purpose or one of the main goals of any person associated with the creation or imposition of any debt claims against which interest is paid is to make a profit from this article by such creation or imposition of rights.

Article 12 royalty

1.royalties arising in the contracting state and paid to a resident of another Contracting State may be taxed in that other state. 2.however, such royalties may also be taxed in the Contracting State in which it occurs and in accordance with the laws of that state, but if the recipient of the royalty and its actual owner are residents of another Contracting State, then the tax levied in this way shall not exceed 10 percent of the total amount of the royalty. 3. The term" royalty", when used in this article, refers to any form of payments and payments levied as a reward for the use or transfer of any copyright to works of literature, art and 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, means payments made for the use or transfer of the right to use commercial or scientific equipment. 4.the provisions of Paragraphs 1 and 2 shall not apply if the actual owner of the royalty, who is a resident of the contracting state, engages in business activities through a permanent institution located there in another contracting state where the royalty originated, or provides personal services there independently from a permanent base located in that other state, and the right or property in respect of which In this case, the provisions of Article 7 (profit from entrepreneurial activity) or Article 14 (independent personal services) apply, depending on the order. 5.royalties are considered to have originated in this state if the payer is the contracting state itself, its administrative division, local authority or a resident of this state. However, if the royalty - paying person is a resident of the contracting state-regardless of whether or not the contracting state has a permanent institution or permanent base in respect of the occurrence of the obligation to pay royalties in the contracting state, and such royalties are associated with that permanent institution or permanent base, then such royalties are considered to have originated in the state where the permanent institution or permanent base is located. 6. If, due to the existence of special relations between the payer and the actual owner of the royalties, or between the two and any other person, the amount of the royalties paid exceeds the amount that can be agreed between the payer and the actual owner of the royalties in the absence of such relations, the provisions of this article shall apply only to the In this case, the excess of the beginning of the payment must be taxed in accordance with the laws of the contracting state, taking into account other provisions of this Agreement. 7. The provisions of this article do not apply if the main purpose or one of the main goals of any person who exists in connection with the creation or transfer of a right to which royalties are paid in relation to him is to profit from this article by the creation or transfer of such rights.

Article 13 income from the increase in the value of property

1.income received by a resident of a contracting state from deprivation of immovable property referred to in Article 6 (income from immovable property) and located in another Contracting State may be taxed in this other state. 2. Income from the loss of movable property, which is part of the permanent state business property owned by an enterprise of a contracting state in another Contracting State, or from movable property related to a permanent base owned by a resident of a contracting state in another Contracting State for the purposes of providing independent personal services, including income from such a permanent institution (including an individual or entire enterprise) or from the deprivation of such a permanent base may be taxed in this other state. 3. Income received from deprivation of movable property in connection with the use of sea, aircraft, land and rail transport used by a resident of the contracting state in international transportation is taxed only in this Contracting State. 4.income received from deprivation of any property other than those specified in Paragraphs 1 and 2 shall be taxed only in the Contracting State in which the person deprived of property is a resident.

Article 14 independent private services

1. income received by a resident of a Contracting State from the provision of other similar services of a professional or independent nature, if such services are not provided or provided in another Contracting State; and (a) Income is taxed only in that Contracting State if it is received in respect of a permanent base that an individual systematically owns or has in another state, or (B) if such individual is in that other state for a period exceeding 183 days for a total of any consecutive 12-month period in that other state for a period or In this case, income related to services may be taxed in accordance with similar principles set out in Article 7 (profit from entrepreneurial activity), which determine the amount of entrepreneurial income in relation to a permanent institution. 2.The term" professional services " includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as independent personal activities of doctors, lawyers, engineers, architects, dentists and accountants.

Article 15 dependent personal services

1.in accordance with the provisions of Article 16 (directors ' remuneration), Article 18 (pensions and other payments), Article 19 (Civil Service), the remuneration, wages and other such remuneration received by a resident of the Contracting State in connection with the work he has been hired shall be taxed only in this state, unless the work on If hired work is carried out in this way, then such remuneration received may be taxed in this other state. 2. Regardless of the provisions of Paragraph 1, if: a) the recipient travels in another state for a period or periods not exceeding a total of 183 days within any consecutive 12-month period; and b) the remuneration is paid by a tenant who is not a resident of another state or is paid on behalf of the tenant; and C) the remuneration is not paid by 3. Regardless of the preceding provisions of this article, the remuneration received in respect of the work used in international transportation, performed on board sea, aircraft, ground and rail transport, received in respect of the work employed, may be made in the Contracting State, which is a resident of the enterprise operating sea, aircraft, ground and rail transport.

Article 16 remuneration of Directors

Directors ' Remuneration and other such payments received by a resident of a contracting state as a member of the board of directors or a resident of another Contracting State may be taxed in that other state.

Article 17 artists and athletes

1.regardless of the provisions of Article 14 (independent personal services) and Article 15 (dependent personal services), income received by a resident of a Contracting State as an art worker, such as a theater, film, radio or television artist or composer, or as an athlete, may be taxed in that other state. 2. If the income of art workers or athlete in relation to their personal activities carried out in this nature is not credited to the art workers or athlete himself, but to another person, then this income may be taxed in the Contracting State in which the activities of art workers or athlete are carried out, regardless of the provisions of Article 7 (profit from entrepreneurial activity), Article 14 (independent 3. Regardless of the provisions of Paragraphs 1 and 2, if the visit in that state is to a large extent supported by the public funds of one or both Contracting States or their administrative divisions or local authorities, the profit received from activities carried out by an art worker or athlete in the contracting state is tax-exempt in the contracting state in which this activity is carried out. In such a case, income is taxed only in the Contracting State, where an art worker or athlete is a resident.

Article 18 pensions and other payments

1.in accordance with the provisions of Article 19 (Civil Service) paragraph 2, pensions and other such benefits paid to a resident of a Contracting State in respect of previous employment and any annuity paid to that resident shall be taxed only in that state. 2.The term" annuity " means a fixed amount that is regularly paid to an individual at a specified time for the entire life or for a certain or specified period of time, when there is an obligation to pay in cash or at the cost of money instead of an alternative and full remuneration. 3. Alimony and other similar amounts arising in the contracting state and paid to a resident of another contracting state /including child care payments/ shall be taxed only in this other state.

Article 19 Public Service

1. (a) remuneration other than a pension paid to an individual by the Contracting State or its subdivision or local authorities in respect of services rendered to that state or its subdivision or local government body shall be taxed only in that state. (B) however, if the activity is carried out in that state and an individual who is a resident of that state is: (i) a citizen of that state, or (II) is not a resident of that state solely for the purpose of carrying out the activity, such remuneration shall be taxed only in another contracting state. 2. (a) any pension paid to an individual from funds paid by or created by the contracting state or its local authorities for services rendered to that state or its subdivision or local authority shall be taxed only in that state; (b) however, if the individual is a resident and citizen of that state, such pension shall be taxed only in another contracting state. 3. The provisions of Article 15 (dependent personal services), Article 16 (directors ' remuneration) and Article 18 (pensions and other payments) apply to the remuneration and pensions paid in relation to activities carried out in connection with the business activities of the Contracting State or its local body.

Article 20 students, trainees and researchers

1. at the beginning of his / her visit to another Contracting State, who is a resident of the Contracting State and is in this other state mainly: a) study at a university or other well-known educational institution in this other state, or b) work in his / her specialty or undergo an internship required to obtain a qualification; (C) as the recipient of scholarships, allowances or other such payments from government, religious, charitable, scientific, literary or educational organizations, an individual temporarily residing for the purposes of study or research shall be exempt from taxes in that other state in respect of payments received from a foreign country for the purposes of his residence, education, study, research or practice, as well as in respect of scholarships, allowances or other such payments. 2. A student who is or has been a resident of another state prior to visiting another contracting state and resides in the first contracting state only for his / her education, practice, is exempt from taxation in this first contracting state on income received from personal services provided in that contracting state for 5 years from the date of his / her first visit to the first contracting state. 3. If research activities are carried out not in the public interest, but mainly for the general benefit of an individual or persons, this article does not apply to income from such research. 4. An individual who is or was a resident of another state prior to his / her visit to the contracting state and who is in the first contracting state mainly for the purpose of giving lectures at a University, College, school or educational institution officially recognized by the Government of the first contracting state is exempt from taxation in the first Contracting State for three years from the date of his / her first visit to the first contracting state.

Article 21 other income

Types of income of a resident of a contracting state arising in another Contracting State and not provided for in the preceding articles of this Agreement may be taxed in this other state.

Chapter IV capital taxation

Article 22 Capital

1.capital, which is the property of a resident of a Contracting State and is located in another Contracting State, presented as real estate, referred to in Article 6 (income from real estate), may be taxed in this other state. 2. Capital provided in the form of movable property, which is part of the business property of a permanent institution owned by an enterprise of a contracting state in another Contracting State, or movable property in relation to a permanent base under the jurisdiction of a resident of a contracting state in another contracting state for the purposes of providing independent personal services, may be taxed in this other state. 3. Capital provided in the form of sea, aircraft, land or rail transport used in international transportation owned by a resident of the contracting state and movable property related to the use of such Sea, aircraft, land and rail transport shall be taxed only in this state. 4.all other elements of the capital of a resident of a Contracting State shall be taxed only in this state.

Chapter V methods for eliminating double taxation

Article 23 elimination of double taxation

In accordance with the provisions of the laws of the contracting states and subject to restrictions (which may be adjusted from time to time without changing their basic principles): A) if a resident of the Contracting State earns income that may be taxable in another Contracting State in accordance with the provisions of this Agreement, the first said Contracting State shall: (i) deduct from the income tax; (ii) deduct from the tax on capital of this Resident an amount equal to the tax on capital paid in another state. However, this deduction in any case does not exceed the portion of income tax or capital tax accrued prior to the issuance of the deduction in respect of income or capital that may be taxed in another Contracting State. (B) if, in accordance with any provision of the agreement, the received income or capital belonging to a resident of the Contracting State is tax-exempt in that state, that state may, however, account for the tax-exempt income or capital when calculating the amount of tax on the remaining income or capital of such resident. (C) if, in connection with Articles 10, 11 and 12 of this Agreement, the amount of tax exempted or reduced under certain special requirements provided for by the internal laws of the contracting state is deemed to be payable in the contracting state, i.e. to be deducted from the tax of another Contracting State.

Chapter VI Special Provisions

Article 24 Non-Discrimination

1.national persons of the contracting state shall not be subject in another contracting state to taxation or related obligations that are different or more burdensome than the taxation or related obligations to which national persons of that other state are or may be subject in such cases. 2.the convenience of taxation of a permanent institution owned by an enterprise of a Contracting State in another Contracting State should not be less than taxation of an enterprise of this other state engaged in exactly the same activity in this other state. 3.interest, royalties and other payments paid by an enterprise of a contracting state to a resident of another contracting state, except in cases where the provisions of Paragraph 1 of Article 9 (associated enterprises), paragraph 7 of Article 11 (percentages) or paragraph 6 of Article 12 (royalties) apply, shall be deducted in the same cases as they were paid to a resident of the first Any debt of an enterprise of such a contracting state to a resident of another contracting state shall be deducted in the same cases as the debt of a resident of the first named State for the purposes of determining the taxable capital of such enterprise. 4. Enterprises of the Contracting State, whose capital is owned or partially owned by one or more residents of another Contracting State or is directly or indirectly controlled by them, shall not be subject to taxation or any obligations related to it, different or more burdensome from the taxation and any obligations related to it, to which such enterprises of the first contracting state may or may be subject. 5. Nothing in this article shall be understood as obliging each contracting state to grant a resident of another Contracting State any personal benefits, exemptions and deductions granted to its residents for tax purposes. 6.regardless of the provisions of Article 2 (taxes under which the agreement is valid), the provisions of this article shall not apply to taxes of any kind.

Article 25 mutual consent procedure

1.if a person believes that the actions of one or both contracting states incur or incur taxation that does not comply with the provisions of this agreement, he or she may submit his or her case to the competent authorities of the contracting state in which he or she is a resident, regardless of the means of protection provided for by the internal laws of these states, or Statement-the complaint must be filed within three years from the moment of the first notification of actions subject to taxation that do not comply with the provisions of the agreement. 2.The Competent Authority shall seek to resolve the issue in mutual agreement with the Competent Authority of another contracting state in order to avoid taxation that does not comply with the agreement, if it considers the claim reasonable and cannot come to a satisfactory solution. Any agreement reached must be implemented regardless of any temporary restrictions existing in the internal laws of the contracting states. 3. The competent authorities of the contracting states seek to resolve in mutual agreement any difficulties or doubts arising from the introduction or application of the agreement. They can also consult with each other to eliminate double taxation in cases not provided for by the agreement. 4.the competent authorities of the contracting states may communicate directly with each other in order to achieve agreement on the preceding points. If it is necessary to organize an oral exchange of views to reach an agreement, such an exchange of views can be held between 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 Agreement or the internal laws of the contracting states in respect of taxes in force of the agreement to the extent that taxation does not contradict the agreement. The exchange of information is not limited to Article 1. Any information received by a contracting state is considered confidential, as is information obtained within the framework of the internal laws of that state, and shall be communicated only to persons or bodies (including courts and administrative bodies) engaged in the assessment or collection, forcible collection or appropriate prosecution or consideration of claims relating to taxes to which the agreement applies. Such persons or bodies use information only for these purposes. They can disclose this information during an open court session or when making Court decisions. 2. In no event shall the provisions of Paragraph 1 apply to the contracting states: A) the application of administrative measures contrary to the laws and administrative practices of this or that Contracting State; b) the provision of information that cannot be obtained under the laws or customary administrative practices of this or that Contracting State; (c) disclosure of information that may disclose any trade, business, industrial, commercial or professional secret or trade process should not be used in such a way as to impose an obligation to provide information that may contradict public policy (public practice).

Article 27 diplomatic agents and consular staff

Nothing in this Agreement shall affect the tax privileges granted by diplomatic agents or consular staff in accordance with the general norms of international law or the provisions of special agreements.

 Chapter VII Final provisions

Entry into force of Article 28

1.each Contracting State shall notify the other of the completion of the procedures required by its laws for the entry into force of this Agreement. 2. the agreement shall enter into force from the date of receipt of the last of these notifications, and then shall include: a) taxes withheld from the source of income on dividends, interest or royalties for amounts payable or accrued from or after the 1st day of the second month following the month of entry into force of the agreement; (B) the agreement shall begin to be applied in relation to other taxes for taxable periods beginning on or after January 1 of the year of entry into force.

Termination of Article 29

This agreement will remain in force until one of the Contracting States terminates its validity. Each Contracting State may terminate the agreement by notifying through diplomatic channels of the termination of the agreement at least 6 months before the end of any calendar year 5 years after the entry into force of the agreement: in such a case, the agreement shall: A) with respect to taxes withheld from the source of income on dividends or royalties for amounts payable or accrued; and (B) cease to be valid in relation to other taxes for periods of taxation beginning on or after January 1 of the year that follows the year in which the notice of termination is issued. To testify to this, the signatory representatives below, duly authorized by their governments, signed this Agreement. In Almaty, on March 12, 1998, two copies were made in Kazakh, Mongolian, Russian and English, and all texts have the same power. In the event of a gap in the texts, the English text becomes the defining one.

For the Government of the Republic of Kazakhstan for the Government of Mongolia

President

Republic of Kazakhstan

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