On ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol

Home / RLA / On ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol

On ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol

The Law of the Republic of Kazakhstan dated December 29, 2017 No. 130-VI SAM.

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and its Protocol, signed in Astana on April 26, 2017.

President of the Republic of Kazakhstan

N. NAZARBAYEV

Agreement between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

Bulletin of International Treaties of the Republic of Kazakhstan 2018, No. 1, Article 15 entered into force on December 29, 2017

The Government of the Republic of Kazakhstan and the Government of Ireland, wishing to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed as follows:

Article 1 Persons to whom the Convention applies

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

Article 2 Taxes covered by the Convention

1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its administrative subdivisions, central or local authorities, regardless of the method of their collection.

2. Income taxes are all types of taxes imposed on the total amount of income or individual elements of income, including taxes on income from the alienation of movable or immovable property and taxes on the total amount of wages or salaries paid by enterprises.

3. The existing taxes to which this Convention applies are, in particular::

a) in Kazakhstan:

(i) corporate income tax; and

(ii) Individual income tax

(hereinafter referred to as the "Kazakhstan tax")

b) in Ireland:

(i) Income tax;

(ii) uniform social contributions;

(iii) corporate income tax; and

(iv) tax on income from property appreciation

(hereinafter referred to as the "Irish Tax").

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

Article 3 General definitions

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

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

b) the term "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, the term "Kazakhstan" includes the State territory of the Republic of Kazakhstan and the zones in which Kazakhstan exercises its sovereign rights and jurisdiction in accordance with its legislation and international law;

(c) The term "Ireland" includes any area outside the territorial waters of Ireland that exists or may be designated under Irish law relating to the special economic zone and the continental shelf as a territory within which Ireland may exercise its sovereign rights and jurisdiction in accordance with international law;

d) the term "person" means an individual, a company and any other association of persons;

e) the term "company" means any corporate entity or any organization that is treated as a corporate entity for tax purposes.;

(f) The term "enterprise" applies to the conduct of any business activity;

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

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

(i) The term "competent authority" means:

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

(ii) in Ireland: the Revenue Office or its authorized representative;

(j) The term "national person" means:

(i) any natural person having the nationality of a Contracting State;

(ii) any legal person, partnership or association which has obtained such status on the basis of the applicable legislation of a Contracting State;

(k) The term "business activity" includes the performance of professional services and other activities of an independent nature.

2. As regards the application of this Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State in respect of taxes to which the Convention applies, and any meaning under the applicable tax laws of the Contracting State shall prevail over the meaning given to the term according to other laws of this state.

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 Contracting State, is liable to tax there on the basis of his place of residence, registration or incorporation, residence, place of management or any other criterion of a similar nature, and also includes a Contracting State and any administrative subdivision, central or local authority. However, this term does not include any person who is liable to tax in that Contracting State, only in respect of income from sources in that Contracting State.

2. If 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 only of the Contracting State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident only of the Contracting State in which he has closer personal and economic relations (center of vital interests);

(b) If the Contracting 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 only of the Contracting State in which he has an habitual abode.;

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

(d) If the residence status of an individual cannot be determined in accordance with the provisions of subparagraphs (a), (b), and (c), the competent authorities of the Contracting States shall resolve the matter by mutual agreement.

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

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) place of management;

b) branch office;

c) office;

d) the factory;

e) workshop;

f) a point of sale;

(g) A warehouse in relation to a person providing storage space to others; and

(h) A mine, mine, oil or gas well, quarry, installation, structure (including a drilling rig or marine vessel) or any other place of exploration, development or extraction of natural resources, as well as related observational services.

3. The term "permanent establishment" also includes:

a) a construction site or a construction, installation or assembly facility that lasts for a period of more than 12 months;

(b) The provision of services, including consulting services, by a resident through employees or other personnel employed by the resident for such purposes, or through associated enterprises, but only if activities of that nature continue (for such or a related project) within a Contracting State for a period or periods exceeding 183 days during any A 12-month period.

For the purposes of applying this paragraph:

(a) If an enterprise of a Contracting State carrying on activities in the other Contracting State is associated with another enterprise carrying on activities substantially similar to those in that territory, the original enterprise shall be deemed to carry on all such activities of the latter enterprise, with the exception of those activities which are carried on at the same time as its own;

b) an enterprise is considered to be associated with another enterprise if one of the participants is directly or indirectly involved in the management, control or ownership of the capital of the other, or if the same persons are directly or indirectly involved in the management, control or ownership of the capital of both enterprises.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" does not include:

a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise;

b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purposes of storage, display or delivery;

(c) The maintenance of a stock of goods or merchandise belonging to an enterprise solely for the purposes of processing by another enterprise;

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

(e) The maintenance of a permanent place of business solely for the purpose of carrying on any other 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 referred to in subparagraphs (a) to (e),

provided that such activities referred to in subparagraphs (a) to (e) or, in the case of subparagraph (f), the combined activities of a fixed place of business resulting from such a combination are of a preparatory or auxiliary nature.

4.1. Paragraph 4 does not apply to a permanent place of business that is used or maintained by an enterprise if that enterprise or an enterprise closely related to it carries on business through that or another place in the same Contracting State and

(a) This place or another place constitutes a permanent establishment for the enterprise or an enterprise closely related to it in accordance with the provisions of this article, or

(b) The aggregate activity resulting from a combination of activities carried out by two enterprises through that location or by the same enterprise or a closely related enterprise through two locations is not preparatory or supportive in nature,

provided that the business activities carried out by two enterprises, through this location, or by the same enterprise or a closely related enterprise through two locations, represent complementary functions that are part of a common business activity.

5. Notwithstanding the provisions of paragraphs 1 and 2, but subject to the provisions of paragraph 6, if a person acts in a Contracting State on behalf of the enterprise and thus habitually enters into contracts, or habitually plays a major role in concluding contracts, which are usually concluded without significant changes on the part of the enterprise, and these contracts are valid:

a) on behalf of the enterprise, or

(b) To transfer ownership or grant the right to use property belonging to that enterprise or to which the enterprise has the right to use, or

c) for the provision of services by this enterprise,

That enterprise shall be regarded as having a permanent establishment in that Contracting State in respect of any activity which that person carries on for the enterprise, unless the activity of such person is limited to the activities referred to in paragraph 4, which, even when carried out through a permanent establishment, do not transform that permanent establishment into a permanent establishment in accordance with the provisions of that paragraph..

6. (a) Paragraph 5 does not apply if a person acting in a Contracting State on behalf of an enterprise of the other Contracting State carries on business in the first-mentioned Contracting State as an independent agent and acts on behalf of the enterprise in the ordinary course of his business. If, however, a person acts solely or almost exclusively on behalf of one or more enterprises with which he is closely related, this person should not be considered as an independent agent within the meaning of this paragraph in relation to any such enterprise.

b) For the purposes of this article, a person is closely associated with an enterprise if, based on all relevant facts and circumstances, one has control over the other, or both are under the control of the same persons or enterprises. In any case, a person should be considered as closely related to an enterprise if one directly or indirectly owns more than 50 percent of the beneficial ownership interest in the other (or, in the case of a company, more than 50 percent of the total voting and share price of the company or the beneficial ownership interest in the company), or if the other person owns directly or indirectly more than 50 percent of the beneficial ownership interest (or, in the case of a company, more than 50 percent of the total voting and share price of the company or the beneficial ownership interest in the company) in the person and the enterprise.

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 carries on business in that other Contracting State (either through a permanent establishment or otherwise) does not in itself transform one of these companies into a permanent establishment of the other.

Article 6 Income from immovable property

1. Income earned by a resident of one Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other Contracting State.

2. The term "immovable property" is defined by the legislation of the Contracting State in which the property in question is located. Such a term, in any case, includes property auxiliary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of legislation on land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for development or the right to develop a deposit. mineral raw materials, springs, and other natural resources. Ships and aircraft are not considered as immovable property.

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

4. The provisions of paragraphs 1 and 3 also apply to income from immovable property of an enterprise.

Article 7 Profit from business activities

1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State, unless such enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business as mentioned above, the profits of the enterprise may be taxed in the other Contracting State, but only in that part which relates to such a permanent establishment.

2. Subject to the provisions of paragraph 3, if an enterprise of one Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State such permanent establishment shall include the profits that it could receive if it were a separate 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 profits 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 Contracting State in which the permanent establishment is located or elsewhere.

4. Since it is common practice in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a proportional distribution of the total profits of the enterprise to its various subdivisions, nothing in paragraph 2 of this article prevents a Contracting State from determining taxable profits by such distribution as is customary in practice, however, the method of distribution chosen should produce results that consistent with the principles of this article.

5. No profit is attributed to a permanent establishment on the basis of a simple purchase by a permanent establishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits attributable to a permanent establishment are determined annually using the same method, unless there is a sufficient and compelling reason to change it.

7. If profits include types of income that are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.

Article 8 Profits from international transportation

1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State.

2. For the purposes of this article, profits earned from the operation of ships or aircraft in international traffic include profits earned from:

(a) The leasing of ships or aircraft, if such ships or aircraft are used in international traffic, or if the profit derived from the lease is not the main profit and is taxed as described in paragraph 1, and

b) leasing of aircraft engines.

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

Article 9 Associated enterprises

1. If:

(a) An enterprise of one 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 are directly or indirectly involved in the management, control or capital of an enterprise of one Contracting State and an enterprise of the other Contracting State,

and in any case, conditions are created or established between two enterprises in their commercial or financial relations that differ from those that would take place between two independent enterprises, then any profit that could have been credited to one of the enterprises, but because of the existence of such conditions was not credited to it, may be included in the profits of such an enterprise are taxed accordingly.

2. If one Contracting State includes in the profits of an enterprise of that Contracting State and, accordingly, taxes profits in respect of which an enterprise of the other Contracting State is taxed in that other Contracting State, and thus the profits included are profits that would have accrued to an enterprise of the first-mentioned Contracting State if conditions between the two enterprises had been those that exist between independent individuals, that other Contracting State will make an appropriate adjustment to the amount of tax calculated on such profits. In determining such an adjustment, the other provisions of this Convention should be taken into account and the competent authorities of the Contracting States should, if necessary, consult each other.

Article 10 Dividends

1. Dividends paid by a company which is a resident of one Contracting State and which are actually owned by a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and in accordance with the laws of that Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

a) 5 percent of the total amount of dividends, if the actual owner is a company (other than a partnership) that directly owns 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.

The provisions of this paragraph shall not affect the taxation of the profits of the company from which the dividends are paid.

3. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is a resident of one Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the dividends is:

a) in Kazakhstan:

(i) The Government of the Republic of Kazakhstan or a central or local authority;

(ii) The National Bank of the Republic of Kazakhstan; or

(iii) any institution wholly owned by the Government of the Republic of Kazakhstan, which may be agreed from time to time between the competent authorities of the Contracting States;

b) in Ireland:

(i) The Government of Ireland or a central or local authority;

(ii) The Central Bank of Ireland;

(iii) any institution wholly owned by the Government of Ireland, which may be agreed from time to time between the competent authorities of the Contracting States.

4. The term "dividends", as used in this article, means income from shares or other rights other than debt claims, profit-sharing, and income from other corporate rights that are subject to the same tax treatment as income from shares under the laws of the Contracting State in which the company is a resident. distributing profits.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of one 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, and the participation in respect of which the dividends are paid is actually connected with such permanent establishment. In such a case, the provisions of article 7 shall apply.

6. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may waive any tax on dividends paid by such company, except in cases where such dividends are paid to a resident of that other Contracting State or where the participation in respect of which the dividends are paid is actually related to by a permanent establishment located in that other Contracting State, and the company's undistributed profits may not be taxed on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other Contracting State.

7. Nothing in this Convention may be interpreted as preventing a Contracting State from imposing a special tax on the profits of a company relating to a permanent establishment in that Contracting State, in addition to the tax that could be imposed on the profits of a company that is a resident of that Contracting State, provided that any additional tax so calculated, should not exceed 5 percent of the amount of such profit. For the purposes of this paragraph, profits shall be determined after deduction of all taxes other than the additional tax referred to in this paragraph levied in the Contracting State in which the permanent establishment is located.

Article 11 Interest

1. Interest arising in a Contracting State and owned by the beneficial owner who is a resident of the other Contracting State may be taxed in that other Contracting State.

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

3. Notwithstanding the provisions of paragraph 2, interest paid by a company which is a resident of one Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the interest is:

a) in Kazakhstan:

(i) The Government of the Republic of Kazakhstan or a central or local authority;

(ii) The National Bank of the Republic of Kazakhstan; or

(iii) any institution wholly owned by the Government of the Republic of Kazakhstan, which may be agreed from time to time between the competent authorities of the Contracting States;

b) in Ireland:

(i) The Government of Ireland or a central or local authority;

(ii) The Central Bank of Ireland;

(iii) any institution wholly owned by the Government of Ireland, which may be agreed from time to time between the competent authorities of the Contracting States.

4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in the debtor's profits, and in particular income from government/government securities and income from bonds or debentures, including premiums and winnings on such securities, bonds or debentures, as well as all other income considered as income from a loan in accordance with the laws of the Contracting State in which such income arises., but it does not include any type of income that is considered as dividends in accordance with article 10.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of one Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there and the debt claim in respect of which the interest is being paid is actually linked to such permanent establishment. In such a case, the provisions of article 7 shall apply.

6. Interest shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting 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 in a Contracting State in connection with which the obligation to pay interest arises and the costs of such interest are borne by the permanent establishment, such interest shall be deemed to arise in the Contracting State in which the interest is incurred. in which such a permanent establishment is located.

7. If, due to a special relationship between the payer and the actual owner 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 in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned the amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

Article 12 Royalties

1. Royalties arising in one Contracting State and paid to the beneficial owner who is a resident of the other Contracting State may be taxed in that other Contracting State.

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

3. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or grant of the right to use any copyright in literary, artistic or scientific works, including cinematographic films and recordings on tape or other media used for radio or television broadcasting or other means of reproduction or transmission, any patent, trademark, design or model, plan, secret formula or process, or for information relating to industrial, commercial or scientific experience, and payments for the use or granting 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 one Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment located there and the right or property in respect of which the royalties are paid is actually associated with such permanent establishment. In such a case, the provisions of article 7 shall apply.

5. Royalties shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment in a Contracting State in connection with which the obligation to pay royalties arises and the costs of such royalties are borne by the permanent establishment, such royalties shall be deemed to arise in the Contracting State in which where the permanent establishment is located.

6. If, due to a special relationship between the payer and the actual owner or between both of them and any other person, the amount of royalties related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article apply only to the last mentioned amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

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 defined in Article 6 and located in the other Contracting State may be taxed in that other Contracting State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment of an enterprise of one Contracting State in the other Contracting State, including gains from the alienation of such permanent establishment (alone or in combination with the enterprise), may be taxed in that other Contracting State.

3. Income earned by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State.

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

a) shares or comparable percentages in the company's capital, other than shares listed on a recognized stock exchange, deriving more than 50 percent of their value directly or indirectly from immovable property located in the other Contracting State;

(b) Interests in a partnership or trust deriving more than 50 per cent of its value, directly or indirectly, from immovable property located in the other Contracting State; or

(c) Exploration or development rights or shares (or comparable instruments) deriving their value or most of their value directly or indirectly from such rights,

may be taxed in that other Contracting State.

In this paragraph, "exploration or development rights" means the rights to assets that will result from the exploration or development of natural resources in another Contracting State, including rights to interest or benefits from such assets.

5. Gains from the alienation of any property other than that provided for in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident.

6. The provisions of paragraph 5 shall not affect the right of a Contracting State to levy, in accordance with its laws, a tax on gains from the alienation of any property acquired by an individual who is a resident of the other Contracting State and who was a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property.

Article 14 Income from employment

1. Subject to the provisions of articles 15, 17, 18 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 Contracting 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 Contracting 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 Contracting State if:

(a) The recipient is present in the other Contracting State for a period or periods not exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year, and

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

3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State.

Article 15 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 Contracting State.

Article 16 Artists and athletes

1. Notwithstanding the provisions of Articles 7 and 14, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other Contracting State.

2. Where income from personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, such income may, notwithstanding the provisions of articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. The provisions of paragraphs 1 and 2 of this article shall not apply to income derived from activities carried out by an entertainer or athlete in a Contracting State if his visit to that Contracting State is wholly or substantially financed from public funds of one or both Contracting States, or by an administrative subdivision, central or local authority. In such a case, the income is taxable only in the Contracting State of which the artist or athlete is a resident.

Article 17 Pensions and annuities

1. Subject to the provisions of paragraph 2 of article 18, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment and any annuity paid to such a resident shall be taxable only in that Contracting State.

2. The term "annuity" means a fixed amount to be paid periodically to an individual at a fixed time during his lifetime or a fixed or fixed period of time in accordance with the obligation to make such payments in return for adequate and full compensation in monetary or monetary terms.

Article 18 Public service

1. (a) Salaries, wages and other similar remuneration paid by a Contracting State or an administrative subdivision, central or local authority thereof to an individual in respect of services rendered to that Contracting State or its administrative subdivision, central or local authority shall be taxable only in that Contracting State.

(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in the other Contracting State and the individual is a resident of the other Contracting State.:

(i) is a national of such other Contracting State; or

(ii) has not become a resident of such other Contracting State solely for the purpose of performing such services.

2. (a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by a Contracting State or from established funds of such Contracting State, or by an administrative subdivision, central or local authority thereof, to an individual in respect of services rendered to that Contracting State or its administrative subdivision, central or local authority, shall be taxable. only in this Contracting State.

(b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of and a national of such other Contracting State.

3. The provisions of articles 14, 15, 16 and 17 shall apply to salaries, salaries, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or an administrative subdivision, central or local authority thereof.

Article 19 Students or interns

1. Payments that a student or trainee who is or was immediately prior to arrival in one Contracting State a resident of the other Contracting State and is located in the first-mentioned Contracting State solely for the purpose of education or internship, receives for the purposes of his maintenance, education or internship, shall not be taxed in that Contracting State, provided that Such payments are made from sources outside that Contracting State.

2. In respect of grants, scholarships, other similar remuneration and remuneration from employment not specified in paragraph 1, the student or trainee referred to in paragraph 1, during such study or internship, shall be entitled to the same benefits, discounts or deductions in respect of taxes granted to residents of the Contracting State in which he/she He remains.

Article 20 Teachers, professors, and researchers

1. An individual who is or was, immediately prior to arrival in one Contracting State, a resident of the other Contracting State and is present in the first-mentioned Contracting State for the primary purpose of teaching, lecturing or conducting scientific research at a university, college or other recognized research institute or other institution of higher education in that Contracting State, shall be exempt from taxation in that Contracting State for a period of two years from the date of his first arrival in the first-mentioned Contracting State in respect of remuneration for such teaching, lecturing or scientific research.

2. The preceding provisions of this article do not apply to remuneration that a professor or lecturer receives for conducting research if the research is conducted primarily for the personal benefit of a particular person or persons.

Article 21 Other income

1. Types of income of a resident of a Contracting State, regardless of the source of their origin, not provided for in the preceding articles of this Convention, shall be taxable only in that Contracting 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 beneficial owner of such income, being a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located therein and the right or property in connection with which the payment was made income is indeed associated with such a permanent establishment. In such a case, the provisions of article 7 shall apply.

3. Notwithstanding the provisions of paragraphs 1 and 2, types of income of a resident of a Contracting State not provided for in the preceding articles of this Convention and arising in the other Contracting State may be taxed in that other Contracting State.

Article 22 Other rules applicable to certain off-land activities

1. The provisions of this article shall apply independently of any other provisions of this Convention if the activity (for this article "appropriate activity") is carried out off-land in connection with exploration or exploitation of the seabed, its subsoil and their natural resources located in a Contracting State.

2. An enterprise of a Contracting State carrying on business in the other Contracting State shall be deemed, subject to paragraph 3 of this Article, to be carrying on business in that Contracting State through a permanent establishment located there.

3. Proper business carried on by an enterprise of a Contracting State in the other Contracting State for a period or periods not exceeding a total of 30 days in any 12-month period shall not be considered as business activity through a permanent establishment located there. For the purposes of applying this paragraph:

(a) If an enterprise of a Contracting State carrying on appropriate activities in the other Contracting State is associated with another enterprise carrying on activities substantially similar to those of the other Contracting State, the original enterprise shall be deemed to carry on all such activities of the latter enterprise, with the exception of those activities which are carried on at the same time, Like his own;

b) an enterprise is considered to be related to another enterprise if one of the participants is directly or indirectly involved in the management, control or ownership of the capital of the other, or if the same person is directly or indirectly involved in the management, control or ownership of the capital of both enterprises.

4. Salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment connected with a proper activity in the other Contracting State may, to the extent that such duties are performed off-shore in that other Contracting State, be taxed in that other Contracting State.

5. Income received by a resident of a Contracting State from alienation:

(a) Exploration or development rights; or

b) shares (or comparable instruments) that have received their value, or most of their value, directly or indirectly from such rights,

may be taxed in that other Contracting State.

In this paragraph, "exploration or development rights" means the rights to assets that will be obtained from the exploration or exploitation of the seabed or subsurface, or their natural resources in another Contracting State, including rights to interest or benefits of such assets.

Article 23 Elimination of double taxation

1. Double taxation is eliminated as follows:

a) in Kazakhstan, where a resident of Kazakhstan earns income that, in accordance with the provisions of this Convention, may be taxed in Ireland, Kazakhstan will allow deduction from the income tax of that resident an amount equal to the income tax paid in Ireland.

However, such a deduction should not exceed that portion of the income tax accrued before the deduction related to income that can be taxed in Kazakhstan was submitted.

b) In Ireland, in accordance with the provisions of the laws of Ireland, it is allowed to deduct from Irish tax taxes payable outside the territory of Ireland (which do not affect the general principle):

(i) the tax of Kazakhstan paid in accordance with the laws of Kazakhstan and this Convention, directly or by deduction from profits, income or appreciation derived from sources in Kazakhstan (except in cases where the tax on dividends is payable in respect of profits from which the dividends are paid), shall be deducted from Irish tax, accrued on the same profits, income or value gains taxed by Kazakhstan;

(ii) in the case of a dividend paid by a company that is a resident of Kazakhstan to a company that is a resident of Ireland and controls, directly or indirectly, 5 percent or more of the voting rights in the company paying the dividend, the amount of the deduction will include (in addition to any Kazakhstan tax that may be deducted in accordance with subparagraph (b))(i) of this paragraph) the tax of Kazakhstan paid by the company in respect of the profits from which such dividends are paid.

2. If, in accordance with any provision of this Convention, income earned by a resident of a Contracting State is exempt from tax in the other Contracting State, that Contracting State may nevertheless take into account the exempt income of that resident when calculating the amount of tax on the remaining amounts of income.

3. For the purposes of paragraphs 1 and 2, profits, income and gains in value belonging to a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to be income from sources in that other Contracting State.

4. If, according to any provision of this Convention (the "provisions"), income or gains in value are wholly or partially exempt from tax in a Contracting State and, in accordance with the applicable laws of the other Contracting State, in respect of the agreed income or gains in value of an individual, the amount of income or gains transferred or received in that other Contracting State is the subject of taxation., and not the entire amount, despite the provisions, in the first-mentioned Contracting State, only part of the amount of income transferred or received or the increase in value in that Contracting State is exempt.

Article 24 Non-discrimination

1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation which is different or more burdensome than the taxation or related obligation to which nationals of that other Contracting State are or may be subjected in the same circumstances, in particular with regard to residency. This provision, notwithstanding the provision of article 1, also applies to persons who are not residents of one or both of the Contracting States.

2. Stateless persons who are residents of a Contracting State shall not be subjected in any of the Contracting States to any taxation or any related obligation that is different or more burdensome than the taxation and related obligation to which nationals of the Contracting State concerned are or may be subjected in the same circumstances, in particular, regarding residency.

3. The taxation of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State shall not be less favourable in that other Contracting State than the taxation of enterprises of that other Contracting State engaged in similar activities. This provision may not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State any personal tax benefits, discounts and deductions for tax purposes based on their civil status or marital status, which it grants to its residents.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of one Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such resident, be deductible on the same terms as if they were paid a resident of the first-mentioned Contracting 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 Contracting State to any taxation or any related obligation that is other or more burdensome than the taxation and related obligation to which they are or may be subjected. other similar enterprises of the first-mentioned Contracting State.

6. The provisions of this article, notwithstanding the provisions of article 2, 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 result in or will result in taxation that does not comply with the provisions of this Convention, he may, regardless of the remedies provided for by the national legislation of those Contracting States, submit his case to the competent authority of the Contracting State of which he is a resident, or, if his case is subject to 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 that do not comply with the provisions of this Convention.

2. The competent authority of one Contracting State shall endeavour, if it considers such a declaration to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in accordance with this Convention. Any agreement reached is executed regardless of any time limits provided for by the national legislation 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 an agreement in accordance with the preceding paragraphs of this article.

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 administration or application of national legislation relating to taxes of any kind and description levied on behalf of the Contracting States or their administrative divisions, central or local authorities to the extent that taxation is not contrary to this Convention. The exchange of information is not limited to articles 1 and 2.

2. Any information received by a Contracting State in accordance with paragraph 1 shall be considered confidential, as well as information received in accordance with the national legislation of that Contracting State, and will be disclosed only to persons or authorities (including courts and administrative authorities) engaged in both assessment or collection, enforcement or prosecution, or appeals with respect to the taxes referred to in paragraph 1, as well as the supervision of all of the above. Such persons or authorities may use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions. Notwithstanding the foregoing, information obtained by a Contracting State may be used for other purposes if such information can be used for such other purposes in accordance with the laws of both Contracting States and the competent authority of the Contracting State authorizing such use.

3. The provisions of paragraphs 1 and 2 may not be interpreted as imposing obligations on a Contracting State.:

(a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State;

(b) To provide information that cannot be obtained under the laws or in the ordinary course of the administration of that or the other Contracting State;

c) to 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 policy (ordre public).

4. If information is requested by one Contracting State in accordance with this Article, the other Contracting State shall take its own measures to collect the requested information, even if such information is not required by that other Contracting State for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but such limitations cannot be interpreted as allowing a Contracting State to refuse to provide information solely because there is no intrinsic interest in such information.

5. The provisions of paragraph 3 may not be interpreted as authorizing a Contracting State to refuse to provide information solely because the holder of the information is a bank, another financial institution, a nominee holder or a person acting as an agent or attorney, or because the information concerns a person with ownership rights.

Article 27 Assistance in tax collection

1. The Contracting States shall assist each other in fulfilling income requirements. Such assistance is not limited to articles 1 and 2. The competent authorities of the Contracting States may, by mutual agreement, establish procedures for the application of this article.

2. The term "income claim" used in this article means the amount of arrears due in respect of taxes of any kind and description levied on behalf of the Contracting States or their administrative divisions, central or local authorities, to the extent that taxation is not contrary to this Convention or any other instrument to which the Contracting States are Parties. Of the State, including interest, administrative fines and the costs of collecting or imposing interim measures related to such an amount.

3. If a revenue claim of a Contracting State is enforceable under the laws of that Contracting State and the debtor thereof is a person who, under the laws of that Contracting State, does not prevent its enforcement, such revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for enforcement purposes by the competent authority of the other Contracting State. Such income claim shall be enforced by that other Contracting State in accordance with the provisions of its legislation applicable to the compulsory collection of its own taxes, as if that income claim were a revenue claim of that other Contracting State.

4. If a revenue claim of a Contracting State is a claim in respect of which that Contracting State may, under its law, impose interim measures for the purpose of its enforcement, such revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for the purpose of imposing interim measures by the competent authority of the other Contracting State. The other Contracting State shall impose interim measures of protection in respect of such income claim in accordance with the provisions of its legislation, as if the income claim were a revenue claim of that other Contracting State, even if, at the time of the imposition of such measures, such income claim is not enforceable in the first-mentioned Contracting State or the debtor is a person who has the right to prevent its execution.

5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State in accordance with paragraph 3 or 4 shall not be subject in that Contracting State to temporary restrictions or to the determination of any priority applicable to the revenue claim in accordance with the laws of that Contracting State with respect to the nature of the claim. In addition, a revenue claim accepted by a Contracting State in accordance with paragraph 3 or 4 shall not have priority in that Contracting State applicable to such revenue claim under the laws of the other Contracting State.

6. Legal actions concerning the existence, legality or amount of a revenue claim of a Contracting State shall not be initiated in a court or other administrative authorities of the other Contracting State.

7. If at any time after the request is sent by a Contracting State in accordance with paragraph 3 or 4 and before the other Contracting State has fulfilled the relevant revenue claim and transferred the relevant amount to the first-mentioned Contracting State, the relevant revenue claim ceases to be:

(a) In the case of a request pursuant to paragraph 3, a revenue claim of the first-mentioned Contracting State that is enforceable under the laws of that Contracting State and the debtor thereof is a person who cannot, under the laws of that Contracting State, prevent its enforcement; or

(b) In the case of a request under paragraph 4, a revenue claim of the first-mentioned Contracting State, in respect of which that Contracting State may, under its law, impose interim measures for the purpose of its enforcement.,

The competent authority of the first-mentioned Contracting State will immediately notify the competent authority of the other Contracting State of this fact and, at the option of the other Contracting State, the first-mentioned Contracting State will either suspend or withdraw its request.

8. The provisions of this article may not be interpreted as imposing obligations on a Contracting State.:

(a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State;

b) take measures contrary to public policy (ordre public);

(c) Provide assistance if the other Contracting State has not taken all appropriate measures to enforce or, as appropriate, impose interim measures available under its legislation or administrative practice.;

(d) To provide assistance in cases where the administrative costs to that Contracting State are disproportionate to the benefits received by the other Contracting State.

Article 28 Employees of diplomatic missions and consular institutions

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

Article 29 The right to benefits

Notwithstanding the other provisions of this Convention, benefits under this Convention shall not be granted in respect of an element of income if it is reasonable to conclude, taking into account all relevant facts and circumstances, that obtaining this benefit was one of the main objectives of any arrangement or transaction, resulting in direct or indirect benefits, unless it is established that the provision of benefits in these circumstances was in accordance with the aims and objectives of the relevant provisions of this Convention.

Article 30 Entry into force

1. This Convention shall enter into force on the date of receipt, through diplomatic channels, of the last written notification informing the Contracting State of the completion of the internal procedures necessary for its entry into force.

2. The Convention enters into force:

a) in Kazakhstan:

(i) in respect of taxes withheld at the source of payment on income earned on or after the first of January of the calendar year following the year in which the Convention entered into force;

(ii) in respect of other taxes on income, taxes imposed for any tax period beginning on or after the first of January of the calendar year following the year in which the Convention enters into force;

b) in Ireland:

(i) with respect to income tax, uniform social contributions and capital gains tax for any taxable year beginning on or after the first of January of the calendar year in which the Convention enters into force;

(ii) in respect of corporation tax for any fiscal year beginning on or after the first of January of the calendar year in which the Convention enters into force.

Article 31 Termination

1. This Convention is concluded for a period of 5 years and will be automatically extended for each subsequent calendar year, unless one of the Contracting States notifies the other Contracting State through diplomatic channels no later than June 30 of the calendar year of its intention to terminate the Convention.

2. This Convention shall cease to be in force.:

a) in Kazakhstan:

(i) in respect of taxes withheld at the source of payment on income received on or after the first of January of the calendar year following the year of notification of termination;

(ii) in respect of other income taxes for the taxable period beginning on or after the first of January of the calendar year following the year of notification of termination.

b) in Ireland:

(i) with respect to income tax, uniform social contributions and property appreciation tax for any taxable year beginning on or after the first of January of the calendar year following the year of notification of termination;

(ii) in respect of corporation tax for any fiscal year beginning on or after the first of January of the calendar year following the year in which the notice of termination is given.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention.

Done in two copies in Astana on April 26, 2017 in the Kazakh, Russian and English languages, all texts are equally authentic. In case of discrepancies between the texts, the English text will prevail.

For the Government of the Republic of Kazakhstan

For the Government of Ireland

Protocol to the Convention between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

Bulletin of International Treaties of the Republic of Kazakhstan 2018, No. 1, Article 16 entered into force on December 29, 2017

At the time of signing the Convention concluded on that date between the Government of the Republic of Kazakhstan and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned, being duly authorized thereto, agreed on the following provisions, which are an integral part of the Convention:

It is understood that:

1. With regard to article 4:

(i) the term "place of registration or incorporation" means the place of registration in the case of Kazakhstan, the place of incorporation in the case of Ireland;

(ii) The General Contractual Fund (GDF) established in Ireland should not be considered as a resident of Ireland, but should be considered financially transparent for the purposes of granting tax treaty benefits.

2. With respect to Article 7, if the information available to the competent authority of a Contracting State or readily available to the competent authority of a Contracting State is not sufficient to determine the profits of a permanent establishment, the profits may be calculated in accordance with the tax laws of that Contracting State, provided that the determination of profits complies with the principles of Article 7.

3. With respect to articles 10 and 11, in the case of Ireland, the National Treasury Debt Management Agency and the bodies under its management, wholly owned by the Government, are included in paragraph 3 (b) of article 10 and paragraph 3 (b) of article 11.

4. Nothing in this Convention shall prevent Contracting States from applying the provisions of their domestic legislation in accordance with the principle set out in article 29.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol.

For the Government of the Republic of Kazakhstan

For the Government of Ireland

RCPI's note! The English text of the Convention is attached.

President

Republic of Kazakhstan

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