On ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Saudi Arabia 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 July 1, 2016 No. 6-VI SAM
To ratify The Agreement between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Saudi Arabia on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income and Its Protocol, signed in Astana on June 7, 2011.
President of the Republic of Kazakhstan N. NAZARBAYEV
The Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of the Kingdom of Saudi Arabia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income
Entered into force on September 1, 2016 - Bulletin of International Treaties of the Republic of Kazakhstan 2016, No. 5, Article 91
The Government of the Republic of Kazakhstan and the Government of the Kingdom of Saudi Arabia, 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 divisions or local authorities, regardless of the method of their collection. 2. Income taxes are all types of taxes levied on the total amount of income or on individual elements of income, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of wages or salaries paid by enterprises, as well as taxes on capital gains. 3. The existing taxes to which the Convention applies are, in particular: a) in the case of the Republic of Kazakhstan: i) corporate income tax; ii) individual income tax; (hereinafter referred to as "Kazakhstan Taxes") (b) In the case of the Kingdom of Saudi Arabia: i) Zakat; ii) income tax, including the natural gas investment tax. (hereinafter referred to as "Saudi Taxes"). 4. The provisions of this Convention shall also apply to any identical or substantially similar taxes on income which are imposed by each Contracting State after the date of signature of this Convention in addition to or in place of the existing taxes. The competent authorities of both Contracting States will notify each other of any significant changes in their respective tax laws.
Article 3 General definitions
1. For the purposes of this Convention, unless the context otherwise requires, the term: a) The Republic of Kazakhstan means the Republic of Kazakhstan and, when used in a geographical sense, 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 treaties to which it is a party. is; b) The Kingdom of Saudi Arabia means the Kingdom of Saudi Arabia, which also includes territorial waters, as well as areas outside such waters in which the Kingdom of Saudi Arabia exercises its sovereign and legal rights on the basis of its laws and international law: to its waters, seabed, subsoil and natural resources; c) A Contracting State and another Contracting State The state means Kazakhstan or the Kingdom of Saudi Arabia, depending on the context.; (d) A person includes an individual, a company, or any other association of persons, including a State, its administrative divisions, or local authorities; (e) A company means any corporate association or any economic unit that is considered a corporate association for tax purposes.; (f) An enterprise of a Contracting State and an enterprise of the other Contracting State mean, respectively, an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State.; (g) International carriage means any carriage by a ship or aircraft operated by an enterprise of a Contracting State with effective management in a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; (h) National person means: (i) any natural person who has acquired the nationality of a Contracting State; (ii) any legal person, partnership or association which has acquired such status on the basis of the applicable legislation of a Contracting State; (i) competent authority means: (i) in the case of Kazakhstan, the Ministry of Finance or its authorized representative; (ii) in the case of the Kingdom of Saudi Arabia, the Ministry of Finance, represented by the Minister of Finance or his authorized representative. 2. As regards the application at any time of this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that State in respect of taxes to which this Convention applies, any meaning under the applicable tax laws of that State shall prevail over the meaning assigned to the term under other laws of that State.
Article 4 Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means: (a) Any person who, under the laws of that State, is liable to taxation on the basis of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State and any administrative subdivision or local authority; (b) A legal person incorporated under the laws of a Contracting State and normally exempt from tax in that State: i) exclusively for religious, charitable, educational, scientific purposes; or ii) to provide pensions or other similar payments to employees in accordance with the plan. However, this term does not include any person who is subject to taxation in that State, only with respect to income from sources in that State. 2. If by reason of the provisions of paragraph 1 of this article an individual is a resident of both Contracting States, then 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 a "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 he does not have a nationality in either Contracting State, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 3. Where by reason of the provisions of paragraph 1 of this article a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident only of the 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" in particular includes, but is not limited to: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) any place of extraction or exploration of natural resources. 3. The term "permanent establishment" also includes: a) a construction site, a construction, an assembly or assembly facility, or services related to the supervision of these works, but only if such a site, facility, or activity exists for a period of more than 6 months; (b) The provision of services, including consulting services, by the enterprise through employees or other personnel employed by the enterprise for such purposes, but only if activities of that nature continue (for such or a related project) within a Contracting State for a period or periods of more than 6 months within any 12-month period. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include the following types of activities: (a) The use of facilities solely for the purpose of storing or displaying or delivering goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storing or displaying or delivering; (c) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are preparatory or auxiliary in nature; (g) the sale of goods or merchandise belonging to the enterprise, represented on the random temporary fairs or exhibitions. 5. Notwithstanding the provisions of paragraphs 1 and 2 of this article, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise will be considered as having a permanent establishment in the first-mentioned Contracting State in respect of any activity that that person undertakes for the enterprise if such person: (a) has and habitually uses in that State the authority to conclude contracts on behalf of the enterprise, unless The activity is not limited to the types of activities mentioned in paragraph 4 of this article., which, if carried out through a permanent place of business, do not transform that permanent place of business into a permanent establishment in accordance with the provisions of this paragraph; or (b) does not have such authority, but usually maintains in the first-mentioned State a stock of goods or merchandise from which it regularly supplies goods or merchandise on behalf of the enterprise. 6. An enterprise of a Contracting State shall not be considered as having a permanent establishment in the other Contracting State due to the fact that it carries on business in that other State through a broker, principal commission agent or any other agent with an independent status, provided that such persons act within the framework of their normal activities. 7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) By itself, it does not establish one of these companies as a permanent establishment of the other.
Article 6 Income from immovable property
1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other Contracting State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property, and rights to variable or fixed payments as compensation for the development or right to exploit mineral resources., sources and other natural resources. Ships and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 of this article 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 of this article shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.
Article 7 Profit from business activities
1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business activities as mentioned above, the profits of the enterprise may be taxed in another State, but only in that part which relates to: a) such permanent establishment; (b) Sales in that other State of goods or merchandise that are identical or similar to goods or merchandise that are sold through a permanent establishment; or (c) other business activities carried on in that other State that are identical or similar in nature to business activities carried on through such a permanent establishment. 2. Subject to the provisions of paragraph 3 of this article, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, provided under the same or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. When determining the profit of a permanent establishment, it is allowed to deduct expenses incurred for the purposes of the permanent establishment's business activities, including administrative and general administrative expenses, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. However, no deduction is allowed in respect of amounts, if any, paid (other than compensation for actual expenses) by a permanent establishment to the head office of the enterprise or any of its other offices, in the form of royalties, fees or other similar payments for the use of patents or other rights, or in the form of commissions for special services provided or for management, or, with the exception of banking enterprises, in the form of income from debt claims in respect of a monetary loan provided to a permanent establishment. Similarly, the profits of a permanent establishment should not include amounts (other than compensation for expenses incurred) received by the permanent establishment to the head office of the enterprise or any of its other divisions in the form of royalties, fees and other similar payments for the use of patents or other rights; in the form of commissions for special services provided or for management; or, with the exception of banking enterprises, in the form of income from debt claims in respect of a cash loan provided to the head office of the enterprise or any other of its divisions. 4. Notwithstanding other provisions, business profits earned by an enterprise of a Contracting State from the export of products to another Contracting State may not be taxed in that other Contracting State. If the export contracts include other activities performed in that other Contracting State, the profits derived from such activities may be taxed in the other Contracting State. 5. The term "entrepreneurial profit" includes, but is not limited to, income earned from manufacturing, commercial, banking, domestic transportation, provision of services, and rent for tangible personal movable property. This term does not include the performance of personal services by an individual as an employee or in an independent manner. 6. Nothing in this article shall affect the operation of any legislation of a Contracting State relating to taxes imposed on income from insurance activities of non-residents. 7. No profit of a permanent establishment is credited based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 8. For the purposes of the preceding paragraphs of this article, profits attributable to a permanent establishment shall be determined in the same manner annually, unless there are sufficient and compelling reasons to change this procedure. 9. If profits include types of income that are mentioned separately in other articles of this Convention, then the provisions of these articles will not be affected by the provisions of this article.
Article 8 Sea and air transport
1. Profits from the operation of ships or aircraft in international traffic are taxable only in the Contracting State in which the place of effective management of the enterprise is located. 2. The term "profits derived from the international operation of a ship or aircraft" includes: a) the profit earned from renting out the entire (time or flight) of a ship or aircraft used in international transportation; b) profits earned from the casual rental of a crewless ship or aircraft used in international transportation; c) profits earned from the use or rental of containers and related equipment used in international transportation, which is additional to income from the operation of a ship or aircraft in international transportation. 3. If the place of effective management of a maritime enterprise is located on board a ship, then it will be considered to be located in the Contracting State in which the ship's home port is located, and in the absence of such a home port, in the Contracting State of which the ship's operator is a resident. 4. The provisions of paragraph 1 of this article shall also apply to profits from participation in a pool, in a joint venture or in an international organization for the operation of vehicles.
Article 9 Associated enterprises
1. If (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State and, in any case, between the two enterprises in their commercial or financial the relationship creates or establishes conditions different from those that would take place between two independent enterprises, then any profit, which could have been credited to one of them, but was not credited to him due to these conditions, may be included in the profit of this enterprise and, accordingly, taxed. 2. If a Contracting State includes in the profits of an enterprise of that State - and, accordingly, taxes - profits on which an enterprise of the other Contracting State is taxed in that other State, and the profits thus included are profits that would accrue to an enterprise of the first-mentioned State if the relationship between the two enterprises were such which exist between independent enterprises, then this other state will make an appropriate adjustment to the amount of tax levied 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 consult with each other, if necessary.
Article 10 Dividends
1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other 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 State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the total amount of the dividends. This clause should not affect taxation on the profits of the company from which the dividends are paid. 3. The term "dividends", when used in this article, means income from shares, shares of "juissance" or rights of "juissance", mining shares, shares of founders or other rights that are not debt claims giving the right to profit sharing, as well as income from other corporate rights that are subject to the same tax regulation, such as income from shares, in accordance with the laws of the state in which the company distributing profits is a resident. 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there or provides independent personal services in that other State from a permanent base and holding company located there, in respect of which pays dividends, is indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by the company, except in cases where such dividends are paid to a resident of that other State or the holding company in respect of which the dividends are paid is actually associated with a permanent establishment or fixed base. located in that other State, and the company's undistributed profits are not taxed on undistributed profits., even if the dividends paid or retained earnings consist wholly or partly of profits or income generated in such other State.
Article 11 Income from debt claims
1. Income from debt claims arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, such income from debt claims shall also be taxed in the Contracting State in which they arise and in accordance with the laws of that State, but if the beneficial owner of the income from debt claims is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the total amount of income from debt claims. 3. The term "income from debt claims", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral, and rights to participate or not participate in debtors' profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings from these securities, bonds, or debentures. Penalties for late payments are not considered as income from debt claims for the purposes of this article. 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of income from debt claims, who is a resident of a Contracting State, carries on business in the other Contracting State in which the income from debt claims arises through a permanent establishment located there or provides independent personal services in that other State with a permanent base located there and debt the claim in respect of which income is being paid is indeed related to such a permanent establishment or fixed base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 5. Income from debt claims will be deemed to have originated in a Contracting State if the payer is a resident of that State. If, however, the person paying such income, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which there is a debt to pay such income and such income is payable by such permanent establishment or permanent base, then such income will be deemed to have arisen in the State in which the permanent establishment or permanent base is located. 6. If, due to a special relationship between the payer and the actual owner or between both of them and any other person, the amount of income from debt claims related to the debt obligation for which it is paid exceeds the amount that would have been agreed by 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 payment is subject to taxation in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.
Article 12 Royalties
1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that 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 for granting the right to use any copyright in works of literature, art or science, including software, cinematographic films, or films or recordings used in radio and television broadcasts, any patent, trademark, design or model, plan, secret formula or process, or information related to industrial, commercial or scientific experience, or payments, for the use or granting of the right to use industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the right or property, in relation to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State if the payer is a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay the royalties arose, and such royalties are associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in that State., where a permanent establishment or permanent base is located. 6. If, as a result of 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 payment is subject to taxation 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 as defined in Article 6 of this Convention and located in the other Contracting State may be taxed in that other State. 2. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other Contracting State. 3. Gains 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 the Contracting State in which the place of effective management of the enterprise is located. 4. Notwithstanding the provisions of paragraph 2 of this article, gains from the sale of shares which constitute an interest in a company which is a resident of a Contracting State shall be taxable in that State. 5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.
Article 14 Independent personal services
1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that State, except in the following circumstances, when such income may also be taxed in the other Contracting State: a) if he has a permanent base available to him on a regular basis in another Contracting State for the purpose of carrying out his activities; in such a case, only that part of the income relating to that fixed base may be taxed in that other Contracting State; or (b) if his stay in the other Contracting State lasts for a period or periods exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year; In such a case, only the majority of the income that is derived from his activities performed in that other State can be taxed in that other State. 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
Article 15 Dependent personal services
1. Subject to the provisions of articles 16, 18, 19 and 20 of this Convention, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is performed in the other Contracting State. If the employment is carried out in this way, such remuneration received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1 of this article, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: a) the recipient stays in another 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; (b) The remuneration is paid by or on behalf of an employer who is not a resident of another State; and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is located.
Article 16 Directors' fees
Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors of a company that is a resident of the other Contracting State may be taxed in that other State.
Article 17 Artists and athletes
1. Notwithstanding the provisions of articles 14 and 15 of this Convention, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist or musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other State. 2. Where income from personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are carried on. 3. Income earned by a resident of a Contracting State from activities carried out in the other Contracting State provided for in paragraphs 1 and 2 of this Article will be exempt from tax in that other Contracting State if the visit to that other Contracting State is supported wholly or mainly by public organizations of the first-mentioned Contracting State, its administrative divisions, or local authorities., or there is a cultural agreement, or an agreement between the Governments of the Contracting States.
Article 18 Pensions
1. Subject to the provisions of paragraph 2 of article 19 of this Convention, pensions and other similar benefits paid in respect of past employment to a resident of a Contracting State shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 of this article, pensions and other payments paid under a public scheme which is part of the social security system of a Contracting State or of its administrative divisions or local authorities shall be taxable only in that State.
Article 19 Public service
1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or by administrative subdivisions or local authorities to an individual in respect of services rendered to that State or to its administrative subdivisions or local authorities, shall be taxable only in that 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 that other State and the individual is a resident of that State.: (i) is a national of that State; or (ii) has not become a resident of that State solely for the purpose of performing military service. 2. (a) Any pension paid by a Contracting State or an administrative subdivision or a local authority to an individual in respect of services rendered to that State or to an administrative subdivision or a local authority shall be taxable only in that State. (b) However, such pension is taxable only in the other Contracting State if the individual is a resident of and a national of that other State. 3. The provisions of articles 15, 16, 17 and 18 of this Convention shall apply to salaries, wages and other similar remuneration, and to pensions in respect of services rendered in connection with a business carried on by a Contracting State or an administrative subdivision or local authority.
Article 20 Students
1. Payments that a student or trainee who is or was a resident of the other Contracting State immediately prior to his arrival in a Contracting State and is located in the first-mentioned State solely for the purpose of obtaining education or internship receives for the purposes of his maintenance, education or internship shall not be taxed in that State, provided that the sources of these payments they arise outside this state. 2. Payments received by a student or trainee who, immediately prior to arrival in a Contracting State, is a resident of the other Contracting State and is located in the first-mentioned Contracting State solely for the purpose of obtaining education or internship and which constitute remuneration for services rendered in that other Contracting State shall not be taxed in that other Contracting State, provided that the services They are related to education or practical training and are necessary for the implementation of these goals.
Article 21 Teachers and researchers
An individual who visits a Contracting State at the invitation of that State or a university, college, school, museum or other cultural institution of that State, or in accordance with an official cultural exchange program solely for the purpose of teaching, lecturing or conducting research for such an institution, and who is or was before the visit a resident of the other Contracting State, is exempt from taxation in the first-mentioned State in respect of their remuneration from such activities, provided that, that the source of such remuneration received by him is located outside this State.
Article 22 Other income
1. The income of a resident of a Contracting State, irrespective of its source, which is not mentioned in the preceding articles of this Convention, shall be taxable only in that State. 2. The provisions of paragraph 1 of this article shall not apply to income other than income from immovable property defined in paragraph 2 of Article 6 of this Convention if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State. through a permanent base located there and the right or property in connection with which the income was paid, indeed, they are associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 of this Convention, as the case may be, shall apply.
Article 23 Elimination of double taxation
1. In the event that a resident of a Contracting State earns income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State will allow to deduct from the income tax of that resident an amount equal to the income tax paid in that other State. However, in any case, such a deduction should not exceed the portion of the income tax calculated before the deduction, which can be attributed to income that can be taxed in that other State. 2. Where, in accordance with any provisions of the Convention, income earned by a resident of a Contracting State is exempt from tax in that State, that State may nevertheless take into account the tax-exempt income when calculating the amount of tax on the remainder of that resident's income. 3. In the case of the Kingdom of Saudi Arabia, the method of eliminating double taxation will not prejudice the provisions of the Zakat collection regime for Saudi citizens.
Article 24 Mutual agreement procedure
1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States, submit his case to the competent authority of the State of which he is a resident. In this case, the application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Convention. 2. The competent authority shall endeavour, if it considers the application 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 domestic laws of the Contracting States. 3. The competent authorities of both Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Convention. They may also consult with each other with a view to eliminating double taxation in cases not provided for in this Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement within the meaning of the preceding paragraphs. 5. The competent authorities of the Contracting States may, by mutual agreement, determine the appropriate mode of application of this Convention, and in particular the requirements to which residents of a Contracting State will be subject in order to receive tax rebates or tax exemptions in another State provided for in this Convention.
Article 25 Exchange of information
1. The competent authorities of the Contracting States shall exchange the information necessary to comply with the provisions of this Convention or the domestic laws of the Contracting States relating to taxes to which this Convention applies to the extent that taxation under such legislation does not conflict with this Convention. The exchange of information is not limited to article 1 of this Convention. Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution, or consideration of appeals concerning taxes referred to in the first paragraph. the offer. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions. 2. In no case shall the provisions of paragraph 1 of this article be interpreted as imposing an obligation on the Contracting States.: (a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or another Contracting State; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to government policy.
Article 26 Special provisions
Income provided for in Articles 10, 11 and 12 of this Convention, which is received by the Government of a Contracting State (including the Monetary Agency of Saudi Arabia in the case of the Kingdom of Saudi Arabia and the National Bank in the case of Kazakhstan) and wholly owned by the State authorities of a Contracting State in the other Contracting State, together with any income derived from the sale of shares, debt claims or the rights from which such income is derived will be exempt from taxation in that other State.
Article 27 Employees of diplomatic missions and consular institutions
Nothing in this Convention affects the tax privileges of employees of diplomatic missions and consular institutions, in accordance with the general rules of international law or in accordance with the provisions of special treaties.
Article 28 Other provisions
Nothing in this Convention shall affect the application of domestic provisions for the prevention of tax evasion and avoidance of taxation relating to restrictions on expenses and any deductions arising from a transaction between enterprises of a Contracting State and enterprises located in the other Contracting State, if the purpose or one of the main purposes established by such enterprises or a transaction made between they were receiving benefits in accordance with this Convention that would not otherwise be available.
Article 29 Entry into force
1. Each Contracting State shall notify the other through diplomatic channels of the completion of the procedures required by the laws of those States for the entry into force of this Convention. The Convention shall enter into force on the first day of the second month following the month in which the last notification was received. 2. The provisions of this Convention shall apply: (a) With respect to taxes withheld at source in respect of amounts paid on or after 1 January of the year following the year in which the Convention enters into force; and (b) In respect of other taxes for the taxable period beginning on or after 1 January of the year following the year in which the Convention enters into force.
Article 30 Termination
1. This Convention shall remain in force until one of the Contracting States terminates the Convention by giving written notice of termination to the other Contracting State through diplomatic channels, no later than June 30 of any calendar year following the expiration of a period of five years from the date of entry into force of the Convention. 2. In this case, the Convention is terminated.: a) in respect of taxes withheld at source, in respect of the amount paid after the end of the calendar year in which such notification was filed; and (b) in respect of other taxes, for the taxable period beginning after the end of the calendar year in which such notification was filed.
In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention.
Done in Astana on June 7, 2011, in Kazakh, Russian, Arabic and English, all texts are equally authentic. In case of divergence of interpretation, the English text is decisive.
For the Government For the Government of the Republic of Kazakhstan Kingdom of Saudi Arabia Arabia
Bolat Zhamishev Ibrahim A. Al-Assaf Minister of Finance Minister of Finance
protocol
At the time of signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Saudi Arabia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, the undersigned agreed that the following provisions are an integral part of the Convention. 1. With regard to Article 10: Notwithstanding any provisions of this Convention, the profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment located there, after being taxed in accordance with Article 7, may be taxed on the balance of the amount in the Contracting State in which the permanent establishment is located and the tax thus thus, it should not exceed 5 percent. 2. With regard to paragraph 2 of article 11: In the case of income from debt claims arising in Kazakhstan, the term "total income from debt claims" means an amount equivalent to 50 percent of the total income from debt claims. 3. With regard to article 24: The competent authorities must carry out a mutual agreement procedure before deciding on any case, before the final conclusion of the internal courts.
In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol.
Done in Astana on June 7, 2011, in Kazakh, Russian, Arabic and English, all texts are equally authentic. In case of divergence of interpretation, the English text is decisive.
For the Government For the Government of the Republic of Kazakhstan Kingdom of Saudi Arabia Arabia
Bolat Zhamishev Ibrahim A. Al-Assaf Minister of Finance Minister of Finance
President
Republic of Kazakhstan
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