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

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

The Law of the Republic of Kazakhstan dated January 14, 2011 No. 386-IV

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Spain for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital and its Protocol, signed in Astana on July 2, 2009.

President of the Republic of Kazakhstan N. Nazarbayev

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND THE GOVERNMENT OF THE KINGDOM OF SPAIN ON THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL (Entered into force on August 18, 2011 - Bulletin of International Treaties of the Republic of Kazakhstan 2011, No. 5, Article 81)

The Government of the Republic of Kazakhstan and the Government of the Kingdom of Spain, desiring to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital,

have agreed on the following:

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 applies to taxes on income and on capital imposed on behalf of a Contracting State or its central authorities, political subdivisions or local authorities, regardless of the method of their collection. 2. Taxes on income and on capital are all types of taxes levied on total income, on total capital, or on individual elements of income or capital, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of wages or salaries paid by enterprises, as well as taxes on capital gains the cost of capital. 3. The existing taxes to which this Convention applies are in particular: a), in the Republic of Kazakhstan: (i) Corporate income tax; (ii) individual income tax; (iii) the corporate and individual property tax; (hereinafter referred to as the "Kazakhstan Tax");

b) in the Kingdom of Spain: (i) individual income tax; (ii) corporate tax; (iii) non-resident income tax; (iv) capital tax; and (v) local income and capital taxes. (hereinafter referred to as the "Spanish Tax"). 4. The Convention shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of this 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 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 may exercise its sovereign rights and jurisdiction, in accordance with its legislation and international treaties; of which he is a member; (b) The term "Spain" means the Kingdom of Spain and, when used in a geographical sense, means the territory of the Kingdom of Spain, including internal waters, its territorial waters and any area beyond territorial waters in which, in accordance with international law and in the application of its domestic legislation, the Kingdom of Spain exercises or may in the future exercise jurisdiction; and sovereign rights with respect to the seabed, subsurface and covering waters and its natural resources; (c) The term "person" includes an individual, a company and any other association of persons; (d) The term "company" means any corporate entity or any organization that is treated as a corporate entity for tax purposes; (e) The term "enterprise" applies to the conduct of any business activity; (f) The terms "Contracting State" and "the other Contracting State" mean Kazakhstan or Spain, depending on the context; (g) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean, respectively, an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State; (h) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the maritime or the 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 Spain, the Minister of Economy and Finance or his authorized representative; (j) the term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any company that has obtained its 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 at that time under the laws of that State in respect of taxes to which the Convention applies. Any meaning under the applicable tax laws of a Contracting State shall prevail over the meaning given 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 any person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature, and also includes that State, central authorities, political subdivision and local authorities. However, this term does not include any person who is subject to taxation in that State, only in respect of income from sources in that State or in respect of capital held therein. 2. If, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows: a) he is considered to be a resident only of the 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 State in which he has closer personal and economic relations (center of vital interests); b) if the State in which he has a center of vital interests cannot be determined, or if he does not have an existing If he has a permanent home at his disposal in either of the Contracting States, he shall be deemed to be a resident of the State in which he habitually resides.; (c) If he has his habitual residence in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; (d) If the resident status cannot be determined in accordance with subparagraphs (a) to (c) of this paragraph, the competent authorities of the Contracting States shall decide on 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 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) A place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (f) a mine, mine, oil or gas well, quarry, or any other place of extraction or exploration of natural resources, and related observational services. 3. A construction site or installation, assembly or assembly facility forms a permanent establishment only if they have existed for more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: a) the use of facilities solely for the purpose of storing, displaying or 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 purpose of storing, displaying or delivering; (c) The maintenance of a stock of goods or products belonging to the enterprise solely for the purposes of processing by another enterprise; (d) the maintenance of a permanent place of business solely for the purpose of purchasing goods or products or collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity that that person undertakes for the enterprise, unless its activities are limited to those referred to in paragraph 4, which, if carried out through a permanent place of business does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) does not mean that one of these companies will be 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 State. 2. The term "immovable property" is defined by the legislation 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 relating to land ownership apply, the usufruct of immovable property, and rights to variable or fixed payments as compensation for mining 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. Where ownership of shares or other rights directly or indirectly confers ownership of immovable property to the holder of such shares or rights, income from the direct use, rental or any other form of use of such property rights may be taxed in the Contracting State in which the immovable property is located. 5. The provisions of paragraphs 1, 3 and 4 also apply to income from immovable property of an enterprise.

Article 7 PROFIT FROM ENTREPRENEURIAL ACTIVITY

1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out business activities as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to such a permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were a separate and distinct enterprise engaged in the same or similar activities, under the same conditions. or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. 4. No profit is credited to the permanent establishment based solely on the purchase of goods or services by that permanent establishment. products for the company. 5. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way annually, unless there are sufficient and compelling reasons to change this procedure. 6. If profits include types of income that are specifically mentioned in other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article.

Article 8 SEA AND AIR TRANSPORT

1. Profits earned by a resident of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, in a joint venture or in an international vehicle operating organization.

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 the profits on which an enterprise of the other Contracting State is taxed in that other State, and that other State agrees that the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the relationship between two enterprises would be those that 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 State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident in accordance with the laws of that 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 that directly or indirectly owns at least 10 percent of the capital of the company paying the 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 company in respect of profits from which 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, constituent shares or other rights that are not debt claims, income from profit sharing, as well as income from other corporate rights that are subject to the same tax regime. regulation as income from shares in accordance with the laws of the Contracting State of which the company distributing the profits is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there and the holding company in respect of which the dividends are paid is actually associated with such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 5. If a company that is a resident of a Contracting State receives profits or income from the other Contracting State, that other State may exempt from tax dividends paid by that 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 located in that other State. The 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 income originating in that other State. 6. Nothing in this Convention may be interpreted as preventing a Contracting State from taxing the profits of a company relating to a permanent establishment in that State with a special tax in addition to the tax assessed on the profits of a company that is a national of that Contracting State, provided that any additional tax so assessed does not exceed 5 percent of the amount of such profit that was not subject to such additional taxation in previous taxable years. 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 paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the 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 arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if the beneficial owner of the interest: a) is it a State or a Central (National) Bank, a central authority, a political subdivision or a local authority; b) interest paid by the State in which the interest originated, or a central authority, a political subdivision, a local authority or an authority of established status; c) interest is paid in respect of a loan, debt claims, or a loan that is owed or made, secured, guaranteed, or insured by that State or a central authority, political subdivision, local government, or export finance agency; d) are State (public) financial institutions. 4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured and giving or not giving the right to participate in debtors' profits, and in particular income from government or Government securities and income from bonds or debentures, including premiums and winnings on these securities, bonds, or debentures, as well as all other income that is subject to a similar tax regime as income from a loan in accordance with the tax laws of the State in which the income originated. 5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there and the debt claim in respect of which the interest is being paid actually relates to such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment in a Contracting State in connection with which an interest-bearing debt has arisen and such interest costs are borne by such permanent establishment, such interest shall be deemed to arise in The State in which such a permanent establishment is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

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 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 for granting the right to use any copyright in works of literature, art or science, including software, cinematographic films, any patent, trademark, design or model, plan, secret formula or process, or for the use or for granting the right to use industrial, commercial or scientific equipment, or for information related to industrial, commercial or scientific experience. 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, and the right or property in respect of which the royalties are paid is actually connected with such permanent establishment. In such a case, the provisions of article 7 of this Convention 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 has arisen and such royalties are associated with that permanent establishment, then such royalties shall be deemed to have arisen in the State in which the permanent establishment 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 shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.

Article 13 INCOME FROM ALIENATION 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. Gains 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, including such gains from the alienation of such permanent establishment (alone or in combination with the entire enterprise), may be taxed in that other State. 3. Gains derived 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 the alienation of shares or comparable interests in the capital of a company whose assets derive more than 50% of their value directly or indirectly from immovable property located in the other Contracting State may be taxed in that other State. 5. Gains from the alienation of shares or other rights which directly or indirectly entitle the owner of such shares and rights to possess immovable property situated in a Contracting State may be taxed in that State. 6. 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 INCOME FROM EMPLOYMENT

1. Subject to the provisions of articles 15, 17 and 18 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 performed in this way, the remuneration received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) The recipient resides in that other 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 the other State; and c) the remuneration costs are not borne by a permanent establishment 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 of which the enterprise operating the ship or aircraft is a resident.

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 of a company that is a resident of the other Contracting State may be taxed in that other State.

Article 16 ARTISTS AND ATHLETES

1. Notwithstanding the provisions of Articles 7 and 14 of this Convention, income earned by a resident of a Contracting State 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 Athlete in that capacity accrues not to the entertainer or Athlete himself but to another person, that income may, notwithstanding the provisions of articles 7 and 14 of this Convention, be taxed in the Contracting State in which the entertainer or Athlete's activities are carried on.

Article 17 PENSIONS

Subject to the provisions of paragraph 2 of article 18, pensions and other similar payments paid for past work to a resident of a Contracting State shall be taxable only in that Contracting State.

Article 18 PUBLIC SERVICE

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State, a central authority, a political subdivision or a local authority to an individual in respect of services rendered to that State, a central authority, a political subdivision or a local authority, 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 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, or from funds created by, a Contracting State, a central authority, a political subdivision or a local authority to an individual in respect of services rendered to that State, central authority, political subdivision or 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 State. 3. The provisions of articles 14, 15, 16 and 17 of this Convention shall apply to salaries, wages and other similar remuneration and pensions in respect of services related to commercial activities carried on by a Contracting State, a central authority, a political subdivision and a local authority.

Article 19 STUDENTS

Amounts 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 amounts they are located outside this State.

Article 20 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 shall not apply to income other than income from immovable property defined in paragraph 2 of Article 6 if the recipient 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 income was paid. indeed, it is connected with such a permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply.

Article 21 CAPITAL

1. Capital represented by immovable property referred to in Article 6 of this Convention, owned by a resident of a Contracting State and located in the other Contracting State, may be taxed only in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State may be taxed in that other Contracting State. 3. Capital represented by ships and aircraft operated in international traffic and movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State. 4. Capital consisting of shares or other rights in a company or in any other association of persons derived directly or indirectly from more than 50 percent of the value of its immovable property located in a Contracting State or from shares or other rights that give their owner ownership of immovable property located in a Contracting State may be taxed in the following cases: The Contracting State in which the immovable property is located. 5. All other elements of the capital of a resident of a Contracting State are taxable only in that State.

Article 22 ELIMINATION OF DOUBLE TAXATION

1. In Kazakhstan, double taxation is eliminated as follows: a) if a resident of Kazakhstan earns income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Spain, Kazakhstan will allow: i) deduct from the income tax of this resident the amount equivalent to the income tax paid in Spain; ii) deduct from the capital tax of this resident the amount equivalent to the tax paid in Spain on similar elements of capital. The amount of taxes deductible in accordance with the above provision should not exceed the tax that would be assessed on the same income in Kazakhstan at the rates applicable here; b) if a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Spain, Kazakhstan may include this income or capital is included in the tax base, but only for the purpose of setting the tax rate on such other income or capital as is subject to taxation in Kazakhstan. 2. In Spain, double taxation is eliminated in accordance with one of the provisions of its domestic legislation or with the following provisions in accordance with the domestic legislation of Spain: a) if a resident of Spain earns income or owns elements of capital that, according to the provisions of this Convention, may be taxed in Kazakhstan, Spain will allow: (i) deduct from the income tax of this resident the amount equivalent to the income tax paid in Kazakhstan; (ii) deduct from the capital tax of this resident an amount equivalent to the tax paid in Kazakhstan on such capital elements; (iii) deduction from the basic corporate tax will be provided in accordance with the domestic legislation of Spain. Such deduction should not, however, exceed that portion of income tax or capital tax accrued before deduction, which relates, as appropriate, to income or similar elements of capital that may be taxed in Kazakhstan.; (b) If, in accordance with any provisions of the Convention, income earned or capital owned by a resident of Spain is exempt from tax in Spain, Spain may nevertheless take into account the amount of exempt income or capital when calculating the amount of tax on the remainder of such resident's income or capital.

Article 23 NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation that is different or more burdensome than taxation and related obligations to which nationals of that other State are or may be subject in the same circumstances, in particular with respect to residency. This provision, notwithstanding the provisions of article 1 of this Convention, also applies to persons who are not residents of one or both of the Contracting States. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision should 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 that it grants to its residents. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12 of this Convention apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if they were paid a resident of the first-mentioned Contracting State. Similarly, any debt owed by an enterprise of the said State to a resident of the other Contracting State must, for the purposes of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned State. 4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State. 5. The provisions of this article shall apply to taxes of any kind, notwithstanding the provisions of article 2.

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 Contracting State of which he is a resident, or, if his case if a person falls within the scope of paragraph 1 of article 23 of this Convention, then to that Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of 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 will be executed regardless of any time limits provided for by the domestic laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement within the meaning of the preceding paragraphs. If, in order to reach an agreement, it is advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a Commission consisting of representatives of the competent authorities of the Contracting States.

Article 25 TAX REFUND

Each Contracting State may apply procedures established by domestic law to reduce taxes or deductions provided for in this Convention.

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 implementation of domestic laws relating to taxes of any kind and description levied on behalf of the Contracting States or its political subdivisions, 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 obtained in accordance with paragraph 1 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 assessment or collection, enforcement or prosecution, or consideration of appeals, in particular with respect to the taxes referred to in paragraph 1 or to which the above applies. Such persons or authorities use the information only for these purposes. They may disclose this information during an open court hearing or when making court decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be interpreted as imposing an obligation on a Contracting State.: (a) To take administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or the other Contracting State; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to Government Policy (public order). 4. If information is required by a Contracting State in accordance with this Article, the other Contracting State shall use the accumulated information to provide the required information, even if that other State may not need such information for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but in no case will such a restriction be considered as allowing a Contracting State to refuse to provide information solely because it has no intrinsic interest in such information. 5. In no case will the provisions of paragraph 3 be considered to allow a Contracting State to refuse to provide information solely because the information held by a bank, other financial institution, candidate, or person acting in an organization or position of trustee, or because it relates to the person's own interests.

Article 27 ASSISTANCE IN TAX COLLECTION

1. The Contracting States undertake to assist each other in collecting income claims. 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 due in respect of taxes of any kind and description levied on behalf of Contracting States or their central authorities, political subdivisions or local authorities, to the extent that taxation is consistent with this Convention or any other instrument to which the parties are parties. are Contracting States, such as interest, administrative penalties, and the cost of collection, or retention, relating to such amounts. 3. If a revenue claim of a Contracting State is applied in accordance with the laws of that State and belongs to a person who is currently unable to prevent its collection in accordance with the laws of that State, such revenue claim may be accepted for collection by the competent authority of the other Contracting State at the request of the competent authority of the other Contracting State. Such income claim shall be collected by that other Contracting State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes, as if the income claim were a revenue claim of that other State. 4. In the event that a revenue claim of a Contracting State is a claim in respect of which that State may, in accordance with its legislation, take measures to ensure its collection, such revenue claim shall, at the request of the competent authority of that State, be taken for the purpose of taking conservation measures by the competent authority of the other Contracting State. This other State applies conservation measures in respect of this income claim in accordance with the provisions of its legislation, as if this income claim were a revenue claim of this other State, even if, at the time of application of such measures, the income claim would not have been feasible in the first-mentioned State or belonged to a person who has the right to prevent its collection. 5. Notwithstanding the provisions of paragraphs 3 and 4, an income claim accepted by a Contracting State for the purposes of paragraphs 3 and 4 is not subject to time limits or any prioritization applicable to income claims in that State, in accordance with the laws of that State because of its nature. In addition, a revenue claim accepted by a Contracting State for the purposes of paragraphs 3 or 4 does not have priority in that State applicable to that 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 brought before a court or other administrative authorities of the other Contracting State. 7. If at any time after the request has been made by a Contracting State in accordance with paragraph 3 or 4, and before the other Contracting State has collected and transferred the relevant revenue claim to the first-mentioned State, such revenue claim shall cease to be effective.: (a) In the case of a request under paragraph 3, a revenue claim of the first-mentioned State, which is enforceable in accordance with the laws of that State and belongs to a person who at that time cannot comply with the laws of that State., to prevent its collection; or (b) in the case of a request under paragraph 4, a revenue claim, of the first-mentioned State in respect of which that State may, in accordance with its laws, take conservation measures to ensure such collection, the competent authority of the first-mentioned State will immediately notify the competent authority of the other State of this fact and upon At the request of another State, the first-mentioned State may suspend or withdraw its request. 8. In no case shall the provisions of this article be interpreted as imposing an obligation on the Contracting States.: a) to take administrative measures contrary to the legislation and administrative practice of this or another Contracting State; b) to take measures contrary to Public Policy (public order); (c) Provide assistance, if necessary, if the other Contracting State has not taken all appropriate collection or conservation measures in accordance with its legislation or administrative practices; (d) Provide assistance in cases where the administrative burden on that State is 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 institutions to whom such privileges are granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 29 ENTRY INTO FORCE

1. This Convention is subject to ratification and will enter into force three months following the date of receipt through diplomatic channels of the last written notification that the Contracting States have completed the internal procedures necessary for its entry into force in each State. 2. The Convention applies: (a) In respect of taxes assessed from time to time, in respect of taxes on income or on capital relating to any tax year beginning or ending on the date of entry into force of the Convention; and (b) in respect of other taxes as of the date of entry into force of the Convention.

Article 30 AMENDMENTS AND ADDITIONS

By mutual agreement of the Contracting States, this Convention may be amended and supplemented by means of protocols that are integral parts of this Convention.

Article 31 TERMINATION

1. This Convention shall remain in force until terminated by one of the Contracting States. Any Contracting State may terminate the Convention by giving written notice of termination through diplomatic channels at least six months before the end 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 accrued periodically, in respect of taxes on income or capital relating to any tax year beginning or ending on or after the date of receipt of the notification; (b) In respect of other cases on the date of which the notification is received.

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

Done in two original copies in Astana on July 2, 2009, in the Kazakh, Russian, Spanish and English languages, all texts are equally authentic.

For the Government For the Government of the Kingdom of the Republic of Kazakhstan Spain

protocol

At the time of signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Spain for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital, the undersigned have agreed to the following provisions, which are an integral part of the Convention.

I. After the entry into force of this Convention, Resolution No. 1318 of December 31, 2008 on the list of countries with preferential taxation or any other legislation of a similar issue adopted after the amendment or replacement of the aforementioned resolution will not apply to any economic relationship between the two Contracting States.

II. With regard to paragraph 3 of article 11, it is understood that the term "body of established status" means any agency, institution, legal entity under public law or any other body wholly owned by the State, central authority, political subdivision or local authority.

III. Regarding entitlement to benefits

(i) The Contracting States declare that their domestic rules and procedures regarding the abuse of legislation (including Tax Treaties) may relate to the treatment of such abuse.

(ii) It is understood that benefits under this Convention will not be granted to persons who are not the actual owners of elements of the income received from another Contracting State or from elements of capital located there.

(III) The provisions of articles 10, 11 and 12 shall not apply if the main purpose or one of the main purposes of any person related to the creation or distribution of shares or other rights in respect of which dividends are paid, the creation or distribution of debt claims in respect of which interest is paid, the creation or distribution of rights in respect of which royalties are paid, there has been a benefit from these articles through such creation or distribution.

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

Done in two original copies in Astana on July 2, 2009, in the Kazakh, Russian, Spanish and English languages, all texts are equally authentic.

For the Government For the Government of the Republic of Kazakhstan Kingdom of Spain

The RCPI's note. The following is the text of the Convention in Spanish and English.

President

Republic of Kazakhstan

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