On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto

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On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto

Law of the Republic of Kazakhstan dated February 22, 2007 No. 231

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto, signed in Kuala Lumpur on June 26, 2006.

President of the Republic of Kazakhstan

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND THE GOVERNMENT OF MALAYSIA ON THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on May 27, 2011)

The Government of the Republic of Kazakhstan and the Government of Malaysia, wishing to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to taxes on Income, have agreed on the following:

Article 1 PERSONS TO WHOM THE AGREEMENT APPLIES

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

Article 2 TAXES COVERED BY THE AGREEMENT

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State, regardless of the method of their collection.

2. Income taxes are all 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 on the total amount of wages or salaries paid by enterprises.

3. The existing taxes to which this Agreement applies are: (a) in the Republic of Kazakhstan: (i) corporate income tax; (ii) individual income tax; (hereinafter referred to as the "Kazakhstan Tax") b) In Malaysia: (i) Income tax; (ii) Petroleum Income Tax (hereinafter referred to as the "Malaysian Tax").

4. This Agreement shall also apply to any identical or substantially similar taxes on income that are imposed after the date of signature of this Agreement 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 that occur in their taxation laws.

Article 3 GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires, the term: a) "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) "Malaysia" means the territory of the Federation of Malaysia, the territorial waters of Malaysia, the seabed and subsoil of the territorial waters and includes any area located outside the territorial waters of Malaysia, as well as the seabed and subsoil of such a zone, which is or may in the future be defined by the legislation of Malaysia and in accordance with international law as a zone in which Malaysia exercises sovereign rights for the purpose of exploration and extraction of natural resources, both organic and inorganic; c) "person" means an individual, a company and any other body of persons; (d) "Company" means any corporate entity or any person who, for tax purposes, is treated as a corporate entity; (e) "Contracting State" and "the other Contracting State" mean Kazakhstan or Malaysia, depending on the context; (f) "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; (g) "National person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, partnership, association or any other entity which has acquired its status on the basis of the legislation of a Contracting State; (h) "international carriage" means any carriage by a ship or aircraft operated by an enterprise Of a Contracting State, except in cases where the ship or aircraft is operated exclusively between locations in the other Contracting State.; (i) "Competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative; (ii) in Malaysia: The Minister of Finance or his authorized representative.

2. As regards the application at any time of this Agreement by the Contracting States, 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 Agreement applies. Any meaning of the term under the applicable tax laws of that State prevails over the meaning given to the term under other laws of that State.

Article 4 RESIDENT

1. For the purposes of this Agreement, 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 or any other criterion of a similar nature, and also includes the State itself, its political subdivision, central and local government or authorized body. This term, however, does not include any person who is subject to taxation in that State solely in respect of income from sources in that State.

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 States, he is considered a resident of the State in which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; (c) If he has an habitual abode in both States or in neither of these, it is considered to be a resident only of the State of which it is a citizen.; (d) If the resident status cannot be determined in accordance with the preceding subparagraphs, the competent authorities of the Contracting States shall decide on the matter by mutual agreement.

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

Article 5 PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, 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; (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, including logging or other forest production; (g) a farm or a plantation; h) a construction site or a construction, installation or assembly facility that has been in existence for more than 6 months; (i) An installation or structure, or drilling rig, or vessel used for the exploration of natural resources, but only if such use lasts for more than 6 months.

3. An enterprise of a Contracting State is considered to have a permanent establishment in the other Contracting State if it carries out surveillance activities in that other State for more than 6 months in connection with: (a) a construction site or a construction, installation, or assembly facility; or (b) an installation or structure, or a drilling rig, or a vessel used for exploration natural resources in this other State.

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 articles belonging to an enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or 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.

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 carries out for the enterprise, unless its activities are limited to the activities referred to in paragraph 4, which, if carried out through a permanent place of business activity, do 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 regarded 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 in itself transform one of these companies into a permanent establishment of the other.

Article 6 INCOME FROM IMMOVABLE PROPERTY

1. Income earned by a resident of a Contracting State from immovable property 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 auxiliary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of land legislation apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or for the right to develop mineral resources, oil or gas wells., quarries and other places of extraction of natural resources, including logging or other forest production. Sea, river and air vessels are not considered as immovable property.

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

4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.

Article 7 PROFIT FROM ENTREPRENEURIAL ACTIVITY

1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries 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 separate 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 profits of a permanent establishment, expenses, including management and general administrative expenses, which would be deductible if the permanent establishment were an independent enterprise, may be deducted to the extent that they reasonably belong to the permanent establishment, regardless of whether they are incurred in the State in which the permanent establishment is located, or in another place.

4. If the information available to the competent authority is not sufficient to determine the profits attributable to the permanent establishment of an enterprise, nothing in this article shall affect the application of any law of that State relating to the determination of a person's tax obligations by exercising the right of discretion or assessment by the competent authority, provided that the law applies to the extent allows information available to the competent authority, in accordance with the principles of this article.

5. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs of this article, profits attributable to a permanent establishment are determined in the same way annually, unless there are sufficient and compelling reasons to change this procedure.

7. If profits include types of income that are specifically mentioned in other articles of this Agreement, the provisions of these articles are not affected by the provisions of this article.

Article 8 SEA AND AIR TRANSPORT

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

2. Paragraph 1 also applies to the share of profits from the operation of ships and aircraft derived by an enterprise of a Contracting State from participation in a pool, joint venture or international operating organization.

Article 9 ASSOCIATED ENTERPRISES

1. (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 are directly or indirectly involved 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 conditions are created or established between the two enterprises in their commercial or financial relations that differ from those that would take place between two independent enterprises, then any the profit that could have been credited to one of them, but was not credited to him due to these conditions, can 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 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 that There are differences between independent enterprises, then this other State can make an appropriate adjustment to the amount of tax levied on such profits. When determining such an adjustment, the other provisions of this Agreement should be taken into account, and the competent authorities of the Contracting States will, if necessary, consult with each other.

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 and according to 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 10 per cent of the total amount of the dividends. This paragraph does not affect the taxation of the company in respect of the profits from which the dividends are paid.

3. The term "dividends", as used in this article, means income from shares or other rights that are not debt claims that entitle to profit sharing, as well as income from other corporate rights that are subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company is a resident., distributing profits.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there and the holding company in respect of which the dividends are paid is actually associated with such permanent establishment or fixed base. In this case, the provisions of articles 7 and 15 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 tax on dividends paid by that company, except when 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. in this 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 income generated in that other State.

6. Nothing in this Agreement may be interpreted as preventing a Contracting State from taxing the profits of a company relating to a permanent establishment or permanent base in that State in addition to the tax that is assessed on the profits of a company that is a national of that State, provided that any additional tax so assessed does not it will exceed 10 percent of the amount of such profit, which was not subject to such additional taxation in previous tax 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 or fixed base 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 according to the laws of that State, but if the recipient, being 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: (a) Interest arising in Kazakhstan is exempt from tax in Kazakhstan if it is paid or owed: (i) To the Government of Malaysia; ii) to the Governments of the States of Malaysia; iii) to the authorized state bodies of Malaysia; iv) to the local authorities of Malaysia; v) to the Export-Import Bank of Malaysia Berhad; vi) to the Bank of Malaysia Negara; or (vii) any other organizations wholly owned by the Government of Malaysia and which may be agreed from time to time between the competent authorities of the Contracting States. b) Interest arising in Malaysia is exempt from tax in Malaysia if it is paid or owed: i) Government of the Republic of Kazakhstan; ii) central authorities of Kazakhstan; iii) authorized state bodies of Kazakhstan; iv) local authorities of Kazakhstan; v) National Bank of the Republic of Kazakhstan; or (vi) any other organizations wholly owned by the Government of Kazakhstan, which may be agreed from time to time between the competent authorities of the Contracting States.

4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in debtors' profits, and in particular income from government securities (in the case of Malaysia), income from government securities (in the case of Kazakhstan) and income from bonds or debentures, including premiums and winnings on these securities, bonds and obligations.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment or permanent base located there and the debt claim in respect of which the interest is being paid actually relates to such permanent establishment or permanent the base. In such a case, the provisions of articles 7 and 15 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 or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such interest arises in the State in which the permanent establishment or permanent base is located.

7. If, due to a special relationship between the payer and the actual owner or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this article apply only to the latter the mentioned amount. In this 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 Agreement.

8. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this article by creating or transferring these debt claims.

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 State, but if the recipient, being 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 films for radio or television broadcasting, any patent, trademark, design or a model, plan, secret formula, or process, or for the use or grant of the right to use industrial, commercial, or scientific equipment, or for information (know-how), concerning industrial, commercial, or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment or permanent base located there, and the right or property in respect of which the royalties are paid is actually associated with such permanent establishment or a permanent base. In such a case, the provisions of article 7 or article 15 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 royalties has arisen, and such royalties are associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in the State where in which a permanent establishment or permanent base is located.

6. If, as a result of a special relationship between the payer and the actual owner of the royalties 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 of the royalties in the absence of such a relationship, the provisions of this The articles apply only to the last mentioned amount. In this 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 Agreement.

7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person related to the creation or transfer of rights in respect of which royalties are paid was to benefit from this article by creating or transferring rights.

Article 13 REMUNERATION FOR TECHNICAL SERVICES

1. Remuneration for technical services 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 remuneration for technical services may also be taxed in the Contracting State in which it arises and in accordance with the laws of that State, but if the beneficial owner of the remuneration for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of remuneration for technical services.

3. The term "remuneration for technical services", as used in this article, means payments of any kind to any person other than an employee of the person making the payment as remuneration for any technical, managerial or consulting services.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the remuneration for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the remuneration for technical services arises through a permanent establishment or permanent base located there, or provides independent personal services in that other State, and the remuneration for technical services, it is indeed associated with such a permanent establishment or permanent base. In such cases, the provisions of article 7 or article 15 shall apply.

5. Remuneration for technical services shall be deemed to arise in a Contracting State if the payer is a resident of that State. However, if the person paying remuneration for technical services, 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 an obligation has arisen to pay remuneration for technical services, and the costs of such remuneration for technical services are borne by such permanent establishment or permanent In this case, such remuneration for technical services shall be deemed to have originated in that Contracting State., where a permanent establishment or permanent base is located.

6. If, due to a special relationship between the payer and the actual owner of remuneration for technical services or between both of them and any other person, the amount of remuneration paid for technical services exceeds, for any reason, the amount that would have been agreed upon by the payer and the actual owner in the absence of such a relationship, the provisions of this article shall apply 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, with due regard to the other provisions of this Agreement.

Article 14 PROCEEDS 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, located in the other Contracting State, may be taxed in that other State.

2. Income earned by a resident of a Contracting State from the alienation of: (a) shares deriving more than 50 percent of their value, directly or indirectly, from immovable property located in the other Contracting State may be taxed in that other State; (b) shares in a partnership or trust whose assets consist primarily of immovable property located in the other Contracting State. in the other Contracting State, or of the shares referred to in subparagraph (a), may be taxed in that other State.

3. 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 movable property held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including income from the alienation of such permanent establishment (alone or in combination with all an enterprise) or a permanent base, may be taxed in that other State.

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

5. Gains from the alienation of any property other than that referred to in the preceding paragraphs of this article shall be taxable only in the Contracting State of which the alienator is a resident.

Article 15 INDEPENDENT PERSONAL SERVICES

1. Subject to the provisions of article 13, income earned by an individual who is 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 cases: (a) such services are performed or have been performed in the other Contracting State and the income earned relates to a permanent base that the individual has or had it at its disposal on a regular basis in this other State; or (b) His stay in that other Contracting State shall amount to a period or periods equal to or exceeding a total of 183 days in any 12-month period. In this case, only the income earned in this way from his activities performed in this other State can be taxed in this 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 16 DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of articles 17, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State, except if 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 derived by a resident of a Contracting State in respect of 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 12-month period. the period beginning or ending in the corresponding calendar year; (b) The remuneration is paid by or on behalf of the employer who is not a resident of that other State; (c) The remuneration is not borne by a permanent establishment that the employer has in that other State.

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

Article 17 DIRECTORS' FEES

Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors or a similar body of a company that is a resident of the other Contracting State may be taxed in that other State.

Article 18 ARTISTS AND ATHLETES

1. Notwithstanding the provisions of articles 7, 15 and 16, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities carried on in the other Contracting State, may be taxed in that other State..

2. Where income in respect of personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 15 and 16, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. The provisions of paragraphs 1 and 2 shall not apply to remuneration or profits derived from activities carried out in a Contracting State if the visit to that State was directly or indirectly, fully or substantially financed from funds of the other Contracting State, its political subdivisions, central and local authorities or an authorized body.

Article 19 PENSIONS AND ANNUITIES

1. Subject to the provisions of paragraph 2 of article 20, pensions and other similar payments paid in respect of past employment to a resident of a Contracting State and any annuities paid to such resident shall be taxable only in that State.

2. The term "annuities" means fixed amounts that are periodically paid to an individual during his lifetime or for a certain or fixed period of time in accordance with the obligation to make payments in return for adequate and full compensation in monetary or monetary terms.

Article 20 PUBLIC SERVICE

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or its political subdivisions, or central and local authorities, or an authorized State body to an individual in respect of services rendered to that State, its political subdivisions, or central and local authorities, or an authorized body, is taxable only in this State. (b) However, such salary, salary or 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 who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of performing the services.

2. Any pension paid by a Contracting State or from funds established by a Contracting State or its political subdivisions, central and local authorities, or an authorized body to an individual in respect of services rendered to that State or its political subdivisions, central and local authorities, or authorized body shall be taxable only in that State..

3. The provisions of articles 16, 17 and 19 shall apply to salaries, salaries, other similar remuneration and pensions in respect of services related to commercial activities carried on by a Contracting State, its political subdivisions or central and local authorities, or an authorized body.

Article 21 STUDENTS AND INTERNS

An individual who is a resident of a Contracting State immediately prior to arrival in the other Contracting State and who is temporarily residing in the other State exclusively: a) as a student of an officially recognized university, college, school or other similar recognized educational institution of that other State; b) as a production or technical intern; or c) as a recipient of a grant, scholarship, or award, primarily for the purposes of education, research, or internship from the Government of a State, or from a scientific, educational, religious, or charitable organization, or under a technical assistance program run by the Government of a State, is exempt from tax in that other State for: (i) all monetary transfers from abroad for the purposes of its maintenance, training, education, research or internship; and (ii) the amount of such grants, scholarships or awards, or any applicable amount thereof.

Article 22 OTHER INCOME

Types of income of a resident of a Contracting State not mentioned in the preceding articles of this Agreement shall be taxable only in that Contracting State, except if such income is derived from sources in the other Contracting State, which may also be taxed in that other State.

Article 23 ELIMINATION OF DOUBLE TAXATION

1. Subject to the provisions of the legislation of Kazakhstan providing for permission to deduct from the Kazakh tax the amount of tax payable in any country other than Kazakhstan, the Malaysian tax payable in accordance with the laws of Malaysia and in accordance with this Agreement, a resident of Kazakhstan in respect of income received from Malaysia is allowed to deduct from the Kazakh tax the amount of tax payable in any country other than Kazakhstan. payment in respect of this income. Such deduction, however, should not exceed that portion of the Kazakh tax assessed on such income until such deduction is granted.

2. For the purposes of paragraph 1, the term "Malaysian tax payable" is considered to include Malaysian Tax, which, under Malaysian law and in accordance with this Agreement, is payable on any income derived from sources in Malaysia, unless such income has been taxed at a reduced rate or would be exempt from Malaysian tax in accordance with the provisions of this Agreement and the special benefits provided by the laws of Malaysia to promote the economic development of Malaysia, which were in force on the date of signing this Agreement., or any other provisions that may be subsequently introduced in Malaysia to amend or supplement the said legislation, agreed upon by the competent authorities of the Contracting States, as provisions having, in principle, a similar character.

3. Subject to the provisions of Malaysian law authorizing the deduction from Malaysian Tax of the amount of tax payable in any country other than Malaysia, Kazakh tax payable in accordance with the laws of Kazakhstan and in accordance with this Agreement by a resident of Malaysia in respect of income earned in Kazakhstan may be deducted from Malaysian tax payable in any country other than Malaysia. payment, in relation to this income. Such deduction, however, may not exceed that portion of the Malaysian tax assessed on such income until such deduction is granted.

4. For the purposes of paragraph 3, the term "Kazakh tax payable" is considered to include Kazakh tax, which, under the laws of Kazakhstan and in accordance with this Agreement, is payable on any income derived from sources in Kazakhstan, if such income would not have been taxed at a reduced rate or would have been exempt from Kazakh tax. in accordance with the provisions of this Agreement and the special benefits provided for by the legislation of Kazakhstan to promote the economic development of Kazakhstan, which were in force on the date of signing this Agreement, or any other provisions that may be subsequently introduced in Kazakhstan to amend or supplement the said legislation, agreed upon by the competent authorities of the Contracting States as provisions having, in principle, a similar character.

Article 24 NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation which is more burdensome than taxation or related obligations to which nationals of that other State are subject in the same circumstances, mainly with respect to residency.

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.

3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible on the same terms as if they were paid a resident of the first mentioned State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned State.

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. similar enterprises of the first mentioned State.

5. The provisions of this Article shall 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 family obligations, which it grants to its residents.

Article 25 MUTUAL AGREEMENT PROCEDURE

1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Agreement, 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 subject to paragraph 1 of article 24, to the competent authority of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Agreement.

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 Agreement.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of this Agreement. They may also consult with each other in order to eliminate double taxation in cases not provided for in this Agreement.

4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement within the meaning of the preceding paragraphs.

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 Agreement or for the prevention or detection of tax evasion or avoidance covered by this Agreement. Any information obtained through such an exchange is considered confidential and is disclosed only to persons or authorities (including courts or supervisory authorities) involved in the assessment or collection, enforcement or prosecution, or consideration of tax appeals regarding, or decision-making on appeals in respect of taxes covered by this Agreement..

2. In no case shall the provisions of paragraph 1 be interpreted as imposing an obligation on a Contracting State.: (a) To take administrative measures contrary to the legislation or administrative practice of that or another Contracting State; (b) To provide information that cannot be obtained under the legislation or in the ordinary course of administrative practice of that or another State; c) provide information that would disclose trade, business, industrial, commercial or professional secrets, or a trade process, or information the disclosure of which would be contrary to government policy.

Article 27 EMPLOYEES OF DIPLOMATIC MISSIONS AND CONSULAR INSTITUTIONS

Nothing in this Agreement 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 international treaties.

Article 28 REVISION, AMENDMENT AND ADDITION

Any of the Contracting States may request in writing a revision, amendment or addition of all or part of this Agreement. Any revision, amendment or addition shall be agreed upon by the Contracting States through a Protocol and shall form an integral part of this Agreement. Any revision, modification, or addition shall not prejudice the rights and obligations arising from or based on this Agreement on the preceding date or the date of such revision, modification, or addition. Such revision, amendment and addition will enter into force on the 30th day after the date of receipt of the last notification that the Contracting States have completed the internal procedures necessary for their entry into force.

Article 29 ENTRY INTO FORCE

1. This Agreement shall enter into force on the 30th day following the date of receipt of the last notification that the Contracting States have completed the internal procedures necessary for its entry into force.

2. This Agreement shall apply: (a) in Kazakhstan: (i) to taxes withheld at source on income received on or after January 1 of the calendar year following the year of entry into force of this Agreement; (ii) to other taxes on income in respect of the tax year beginning on or after January 1 of the calendar year following the year of entry into force of this Agreement. after January 1 of the second calendar year following the year of entry into force of this Agreement; (b) In Malaysia: (i) in respect of a Malaysian Tax other than the taxable petroleum income tax for any year beginning on or after 1 January of the calendar year following the year of entry into force of this Agreement; (ii) in respect of the taxable petroleum income tax for any year beginning on or after 1 January of the calendar year following the year of entry into force of this Agreement; on or after January 1 of the second calendar year following the year of entry into force of this Agreement.

Article 30 TERMINATION

This Agreement remains in force until one of the Contracting States terminates it. Any of the Contracting States may terminate the Agreement by sending, through diplomatic channels, a written notice of termination at least six months before the end of any calendar year following the expiration of a five-year period from the date of entry into force of the Agreement. In such a case, the Agreement shall terminate: (a) in Kazakhstan: (i) with respect to taxes withheld at source on income earned on or after January 1 of the calendar year following the year in which the termination notice is filed; (ii) with respect to other taxes for tax periods beginning on or after January 1 of the calendar year following the year in which the termination notice is filed; on or after January 1 of the second calendar year following the year in which the termination notice was filed; (b) In Malaysia: (i) in respect of a Malaysian Tax other than the Petroleum Income Tax, which is taxable for any year beginning on or after January 1 of the calendar year following the year in which the notice of termination is filed. (ii) in respect of the oil income tax payable for any year beginning on or after January 1 of the second calendar year following the year in which the notice of termination is filed. In witness whereof, the undersigned, being duly authorized thereto, have signed this Agreement. Done in Kuala Lumpur on the 26th of June, 2006, in two copies, each in the Kazakh, Malay, English and Russian languages, all texts are equally authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the English text will be decisive.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN MALAYSIA

protocol

When signing the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, both Governments agreed that the following provisions will form an integral part of this Agreement. With regard to paragraph 3 (b) of Article 2: In the case of Malaysia, income tax is levied on any persons defined in paragraph 1 (c) of Article 3. With regard to paragraph 1 of Article 7: nothing in this Agreement shall prevent a Contracting State from levying a tax on profits derived from the sale in that State of goods or merchandise of the same or similar nature as those sold through a permanent establishment or business activities carried on in that other State of the same or similar nature, as well as carried out through a permanent establishment, provided, that such sales or activities are not conducted through a permanent establishment explicitly for the purpose of reducing the tax liability of such permanent establishment. In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol. Done in Kuala Lumpur on the 26th of June, 2006, in two copies, each in the Kazakh, Malay, English and Russian languages, all texts are equally authentic. In case of disagreement in the interpretation of the provisions of this Protocol, the English text will be decisive.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN MALAYSIA

I hereby certify the accuracy of this copy of the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, concluded in Kuala Lumpur on June 26, 2006.

Head of the International Law Department of the Ministry of Foreign Affairs of the Republic of Kazakhstan

The RCPI's note. The text of the Agreement and Protocol in Russian is duplicated in English (see the paper version).

President

Republic of Kazakhstan

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