On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on the exemption from taxation of Certain Types of Income of the China-Kazakhstan Production Capacity Cooperation Fund, which makes direct Investments in Kazakhstan

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on the exemption from taxation of Certain Types of Income of the China-Kazakhstan Production Capacity Cooperation Fund, which makes direct Investments in Kazakhstan

On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on the exemption from taxation of Certain Types of Income of the China-Kazakhstan Production Capacity Cooperation Fund, which makes direct Investments in Kazakhstan

The Law of the Republic of Kazakhstan dated January 8, 2019 No. 216-VI SAM.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on exemption from taxation of certain types of income of the China-Kazakhstan Production Capacity Cooperation Fund, which makes direct Investments in Kazakhstan, made in Astana on June 8, 2017.

President Republic of Kazakhstan

N. NAZARBAYEV

Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on exemption from taxation of certain types of income of the China-Kazakhstan Production Capacity Cooperation Fund, which makes direct investments in Kazakhstan

This Agreement is concluded between the Government of the Republic of Kazakhstan, hereinafter referred to as the "Government of Kazakhstan", on the one hand, and the Government of the People's Republic of China, hereinafter referred to as the "Government of the People's Republic of China", on the other hand (hereinafter referred to as the "Parties").

In order to support the implementation of key projects within the framework of Kazakh-Chinese cooperation in the field of industrialization and investment, maximize the financial support function of the Chinese-Kazakh Production Capacity Cooperation Fund, promote the implementation of the Nurly Zhol State Infrastructure Development Program and support Chinese investments in infrastructure and industrial projects in Kazakhstan.,

Taking into account the importance of the development of bilateral economic relations between Kazakhstan and China in the field of industrialization and investment,

The Parties have agreed on the following:

Article 1 Definitions

For the purposes of this agreement:

1. "Projects" means projects implemented in the territory of the Republic of Kazakhstan in the field of industrialization and investment within the framework of the Framework Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China on Strengthening Cooperation in the field of industrialization and Investment, signed on August 31, 2015 (hereinafter referred to as the "Framework Agreement").

2. "Fund" means the China-Kazakhstan Production Capacity Cooperation Fund, established in accordance with the laws of the People's Republic of China on December 7, 2016 (Social Credit Code 91110000MA00A97G1B), which is a party involved in investing in Projects.

3. "Dividends" means income from shares or other rights that are not debt claims, participation in profits, as well as from other corporate rights, which is subject to the same tax regulation in accordance with the legislation of the Republic of Kazakhstan.

Article 2 Exemption from tax on dividends

1. The Government of the Republic of Kazakhstan grants the Fund an exemption from taxation of dividends in respect of the Fund's direct participation in Projects.

With regard to the Fund's indirect participation in Projects, the Government of the Republic of Kazakhstan grants the Fund or the company/companies through which the Fund participates in Projects an exemption from tax on dividends, within the limits of the Fund's share in the capital of the company/companies receiving/receiving dividends, in accordance with the list of companies approved by the decision of the Government of the Republic of Kazakhstan.

2. On an equal basis, the Government of the People's Republic of China is ready to consider granting tax exemption on dividends to an organization of the same type as a Fund established in the Republic of Kazakhstan, which will participate in investing in projects in China under a Framework Agreement on the same terms specified in paragraph 1 of this article.

Article 3 Other taxes

1. This Agreement applies only to dividends received by the Fund within the limits of its participation in Projects, and does not affect any other applicable taxes.

2. Taxes and other mandatory payments stipulated by the legislation of the Republic of Kazakhstan shall be paid in accordance with the legislation of the Republic of Kazakhstan.

3. Taxation of capital gains received by the Fund from direct participation in the capital of Projects should be regulated in terms of tax exemption in accordance with the legislation of the Republic of Kazakhstan and the Agreement between the Government of the Republic of Kazakhstan and the Government of the People's Republic of China for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income, concluded on September 12, 2001.

Article 4 Procedure for reaching a mutual agreement

The Parties will seek to resolve disputes regarding the interpretation and application of this Agreement, as appropriate, through negotiations and consultations.

Article 5 Final provisions

1. This Agreement shall enter into force on the date of receipt, through diplomatic channels, of the last written notification that the Parties have completed the internal procedures necessary for the entry into force of this Agreement.

2. This Agreement shall remain in force for a period of at least ten (10) years from the date of entry into force, until one of the Parties may terminate it by prior written notification to the other Party through diplomatic channels. In such case, this Agreement shall terminate upon the expiration of six (6) months from the date of receipt by the other Party of the written notification.

3. This Agreement applies to dividends payable starting from the first of January of the calendar year in which this Agreement entered into force.

4. By mutual agreement of the Parties, amendments and additions may be made to this Agreement, which are formalized by separate protocols that are an integral part of this Agreement and enter into force in accordance with the procedure provided for in paragraph 1 of Article 5 of this Agreement.

5. This Agreement shall terminate and have no legal effect with respect to dividends paid for the calendar year following the year in which the notice of termination of this Agreement was transmitted to the Party in accordance with this Agreement.

6. This Agreement is terminated in respect of Projects in which the Fund has terminated its participation.

Done in Astana on June 8, 2017, in two copies, each in Kazakh, Russian, Chinese and English, all texts having the same legal force.

In case of any disagreement in the interpretation of the provisions of this Agreement, the English text will prevail.

For the Government of the Republic of Kazakhstan

For the Government of the People's Republic of China

RCPI's note! The text of the Agreement in Chinese and English is attached.

President

Republic of Kazakhstan

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