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

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

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

The Law of the Republic of Kazakhstan dated May 31, 2010 No. 284-IV

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Finland on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto, concluded in Helsinki on March 24, 2009.

President  Of the Republic of Kazakhstan N. Nazarbayev

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

(Bulletin of International Treaties of the Republic of Kazakhstan, 2010, No. 6, Article 53) (Entered into force on August 5, 2010)

The Government of the Republic of Kazakhstan and the Government of the Republic of Finland, desiring to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed as follows:

Article 1 PERSONS TO WHOM THE 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 or its local authorities, regardless of the method of their collection. 2. Income taxes are all types of taxes levied on the total amount of income or on individual elements of income, including taxes on income from the alienation of movable or immovable property. 3. The existing taxes to which the Agreement applies are: a) in Kazakhstan: (i) Corporate income tax; (ii) individual income tax; (hereinafter referred to as the "Kazakhstan Tax"); (b) In Finland: (i) government income taxes; (ii) corporate income tax; (iii) municipal tax; (iv) church tax; (v) withholding tax on interest; and (vi) withholding tax a source of income from non-residents; (hereinafter referred to as the "Finnish Tax"). 4. The Agreement also applies to any identical or substantially similar taxes that will be levied after the date of signing of the 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 in their tax laws.

Article 3 GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires: (a) The term: (i) "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 law; (ii) "Finland" means the Republic of Finland and, when used geographically, means the territory of the Republic of Finland and any area adjacent to the territorial waters of the Republic of Finland within which, under Finnish law and in accordance with international law, Finland may exercise rights in respect of exploration and exploitation of the natural resources of the seabed and subsoil (b) The term "person" includes an individual, a company and any other association of persons.; (c) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes; (d) The term "enterprise" applies to the conduct of any business activity; (e) 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; (f) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; (g) The term "competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative. (ii) B Finland: The Ministry of Finance, its authorized representative, or an authority designated by the Ministry of Finance as the competent authority; (h) The term "national person", in relation to a Contracting State, means: (i) any natural person having the nationality of that Contracting State; (ii) any legal person, partnership or association which has obtained its status on the basis of the legislation of that Contracting State; (i) the term "business activity" includes the provision of professional services or other activities of an independent nature. 2. As regards the application at any time of this Agreement by a Contracting State, any term not defined therein shall have the meaning, unless the context otherwise requires, which it has at that time under the laws of that State in respect of taxes to which the Agreement applies, any meaning under the applicable tax laws of that State shall prevail over the meaning, assigned to the term under other laws of that State.

Article 4 RESIDENT

1. For the purposes of this 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 place of incorporation (registration) or any other criterion of a similar nature, and also includes that State itself, any central authority, public authority or a local government agency. However, this term does not include any person who is subject to taxation in that State, only with respect to income from sources in that State. 2. If by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, 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 If he has a permanent home at his disposal in either Contracting State, he shall be deemed to be a resident only of the State in which he has an habitual abode.; (c) If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national; (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. 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 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) an installation, structure or ship, or any other place used for the exploration of natural resources; and g) a mine, oil or gas well, quarry or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes a construction site or a construction, installation, or assembly facility, or monitoring services related to them, if only such a site or facility has existed for more than 12 months, or such services have been provided 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 stocks of goods or merchandise belonging to the enterprise solely for the purposes of storage, display or delivery; (c) The maintenance of a stock of goods or merchandise belonging to 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 merchandise or collecting information for the enterprise;) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are 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 carries out for that enterprise, unless the activities of such person are limited to the activities referred to in paragraph 4, which, if and are carried out through a permanent place of business, shall 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) By itself, it does not turn 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 (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other State. 2. (a) The term "immovable property", subject to subparagraphs (b) and (c), has the meaning that it has under the law of the Contracting State in which the property in question is located. (b) The term "immovable property" in any case includes buildings, property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to landed property apply, the usufruct of immovable property, and rights to variable or fixed payments in as compensation for the development or granting of the right to develop mineral resources, springs and other natural resources. c) 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. If ownership of shares or other corporate rights in a company entitles the holder of such shares or corporate rights to use immovable property owned by the company, income from the direct use, rental or any other form of such right of use may be taxed in the Contracting State in which the immovable property is located. 5. The provisions of paragraphs 1 and 3 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 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 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. It is not allowed to deduct to a permanent establishment the amounts paid to its head office or any of the other offices of the enterprise by paying royalties, fees or other similar payments in return for the use of patents or other rights, or by paying commissions for specific services provided or for management, or by paying interest on the amount lent to a permanent establishment. 4. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 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 Agreement, the provisions of these articles shall not be affected by the provisions of this article.

Article 8 SEA AND AIR TRANSPORT

1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic are taxable only in that State. 2. Profits of an enterprise of a Contracting State from the use, maintenance or rental of containers (including trailers, barges and container transportation equipment) used to transport goods or merchandise shall be taxable only in that State, except in cases where such containers are used to transport goods or merchandise exclusively between locations in the other Contracting State. 3. The provisions of paragraphs 1 and 2 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 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 profit which could have been credited to one of the enterprises, but due to the presence of these conditions was not credited to him, 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 They exist between independent enterprises, then this other State will make an appropriate adjustment to the amount of tax levied on such profits., if this other State considers the adjustment justified. In determining such an adjustment, the other provisions of this Agreement 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 State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 percent of the total amount of dividends if the actual owner is a company (other than a partnership) that directly controls at least 10 percent of the voting rights in the company paying the dividends; b) 15 percent of the total amount of dividends in all other cases. 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", when used in this article, means income from shares or other rights that are not debt claims, income from profit-sharing, as well as income from other corporate rights, which is 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. In this case, the provisions of article 7.5 shall apply. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may exempt from taxes dividends paid by that company, except in cases where such dividends are paid to a resident of that other State or where the holding company in respect of which the dividends are paid is actually associated with a permanent establishment located in in this other State, and the company's undistributed profits are not taxed on the company's undistributed profits., even if the dividends paid or retained earnings consist wholly or partly of profits or 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 permanent establishment of a company that is a resident of the other Contracting State located in the first-mentioned State in addition to the tax that would accrue on the profits of a company that is a resident of the first-mentioned State. Such additional tax, however, should not exceed 5 percent of the amount of this profit, which was not subject to such additional taxation in previous tax years. The term "profits", as used in this paragraph, means profits attributable to a permanent establishment in accordance with the provisions of Article 7, accrued after deduction therefrom of all income taxes (other than additional taxes) 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 the other Contracting State shall be transferred to any central authority, State authority or local authority, Central (National) Bank or any other organization, the bulk of which belongs to the Government of that other Contracting State, which may be agreed from time to time between the competent authorities. by the authorities of the Contracting States, are taxable only in that other Contracting State. 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. 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 7.6 shall apply. 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 the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment, such interest shall be deemed to arise in the State in which where 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 taxed 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

Article 10 DIVIDENDS

Article 11 INTEREST

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 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. Notwithstanding the preceding sentence, the beneficial owner of royalties who makes payments for the use or grant of the right to use industrial, commercial, or scientific equipment may, at his option, be taxed in the Contracting State in which such royalties arise, as if the equipment were actually associated with a permanent establishment in that State. In this case, the provisions Articles 7 apply to income and deductions related to such equipment. 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 computer software, cinematographic films and films or magnetic recordings used in the body- or broadcasting, any patent, trademark, design or model, plan, secret formula, or process, or for information relating to industrial, commercial, or scientific experience (know-how), and for the use or grant of the right to use industrial, commercial, or scientific equipment (except in cases to which the provisions apply paragraph 2 of Article 8). 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 arise through a permanent establishment located there and the right or property in respect of which the royalties are paid is actually associated with such permanent establishment. In such a case, the provisions of Article 7.5 shall apply. 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 in a Contracting State in connection with which an 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 of the royalty or between both of them and any other person, the amount of the royalty relating 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 royalty 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 is subject to taxation in accordance with the laws of each Contracting State, with due regard to 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 or property in respect of which royalties are paid was to benefit from this article through such creation or transfer of rights.

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 paragraph 2 of Article 6 and 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 shares or other corporate rights other than shares listed on an officially recognized stock exchange in a company, most of whose assets consist of immovable property located in the other Contracting State, may be taxed in that other State. 3. 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 together with the entire enterprise), may be taxed in that other State. 4. Income earned by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such ships or aircraft shall be taxable only in that State. 5. Income earned by an enterprise of a Contracting State from the disposal of containers (including trailers, barges and container transportation equipment) used to transport goods or merchandise is taxable only in that State, except in cases where containers are used to transport goods or merchandise exclusively between locations in the other Contracting State. 6. 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 14 DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of articles 15, 17 and 18, 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 is present in another State for a period or periods not exceeding a total of 183 days during any twelve-month period beginning or ending in the relevant calendar year, and (b) the remuneration is paid by or on behalf of the employer, who is not a resident of another 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 by an enterprise of a Contracting State may be taxed in that State.

Article 15 DIRECTORS' FEES

Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar body 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, 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 from personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

Article 17 PENSIONS, ANNUITIES AND SOCIAL SECURITY PAYMENTS

1. Subject to the provisions of paragraph 2 of Article 18, any: (a) pensions or annuities arising in a Contracting State, (b) benefits, regardless of whether they are periodic or lump-sum compensation provided under the legislation on social insurance of a Contracting State or under any other State plan developed by a Contracting State for the purpose of social protection, may be taxed in this State. 2. The term "annuity", as used in this article, means fixed amounts that are paid periodically at fixed times during life or for a certain or specified period of time in accordance with the obligation to make payments in return for adequate and full compensation in monetary or monetary terms (other than the provision of services).

Article 18 PUBLIC SERVICE

1. (a) Salaries, salaries and other similar remuneration, other than a pension, paid by a Contracting State, by any central authority, public authority or local authority thereof to any natural person in respect of services rendered to that Contracting State, or to a central authority, or public authority, or local authority; it is taxed only in this State. (b) However, such salaries, salaries and other similar remuneration shall be taxable only in the Contracting State of which the individual is a resident if the service is performed in that State and the individual: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of performing the service. 2. (a) Any pension paid by a Contracting State or by any central authority, public authority or local authority thereof to an individual in respect of services rendered to that Contracting State or its central authority, public authority or local authority shall be taxable only in that State. (b) However, such pension is taxable only in the Contracting State of which the individual is a resident if he is a national of that State. 3. The provisions of articles 14, 15, 16 and 17 shall apply to salaries, wages and other similar remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or its central authority, or a public authority, or a local authority.

Article 19 STUDENTS AND INTERNS

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 education or internship receives for the purposes of his maintenance, education or internship shall not be taxed in that State, provided that the sources these amounts are located outside this State.

Article 20 OTHER INCOME

1. The types of income of a resident of a Contracting State, regardless of the source of their origin, which are not mentioned in the preceding articles of this Agreement, are taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 if the recipient of such income, being a resident of a 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 is valid they are associated with such a permanent establishment. In such a case, the provisions of article 7 shall apply.

Article 21 ELIMINATION OF DOUBLE TAXATION

1. Taking into account the provisions of the Kazakh legislation regarding the elimination of double taxation, in Kazakhstan double taxation is eliminated as follows: a) if a resident of Kazakhstan earns income that, in accordance with the provisions of this Agreement, can be taxed in Finland, Kazakhstan will allow deduction from the income tax of this resident an amount equal to the income tax paid in Finland. The amount of tax deductible in accordance with the above provisions should not exceed the amount of tax that would be accrued on the same income at the rates applicable in Kazakhstan. b) If a resident of Kazakhstan receives income that, in accordance with the provisions of this Agreement, is taxable only in Finland, Kazakhstan may include this income in the tax base, but only for the purpose of determining the tax rate on such other income as is subject to taxation in Kazakhstan; 2. Taking into account the provisions of Finnish legislation concerning the elimination of international double taxation (which do not affect its general principle), in Finland double taxation is eliminated as follows: a) if a resident of Finland earns income that, in accordance with the provisions of this Agreement, may be taxed in Kazakhstan, Finland, in accordance with the provisions of subparagraph b), will allow deduction from Finnish income tax of this person an amount equal to the Kazakh tax paid under Kazakh law and in accordance with the Agreement, which is accrued on such income in respect of which Finnish tax is payable. b) dividends paid by a company that is a resident of Kazakhstan to a company that is a resident of Finland and which directly controls at least 10 percent of the voting rights of the company paying the dividends are exempt from tax in Finland. (c) If, in accordance with any provision of the Agreement, income earned by a resident of Finland is exempt from tax in Finland, Finland may nevertheless take into account the tax-exempt income when calculating the amount of tax on the remaining income of such a person.

Article 22 NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of that other State are or may be subjected in the same circumstances, in particular with respect to residency. This provision, notwithstanding the provisions of article 1, 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 such 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 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 purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if paid to a resident 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, notwithstanding the provisions of article 2, shall apply to taxes of any kind and type.

Article 23 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 for consideration to the competent authority of the Contracting State of which he is a resident, or, if his case falls under the subject to paragraph 1 of Article 22, 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 the Agreement. Any agreement reached will be executed regardless of any time limits provided for by the national 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 in the interpretation or application of the Agreement. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Agreement. 4. The competent authorities of the Contracting States may enter into direct contacts with each other, including joint commissions composed of themselves or their representatives, in order to reach agreement within the meaning of the preceding paragraphs.

Article 24 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 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 or local authorities to the extent that taxation is not contrary to this Agreement. The exchange of information is not limited to articles 1 and 2 of this Agreement. 2. Any information obtained in accordance with paragraph 1 of this Article by a Contracting State shall be considered confidential in the same way 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 respect of 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 of this Agreement 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 of this Agreement, 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 of this Agreement 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 25 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR INSTITUTIONS

Nothing in this Agreement affects the tax privileges of members of diplomatic missions or 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 26 ENTRY INTO FORCE

1. The Governments of the Contracting States will notify each other of the completion of the internal procedures necessary for the entry into force of this Agreement. 2. This Agreement shall enter into force on the 30th day after the date of receipt of the last notification referred to in paragraph 1, and its provisions shall become effective: a) with respect to taxes withheld from income earned on or after January 1 of the calendar year following the year of entry into force of the Agreement; (b) In respect of other income taxes payable in any tax year beginning on or after 1 January of the calendar year following the year of entry into force of the Agreement.

Article 27 TERMINATION

This Agreement remains in force until one of the Contracting States terminates it. Any Contracting State may terminate the Agreement by sending, through diplomatic channels, a 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 this case, the Agreement is terminated.: (a) In respect of taxes withheld at source on income earned on or after January 1 of the calendar year following the year of receipt of the notification; (b) In respect of other taxes on income payable in any tax year beginning on or after January 1 of the calendar year following the year of receipt of the notification.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Agreement.

DONE in duplicate in Helsinki on March 24, 2009, in the Kazakh, Russian, Finnish, Swedish and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text is decisive.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN OF THE REPUBLIC OF FINLAND

protocol

At the signing of the Agreement between the Government of the Republic of Finland and the Government of the Republic of Kazakhstan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (hereinafter referred to as the "Agreement"), the undersigned have agreed that the following provisions will form an integral part of the Agreement.

With regard to article 11:

for the purposes of paragraph 3, the expression "any other organization, the bulk of which belongs to the Government of that other Contracting State", (a) in the case of Kazakhstan includes the Samruk-Kazyna National Welfare Fund Joint Stock Company; (b) in the case of Finland includes the Finnish Industrial Cooperation Fund (FINNFUND) and Finnish Export Credit LLP (Finnish Export Credit Ltd).

With regard to article 14:

The provisions of paragraph 2 of Article 14 shall not apply to an employee. For the purposes of the preceding sentence, an employee who is a resident of a Contracting State is considered employed if he is placed at the disposal of another person by a person (employer) to perform work in the business of such other person (manager) in the other Contracting State, provided that the manager is resident or has a permanent establishment in that other State and that the employer either does not bear any responsibility or does not bear any risk regarding the result of the work. When determining whether an employee is considered hired, a comprehensive check should be carried out with detailed reference to: (a) whether the supervisor exercises full control over the work; (b) whether the work is performed at the workplace, which is at the disposal of the supervisor and for which he is responsible; c) whether remuneration is calculated to the employer, according to the time spent or in relation to any other relationship between remuneration and wages received by the employee; d) whether the main part of the tools and materials is provided by the supervisor; and e) that the employer does not unilaterally decide on the number of employees or their qualifications.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN OF THE REPUBLIC OF FINLAND

The RCPI's note. The following is the text of the Agreement in Finnish.

President

Republic of Kazakhstan

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