On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Principles of Levying Indirect Taxes in Mutual Trade

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Principles of Levying Indirect Taxes in Mutual Trade

Law of the Republic of Kazakhstan dated May 10, 2001 No. 199

The RCPI's note. See Resolution on the conclusion of the Agreement - Resolution of the Government of the Republic of Kazakhstan dated October 6, 2000 N 1504 P001504_ .

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Principles of Levying Indirect Taxes in Mutual Trade, signed in Astana on October 9, 2000.

President of the Republic of Kazakhstan

Agreement* between the Government of the Republic of Kazakhstan and The Government of the Russian Federation on the principles of levying indirect taxes in mutual trade

*(Entered into force on July 1, 2001 - Bulletin of International Treaties of the Republic of Kazakhstan, 2002, No. 2, art. 23)

Footnote: See the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Principles of Indirect Taxes in Mutual Trade dated October 9, 2000, signed in Astana on September 15, 2004.

The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as the Parties,

 Guided by the provisions of B944900_ of the Agreement on the Establishment of a Free Trade Zone of April 15, 1994 and Z990014_ of the Protocol on Amendments and Additions to the Agreement on the Establishment of a Free Trade Zone of April 15, 1994, striving to further deepen economic integration, create equal opportunities for business entities and establish conditions for fair competition, Taking into account generally accepted norms and rules of international trade, have agreed on the following:

Article 1 General definitions

 For the purposes of this Agreement, the following terms are used: "indirect taxes" - value added tax and excise tax; "zero rate" means exemption from excise taxes and a zero percent value-added tax rate for the export of goods (services). The application of the zero rate grants the taxpayer the right to offset (refund) value-added tax on material resources, as well as to offset taxes paid against upcoming payments or their reimbursement.; "country of destination" - the state into whose customs territory goods (services) are imported; "business entities" - taxpayers of the states of the Parties.

Article 2 Subject of the Agreement

 The subject of this Agreement is to establish the principle of levying indirect taxes in the conduct of foreign trade operations between business entities of the States of the Parties.

Article 3 The principle of taxation in the export of goods

 1. Goods placed under the customs regime of export, exported from the customs territory of the State of one Party and imported into the customs territory of the State of the other Party, are subject to indirect taxes at a zero rate in accordance with the national legislation of the Parties. 2. The provision of paragraph 1 of this article does not apply to natural gas, oil, including stable gas condensate.

Article 4 The principle of taxation when importing goods

 1. Goods, with the exception of those listed in paragraph 2 of Article 3 of this Agreement, imported into the customs territory of the state of one Party, which are exported from the customs territory of the State of the other Party, are subject to indirect taxes in the country of destination in accordance with its national legislation. 2. The goods listed in paragraph 2 of Article 3 of this Agreement and originating from the State of one Party, when imported into the customs territory of the State of the other Party from the customs territory of a State that is not a party to this Agreement, are subject to indirect taxes in the customs territory of the State of the other Party in accordance with its national legislation.

Article 5 Procedure for the application of indirect taxes in the provision of services

 1. The procedure for applying indirect taxes in the provision of services is formalized in a separate protocol. Prior to the entry into force of such a protocol, services are subject to indirect taxes in accordance with the laws of the States of the Parties, with the exception of the following services: a) services for transportation and maintenance of goods exported from the customs territory of the State of one Party to the customs territory of the State of the other Party, including forwarding, loading, unloading and transshipment services; b) services for the transportation and maintenance of goods in transit, provided that the points of departure or destination of the goods are located on the territory of the States of the Parties, including services for their forwarding, loading, unloading and transshipment; c) services for the transportation of passengers and baggage from the customs territory of the state of one Party to the customs territory of the State of the other Party in the forward and reverse directions. 2. The services listed in subitems "a", "b" and "c" of paragraph 1 of this Article are subject to value-added tax at a zero rate in the State whose taxpayers provide such services, upon confirmation of the fact of their provision in accordance with the procedures established by the Parties.

Article 6 Control over the movement of goods and payment indirect taxes

 1. In order to control the movement of goods, keep records and exchange information, the Parties will use the Commodity Nomenclature of Foreign Economic Activity of the Commonwealth of Independent States (CIS FEA). 2. The collection and control of indirect taxes on the import (export) of goods from the customs territory of the State of one Party to the customs territory of the State of the other Party shall be carried out by the customs and tax authorities of the States Parties to this Agreement.

Article 7 Execution of the Agreement

 1. The Parties will resolve disagreements in connection with the interpretation or application of this Agreement through negotiations. 2. The Parties will hold consultations, if necessary, to assess the progress of the implementation of this Agreement and the expediency of making amendments and additions to it.

Article 8 Amendments and additions to the Agreement

 The Parties, by mutual agreement, make the necessary additions and amendments to this Agreement, which are formalized in separate Protocols that are an integral part of the Agreement.

Article 9 The term of the Agreement

 1. This Agreement shall enter into force on July 1, 2001, after the last written notification that the Parties have completed the internal procedures necessary for the entry into force of this Agreement. 2. This Agreement is concluded for a period of five years and is automatically extended for a further five years, unless either Party notifies in writing through diplomatic channels at least 6 months before the expiration of the next period of its intention to terminate it.

Done in Astana on October 9, 2000, in two original copies, each in the Kazakh and Russian languages, both texts being equally authentic.

For the Government For the Government of the Republic of Kazakhstan Of the Russian Federation

President

Republic of Kazakhstan

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