On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the United States of America on Improving International Tax Discipline

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The Law of the Republic of Kazakhstan dated March 10, 2022 No. 108-VII SAM.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the United States of America on Improving International Tax Discipline, signed in Astana on September 11, 2017.

President

Republic of Kazakhstan

K. TOKAEV

Agreement between the Government of the Republic of Kazakhstan and the Government of the United States of America on Improving International Tax Discipline

(Entered into force on April 5, 2022, Bulletin of International Treaties of the Republic of Kazakhstan 2022, No. 2, Article 8)

Whereas the Government of the Republic of Kazakhstan and the Government of the United States of America (hereinafter referred to individually as the "Party" and collectively as the "Parties") express their desire to conclude an agreement on improving international tax discipline through mutual assistance in tax matters using an efficient infrastructure for the automatic exchange of information;

Whereas article 26 of the Convention between the Government of the Republic of Kazakhstan and the Government of the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, with the Protocol, concluded in Almaty on October 24, 1993 (the "Convention") provides for the exchange of information for tax purposes, including the exchange of automatic based on;

Whereas, the United States of America has enacted provisions known as the Tax Control Act on Accounts with Foreign Financial Institutions ("FATCA"), which provide for a reporting regime for financial institutions in relation to certain accounts;

Whereas the Government of the Republic of Kazakhstan supports the main policy objective of FATCA to improve tax control;

Whereas FATCA has raised a number of issues, including that financial institutions in the Republic of Kazakhstan may not be able to comply with certain aspects of FATCA due to local legal obstacles;

Whereas the Government of the United States of America collects information regarding certain accounts maintained by U.S. financial institutions and owned by residents of the Republic of Kazakhstan, and advocates the exchange of such information with the Government of the Republic of Kazakhstan, as well as seeks equivalent degrees of exchange, provided appropriate security measures are taken and infrastructure is provided for effective exchange relationships;

Considering that the interstate approach to the implementation of FATCA should resolve the issue of legal obstacles and reduce the burden on financial institutions of the Republic of Kazakhstan;

Whereas the Parties wish to conclude an agreement on improving international tax discipline and ensuring the implementation of FATCA based on local reporting and mutual automatic exchange in accordance with the Convention, while respecting confidentiality and other protections provided for therein, including provisions restricting the use of information exchanged in accordance with the Convention;

Taking into account the above, the Parties have agreed on the following:

Article 1 Definitions

1. For the purposes of this agreement and any annexes thereto (the "Agreement"), the following terms have the following meanings:

a) The term "United States" means the United States of America, includes its States, but does not include the Territories of the United States. Any reference to a "State" of the United States includes the District of Columbia.

(b) The term "U.S. Territory" means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or the U.S. Virgin Islands.

c) The term "IRS" means the Federal Tax Administration of the United States.

(d) The term "Republic of Kazakhstan" means the Republic of Kazakhstan.

e) The term "Partner Jurisdiction" means a jurisdiction that has a valid agreement with the United States to assist in the implementation of FATCA. The IRS publishes a list of all Partner Jurisdictions.

(f) The term "Competent authority" means:

(1) in the case of the United States, the Secretary of the Treasury or his representative; and

(2) in the case of the Republic of Kazakhstan, the Minister of Finance or his representative.

g) The term "Financial Institution" means a Custodial Institution, a Depository Institution, an Investment Organization or a Specific Insurance Company.

h) The term "Custodial institution" means any organization that, as a significant part of its business, holds financial assets for the benefit of others. An organization holds financial assets for the benefit of others as a substantial part of its business if the total income of the organization related to the ownership of financial assets and related financial services is equal to or exceeds 20 percent of the total income of the organization during the lesser of the following periods: (i) the three-year period ending December 31 (or the last the day of the accounting period that does not coincide with the calendar year), before the year in which the calculation is carried out; or (ii) the period of the organization's existence.

i) The term "Deposit institution" means any organization that accepts deposits in the normal course of banking or similar business.

j) The term "Investment organization" means any organization that, as its business, carries out (or is managed by an organization that, as its business, carries out) one or more of the following types of activities or transactions for or on behalf of a client:

(1) trading in money market instruments (cheques, promissory notes, certificates of deposit, derivative financial instruments, etc.), foreign exchange, foreign exchange, interest-bearing and indexed instruments, traded securities, or exchange-traded futures transactions;

(2) individual and collective portfolio management; or

(3) other investment, administration or management of funds or funds on behalf of other persons.

This subparagraph 1 (j) is interpreted in a manner consistent with the similar wording provided in the definition of "Financial institution" in the Recommendations of the Financial Action Task Force on Money Laundering.

k) The term "Defined Insurance Company" means any organization that is an insurance company (or the holding company of an insurance company) that issues or is required to make payments in respect of a Purchase Price Insurance Contract or an Annuity Contract.

l) The term "Financial Institution of the Republic of Kazakhstan" means (i) any Financial Institution established in accordance with the laws of the Republic of Kazakhstan, but excluding any branch of such Financial Institution located outside the Republic of Kazakhstan, and (ii) any branch of a Financial Institution not established in accordance with the laws of the Republic of Kazakhstan, if such a branch is located in the Republic of Kazakhstan.

m) The term "Partner Jurisdiction Financial Institution" means (i) any Financial Institution established in the Partner Jurisdiction, but excluding any branch of such Financial Institution located outside the Partner Jurisdiction, and (ii) any branch of a Financial Institution not established in the Partner Jurisdiction if such branch is located in the Partner Jurisdiction.

n) The term "Accountable Financial Institution" means an Accountable Financial Institution of the Republic of Kazakhstan or an Accountable Financial Institution of the United States, depending on the context.

o) The term "Accountable Financial Institution of the Republic of Kazakhstan" means any Financial Institution of the Republic of Kazakhstan that is not an Unaccountable Financial Institution of the Republic of Kazakhstan.

p) The term "U.S. Accountable Financial Institution" means (i) any Financial Institution that is a resident of the United States, with the exception of any branch of such Financial Institution located outside the United States, and (ii) any branch of a Financial Institution that is not a resident of the United States, if such branch is located in the United States, provided that that a Financial institution or a branch carries out control, receipt or responsible custody of income, in respect of which the exchange of information is required in accordance with subparagraph 2 (b) of Article 2 of this Agreement.

q) The term "Unaccountable Financial Institution of the Republic of Kazakhstan" means any Financial Institution of the Republic of Kazakhstan, or other Organization of the Republic of Kazakhstan, which are listed in Annex II as an Unaccountable Financial Institution of the Republic of Kazakhstan, or which otherwise qualifies as a conditionally compliant foreign financial institution, or an exempt beneficial owner in accordance with the Rules of the United States Department of the Treasury.

r) The term "Non-participating financial institution" means a non-participating foreign financial institution in the meaning in which this term is defined in the relevant Rules of the United States Department of the Treasury, but does not include a Financial Institution of the Republic of Kazakhstan or other Financial Institution of a Partner Jurisdiction other than a Financial Institution considered as a Non-Participating Financial Institution in subparagraph 2 (b) of Article 5 of this The Agreement, or in the relevant provision of the agreement between the United States and the Partner Jurisdiction.

(s) The term "Financial Account" means an account maintained by a Financial Institution and includes:

(1) in the case of an organization that is a Financial Institution solely by virtue of being an Investment Organization, any equity or debt participation (other than equity or debt participation that is regularly traded on the organized securities market) in a Financial Institution;

(2) in the case of a Financial Institution not specified in subsection (1) (s)(1) of this article - any equity or debt participation in a Financial Institution (other than equity or debt participation that is regularly traded on an organized securities market) if (i) the value of the equity or debt participation is determined directly or indirectly, primarily based on assets that give rise to Withheld Payments from an American source, and (ii) the class of equity or debt participation was established in order to avoid reporting in accordance with this Agreement; and

(3) any Redeemable Value Insurance Contract and any Annuity Agreement issued or maintained by a Financial Institution, with the exception of a non-investment, non-transferable immediate lifetime annuity, which is issued to an individual and monetizes a pension or disability benefit provided under an account that is excluded from the definition of a Financial Account in Appendix II.

Notwithstanding the above, the term "Financial Account" does not include any account that is excluded from the definition of a Financial Account in Annex II. For the purposes of this Agreement, an equity or debt participation is considered "regularly traded" provided that there is a significant volume of circulation of this equity or debt participation on a regular basis, and an "organized securities market" means an exchange officially recognized and regulated by the state body of the market location, and having a significant annual volume of shares traded on the exchange. For the purposes of this subparagraph l(s), equity or debt participation in a Financial Institution is not "regularly traded" and is recognized as a Financial Account if the owner of equity or debt participation (with the exception of a Financial Institution acting as an intermediary) is reflected in the accounts of such Financial Institution. The previous proposal will not apply to equity or debt investments that were first recorded in the accounts of such a Financial Institution before July 1, 2014, while for equity or debt investments that were first recorded in the accounts of such a Financial Institution after July 1, 2014 (inclusive), the Financial Institution is not required to apply the provisions of the previous proposal until January 1, 2016.

t) The term "Deposit account" includes any commercial, checking, savings, term or savings account, or account that is documented by a deposit, savings, investment certificate, debt certificate, or other similar instrument maintained by a Financial Institution in the normal course of banking or similar business. The deposit account also includes the amount retained by the insurance company in accordance with the provisions of a guaranteed investment contract or similar agreement for the payment or accrual of interest income.

u) The term "Custodial Account" means an account (with the exception of an Insurance Contract or an Annuity Contract) for the benefit of another person that contains any financial instrument or contract for investment (including, but not limited to, shares or interests in a corporation, promissory notes, bonds, debentures or other debt documents, currency or commodity transactions, credit default swap, non-financial index swap, conditional principal amount contract, Insurance or Annuity Contract, and any option or other derivative instrument).

(v) The term "Equity participation" means, in the case of a partnership that is a Financial Institution, participation in the capital or profits of the partnership. In the case of a trust that is a Financial Institution, it is assumed that an Equity Interest belongs to any person who is considered as the founder or recipient in respect of the entire trust or part of it, or to any other individual who exercises ultimate effective control over the trust. A certain US person is considered as a recipient of a foreign trust if such a Certain US Person has the right to receive a mandatory distribution directly or indirectly (for example, through a nominee owner), or may receive a discretionary distribution directly or indirectly from the trust.

(w) The term "Insurance Contract" means a contract (with the exception of an Annuity Contract) under which the issuer undertakes to pay an amount in the event of an emergency involving death, morbidity, accident risk, liability risk or property risk.

x) The term "Annuity Agreement" means an agreement under which the issuer undertakes to make payments over a period of time calculated in whole or in part based on the expected life expectancy of one or more individuals. The term also includes an agreement that is considered an Annuity Agreement in accordance with the laws, regulations, or practices of the jurisdiction in which the agreement was issued, and according to which the issuer undertakes to make payments over a certain number of years.

y) The term "Purchase Price Insurance Contract" means an insurance contract (with the exception of a reinsurance contract for damages between two insurance companies) for which the Purchase Price exceeds the amount of 50,000 US dollars.

(z) The term "Redemption value" means the greater of the following amounts: (i) the amount that the policyholder is entitled to receive upon termination or termination of the contract (determined without deduction of termination fees or insurance policy credit), and (ii) the amount that the policyholder may borrow under the contract or in connection with the contract. Despite the above, the term "Purchase Price" does not include the amount payable under the Insurance Contract as:

(1) compensation for personal injury or sickness benefits or other payments for the purpose of compensating for economic loss incurred in connection with the occurrence of an insured event;

(2) the refund to the policyholder of the insurance premium previously paid under the Insurance Contract (except for the life insurance contract) in connection with the cancellation or termination of the insurance policy, a decrease in the degree of risk exposure during the term of the Insurance Contract, or in connection with the recalculation of the insurance premium due to errors in posting invoices or similar errors; or

(3) insurance dividends to the policyholder based on the insurance experience of the relevant contract or group;

aa) The term "Accountable Account" means the Accountable Account of the United States or the Accountable Account of the Republic of Kazakhstan, depending on the context.

bb) The term "Accountable Account of the Republic of Kazakhstan" means a Financial Account maintained by a U.S. Accountable Financial Institution if: (i) in the case of an Escrow Account, the account belongs to an individual resident of the Republic of Kazakhstan and the amount of interest paid on such account in any calendar year is more than $10; or (ii) in the case of a Financial Account that is not an Escrow Account, the Account Holder is a resident of the Republic of Kazakhstan, including an organization that confirms that it is a resident of the Republic of Kazakhstan for tax purposes, to which income from an American source is paid or credited, for which information must be provided in accordance with Chapter 3 of subsection A or Chapter 61 of Subsection F of the US Internal Revenue Code.

cc) The term "U.S. Accountable Account" means a Financial Account maintained by an Accountable Financial Institution of the Republic of Kazakhstan and owned by one or more Designated U.S. Persons or a Non-U.S. Organization with one or more Controlling Persons who are Designated U.S. Persons. Notwithstanding the above, an account is not considered to be a US Accountable Account unless such an account is identified as a US Accountable Account after applying the due diligence procedures specified in Annex I.

(dd) The term "Account Holder" means a person designated or identified as the owner of a Financial Account by the Financial Institution in which the Account is maintained. A person, with the exception of a Financial Institution, who holds a Financial Account for or on behalf of another person as an agent, custodian, nominee, signatory, investment adviser, or intermediary, is not considered to own the account for the purposes of this Agreement, and such other person is considered to own the account.. For the purposes of the preceding sentence, the term "Financial Institution" does not include a Financial Institution established or incorporated in the United States. In the case of an Insurance Contract with a Purchase Price or an Annuity Contract, the Account Holder means any person who has the right to access the Purchase Price or the right to replace the recipient under the contract. If no one has access to the Purchase Price or the right to replace the recipient under the agreement, the Account Holder is any person specified as the owner in the agreement and any person who has an unconditional right to payments under the terms of the agreement. Upon the occurrence of grounds for making payments under an Insurance Contract with a Purchase Price or an Annuity Agreement, each person entitled to receive payments under the contract is considered as the Account Holder.

ee) The term "U.S. Person" means a U.S. citizen or a natural person who is a resident; a partnership or corporation formed in the United States or in accordance with the laws of the United States or one of the states; a trust if: (i) a court within the United States has the authority under applicable law to order or adjudicate virtually all matters related to the management of the trust, and (ii) one or more U.S. persons have the authority to control all major decisions of that trust, or the property of a deceased person who is a citizen or resident of the United States States. This subparagraph 1 (h) is interpreted in accordance with the provisions of the Internal Revenue Code of the United States.

ff) The term "Designated U.S. Person" means a U.S. person, except for: (i) a corporation whose shares are regularly traded on one or more organized securities markets; (ii) any corporation that is a member of the same extended affiliated group as defined in section 1471 (e)(2) the Internal Revenue Code of the United States, designated as a corporation in paragraph (i); (iii) the United States or any wholly owned U.S. agencies or agencies; (iv) any State of the United States, any Territory of the United States, or any of its administrative divisions, or any agencies or departments wholly owned by them; (v) any tax-exempt organization under section 501(a) of the Internal Revenue Code, or individual retirement plans as defined in section 7701 (a) (37) of the Internal Revenue Code; (vi) of any bank as defined in Section 581 of the Internal Revenue Code; (vii) of any real estate investment trusts as defined in Section 856 of the Internal Revenue Code; (viii) any regulated investment company as defined in Section 851 of the Internal Revenue Code or any organization registered with the U.S. Securities and Exchange Commission under the Investment Companies Act of 1940 (15 U.S.C. 80a-64); (ix) any general trust fund as defined in section 584 (a) The US Tax Code; (x) any tax-exempt trust under the provisions of section 664(c) of the Internal Revenue Code, or a trust specified in section 4947 (a)(1) The U.S. Internal Revenue Code; (xi) a dealer in securities, commodities, or derivative financial instruments (including nominal principal contracts, futures, forward contracts, and options) registered as such under the laws of the United States or any State; (xii) a broker as defined in section 6045 (c) of the Internal Revenue Code; or (xiii) any tax-exempt trust under a plan provided for in section 403 (b) or 457 (g) of the Internal Revenue Code.

gg) The term "Organization" means a legal entity or legal entity, such as a trust.

hh) The term "Non-American Organization" means an Organization that is not a person of the United States.

ii) The term "Withheld payment from an American source" means any payment of interest (including any initial issue discount), dividends, rent, salary, salary, bonuses, annuities, compensation, remuneration, earnings, and other fixed or determinable annual or periodic income, income, and profits if the payment is made from sources in the United States. Despite the above, a Withheld payment from an American source does not include any payment that is not considered a withheld payment in the relevant Rules of the US Treasury Department.

jj) An Organization is a "Related Organization" of another Organization if one of these Organizations controls the other Organization, or both Organizations are under common control. For this purpose, control includes direct or indirect ownership of more than 50 percent of the votes or value in the Organization. Notwithstanding the above, the Republic of Kazakhstan has the right to consider that an Organization is not a Related Organization of another Organization if these Organizations are not part of the same expanded affiliated group as defined in section 1471 (e)(2) The U.S. Internal Revenue Code.

kk) The term "American INN" means the U.S. federal taxpayer identification number.

ll) The term "INN of the Republic of Kazakhstan" means the individual taxpayer identification number of the Republic of Kazakhstan.

mm) The term "Controlling persons" means individuals who control an Organization. In the case of a trust, this term means the founder, the managers, the protector (if any), the recipients or class of recipients and any other natural person exercising ultimate effective control of the trust, and in the case of a legal entity that is not a trust, this term means persons holding an equivalent or similar position. The term "Supervisors" is interpreted in accordance with the Recommendations of the Financial Action Task Force on Money Laundering.

2. Any term not otherwise defined in this Agreement, unless it contradicts the context or the Competent Authorities have agreed on a general definition (if permitted by local law), has the meaning currently adopted in accordance with the legislation of the Party applying the Agreement, and the definition in accordance with the applicable tax laws of that Party has shall prevail over the determination in accordance with other legislation of this Party.

Article 2 Obligations to receive and exchange information on Accountable accounts

1. In accordance with the provisions of Article 3 of this Agreement, each Party shall receive the information specified in paragraph 2 of this Article on all Reported Accounts, and annually exchange this information with the other Party on an automatic basis, pursuant to the provisions of Article 26 of the Convention.

2. The information to be received and exchanged includes:

a) In the case of the Republic of Kazakhstan, for each Accountable U.S. Account of each Accountable Financial Institution of the Republic of Kazakhstan:

(1) the name, address, and U.S. Tax ID of each Designated U.S. Person who holds such an Account, and in the case of a Non-U.S. Organization for which, after undergoing the due diligence procedure specified in Appendix I, one or more Controlling Persons have been identified as a Designated U.S. Person - the name, address, and U.S. Tax ID (if any such) such an organization and each such Specific Person in the United States;

(2) Account number (or functional equivalent in the absence of an account number);

(3) name and identification number of the Accountable Financial Institution of the Republic of Kazakhstan;

(4) the balance in the account or the amount in the account (including, in the case of an Insurance Contract with a Redemption Value or an Annuity Contract, the Redemption Value or the cost of early termination) at the end of the relevant calendar year or other relevant accounting period, or, if the account was closed during such year, immediately before its closure;

(5) in the case of any Custodial Account:

(A) the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income earned on assets held in the account, in each case paid or credited to (or in relation to) the account during the calendar year or other relevant accounting period; and

(B) the total gross proceeds from the sale or purchase of property paid or credited to the account during a calendar year or other relevant accounting period for which the Reporting Financial Institution of the Republic of Kazakhstan acted as a custodian, broker or nominee owner or other agent of the Account Holder;

(6) in the case of any Deposit Account, the total gross amount of interest paid or credited to the account during the calendar year or other relevant accounting period; and

(7) in the case of any account not specified in sub-paragraphs 2(a)(5) or 2(a)(6) of this section, the total gross amount paid or accrued to the Account Holder on the account during the calendar year or other relevant accounting period in connection with which the Reporting Financial Institution of the Republic of Kazakhstan is the debtor of the obligation or the debtor, including the total amount of repurchase payments made to the Account Holder during the calendar year or other relevant accounting period.

b) In the case of the United States, for each Accountable Account of the Republic of Kazakhstan of each Accountable Financial Institution of the United States:

(1) the name, address, and INN of the Republic of Kazakhstan of any person who is a resident of the Republic of Kazakhstan and the Owner of such an account;

(2) Account number (or functional equivalent in the absence of an account number);

(3) the name and identification number of the Accountable U.S. Financial Institution;

(4) the gross amount of interest paid into the Deposit Account;

(5) the gross amount of dividends from U.S. sources paid or credited to the account; and

(6) the gross amount of other income from American sources paid or credited to the account if it is subject to declaration in accordance with Chapter 3 of Subsection A or Chapter 61 of Subsection F of the Internal Revenue Code of the United States.

Article 3 Time limit and procedure for information exchange

1. For the purposes of the exchange obligation specified in Article 2 of this Agreement, the amount and characteristics of payments made in respect of the U.S. Reporting Account may be determined in accordance with the principles of the tax legislation of the Republic of Kazakhstan, and the amount and characteristics of payments made in respect of the Reporting Account of the Republic of Kazakhstan may be determined in accordance with the principles of U.S. federal income tax laws.

2. For the purposes of the exchange obligation specified in Article 2 of this Agreement, the information exchanged shall contain an indication of the currency in which each corresponding amount is expressed.

3. With respect to paragraph 2 of Article 2 of this Agreement, information is received and transmitted for exchange for 2014 and all subsequent years, except that:

a) In the case of the Republic of Kazakhstan:

(1) The information to be received and exchanged for 2014 includes only the information specified in sub-paragraphs 2(a)(1) - 2(a)(4) of Article 2 of this Agreement.;

(2) the information to be received and exchanged for 2015 includes the information specified in sub-paragraphs 2(a)(1) to 2(a)(7) of Article 2 of this Agreement, with the exception of the gross revenue specified in sub-paragraph 2(a)(5)(B) of Article 2 this Agreement; and

(3) the information to be received and exchanged for 2016 and subsequent years includes the information specified in sub-paragraphs 2 (a) (1) to 2(a) (7) of Article 2 of this Agreement.;

b) In the case of the United States, the information to be received and exchanged for 2014 and subsequent years includes all information specified in subparagraph 2 (b) of article 2 of this Agreement.

4. Notwithstanding paragraph 3 of this Article, for each Accountable Account maintained at an Accountable Financial Institution as of a Certain date, and in accordance with paragraph 3 of Article 6 of this Agreement, the Parties are not required to receive and include in the transmitted information the INN of the Republic of Kazakhstan or the INN of the USA, as appropriate, any relevant persons, if such a taxpayer identification number is not recorded in the documents of the Accountable Financial Institution. In this case, the Parties receive and include in the exchanged information the date of birth of the relevant person, if such date of birth is recorded in the documents of the Accountable Financial Institution.

5. In accordance with paragraphs 3 and 4 of this Article, the exchange of information specified in Article 2 of this Agreement shall be carried out no later than nine months after the end of the calendar year to which the information relates or the following September 30 after the obligation of the Party to exchange information in accordance with Article 2 enters into force, depending on which will come later.

6. The competent authorities of the Republic of Kazakhstan and the United States shall conclude an agreement or enter into an agreement within the framework of the mutual agreement procedure provided for in Article 25 of the Convention, which:

a) establish the procedures for fulfilling the obligations on automatic exchange specified in Article 2 of this Agreement;

(b) Determine the rules and procedures that may be required to implement Article 5 of this Agreement; and

(c) Establish, if necessary, procedures for the exchange of information transmitted in accordance with subparagraph 1 (b) of Article 4 of this Agreement.

7. All exchanged information is transmitted subject to confidentiality and other protection measures provided for in the Convention, including provisions restricting the use of the exchanged information.

8. After the entry into force of this Agreement, each Competent Authority shall provide written notification to the other Competent Authority after it is satisfied that (i) appropriate security measures exist in the jurisdiction of the other Competent Authority to ensure the confidentiality of information obtained under this Agreement and its use solely for tax purposes, and (ii) infrastructure for effective exchange relationships (including established procedures to ensure timely, accurate, and confidential information exchange, effective and reliable communication and practical possibilities for the immediate resolution of issues and problems related to the exchange or exchange request, as well as for the administration of the provisions of Article 5 of this Agreement). The competent authorities shall take all necessary measures in good faith to meet to establish that such security measures and infrastructure are in place in each jurisdiction.

9. The obligations of the Parties to receive and exchange information in accordance with Article 2 of this Agreement shall enter into force on the date of the last of the written notifications specified in paragraph 8 of this Article. Notwithstanding the above, if the Competent Authority of the Republic of Kazakhstan is satisfied that the United States is complying with the security measures and has the infrastructure specified in paragraph 8 of this article, but the Competent Authority of the United States needs additional time to ensure that the Republic of Kazakhstan has such security measures and infrastructure in place, the obligation of the Republic of Kazakhstan to receive and exchange information in accordance with Article 2 of this Agreement shall enter into force on the date of the written notification., provided by the Competent Authority of the Republic of Kazakhstan to the Competent Authority of the United States in accordance with paragraph 8 of this Article.

10. This Agreement shall terminate 12 months after the entry into force of the Agreement, if Article 2 of this Agreement has not entered into force in respect of any of the Parties by that date in accordance with paragraph 9 of this Article.

Article 4 Application of FATCA to Financial institutions of the Republic of Kazakhstan

1. Relation to Accountable financial institutions of the Republic of Kazakhstan. Each Accountable financial Institution of the Republic of Kazakhstan is considered to comply with the requirements of Section 1471 of the Internal Revenue Code of the United States and is not subject to the tax withholding requirement provided for in Section 1471 of the Internal Revenue Code of the United States, if the Republic of Kazakhstan complies with its obligations provided for in Articles 2 and 3 of this Agreement with respect to such Accountable Financial Institution of the Republic of Kazakhstan and the Accountable Financial Institution of the Republic of Kazakhstan:

a) determines the Accountable Accounts of the United States and annually transmits to the Competent Authority of the Republic of Kazakhstan the information that must be transmitted in accordance with subparagraph 2 (a) of Article 2 of this Agreement within the time limits and in accordance with the procedure established in Article 3 of this Agreement;

b) annually inform the Competent Authority of the Republic of Kazakhstan of the name of each Non-Participating Financial institution to which it made payments in 2015 and 2016, respectively, and the total amount of such payments;

c) complies with the applicable registration requirements listed on the FATCA IRS registration website;

d) if the Accountable Financial Institution of the Republic of Kazakhstan acts as (i) a qualified intermediary (for purposes of Section 1441 of the Internal Revenue Code of the United States) that has decided to assume the primary tax withholding responsibility in accordance with Chapter 3 of Subsection A of the Internal Revenue Code of the United States, (ii) is a foreign partnership that has decided to act as a withholding agent taxes of a foreign partnership (for the purposes of both Sections 1441 and 1471 of the Internal Revenue Code of the United States), or (iii) is a foreign trust, by choosing to act as a tax withholding agent (for the purposes of both Sections 1441 and 1471 of the Internal Revenue Code of the United States), it withholds 30 percent of any Withheld Payment from an American Source made to any Non-Participating Financial Institution; and

e) in the case of an Accountable Financial Institution of the Republic of Kazakhstan not specified in subparagraph 1 (d) of this article, which carries out or acts as an intermediary in making a Withheld Payment from an American source to any Non-Participating Financial Institution, the Accountable Financial Institution of the Republic of Kazakhstan provides any direct payer of such Withheld Payment from an American source with information, required for withholding and reporting on such a payment.

Notwithstanding the above, an Accountable Financial Institution of the Republic of Kazakhstan, in respect of which the conditions of this paragraph 1 are not met, is not subject to withholding in accordance with Section 1471 of the Internal Revenue Code of the United States, unless the IRS considers this Accountable Financial Institution of the Republic of Kazakhstan as a Non-Participating Financial Institution in accordance with subparagraph 2 (b) of Article 5 of this Agreement.

2. Suspension of the rules on Accounts of unscrupulous owners. The United States does not require an Accountable Financial Institution of the Republic of Kazakhstan to withhold tax in accordance with the provisions of section 1471 or 1472 of the U.S. Internal Revenue Code on an account owned by an unscrupulous account holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to close such an account if the Competent U.S. Authority receives the information specified in subparagraph 2 (a) of Article 2 of this Agreement, in accordance with the provisions of Article 3 of this Agreement, in respect of such an account.

3. Special attitude to pension programs of the Republic of Kazakhstan. The United States considers as conditionally compliant foreign financial institutions or exempt beneficial owners, as appropriate, for the purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, the pension programs of the Republic of Kazakhstan described in Appendix II. To this end, pension programs of the Republic of Kazakhstan include organizations established or located in the Republic of Kazakhstan and regulated by the Republic of Kazakhstan, or pre-established contractual or legal relationships designed to provide pensions or severance payments or to generate profits for such payments in accordance with the legislation of the Republic of Kazakhstan, and regulated with respect to contributions, payments, reporting, sponsorship and taxation.

4. Definition and treatment of other conditionally compliant foreign financial institutions and exempt beneficial owners. The United States considers each Unaccountable Financial Institution of the Republic of Kazakhstan as a conditionally compliant foreign financial institution, or as an exempt beneficial owner, as appropriate, for the purposes of section 1471 of the Internal Revenue Code of the United States.

5. Special rules regarding Affiliated Organizations and branches that are Non-Participating financial institutions. If a Financial Institution of the Republic of Kazakhstan, which for other reasons meets the requirements described in paragraph 1 of this article, or described in paragraph 3 or 4 of this article, has an Affiliated Organization or branch operating within a jurisdiction that prevents such Affiliated Organization or branch from meeting the requirements for a participating foreign financial institution or a conditionally compliant foreign financial institution, for purposes of Section 1471 of the Internal Revenue Code of the United States, or has an Affiliated Organization or branch that is recognized as a Non-Participating Financial Institution, Solely because the transitional rule for limited foreign financial institutions and limited branches has expired based on the relevant Rules of the U.S. Department of the Treasury, this Financial Institution of the Republic of Kazakhstan continues to comply with the terms of this Agreement and continues to be considered as a conditionally compliant foreign financial institution or an exempt beneficial owner, as appropriate, for the purposes of Section 1471 of the Internal Revenue Code USA, provided that:

a) A financial institution of the Republic of Kazakhstan considers each such Related Entity or branch as a separate Non-Participating Financial Institution, for the purpose of complying with all reporting and tax withholding requirements in accordance with this Agreement, and each Related Entity or branch defines itself in its relationship with withholding agents as a Non-Participating Financial Institution;

(b) Each such Related Entity or Subsidiary determines its U.S. accounts and provides information regarding those accounts in accordance with the requirements of section 1471 of the Internal Revenue Code, to the extent permitted by applicable law relating to the Related Entity or Subsidiary, and

c) such Affiliated Organization or Branch is not engaged in purposefully providing services for opening U.S. accounts to persons who are not residents of the jurisdiction where the Affiliated Organization or branch is located, or opening accounts to Non-Participating financial institutions not established in the jurisdiction where such Affiliated Organization or Branch is located, and such a Related Entity or branch is not used by a Financial Institution of the Republic of Kazakhstan or any other Related Entity for the purpose of evading obligations under this Agreement or in accordance with the provisions of Section 1471 of the Internal Revenue Code of the United States, as appropriate.

6. Coordination of deadlines. Notwithstanding the provisions of paragraphs 3 and 5 of Article 3 of this Agreement:

a) The Republic of Kazakhstan is not obligated to receive and exchange information regarding the calendar year preceding the calendar year for which the provision of similar information by participating foreign financial institutions to the IRS is required in accordance with the relevant Rules of the U.S. Department of the Treasury;

b) The Republic of Kazakhstan is not obligated to begin information exchange before the date by which participating foreign financial institutions are required to submit similar information to the IRS in accordance with the relevant Rules of the US Treasury Department;

c) The United States is not required to receive and exchange information regarding the calendar year preceding the first calendar year for which the Republic of Kazakhstan is required to receive and exchange information; and

d) The United States is not required to begin information exchange before the date by which the Republic of Kazakhstan must begin information exchange.

7. Coordination of definitions with the Rules of the US Treasury Department. Notwithstanding article 1 of this Agreement and the definitions provided in the annexes to this Agreement, in implementing this Agreement, the Republic of Kazakhstan may use and may authorize the use by Financial Institutions of the Republic of Kazakhstan of the definition provided in the relevant Rules of the United States Department of the Treasury instead of the corresponding definition in this Agreement, provided that this application does not adversely affect for the purposes of this Agreement.

Article 5 Compliance cooperation and enforcement

1. Minor and administrative errors. The competent authority is obliged to notify the Competent Authority of the other Party if the first-mentioned Competent Authority has reason to believe that an administrative error or other minor error could have led to inaccurate or incomplete provision of information or resulted in another violation of the provisions of this Agreement. The competent authority of the other Party applies the provisions of local legislation (including appropriate sanctions) in order to obtain reliable and/or complete information or eliminate other violations of the Agreement.

2. Significant non-compliance with obligations.

(a) The Competent Authority shall notify the Competent Authority of the other Party when the first aforementioned Competent Authority has established the existence of significant non-compliance with obligations under this Agreement with respect to an Accountable Financial Institution in another jurisdiction. The competent authority of the other Party applies its local legislation (including applicable penalties) to eliminate significant non-compliance with the obligations described in the notification.

(b) If, in the case of an Accountable Financial Institution of the Republic of Kazakhstan, these enforcement actions do not lead to the elimination of non-compliance within 18 months of the first notification of significant non-compliance, the United States shall treat the Accountable Financial Institution of the Republic of Kazakhstan as a Non-Participating Financial Institution pursuant to this subparagraph 2 (b).

3. Involvement of third-party service providers. Each Party has the right to allow the Accountable Financial Institution to use third-party service providers to fulfill the obligations imposed on them by the Party, in accordance with the procedure provided for in this Agreement, but the Accountable Financial Institutions continue to be responsible for fulfilling these obligations.

4. Avoidance prevention. The Parties shall implement, as necessary, requirements to prevent Financial Institutions from using practices aimed at avoiding reporting required under this Agreement.

Article 6 Mutual commitment to continue improving the efficiency of information exchange and transparency

1. Reciprocity. The United States Government recognizes the need to achieve equivalent levels of mutual automatic information exchange with the Republic of Kazakhstan. The United States Government is committed to further enhancing transparency and deepening information exchange relations with the Republic of Kazakhstan by making efforts to adopt rules and advocate for and support appropriate legislation to achieve such equivalent levels of mutual automatic information exchange.

2. The relationship to end-to-end payments and gross revenue. The Parties undertake to cooperate with each other, as well as with Partner Jurisdictions, in order to develop a practical, effective alternative approach to achieving retention policy goals for foreign end-to-end payments and gross revenue, minimizing encumbrances.

3. Documenting accounts that are serviced as of a Certain date. For Accountable Accounts maintained by Accountable Financial Institutions as of a Certain Date:

a) The United States undertakes to establish, by January 1, 2017, for reporting for 2017 and subsequent years, rules requiring Accountable U.S. Financial Institutions to receive and transmit information about the INN of the Republic of Kazakhstan of each Account Holder who owns the Accountable Account of the Republic of Kazakhstan, in accordance with the requirements of subparagraph 2 (b)(1) of Article 2 of this Agreement; and

b) The Republic of Kazakhstan undertakes to establish, by January 1, 2017, for reporting for 2017 and subsequent years, rules requiring Reporting Financial Institutions of the Republic of Kazakhstan to obtain information on the American INN of each Specific U.S. Person in accordance with the requirements of subparagraph 2 (a)(1) of Article 2 of this Agreement.

Article 7 Compliance in the application of FATCA to the Partner Jurisdiction

1. The Republic of Kazakhstan is granted a benefit in the form of using any more favorable conditions in accordance with Article 4 or Annex I to this Agreement related to the application of FATCA to Financial Institutions of the Republic of Kazakhstan provided by another Partner Jurisdiction, in accordance with a signed bilateral agreement, according to which the other Partner Jurisdiction undertakes to assume the same obligations as the Republic of Kazakhstan. described in Articles 2 and 3 of this Agreement, under the same conditions as described in Articles 2 and 3 and in Articles 5 - 9 of this Agreement.

2. The United States shall notify the Republic of Kazakhstan of any such more favorable terms, and such more favorable terms shall apply automatically under this Agreement as if such terms were specified in this Agreement, and shall take effect from the date of signature of the agreement to include the more favorable terms, unless the Republic of Kazakhstan waives in writing the application of such measures.

Article 8 Consultations and amendments

1. If any difficulties arise in the implementation of this Agreement, either Party may request consultations to develop appropriate measures to ensure the implementation of this Agreement.

2. Amendments to this Agreement may be made on the basis of written mutual consent of the Parties. Unless otherwise agreed, such amendments shall enter into force through the same procedures specified in paragraph 1 of Article 10 of this Agreement.

Article 9 of the Annex

The Annexes are an integral part of this Agreement.

Article 10 Term of the Agreement

1. This Agreement shall enter into force on the date of written notification from the Republic of Kazakhstan to the United States of America on the completion by the Republic of Kazakhstan of the internal procedures necessary for the entry into force of this Agreement.

2. Each of the Parties may terminate this Agreement by sending a written notice of termination to the other Party. Such termination shall take effect on the first day of the month following the end of the period of 12 months after the date of notification of termination.

3. The Parties shall hold consultations in good faith until December 31, 2018, on making the necessary changes to this Agreement in order to reflect progress in fulfilling the obligations specified in Article 6 of this Agreement.

In confirmation of the foregoing, the undersigned, duly authorized by their respective Governments, have signed this Agreement.

Done in Astana on September 11, 2017, in two copies, in Kazakh, English, and Russian, all three texts being equally authentic.

ON BEHALF OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN:

ON BEHALF OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA:

ANNEX I OBLIGATIONS TO UNDERGO DUE DILIGENCE PROCEDURES TO IDENTIFY ACCOUNTABLE U.S. ACCOUNTS AND PROVIDE INFORMATION ON THEM AND PAYMENTS MADE TO CERTAIN NON-PARTICIPATING FINANCIAL INSTITUTIONS

I. General provisions.

A. The Republic of Kazakhstan requires Accountable Financial Institutions of the Republic of Kazakhstan to carry out the due diligence procedures specified in this Annex I in order to identify Accountable U.S. Accounts and accounts opened with Non-Participating Financial Institutions.

B. For the purposes of this Agreement:

1. All dollar amounts are shown in US dollars and include the equivalent in other currencies.

2. Unless otherwise provided by the provisions of this document, the balance or amount of funds in the account is determined as of the date of the last day of the calendar year or other relevant reporting period.

3. If the threshold value of the balance or the amount of funds in the account is determined as of a Certain Date in accordance with this The corresponding balance or amount of funds in the account is determined as of such day or the last day of the reporting period ending immediately before a Certain Date.; in cases where the threshold value of the balance or amount of funds in the account is determined as of the last day of the calendar year in accordance with this Annex I, the corresponding balance or amount of funds in the account is determined as of the last day of the calendar year or other relevant reporting period.

4. According to subparagraph (E) (1) Section II of this Annex I, the account is considered to be a U.S. Accountable Account starting from the date when it is determined as such in accordance with the due diligence procedures specified in this See appendix I.

5. Unless otherwise indicated, information on the U.S. Reporting Account is provided annually in the calendar year following the year to which the information relates.

C. As an alternative to the procedures described in each section of this Annex I, the Republic of Kazakhstan may allow Accountable Financial Institutions of the Republic of Kazakhstan to rely on the procedures specified in the relevant Rules of the United States Department of the Treasury to determine whether an account is a U.S. Accountable Account or an account maintained by a Non-Participating Financial Institution. The Republic of Kazakhstan may allow Accountable Financial institutions of the Republic of Kazakhstan to make such a choice separately for each section of this Agreement. Annex I, either with respect to all relevant Financial Accounts, or, separately, with respect to any clearly defined group of such accounts (for example, according to the type of business or location where the account is maintained).

II. Existing accounts of individuals. The following rules and procedures apply to identify Accountable U.S. Accounts among Existing Accounts owned by Individuals ("Existing Individual Accounts").

A. Accounts that are not subject to verification, identification, or inclusion in the financial statements. Unless the Reporting Financial Institution of the Republic of Kazakhstan has chosen otherwise with respect to all Existing Accounts of individuals, or separately with respect to any clearly defined group of such accounts, if the rules of implementation in the Republic of Kazakhstan provide for the possibility of such a choice, the Existing accounts of individuals listed below are not subject to verification, identification or inclusion in the reporting as Accountable US Accounts:

1. According to subparagraph E(2) of this section, an Existing individual account with a balance or amount of funds in which does not exceed 50,000 US dollars as of a Certain Date.

2. Pursuant to subparagraph E(2) of this section, an Existing individual account, which is an Insurance Contract with a Purchase Price or an Annuity Agreement, with a balance or amount of funds equal to or less than 250,000 US dollars as of a Certain Date.

3. An existing individual account that is a Purchase-value Insurance Contract or an Annuity Agreement, provided that the legislation or regulations of the Republic of Kazakhstan or the United States practically exclude the sale of such a Purchase-Value Insurance Contract or an Annuity Agreement to residents of the United States (for example, if the relevant Financial Institution does not have the necessary registration in accordance with U.S. law, and The legislation of the Republic of Kazakhstan provides for reporting or withholding taxes on insurance products, acquired by residents of the Republic of Kazakhstan).

4. An escrow account with a balance equal to or less than 50,000 US dollars.

B. Procedures for checking Existing accounts of individuals whose balance or amount of funds as of a Certain Date exceeds 50,000 US dollars (250,000 US dollars under a Purchase Price Insurance Contract or an Annuity Agreement), but does not exceed 1,000,000 US dollars ("Accounts for a smaller amount").

1. Search in electronic documents. The accountable financial institution of the Republic of Kazakhstan must check the electronically searchable data stored in the Accountable Financial Institution of the Republic of Kazakhstan to detect any of the following signs::

a) an indication that the Account Holder is a citizen or resident of the United States;

b) direct indication of the place of birth in the USA;

c) current mailing address or actual residence address in the United States (including a mailbox in the United States);

d) current phone number in the USA;

e) current instructions for transferring funds to an account in the United States;

(f) A valid power of attorney or signature issued to a person with an address in the United States; or

g) the address "for the transfer of correspondence to the final recipient" or the address "on demand" is the only address of the Account Holder available to the Accountable Financial Institution of the Republic of Kazakhstan. In relation to an Existing individual account, which is an Account with a smaller amount, an address "for the transfer of correspondence to the final recipient" outside the United States or an address "on demand" are not considered as signs of the United States.

2. If none of the signs of the United States listed in subparagraph B(1) of this section is found during an electronic search, no further action is required unless circumstances have changed, resulting in one or more signs of the United States, or if the account becomes an Account for a large amount, as described in paragraph D of this section.

3. If any of the US features listed in subparagraph B(1) of this section is found during an electronic search, or circumstances have changed, resulting in one or more US features for this account, in this case, the Reporting Financial Institution of the Republic of Kazakhstan must consider the specified account as a US Accountable Account, if it has not chosen to apply the provisions of subparagraph B(4) of this section, and one of the exceptions to this subparagraph applies to the specified account.

4. Despite the identified signs of the United States in accordance with subparagraph B(1) of this section, an Accountable Financial Institution of the Republic of Kazakhstan is not required to consider an account as an Accountable Account of the United States, in the following cases:

a) If the information about the Account Holder contains a direct indication of the place of birth in the United States, the Accountable Financial Institution of the Republic of Kazakhstan receives or previously verified and stores information about:

(1) a statement by the Account Holder himself that he is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be in the form of a W-8 tax return or other similar agreed form);

(2) a passport from a country other than the United States or other government-issued document confirming the Account Holder's citizenship or nationality in a country other than the United States; and

(3) copies of the Account Holder's "Certificate of Loss of U.S. Citizenship" or reasonable explanations:

(a) the reasons why the Account Holder does not have such a certificate despite renouncing U.S. citizenship; or

(b) the reasons why the Account Holder did not acquire U.S. citizenship at birth.

b) If the information about the Account Holder contains information about the current postal address or the address of actual residence in the United States, or about one or more telephone numbers in the United States indicated as the only contact phone numbers for this account, the Accountable Financial Institution of the Republic of Kazakhstan receives or previously verified and stores information about:

(1) a statement by the Account Holder himself that he is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be in the W-8 IRS form or other similar agreed form); and

(2) documents defined in Section VI, paragraph D, of this Annex I, confirming that the Account Holder does not have a US status.

c) If the information about the Account Holder contains valid instructions for transferring funds to an account in the United States, the Accountable Financial Institution of the Republic of Kazakhstan receives or previously verified and stores the following information about:

(1) a statement by the Account Holder himself that he is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be in the W-8 IRS form or other similar agreed form); and

 (2) documents defined in Section VI, paragraph D, of this Annex I, confirming that the Account Holder does not have a US status.

d) If the Account Holder's data contains information about a valid power of attorney or signature issued to a person with an address in the United States; about an address "for sending correspondence to the final recipient" or "on demand", which is the only identified address for the Account Holder; or about one or more telephone numbers in the United States (if at the same time, a phone number outside the United States is also indicated for the account), the Accountable Financial Institution of the Republic of Kazakhstan receives or previously verified and stores the following information about:

(1) a statement by the Account Holder himself that he is neither a U.S. citizen nor a U.S. resident for tax purposes (which may be in the W-8 IRS form or other similar agreed form); or

(2) documents defined in Section VI, paragraph D, of this Annex I, confirming that the Account Holder does not have a US status.

C. Additional procedures applied to Existing Accounts of individuals that are Accounts for a smaller amount.

1. The verification of Existing Accounts of individuals that are Accounts for a smaller amount, to identify signs of the United States, must be completed within two years from a Certain date.

2. In the event of a change in circumstances regarding an individual's Existing Account, which is an Account for a smaller amount, as a result of which this account has one or more of the features of the United States listed in subparagraph B(1) of this section, the Accountable Financial Institution of the Republic of Kazakhstan must consider this account as an Accountable Account of the United States, unless the provisions of subparagraph B(4) of this section.

3. With the exception of the Deposit Accounts described in subparagraph (A)(4) of this section, any Existing Individual Account that has been designated as a U.S. Accountable Account in accordance with the provisions of this section shall be treated as a U.S. Accountable Account for all subsequent years as long as the Account Holder remains a Designated U.S. Person.

D. Procedures for enhanced verification of Existing Individual Accounts with a balance or amount exceeding US$ 1,000,000 as of a Certain Date or December 31, 2015 or any subsequent year ("Accounts for a large Amount").

2. Search in paper documents. If the databases of an Accountable Financial Institution of the Republic of Kazakhstan available for electronic search contain "fields" for recording all the information specified in subparagraph D (3) of this section and allow obtaining such information, in this case, additional paper search is not required. If electronic databases do not allow obtaining all this information, then in respect of Accounts for a large amount, the Accountable Financial Institution of the Republic of Kazakhstan should also check the current main dossier of the client, and in case of insufficient information in the current main dossier of the client, the following documents related to the account and received by the Accountable Financial Institution of the Republic of Kazakhstan during the last five years, in order to identify any signs of the United States described in subparagraph B (1) of this section:

a) the latest supporting documents collected so far on the account;

b) the latest contract or documents for opening an account;

c) the latest documents received by the Accountable Financial Institution of the Republic of Kazakhstan in accordance with the Anti-Money Laundering/Know Your Customer (hereinafter referred to as AML/KYC) Procedures or for other regulatory purposes;

(d) Any valid power of attorney or signature; and

e) any applicable instructions for transferring funds.

3. An exception is made if the information contained in the databases is sufficient. An accountable financial institution of the Republic of Kazakhstan is not required to conduct a paper document search, the procedure of which is described in subparagraph D(2) of this section, if the information available for electronic search of the Accountable Financial Institution of the Republic of Kazakhstan includes the following:

a) the nationality or residence status of the Account Holder;

b) the residential address and postal address of the Account Holder, which are currently indicated in his dossier kept in an Accountable Financial Institution of the Republic of Kazakhstan;

c) the phone number(s) of the Account Holder, (if specified), which is currently indicated in his/her dossier kept in an Accountable Financial Institution of the Republic of Kazakhstan;

d) current instructions for transferring funds from this account to another account (including an account with another branch of an Accountable Financial Institution of the Republic of Kazakhstan or another Financial Institution);

e) the address of the Account Holder "for the transfer of correspondence to the final recipient" or the address "on demand"; and

f) any power of attorney for account management or the right to sign.

4. Using the actual information of the account manager. In addition to the above-mentioned search in electronic and paper documents, an Accountable Financial Institution of the Republic of Kazakhstan should consider any Account for a large amount (including any Financial Accounts combined with the specified Account for a large amount) assigned to the account manager as an Accountable US Account if the account manager owns factual information confirming that the Account Holder is a Certain US Person.

5. Consequences of detecting signs of the USA.

a) If none of the signs of the United States listed in subparagraph B(1) of this section is detected during the enhanced verification of Accounts for a large amount, the procedures of which are described above, and the account in accordance with subparagraph D(4) of this section is not identified as an account belonging to a Specific Person in the United States, then no further action is required until circumstances change, as a result of which this account has one or more signs of the United States.

b) If any of the signs of the United States listed in subparagraph B (1) of this section is identified during an enhanced audit of Accounts for a large amount, the procedures of which are described above, or circumstances have changed, resulting in one or more signs of the United States in this account, the Accountable Financial Institution of the Republic of Kazakhstan should consider this an account as an Accountable Account of the United States, unless it has chosen to apply subparagraph B(4) of this section and one of the exceptions to that subparagraph will not apply to that account.

(c) With the exception of the Deposit Accounts described in subparagraph (A)(4) of this section, any Existing Individual Account that has been designated as a U.S. Accountable Account in accordance with the provisions of this section shall be treated as a U.S. Accountable Account for all subsequent years as long as the Account Holder is recognized as a Designated U.S. Person.

E. Additional procedures applicable to High-value Accounts.

1. If the Existing Account of an individual is an Account for a large amount as of a Certain Date, the Accountable Financial Institution of the Republic of Kazakhstan must perform enhanced verification procedures for this account specified in paragraph D of this section within one year from a Certain date. If, as a result of such verification, such an account is determined to be an Accountable US Account on or before December 31, 2014, the Accountable Financial Institution of the Republic of Kazakhstan must provide the necessary information about such an account for 2014 in the first account report, and then annually in all subsequent years. With respect to an account designated as a U.S. Reporting Account after December 31, 2014, the Reporting Financial Institution of the Republic of Kazakhstan is not required to transmit information about such an account for 2014, but must transmit information about the account annually for all subsequent years.

2. If the Existing Account of an individual is not an Account for a large Amount as of a Certain Date, but becomes an Account for a large amount as of the last day of 2015 or any subsequent calendar year, the Accountable Financial Institution of the Republic of Kazakhstan must perform enhanced verification procedures for this account described in paragraph D of this section within six months after the last day of the calendar year in which this account became an Account for a large amount. If, as a result of such verification, the account is determined to be a US Accountable Account, then the Accountable Financial Institution of the Republic of Kazakhstan must provide the required information about this account for the year when it was determined to be a US Accountable Account, and for subsequent years annually, as long as the Account Holder is recognized as a Certain US Person.

3. After an Accountable Financial Institution of the Republic of Kazakhstan has completed the enhanced verification procedures described in paragraph D of this section for a large amount of an Account, the Accountable Financial Institution of the Republic of Kazakhstan is not required to repeat these procedures in subsequent years, except for receiving information from the account manager described in subparagraph D(4) of this section, in relation to the same Account for a larger amount.

4. In the event of a change in circumstances with respect to an Account for a large amount, as a result of which this account has the characteristics of the United States specified in subparagraph B(1) of this section, the Accountable Financial Institution of the Republic of Kazakhstan must consider this account as an Accountable Account of the United States, unless it has chosen to apply subparagraph B(4) of this section, and one of the exceptions to this subparagraph applies to this account.

5. An accountable financial institution of the Republic of Kazakhstan should implement procedures to ensure that the account manager identifies any changes in circumstances related to the account. For example, if the account manager receives information that the Account Holder has a new mailing address in the United States, the Accountable Financial Institution of the Republic of Kazakhstan should consider this new address a change in circumstances and, if it decides to apply subparagraph B(4) of this section, it should obtain the appropriate documentation from the Account Holder.

F. Existing accounts of individuals that have been issued for certain other purposes. An accountable financial institution of the Republic of Kazakhstan that has previously received documentation from the Account Holder confirming the Account Holder's status as a person who is neither a U.S. citizen nor a U.S. resident in order to fulfill its obligations in accordance with the agreement concluded with the IRS on a qualified intermediary, a foreign tax-withholding partnership, and a foreign tax-withholding trust, or in order to fulfill its obligations under Chapter 61, Section 26 of the U.S. Code, is not required to follow the procedures, specified in subparagraph B(1) of this section in respect of Accounts for a smaller amount, or in subparagraphs D(l)-D(3) of this section in respect of Accounts for a larger amount.

III. New accounts for individuals. For the purpose of identifying Accountable U.S. Accounts among Financial Accounts owned by Individuals and opened after a Certain Date ("New Individual Accounts"), the following rules and procedures apply.

A. Accounts that do not require verification, identification, or inclusion in the financial statements. Unless the Accountable Financial Institution of the Republic of Kazakhstan chooses otherwise with respect to all New Accounts of individuals, or separately with respect to any clearly defined group of such accounts, if the rules of implementation in the Republic of Kazakhstan provide for the possibility of such a choice, the following New Accounts of individuals do not require verification, identification or inclusion in reporting as Accountable Accounts USA:

1. An escrow account with an account balance not exceeding 50,000 US dollars at the end of any calendar year or other relevant reporting period.

2. Insurance contract with a purchase price, if the Purchase Price does not exceed 50,000 US dollars at the end of any calendar year or other relevant accounting period.

B. Other New accounts of individuals. With respect to New accounts of individuals not specified in paragraph A of this section, after opening the account (or within 90 days after the end of the calendar year in which this account ceases to be the account specified in paragraph A of this section), the Accountable Financial Institution of the Republic of Kazakhstan must receive confirmation from the Account Holder himself, which may be a part of the documentation for opening an account that allows an Accountable financial institution of the Republic of Kazakhstan to determine, is the Account Holder a resident of the United States for tax purposes (for this purpose, a U.S. citizen is considered a resident of the United States for tax purposes, even if the Account Holder is also a tax resident in another jurisdiction) and confirm the validity of such confirmation based on information received by the Accountable Financial Institution of the Republic of Kazakhstan in connection with the opening of the account, including any documentation, collected in accordance with the AML/KYC procedures.

1. If it is established in the confirmation of the Account Holder himself that the Account Holder is a resident of the United States for tax purposes, then the Accountable Financial Institution of the Republic of Kazakhstan must consider this account to be an Accountable US Account and receive confirmation from the Account Holder himself, including the US INN of the Account Holder (which may be in the form of the W-9 IRS or other similar agreed form).

2. In the event of a change in circumstances related to a New Account of an individual, as a result of which the Accountable Financial Institution of the Republic of Kazakhstan becomes aware, or it has reason to know, that the initial confirmation of the Account Holder himself is erroneous or unreliable, the Accountable Financial Institution of the Republic of Kazakhstan cannot be based on the initial confirmation of the Account Holder himself and the Accountable Financial Institution should receive a valid confirmation from the Account Holder himself, which allows you to set, whether the Account Holder is a U.S. citizen or a U.S. resident for U.S. tax purposes. If an Accountable financial Institution of the Republic of Kazakhstan is unable to obtain valid confirmation from the Account Holder himself, then the Accountable Financial Institution of the Republic of Kazakhstan must consider this account to be an Accountable US Account.

IV. Existing accounts of Organizations. For the purposes of identifying Accountable U.S. Accounts and accounts owned by Non-Participating Financial Institutions, the following rules and procedures apply among existing accounts owned by organizations ("Existing Accounts of Organizations").

A. Accounts of organizations that do not require verification, identification, or inclusion in the financial statements. Unless the Accountable Financial Institution of the Republic of Kazakhstan chooses otherwise with respect to all Existing Accounts of organizations, or separately with respect to any clearly defined group of such accounts, if the rules of implementation in the Republic of Kazakhstan provide for the possibility of such a choice, then the Existing account of the organization, the balance or amount of which does not exceed 250,000 US dollars as of a Certain Date, does not require verification, identification, or inclusion in reporting as a U.S. Accountable Account until the balance or amount on it exceeds $1,000,000.

B. Accounts of organizations that are subject to verification. An existing account of an organization with a balance or amount exceeding $250,000 as of a Certain Date, and an Existing account of an organization with a balance or amount not exceeding $250,000 as of a Certain Date, but exceeding $1,000,000 as of the last day of 2015 or any subsequent calendar year, must be verified. in accordance with the procedures specified in paragraph D of this section.

C. Accounts of organizations that require reporting. With respect to the Existing Accounts of the organizations specified in paragraph B of this section, only those accounts that belong to one or more organizations that are Certain Persons of the United States, or are Passive Assets with one or more Controlling Persons who are U.S. citizens or residents of the United States, are considered Accountable Accounts of the United States. In addition, accounts belonging to Non-Participating Financial Institutions are considered to be accounts in respect of which the Competent Authority of the Republic of Kazakhstan is informed of the total payments specified in subparagraph 1 (b) of Article 4 of the Agreement.

D. Verification procedures for determining the accounts of organizations for which reporting is required. For Existing accounts of organizations specified in paragraph B of this section, an Accountable Financial Institution of the Republic of Kazakhstan must perform the following verification procedures in order to determine whether the account belongs to one or more Specific US Persons, Passive Persons with one or more Controlling Persons who are US citizens or residents of the United States, or Non-Participating Financial Institutions:

1. Determine whether the organization is a Specific person of the United States.

a) Verify information stored for regulatory purposes or for working with clients (including information collected in accordance with AML/KYC procedures) in order to determine whether this information indicates that the Account Holder is a U.S. person. For these purposes, information indicating that the Account Holder is a U.S. person includes a place of registration or establishment in the United States or an address in the United States.

b) If the information indicates that the Account Holder is a U.S. person, the Accountable Financial Institution of the Republic of Kazakhstan should consider this account to be a U.S. Accountable Account unless it receives confirmation from the Account Holder himself (which may be in the form of a W-8 or W-9 IRS or similar agreed form) or reasonably establishes based on the information available to her or publicly available, that the Account Holder is not a Specific person in the United States.

2. Determine whether a Non-American organization is a Financial institution.

b) If the information indicates that the Account Holder is a Financial Institution, or the Accountable Financial Institution of the Republic of Kazakhstan has confirmed the global intermediary identification number belonging to the Account Holder in the published list of foreign financial institutions of the IRS, then this account is not a US Accountable Account.

3. Determine whether the Financial Institution is a Non-Participating Financial Institution for which payments should be included in the consolidated financial statements in accordance with subparagraph 1 (b) Article 4 of the Agreement.

a) In accordance with subparagraph D(3) (b) of this section, a Reporting Financial Institution of the Republic of Kazakhstan may determine that the Account Holder is a Financial Institution of the Republic of Kazakhstan or a Financial Institution in another Partner Jurisdiction if the Reporting Financial Institution of the Republic of Kazakhstan reasonably determines that the Account Holder has such status based on the global intermediary identification number, owned by the Account Holder, in the published list of foreign financial institutions of the Federal Tax Service or other publicly available or available information of the Accountable Financial Institution of the Republic of Kazakhstan, depending on the circumstances. In this case, no additional verification, identification, or reporting is required for this account.

b) If the Account Holder is a Financial Institution of the Republic of Kazakhstan or a Financial Institution in another Partner Jurisdiction that is considered by the IRS to be a Non-Participating Financial Institution, then this account is not a US Accountable Account, but payments made to the Account Holder must be included in the report in accordance with subparagraph 1 (b) Article 4 of the Agreement.

c) If the Account Holder is not a Financial Institution of the Republic of Kazakhstan or a Financial Institution in another Partner Jurisdiction, the Reporting Financial Institution of the Republic of Kazakhstan should consider the Account Holder to be a Non-Participating Financial Institution, payments in respect of which should be reported in accordance with subparagraph 1 (b) Article 4 of the Agreement, unless the Accountable Financial Institution of the Republic of Kazakhstan:

(1) Does not receive confirmation from the Account Holder himself (which may be in the form of a W-8 IRS or similar agreed-upon form) that he is a certified conditionally compliant foreign financial institution or an exempt beneficial owner, as defined in the relevant Regulations of the United States Department of the Treasury; or

(2) In the case of a participating foreign financial institution or a registered conditionally compliant foreign financial institution, it will not confirm the presence of the global intermediary identification number belonging to the Account Holder in the published list of foreign financial institutions of the IRS.

4. Determine whether the account owned by INFO is a US Accountable Account. With respect to an Account Holder who has an Existing organization Account that is not identified as a U.S. person or Financial Institution, the Accountable Financial Institution of the Republic of Kazakhstan must determine (i) whether the Account Holder has Supervisors, (ii) whether the Account Holder is a Passive Asset, and (iii) whether any of the Supervisors persons of the Account Holder who are U.S. citizens or residents of the United States. At the same time, the Accountable financial Institution of the Republic of Kazakhstan must follow the instructions contained in sub-paragraphs D(4)(a) - D(4)(d) this section, in the most appropriate sequence in the specific circumstances.

a) In order to identify the Account Holder's Controlling Persons, an Accountable Financial Institution of the Republic of Kazakhstan may be based on information collected and stored in accordance with AML/KYC procedures.

b) In order to determine whether the Account Holder is a passive INFO, an Accountable Financial Institution of the Republic of Kazakhstan must obtain confirmation from the Account Holder himself (which may be in the form of a W-8 or W-9 tax return or similar agreed form) in order to establish his status, except when it can reasonably determine based on the information available to it available or publicly available information that the Account Holder is an active INFO.

c) In order to determine whether the Controlling Person of the passive INFORMATION is a U.S. citizen or a U.S. resident for tax purposes, an Accountable Financial Institution of the Republic of Kazakhstan may be based on:

(1) Information collected and stored in accordance with AML/KYC procedures for an Existing Account of an organization owned by one or more companies, the balance or amount of which does not exceed 1,000,000 US dollars; or

(2) Confirmation by the Account Holder himself (which may be in the form of a W-8 or W-9 IRS or similar agreed form) or such a Controlling Person for an Existing Account of an organization owned by one or more companies with a balance or amount exceeding 1,000,000 US dollars.

d) If any Controlling Person of passive INFO is a US citizen or a US resident, then this account is considered as a US Accountable Account.

E. Deadlines for verification and additional procedures applicable to Existing Accounts of organizations.

1. The audit of Existing accounts of organizations with a balance or amount exceeding 250,000 US dollars as of a Certain Date must be completed within two years from a Certain date.

2. The audit of Existing accounts of organizations, the balance or amount on which does not exceed 250,000 US dollars as of a Certain Date, but exceeds 1,000,000 US dollars as of December 31, 2015 or any subsequent year, must be completed within six months after the last day of the calendar year in which the balance or amount on the account exceeds 1,000,000 US dollars.

3. In the event of a change in circumstances related to the Existing Account of the organization, as a result of which the Accountable Financial Institution of the Republic of Kazakhstan becomes aware or has reason to know that the confirmation of the Account Holder himself or other documentation related to the account is erroneous or unreliable, the Accountable Financial Institution of the Republic of Kazakhstan must re-determine the status of the account in accordance with the procedures, established in paragraph D of this section.

V. New accounts of Organizations. The following rules and procedures apply to identify the US Accountable Account and accounts owned by Non-Participating Financial Institutions among Financial Accounts owned by Organizations that were opened after a Certain Date ("New Accounts of Organizations").

A. Accounts of Organizations that do not require verification, identification, or inclusion in the financial statements. Unless an Accountable financial institution of the Republic of Kazakhstan has chosen otherwise with respect to all New Accounts of organizations, or separately with respect to any clearly defined group of such accounts, if the rules of implementation in the Republic of Kazakhstan provide for the possibility of such a choice, then a credit card account or a revolving credit line that is considered a New account of an organization does not require verification, identification or inclusion in the financial statements, provided that the Accountable Financial Institution of the Republic of Kazakhstan, in which such an account is opened, has implemented policies and procedures that do not allow, so that the amount of the account owed to its Owner exceeds 50,000 US dollars.

B. Other New accounts of organizations. With respect to New accounts of organizations not described in paragraph A of this section, the Accountable Financial Institution of the Republic of Kazakhstan must determine whether the Account Holder is: (i) a Certain Person in the United States; (ii) a Financial Institution of the Republic of Kazakhstan or a Financial Institution of another Partner Jurisdiction; (iii) a participating foreign financial institution, a conditionally compliant foreign financial institution, or an exempt beneficial owner, depending on how these concepts are defined in the relevant Rules of the United States Department of the Treasury; or (iv) active INFO or passive INFO.

1. In accordance with subparagraph B(2) of this section, a Reporting Financial Institution of the Republic of Kazakhstan may determine that the Account Holder is an active INFO, a Financial Institution of the Republic of Kazakhstan, or a Financial Institution of another Partner Jurisdiction if the Reporting Financial Institution of the Republic of Kazakhstan reasonably determines that the Account Holder has such status based on the global identification number of the intermediary belonging to Account holder, or other information, publicly available or at the disposal of an Accountable Financial Institution of the Republic of Kazakhstan, depending on the specific case.

2. If the Account Holder is a Financial Institution of the Republic of Kazakhstan or a Financial Institution of another Partner Jurisdiction considered by the IRS as a Non-Participating Financial Institution, then the account is not a US Accountable Account, but payments made to the Account Holder's account must be reflected in the report as specified in subparagraph 1 (b) Article 4 of the Agreement.

3. In all other cases, the Accountable Financial Institution of the Republic of Kazakhstan must obtain confirmation from the Account Holder himself in order to establish the Account Holder's status. Depending on the confirmation received, the following rules apply:

a) If the Account Holder is a Specific Person of the United States, then the Accountable Financial Institution of the Republic of Kazakhstan should consider this account as an Accountable Account of the United States.

b) If the Account Holder is a passive INFO, the Accountable Financial Institution of the Republic of Kazakhstan must identify the Controlling Persons, in accordance with the AML/KYC procedures, and must determine whether any of these persons is a citizen or resident of the United States based on confirmation from the Account Holder himself or such person. If any of these persons is a citizen or resident of the United States, then the Accountable Financial Institution of the Republic of Kazakhstan should consider the account as an Accountable Account of the United States.

c) If the Account Holder is: (i) a U.S. person who is not a Designated U.S. Person; (ii) subject to the provisions of subparagraph B(3)(d) this section, a Financial Institution of the Republic of Kazakhstan, or a Financial Institution of another Partner Jurisdiction; (iii) a participating foreign financial institution, a conditionally compliant foreign financial institution, or an exempt beneficial owner, depending on how these concepts are defined in the relevant Rules of the United States Department of the Treasury; (iv) active INFO; or (v) Passive INFORMATION, none of the Controlling Persons of which is a citizen or resident of the United States, then the account is not an Accountable account of the United States, and reporting on it is not required.

d) If the Account Holder is a Non-Participating Financial Institution (including a Financial Institution of the Republic of Kazakhstan or a Financial Institution of another Partner Jurisdiction considered by the IRS to be a Non-Participating Financial Institution), the account is not a US Accountable Account, but payments to the Account Holder's account must be reported in accordance with the procedure provided for in subparagraph 1 (b) Article 4 of the Agreement.

VI. Special rules and definitions. When applying the due diligence procedures described above, the following additional rules and definitions apply:

A. Trust in the Account Holder's confirmations and documentary evidence. An accountable financial institution of the Republic of Kazakhstan cannot rely on the confirmation of the Account Holder himself or documentary evidence if the Accountable Financial Institution of the Republic of Kazakhstan knows or has reason to know that the confirmation of the Account Holder himself or documentary evidence is erroneous or unreliable.

B. Definitions. For the purposes of this Annex I, the following definitions are used.

1. AML/KYC procedures. "AML/KYC Procedures" means customer due diligence procedures applied by an Accountable Financial Institution of the Republic of Kazakhstan in accordance with the anti-money laundering requirements or similar requirements of the Republic of Kazakhstan, which such an Accountable Financial Institution of the Republic of Kazakhstan is required to comply with.

2. INFO. "Foreign Non-financial Organization" means any Non-American Organization that is not a foreign financial institution as defined in the relevant Regulations of the United States Department of the Treasury, or is an Organization described in paragraph B(4)(j) of this section, and also includes any Non-American Organization formed in the Republic of Kazakhstan or in another Partner Jurisdiction and not being a Financial Institution.

3. Passive INFO. "Passive Foreign Non-financial Organization" means an INFORMATION that is not: (i) an active INFORMATION, or (ii) a foreign tax-withholding partnership or a foreign tax-withholding trust, in accordance with the Rules of the United States Department of the Treasury.

4. Active INFO. "Active Foreign Non-financial Organization" means any INFORMATION that meets any of the following criteria:

a) less than 50 percent of INFO's gross income for the previous calendar year or other relevant reporting period is passive income, and less than 50 percent of the assets owned by INFO during the previous calendar year or other relevant reporting period are assets that generate passive income or are accounted for to generate passive income;

b) the shares of INFO are regularly traded on the organized securities market, or INFO is a Related Organization of an Organization whose shares are regularly traded on the organized securities market;

c) The company is established in the United States, and all owners of the payee are legal residents of this Territory of the United States;

d) INFO is a government (other than the U.S. government), an administrative-territorial unit of such government (which, for the avoidance of doubt, includes a state, province, county, or municipality), or a government agency performing the functions of that government or its administrative-territorial unit, the government of the Territory of the United States, an international organization, a non-American central bank-by an Issuer or an Organization wholly owned by one or more of the above entities;

e) in essence, all of INFO's activities consist in owning (in whole or in part) issued shares of one or more subsidiaries or providing financing and services to one or more subsidiaries that carry out commercial or business activities other than those of a Financial Institution, but the organization does not fall under the status of INFO if the organization operates (or acts) as an investment fund, such as a private equity fund, venture fund, leveraged buyout fund, or any investment structure, The purpose of which is to acquire or finance companies with subsequent ownership of shares in these companies as capital assets for investment purposes.;

f) INFO does not yet conduct commercial activities and has no previous business experience, but invests in assets with the intention of conducting commercial activities other than those of a Financial Institution, provided that INFO will not be subject to such an exception after the date, 24 months after the date of initial creation.;

g) INFO has not been a Financial Institution for the past five years and is currently liquidating its assets or reorganizing with the intention of continuing or resuming commercial activities other than those of a Financial Institution.;

h) The GROUP primarily carries out financing and hedging transactions with Related Entities or on behalf of Related Entities that are not Financial Institutions, and does not provide financing or hedging services to Entities that are not Related Entities, provided that the group of any such Related Entities primarily carries out commercial activities other than those of a Financial Institution. institutions;

i) The INFORMATION is an "excluded INFORMATION" described in the relevant Regulations of the United States Department of the Treasury; or

j) INFO meets all the following requirements:

i. It is formed and operates in the jurisdiction of its permanent location solely for religious, charitable, scientific, artistic, cultural, sporting or educational purposes; or it is formed and operates in the jurisdiction of its permanent location, is a professional organization, a union of entrepreneurs, a chamber of commerce, a trade union organization, an agricultural or horticultural organization, a civil a union or organization acting solely to promote social security programs;

ii. She is exempt from paying income tax in the jurisdiction of her permanent location.;

iii. It does not have shareholders or participants who have a property or beneficial share in its income or assets.;

iv. The applicable laws of the jurisdiction of the permanent location of INFO or the founding documents of INFO do not allow any income or assets of INFO to be distributed or used for the benefit of a private individual or a non-charitable Organization, except in cases of carrying out charitable activities of INFO, or for the payment of reasonable remuneration for services provided or the payment of the fair market value of property acquired by INFO; and

v. The applicable legislation of the jurisdiction of the permanent location of INFO or the founding documents of INFO require that, upon liquidation or disbandment of INFO, all of its assets be transferred to a state organization or other non-profit organization, or become the property of the State of the jurisdiction of the permanent location of INFO or any of its administrative-territorial units as extortionate.

5. An existing account. "Existing Account" means a Financial Account maintained by an Accountable Financial Institution as of a Certain Date.

6. A certain date. "Specified Date" means the date that may be earlier than the entry into force of this Agreement, on which the U.S. Department of the Treasury determines not to apply withholding to Financial Institutions of the Republic of Kazakhstan in accordance with Section 1471 of the Internal Revenue Code of the United States. This date is: (a) June 30, 2014, in the case of (i) a jurisdiction that has signed an agreement with the United States on or before June 30, 2014 on the implementation of FATCA or on assistance in the implementation of FATCA, or (ii) a jurisdiction that the U.S. Treasury Department has determined has reached such an agreement on or prior to June 30, 2014, and is included in the U.S. Treasury Department's list of such jurisdictions, (b) November 30, 2014, if the jurisdiction is determined by the Treasury Department to have reached such an agreement on or after July 1, 2014, and on or before November 30, 2014, and is included in the list of such jurisdictions of the United States Department of the Treasury, or (c) the date of signing such an agreement, in the case of any other jurisdictions. The specific date for the Republic of Kazakhstan is November 30, 2014.

C. Rules for combining account balances and recalculating amounts in another currency.

1. Consolidation of accounts of individuals. For the purposes of determining the total balance or value of Financial Accounts owned by an individual, an Accountable Financial Institution of the Republic of Kazakhstan is required to combine all Financial Accounts maintained by an Accountable Financial Institution of the Republic of Kazakhstan or a Related Organization, but only if the automated system of the Accountable Financial Institution of the Republic of Kazakhstan links these Financial Accounts by referring to a data element such as a number the client's or taxpayer's identification number, and allows you to combine account balances or amounts. For the purposes of meeting the pooling requirements specified in this paragraph 1, each holder of a joint Financial account is responsible for the entire amount of the balances or the total amount of the joint Financial account.

2. Consolidation Of Accounts Of Organizations. For the purposes of determining the total balance or value of Financial Accounts owned by an Organization, an Accountable Financial Institution of the Republic of Kazakhstan is required to take into account all Financial Accounts maintained by an Accountable Financial Institution of the Republic of Kazakhstan or a Related Organization, but only if the automated system of the Accountable Financial Institution of the Republic of Kazakhstan links these Financial Accounts by referring to a data element such as a customer number or a taxpayer identification number, and allows you to combine account balances or amounts.

3. There is a special rule of association for customer service managers. For the purposes of determining the total balance or value of Financial Accounts owned by a person, in order to determine whether a Financial Account is an Account for a large amount, an Accountable Financial Institution of the Republic of Kazakhstan is also required, in the case of any Financial Accounts that the account manager is aware of or has reason to know that they are directly or indirectly owned by one person, controlled or created (not as a trusted person) by one person, combine all these accounts.

4. The rule for recalculating amounts in another currency. For the purposes of determining the total balance or value of Financial Accounts denominated in non-US dollars, the Reporting Financial Institution of the Republic of Kazakhstan must recalculate the dollar thresholds specified in this In Annex I, into the currency of these accounts using the official spot exchange rate determined on the last day of the calendar year preceding the year in which the Accountable Financial Institution of the Republic of Kazakhstan determines the balance or value.

D. Documentary evidence. For the purposes of this Annex I, acceptable documentary evidence includes any of the following documents::

1. A document confirming residency issued by an authorized government agency (for example, a government or government agency, or a municipality) of the jurisdiction in which the payee claims residency.

2. For individuals, any valid identification document issued by an authorized government agency (for example, a government or government agency, or a municipality), indicating the name of this individual, usually used for identification purposes.

3. In relation to an Organization, any official documents issued by an authorized government agency (for example, a government or government agency, or a municipality), indicating the name of this Organization and the address of its head office in the jurisdiction (or in the United States) in which this Organization claims residence, or in the jurisdiction (or in the United States), in which this Organization is registered or formed.

4. With respect to a Financial Account maintained in a jurisdiction that has adopted anti-money laundering rules approved by the IRS in connection with a qualified mediation agreement (specified in the relevant Rules of the United States Department of the Treasury) - any of the documents other than Form W-8 or W-9 specified in the jurisdiction's annex to the qualified mediation agreement for identification individuals or Organizations.

5. Any financial report, credit report from a third party, bankruptcy filing, or report from the U.S. Securities and Exchange Commission.

E. Alternative procedures for Financial Accounts owned by individual recipients under Insurance Contracts with a purchase price. An accountable financial institution of the Republic of Kazakhstan may consider that an individual recipient (not the owner) under an Insurance Contract with a purchase price, who receives insurance benefits in connection with the death of the insured, is not a Certain Person in the United States and may consider such a Financial Account as a non-Accountable Account in the United States, except in the case when the Accountable Financial Institution The Republic of Kazakhstan has factual data or grounds to know that the recipient is a Certain person of the United States. The Accountable financial institution of the Republic of Kazakhstan has reason to know that the recipient under the Purchase Price Insurance Contract is a Certain person of the United States if the information received by the Accountable Financial Institution of the Republic of Kazakhstan and related to the recipient contains signs of the United States, in accordance with subparagraph (B)(1) Section II of this Annex I. If the Reporting Financial Institution of the Republic of Kazakhstan has factual information or grounds to know that the recipient is a Certain U.S. Person, the Reporting Financial Institution of the Republic of Kazakhstan must adhere to the procedures described in subparagraph B(3) of section II of this Appendices I.

F. Trust in third parties. Regardless of whether the choice is made in accordance with paragraph C of Section I of this Annex I, the Republic of Kazakhstan may allow Accountable Financial Institutions of the Republic of Kazakhstan to refer to due diligence procedures performed by third parties, within the limits defined by the relevant Rules of the U.S. Department of the Treasury.

G. Alternative procedures for New Accounts opened prior to the entry into force of this Agreement.

1. Applicability. If the Republic of Kazakhstan provided written notification to the United States prior to the entry into force of this Agreement, according to which, as of a Certain Date, the Republic of Kazakhstan had no legal basis to oblige Accountable Financial Institutions of the Republic of Kazakhstan to either: (i) require Holders of New Individual Accounts to provide the confirmation specified in section III of this Annex I, or (ii) perform all due diligence procedures related to the New Accounts of the organization specified in section V of this Annex I, The accountable financial institutions of the Republic of Kazakhstan may apply alternative procedures described in subparagraph G (2) of this Article, applicable on a case-by-case basis to such New Accounts, instead of other procedures required otherwise in accordance with this Annex I. The alternative procedures described in subparagraph G (2) of this section will apply only to those New Accounts of Individuals or New Accounts of an organization, as appropriate, that are opened before (i) the date when the Republic of Kazakhstan has the opportunity to oblige Accountable Financial Institutions of the Republic of Kazakhstan to comply with the due diligence procedures described in section III or section V of this Annex I, as appropriate, which the Republic of Kazakhstan shall inform the United States in writing by the effective date of this Agreement, or (ii) the effective date of this Agreement, whichever is earlier. If the alternative procedures for New Accounts of an organization opened after a Certain Date and before January 1, 2015 described in paragraph H of this section apply to all New Accounts of the organization or to a precisely defined group of such Accounts, then the alternative procedures described in this paragraph G cannot be applied to such New Accounts Organizations. For all other New Accounts, Accountable Financial Institutions of the Republic of Kazakhstan should apply due diligence procedures described in section III or section V of this Annex I, as appropriate, to determine whether the account is a U.S. Accountable Account or an account of a Non-Participating Financial Institution.

2. Alternative procedures.

a) Within one year after the date of entry into force of this Agreement, Accountable financial institutions of the Republic of Kazakhstan must: (a) for New accounts of individuals, in accordance with subparagraph G (1) of this section, request confirmation of the Account Holder specified in section III of this annex I, and confirm the validity of such confirmation of the Account Holder in in accordance with the procedures described in section III of this Annex I, and (ii) for the New Accounts of the organization, in accordance with subparagraph G (1) of this section, perform due diligence procedures, specified in Section V of this Annex I, and request the information necessary to document the account, including any confirmation from the Account Holder, in accordance with Section V of this Annex I.

(b) The Republic of Kazakhstan must provide information on any New Account that is designated in accordance with subparagraph (G) (2) (a) of this section as a U.S. Reporting Account or an account of a Non-Participating Financial Institution, as appropriate, by a date later than: (i) September 30, following the date, when the account has been identified as a U.S. Reporting Account or an account of a Non-Participating Financial Institution, as appropriate, or (ii) 90 days after, how the account is identified as a US Accountable Account or an account of a Non-Participating Financial Institution, depending on the specific case. The information to be provided in relation to such a New Account is any information that is reportable in accordance with this Agreement if the New Account has been identified as a U.S. Reporting Account or an account of a Non-Participating Financial Institution, as appropriate, as of the account opening date.

c) By the date one year after the date of entry into force of this Agreement, the Accountable Financial Institutions of the Republic of Kazakhstan must close any New Account described in subparagraph G (1) of this section for which they have failed to collect the necessary confirmations of Account Holders or other documentation in accordance with the procedures described in paragraph G (2) (a) this section. In addition, by the date one year after the date of entry into force of this Agreement, the Accountable financial Institutions of the Republic of Kazakhstan must: (i) in respect of such closed accounts, which before such closure were New Accounts of individuals (regardless of whether such accounts were Accounts for a large amount), perform the procedures of comprehensive the audits specified in paragraph D of section II of this Annex I, or (ii) in respect of such closed accounts, which were New accounts of organizations prior to such closure, perform due diligence procedures., specified in section IV of this annex I.

d) The Republic of Kazakhstan must provide information on any closed account designated in accordance with subparagraph G (2) (C) of this section as a U.S. Reporting Account or an account of a Non-Participating Financial Institution, as appropriate, by a date later than: (i) September 30, following the date when the account has been identified as a U.S. Reporting Account or an account of a Non-Participating Financial Institution, as appropriate, or (ii) 90 days after, how the account is identified as a US Accountable Account or an account of a Non-Participating Financial Institution, depending on the specific case. The information that must be provided in relation to such a closed account is any information that is reportable in accordance with this Agreement if the account has been identified as a U.S. Reporting Account or an account of a Non-Participating Financial Institution, as appropriate, as of the account opening date.

H. Alternative procedures for New accounts of organizations opened after a Certain date and before January 1, 2015. For New accounts of organizations opened after a Certain date and before January 1, 2015, or for all New accounts of organizations or, separately, for any precisely defined group of such accounts, the Republic of Kazakhstan may allow Accountable Financial Institutions of the Republic of Kazakhstan to consider such accounts as Existing Accounts of organizations and apply due diligence procedures. related to Existing accounts of organizations specified in section IV of this Annex I, instead of due diligence procedures specified in section V of this annex I. In this case, the due diligence procedures of section IV of this Annex I should be applied regardless of the threshold value for the balance or amount of funds in the account specified in paragraph A of section IV of this annex I.

ANNEX II

The following Entities are considered as exempt beneficial owners, or as conditionally compliant foreign financial institutions, as appropriate, and the following accounts are excluded from the definition of Financial Accounts.

This Annex II may be amended on the basis of a mutual written decision concluded between the Competent Authorities of the Republic of Kazakhstan and the United States in order to: (1) include additional Organizations and accounts that are at low risk of being used by U.S. persons to evade U.S. taxes and that have similar characteristics to the Organizations and Accounts described In the present Annex II as of the date of signing the Agreement; or (2) the removal of Organizations and accounts from it, the risk of which being used by U.S. persons to evade U.S. taxes has ceased to be insignificant due to changed circumstances. Any such additions or deletions shall take effect from the date of signing the mutual decision, unless otherwise provided by the provisions of the said document. The procedures for concluding such a mutual decision may be included in a mutual agreement or arrangement, as described in paragraph 6 of article 3 of the Agreement.

I. Exempt beneficial owners who are not foundations. The following Organizations are considered to be Unaccountable Financial Institutions of the Republic of Kazakhstan and exempt beneficial owners for the purposes of Sections 1471 and 1472 of the U.S. Internal Revenue Code, except in cases where payments arise from obligations in connection with commercial financial activities carried out by a Certain insurance company, Custodial Institution or Depository Institution.

A. A government organization. The Government of the Republic of Kazakhstan, any administrative-territorial unit of the Republic of Kazakhstan (which, for the avoidance of doubt, includes a state, region, district, or municipality) or any agencies or departments of the Republic of Kazakhstan wholly owned by the Republic of Kazakhstan, or any one or more of the entities listed above (each separately a "Government Organization of the Republic of Kazakhstan").

This category includes integral parts, controlled organizations, and administrative-territorial units of the Republic of Kazakhstan.

1. An integral part of the Republic of Kazakhstan means any person, organization, agency, bureau, foundation, department, or other bodies, regardless of how they are defined, which represent the governing bodies of the Republic of Kazakhstan. The net income of the management body must be transferred to the account of the specified management body or to other accounts of the Republic of Kazakhstan, no part of the specified net income is income for the benefit of any private person. The integral part does not include any person who is a holder of authority, an official, or an administrator acting as an individual or in a personal capacity.

2. A controlled organization is an Organization that differs in form from the Republic of Kazakhstan, or which is otherwise an independent legal entity, provided that:

a) The organization is fully owned and controlled by one or more Governmental organizations of the Republic of Kazakhstan directly or through one or more controlled organizations;

b) The net profit of the Organization is transferred to its own account or the accounts of one or more Government Organizations of the Republic of Kazakhstan, and no part of its income goes to the benefit of any private person; and

c) The assets of the Organization in case of termination of its existence are transferred to one or more Governmental organizations of the Republic of Kazakhstan.

3. Income is not income for the benefit of private individuals if such persons are targeted recipients under a government program, and such a program provides for activities for the benefit of the entire population in terms of general welfare or relates to a specific area of public administration. However, despite the above, income is considered income for the benefit of individuals if the income is obtained through conducting commercial activities through a government organization, for example, such as banking to provide financial services to individuals.

B. An international organization. Any international organization or any agency or agency wholly owned by it. This category includes any intergovernmental organizations (including supranational organizations), (1) which consist primarily of non-U.S. governments.; (2) who have a valid headquarters agreement with the Republic of Kazakhstan; and (3) whose income is not intended for the benefit of private individuals.

C. The Central Bank. An institution that, by law or by permission of the Government, is the main body other than the Government of the Republic of Kazakhstan authorized to issue instruments intended for circulation as money. Such an institution may include an agency separate from the Government of the Republic of Kazakhstan, which is or is not wholly or partially owned by the Republic of Kazakhstan.

II. Funds that qualify as exempt beneficial owners. The following organizations are considered as Unaccountable Financial Institutions of the Republic of Kazakhstan and exempt beneficial owners for the purposes of Sections 1471 and 1472 of the US Internal Revenue Code.

A. A pension fund subject to an international agreement. A fund established in the Republic of Kazakhstan, if said fund is eligible for benefits under the income tax agreement between the Republic of Kazakhstan and the United States for the taxation of income it receives from sources in the United States (or would be eligible for such benefits if it received any such income) as a resident of the Republic of Kazakhstan, which complies with any applicable requirement for restrictions on the use of benefits, and whose main activity is the management or provision of pensions or severance payments.

B. An open-access pension fund. A fund established in the Republic of Kazakhstan for the purpose of providing severance payments, disability benefits, or death benefits, or any comprehensive provision of these benefits to recipients who are current or former employees (or persons designated by such employees) of one or more employers, as remuneration for services provided by them, provided that What:

1. The Fund does not have any such recipient who is entitled to a share of the fund's assets exceeding five percent;

2. The Fund is subject to state regulation and provides information to the tax authorities of the Republic of Kazakhstan; and

3. The Fund meets at least one of the following requirements:

a) the fund is generally exempt from paying tax on investment income in the Republic of Kazakhstan according to the legislation of the Republic of Kazakhstan by virtue of its status as a pension plan or fund;

(b) At least 50 per cent of the total fund contributions (excluding transfers of assets from other pension plans or funds described in paragraphs A to D of this section, or from severance and retirement accounts described in subparagraph A (1) of section V of this Annex II) are contributions from sponsoring organizations. employers;

c) payments or withdrawals from the fund are permitted only upon the occurrence of specified events related to retirement, disability, or death (with the exception of transfers to other pension funds described in paragraphs A-D of this section, or to severance and retirement accounts described in subparagraph A (1) Section V of this Annex II), or fines are imposed for payments or withdrawals from the fund prior to the occurrence of such specified events; or

d) the amounts of contributions (other than other authorized contributions for replenishment) of employees to the fund are limited based on the amount of income earned by the employee, or may not exceed 50,000 US dollars annually when applying the rules specified in Annex I on combining accounts and recalculating amounts in another currency.

C. A pension fund with limited access. A fund established in the Republic of Kazakhstan for the purpose of providing severance payments, disability benefits, or death benefits to recipients who are current or former employees (or persons designated by such employees) of one or more employers, as remuneration for services provided by them, provided that:

1. The foundation has less than 50 members;

2. The Fund is financed by one or more employers who are not Investment organizations or passive companies.;

3. The amounts of employee and employer contributions to the fund are limited (with the exception of the transfer of assets from pension funds with benefits under the taxation agreement described in paragraph A of this section, or from accounts for severance payments and pension accounts described in subparagraph A (1) Section V of this Annex II), based on the amount of the employee's earned income and the amount of the employee's salary, respectively;

4. Fund participants who are not residents of the Republic of Kazakhstan are not entitled to a share of the fund's assets exceeding 20 percent; and

5. The Fund is subject to state regulation and submits a report to the tax authorities of the Republic of Kazakhstan.

D. The pension fund of the exempt beneficial owner. A fund established in the Republic of Kazakhstan by an exempt beneficial owner to provide severance, disability, or death benefits to recipients or participants who are current or former employees of the exempt beneficial owner (or persons designated by such employees), or who are not current or former employees, if benefits to such recipients or participants They are provided as remuneration for personal services provided by them to the released beneficial owner.

E. An investment organization that is fully owned by the exempt beneficial owner. An organization that is a Financial Institution of the Republic of Kazakhstan solely by virtue of the fact that it is an Investment Organization, provided that each direct owner of Equity Participation in the Organization is an exempt beneficial owner, and each direct owner of debt participation in such an Organization is either a Depository Institution (with respect to a loan provided to such an Organization) or an exempt beneficiary the owner.

III. Small Financial Institutions or Financial Institutions with a limited range of Services that qualify as conditionally compliant foreign financial institutions. The following Financial Institutions are Unaccountable financial institutions of the Republic of Kazakhstan, which are considered conditionally compliant foreign financial institutions for the purposes of Section 1471 of the Internal Revenue Code of the United States.

A. A financial institution with a local clientele. A financial institution that meets the following requirements:

1. A financial institution must be licensed and regulated as a Financial Institution in accordance with the legislation of the Republic of Kazakhstan.;

2. The permanent place of business of a Financial Institution should not be located outside the territory of the Republic of Kazakhstan. At the same time, the concept of a permanent place of business does not include a place of business that is not disclosed to the public, and where a Financial Institution performs exclusively administrative support functions.;

3. A financial institution should not involve clients or Account Holders outside the Republic of Kazakhstan. At the same time, a Financial Institution is not considered as an institution attracting clients or Account Holders outside the Republic of Kazakhstan, only because the Financial Institution: (a) has a website, but provided that this website does not specifically indicate that the Financial Institution offers opening Financial Accounts or services for non-residents, and the Site is not intended for American customers or Account Holders or to attract them in any other way, or (b) places advertisements in print media or on the radio- or TV channels that are distributed or broadcast primarily in the Republic of Kazakhstan and are also distributed or broadcast from time to time in other countries, but provided that the advertisement does not specifically indicate that a Financial Institution offers Financial Account Openings or services for non-residents, and this advertisement is not intended for American customers or Account Holders, or to attract them in another way;

4. A financial institution, in accordance with the requirements of the legislation of the Republic of Kazakhstan, must be required to identify Resident Account Holders in order to compile reports or withhold tax on Financial Accounts owned by residents, or to comply with due diligence requirements in accordance with the anti-money laundering requirements of the Republic of Kazakhstan.;

5. At least 98 percent of the Financial Accounts of a Financial Institution in value terms must belong to residents (including residents who are Organizations) of the Republic of Kazakhstan;

6. No later than a Certain date or the date of the application for recognition of a Financial Institution as a conditionally compliant foreign financial institution, in accordance with this paragraph A, whichever comes later, the Financial Institution must have rules and procedures in accordance with those specified in Annex I, which do not allow the Financial Institution to open Financial Accounts for any A non-participating financial institution, and allow you to track whether a Financial Institution is opening or maintaining a Financial Account for any Specific Person in the United States, a non-resident of the Republic of Kazakhstan (including a U.S. person who was a resident of the Republic of Kazakhstan at the time of opening a Financial Account, but subsequently ceased to be a resident of the Republic of Kazakhstan), or opens or maintains a Financial Account of any passive company whose Controlling Persons are residents of the United States or U.S. citizens who are not residents of the Republic of Kazakhstan;

7. Such rules and procedures should provide that, upon identification of any Financial Account owned by a Certain U.S. Person who is not a resident of the Republic of Kazakhstan, or owned by a passive INFORMATION company whose Controlling Persons are residents of the United States or U.S. citizens who are not residents of the Republic of Kazakhstan, the Financial Institution must include information about such Financial Account in the report, such as this would be required if the Financial Institution were an Accountable Financial Institution of the Republic of Kazakhstan (including, by completing the current registration requirements on the FATCA registration website of the IRS), or close such a Financial Account;

8. With respect to an Existing Account owned by an individual who is not a resident of the Republic of Kazakhstan or an Organization, the Financial Institution must verify these Existing Accounts in accordance with the procedures specified in Annex I applied to Existing Accounts to identify any Accountable U.S. Account or Financial Account owned by a Non-Participating Financial Institution, and must include information in the report about such a Financial Account, as would be required in the case of, if the Financial Institution were an Accountable Financial Institution of the Republic of Kazakhstan (including by meeting the applicable registration requirements on the FATCA registration website of the National Tax Service), or close such a Financial Account;

9. Any Related Organization of a Financial Institution that is a Financial Institution must be registered or established in the Republic of Kazakhstan, with the exception of any Related Organization that is a pension fund specified in paragraphs A-D of section II of this Annex II, and must comply with the requirements specified in this paragraph A; and

10. A financial institution should not have discriminatory rules or practices regarding opening or maintaining Financial Accounts for individuals who are Certain U.S. persons and residents of the Republic of Kazakhstan.

B. The local bank. A financial institution that meets the following requirements:

1. A financial institution carries out its activities solely as (and is licensed and regulated by the laws of the Republic of Kazakhstan): (a) a bank or (b) a credit union or similar cooperative credit organization that operates without profit;

2. The commercial activity of a Financial Institution consists mainly, if it concerns a bank, in receiving deposits from unrelated retail customers and providing loans to such, and if it concerns a credit union or similar cooperative credit organization, in receiving deposits from its members and providing loans to such, provided that the member's share in In such a credit union or cooperative credit organization, it will not amount to more than five percent.;

3. The financial institution complies with the requirements specified in sub-paragraphs A(2) and A(3) of this section, provided that in addition to the restrictions on the website specified in sub-paragraph A(3) of this section, the website does not allow the opening of a financial account.;

4. The Financial Institution does not have more than $175 million in assets on its balance sheet, and the Financial Institution and any Related Entities collectively do not have more than $500 million in total assets on their consolidated or shared balance sheets; and

5. Any Related Organization must be registered or established in the Republic of Kazakhstan, and any Related Organization that is a Financial Institution, with the exception of any Related Organization that is a pension fund specified in paragraphs A-D of section II of this Annex II, or a Financial Institution with accounts for only a small amount specified in paragraph C of this The section must meet the requirements specified in this paragraph.

C. A financial institution with accounts for only a small amount. A financial institution of the Republic of Kazakhstan that meets the following requirements:

1. A financial institution is not an investment organization;

2. No Financial Account maintained with a Financial Institution or any Related Entity has a balance or amount of funds exceeding USD 50,000, subject to the rules set out in Annex I relating to the consolidation of accounts and the conversion of amounts into another currency; and

3. The Financial Institution does not have more than US$ 50 million in assets on its balance sheet, and the Financial Institution and any Related Entities collectively do not have more than US$50 million in total assets on their consolidated or shared balance sheets.

D. A qualified credit card issuer. A financial institution of the Republic of Kazakhstan that meets the following requirements:

1. A financial Institution is a Financial Institution solely because it is a credit card issuer that accepts deposits only when the customer makes a payment in excess of the amount owed on the card and the overpayment amount is not refunded to the customer immediately; and

2. No later than a Certain date, or the date of the application for recognition of a Financial Institution as a conditionally compliant foreign financial institution, in accordance with this paragraph D, whichever comes later, the Financial Institution implements rules and procedures aimed at either preventing the client's deposit in excess of 50,000 or to ensure that any client's deposit, the amount of which exceeds 50,000 US dollars, is refunded within 60 days, applying the rules in each of the specified cases, specified in Annex I regarding the consolidation of accounts and the conversion of amounts into another currency. At the same time, the customer's deposit does not relate to the credit balance in the amount of the disputed charges, but includes the credit balance resulting from the return of the goods.

IV. Investment organizations that qualify as conditionally complying with foreign financial institutions and other special rules. The financial institutions specified in paragraphs A-E of this section are Unaccountable financial institutions of the Republic of Kazakhstan, which are considered to be conditionally compliant with foreign financial institutions for the purposes of Section 1471 of the Internal Revenue Code of the United States. In addition, paragraph F of this section provides for special rules applicable to the Investment Organization.

A. A trust issued to a trustee. A trust established in accordance with the legislation of the Republic of Kazakhstan in cases where the trustee of the trust is a U.S. Accountable Financial Institution, a Model 1 Accountable Foreign Financial Institution, or a Participating Foreign financial Institution, and the trustee enters into the report all the information required by the Agreement, as would be required if The trust was an Accountable financial institution of the Republic of Kazakhstan (including by complying with the applicable registration requirements on the FATCA registration website of the IRS).

B. A sponsored investment organization and a controlled foreign corporation. A financial institution specified in sub-paragraphs B(1) or B(2) of this section that has a sponsoring organization that meets the requirements of sub-paragraph B(3) of this section.

1. A financial institution is a sponsored investment organization if: (a) it is an Investment Organization based in the Republic of Kazakhstan that is not a qualified intermediary, a foreign tax-withholding partnership, or a foreign tax-withholding trust, in accordance with the relevant Rules of the United States Department of the Treasury; and (b) the Organization has agreed with the Financial Institution to act as as a sponsoring organization for a Financial Institution.

2. A financial institution is a sponsored controlled foreign corporation if: (a) The financial institution is a controlled foreign corporation[1] founded in accordance with the laws of the Republic of Kazakhstan, which is not a qualified intermediary, a foreign tax-withholding partnership, or a foreign tax-withholding trust, in accordance with the relevant Rules of the United States Department of the Treasury; (b) The Financial Institution is wholly owned, directly or indirectly, by a U.S. Accountable Financial Institution that agrees to act or requires a branch of the Financial Institution to act as a sponsoring organization for the Financial Institution.; and (c) The Financial Institution shares with the sponsoring organization an electronic account system that allows the sponsoring organization to identify all Account Holders and payment recipients of the Financial Institution and have access to all information related to accounts and clients stored in the Financial Institution, including, but not limited to, customer identification information, customer documentation, the account balance and all payments made to the Account Holder or the payee.

3. The sponsoring organization meets the following requirements:

a) the sponsoring organization is authorized to act on behalf of the Financial Institution (as a fund manager, trustee, corporate director or managing partner) to fulfill the applicable registration requirements on the FATCA registration website of the IRS;

b) the sponsoring organization has registered as a sponsoring organization with the IRS on the IRS FATCA registration website;

c) if the sponsoring organization identifies any U.S. Reporting Account with respect to a Financial Institution, the sponsoring organization registers the Financial Institution in accordance with the applicable registration requirements on the FATCA IRS registration website on or before December 31, 2016 and on the date 90 days after that U.S. Reporting Account was first identified, depending on what comes later.;

d) the sponsoring Organization undertakes to fulfill on behalf of the Financial Institution all the requirements for due diligence, tax withholding, reporting, as well as other requirements that the Financial Institution would have to fulfill if it were an Accountable Financial Institution of the Republic of Kazakhstan;

e) the sponsoring organization identifies the Financial Institution and includes the Financial Institution's identification number (obtained after meeting the applicable registration requirements on the FATCA registration website of the IRS) in all financial statements prepared on behalf of the Financial Institution; and

f) the sponsoring organization has not lost its status as a sponsor.

C. Sponsored closed-end investment structure. A financial institution of the Republic of Kazakhstan that meets the following requirements:

1. A financial Institution is a Financial Institution solely because it is an Investment Organization and is not a qualified intermediary, a foreign tax-withholding partnership, or a foreign tax-withholding trust, in accordance with the relevant Rules of the United States Department of the Treasury;

2. The Sponsoring organization is a U.S. Accountable Financial Institution, a Model 1 Accountable Foreign Financial Institution, or a Participating foreign financial institution, authorized to act on behalf of the Financial Institution (as a professional manager, trustee, or managing partner), and agrees to comply on behalf of the Financial Institution with all due diligence, tax withholding, reporting, and other requirements. requirements that a Financial institution would have to fulfill, if it were an Accountable financial institution of the Republic of Kazakhstan;

3. A financial institution does not act as an investment structure in relation to unrelated parties.;

4. Twenty or fewer individuals own all debt and equity interests in a Financial Institution (excluding debt owned by participating foreign financial institutions and conditionally compliant foreign financial institutions, and equity owned by an Organization if that Organization owns 100 percent of the equity in the Financial Institution and itself is a sponsored Financial Institution referred to in this paragraph (C); and

5. The sponsoring organization meets the following requirements:

a) The sponsoring organization has registered as a sponsoring organization with the IRS on the IRS FATCA registration website;

b) the Sponsoring Organization agrees to fulfill on behalf of the Financial Institution all the requirements for due diligence, tax withholding, reporting, as well as other requirements that the Financial Institution would have to fulfill if it were an Accountable Financial Institution of the Republic of Kazakhstan, and keeps for six years the documentation collected in relation to the Financial Institution;

(c) The sponsoring organization identifies the Financial Institution in all financial statements prepared on behalf of the Financial Institution; and

d) the sponsoring organization has not lost its status as a sponsor.

D. Investment consultants and investment managers. An investment organization based in the Republic of Kazakhstan that is a Financial Institution solely because it (1) provides investment advisory services for, and acts on behalf of, or (2) provides portfolio management services for, and acts on behalf of, a client for the purpose of investing, managing, or disposing of funds placed on behalf of on behalf of the client in a Financial Institution, except for a Non-Participating Financial Institution.

E. The structure of collective investments. An investment organization based in the Republic of Kazakhstan that is regulated as a collective investment structure, provided that the owners or owners of all shares in the collective investment structure (including debt participation exceeding 50,000 US dollars) are one or more exempt beneficial owners, active persons described in subparagraph B(4) of section VI Appendix I, U.S. persons who are not Designated U.S. Persons, or Financial Institutions that are not Non-Participating Financial Institutions,

F. Special rules. The following rules apply to an Investment Organization:

1. With respect to shares in an Investment Organization that is a collective investment structure described in paragraph E of this section, the reporting obligations of any Investment Organization (other than the Financial Institution through which ownership of shares in the collective investment structure is carried out) are considered fulfilled.

2. In relation to the shares of participation in:

a) An investment organization established in a Partner Jurisdiction that is regulated as a collective investment structure, the owners or owners of all shares in which (including debt participation exceeding 50,000 US dollars) are one or more exempt beneficial owners, active persons described in subparagraph B (4) of Section VI of Annex I, U.S. persons, non-Identified U.S. Persons, or Financial Institutions that are not Non-Participating Financial Institutions; or

b) An investment organization that is a qualified collective investment structure in accordance with the relevant Rules of the United States Department of the Treasury;

The reporting obligations of any Investment Organization that is a Financial Institution of the Republic of Kazakhstan (except for the Financial Institution through which ownership of shares in the collective investment structure is carried out) are considered fulfilled.

3. With respect to participation interests in an Investment Organization based in the Republic of Kazakhstan that are not described in paragraph E or subparagraph F (2) of this section, in accordance with paragraph 3 of Article 5 of the Agreement, the reporting obligations of all other Investment organizations with respect to such participation interests are considered fulfilled if the information that must be provided first the said Investment Organization, under an Agreement with respect to the said shares, is provided by this Investment Organization or another person.

4. An investment organization founded in the Republic of Kazakhstan, which is regulated as a collective investment structure, does not cease to qualify, in accordance with paragraph E or subparagraph F(2) of this section, or for other reasons, as a conditionally compliant foreign financial institution, solely due to the fact that the collective investment structure has issued bearer shares in in a documentary form, provided that:

a) the collective investment structure has not issued and is not issuing any bearer shares in documentary form after December 31, 2012;

b) the collective investment structure repays all such shares when they are repurchased;

c) the collective investment Structure (or the Accountable Financial Institution of the Republic of Kazakhstan) performs the due diligence procedures specified in Annex I, and includes in the financial statements any information to be included with respect to any such shares, when such shares are provided for repayment or other payment, and

d) the collective investment structure has rules and procedures in place to ensure that such shares are repaid or withdrawn as soon as possible; in any case, before January 1, 2017.

V. Accounts that are not related to Financial Accounts. The following accounts are excluded from the definition of Financial Accounts and, accordingly, are not considered as Accountable Accounts in the United States.

A. Certain savings accounts.

1. Severance pay account and retirement account. A severance pay account or a retirement account maintained in the Republic of Kazakhstan that meets the following requirements, in accordance with the legislation of the Republic of Kazakhstan.

a) The account falls under the rules as a personal severance account or as an account in a registered or regulated retirement plan for severance or retirement benefits (including disability or death benefits);

b) the account is subject to a preferential tax regime (that is, the amounts of contributions to the account that would otherwise be taxed in accordance with the legislation of the Republic of Kazakhstan are deducted or excluded from the gross income of the account holder or taxed at a reduced rate, or the taxation of investment income on the account is deferred or carried out at a reduced rate);

c) this account requires annual information reporting to the tax authorities in the Republic of Kazakhstan;

d) withdrawals from the account are possible if a certain retirement age, disability, and death are reached, or penalties are applied for withdrawing funds from the account before such specific events occur, and

(e) Either (i) annual contributions are limited to 50,000 US dollars or less, or (ii) there is a maximum lifetime contribution limit of 1,000,000 US dollars or less, subject in each case to the rules for combining accounts and recalculating account amounts in another currency specified in Annex I.

2. Non-retirement savings accounts. An account maintained in the Republic of Kazakhstan (except for an Insurance Contract or an Annuity Contract) that meets the following requirements, in accordance with the legislation of the Republic of Kazakhstan.

a) the account is subject to the rules on savings structures for purposes other than retirement;

(c) Withdrawals are conditional on meeting certain criteria related to the purpose of the savings account (for example, providing educational or medical benefits), or penalties are applied for withdrawing funds from the account without meeting those criteria; and

(d) Annual contributions are limited to 50,000 US dollars or less, subject to the rules for combining accounts and recalculating account amounts in another currency specified in Annex I.

B. Some fixed-term life insurance contracts. Life insurance contracts maintained in the Republic of Kazakhstan with an insurance period ending before the insured person reaches the age of 90, provided that the contract meets the following requirements:

1. Periodic premiums that do not decrease over time are paid at least once a year for the duration of the contract or for the period until the insured reaches the age of 90, whichever is shorter.;

2. The agreement does not have a redemption amount that any person can receive (by withdrawal of funds, loan or otherwise) without terminating the agreement.;

3. The amount (other than death benefits) paid upon cancellation or termination of the contract may not exceed the total amount of premiums paid under the contract, less the amount of fees for mortality, morbidity, and expenses (actually charged or not) for the period or periods of the contract, as well as the amounts paid prior to termination or cancellation of the contract; and

4. The assignee does not take possession of the contract because of its value.

C. The account for the inherited property. An account maintained in the Republic of Kazakhstan that belongs exclusively by inheritance, if the documentation on this account includes a copy of the deceased's will or death certificate.

D. Escrow accounts. An account maintained in the Republic of Kazakhstan opened in connection with any of the following:

1. An order or a court decision.

2. Sale, exchange, or lease of real estate or personal property, provided that the account meets the following requirements:

a) the account is financed solely from an advance payment, a cash deposit, a deposit in an amount sufficient to secure obligations directly related to the transaction, or amounts of a similar payment, or is financed with a financial asset deposited into the account in connection with the sale, exchange or lease of property;

b) the account is opened and used solely for the purpose of securing the obligations of the buyer to pay the purchase price of the property, the seller to pay contingent liabilities, the lessee or the lessor to pay for damage related to the leased property in accordance with the lease agreement;

c) the assets in the account, including the income earned on them, will be paid or otherwise distributed in the interests of the buyer, seller, lessee or lessor (including payment of such person's obligations) upon sale, exchange or alienation of property or upon termination of the lease agreement;

(d) The account is not a margin or similar account opened in connection with the sale or exchange of a Financial Asset; and

e) The account is not linked to the credit card account.

3. The obligation of a Financial Institution servicing a loan secured by immovable property to defer part of the payment solely to ensure the payment of taxes or insurance related to immovable property in subsequent periods.

4. The obligation of a Financial Institution solely to ensure the payment of taxes in subsequent periods.

E. Accounts of the Partner jurisdiction. An account opened in the Republic of Kazakhstan and excluded from the definition of a Financial Account under an agreement between the United States and another Partner Jurisdiction to ensure the implementation of FATCA, provided that such an account has the same requirements and controls under the laws of the Partner Jurisdiction as if the account had been opened in that Partner Jurisdiction and maintained in a Financial establishment of a Partner Jurisdiction in this Partner Jurisdiction.

VI. Definitions. The following additional definitions apply to describe the above:

A. Accountable Foreign Financial Institution under Model 1. The term Accountable Foreign Financial Institution under Model 1 means a Financial Institution in respect of which a foreign government (other than the US government) or its agency agrees to receive and exchange information in accordance with Model 1 of an Intergovernmental Agreement, other than a Financial Institution considered a Non-Participating Financial Institution under Model 1 Intergovernmental agreement. For purposes of this definition, the term "Model 1 Intergovernmental Agreement" means an agreement between the United States or the Treasury Department and a foreign government (other than the U.S. government) or its one or more FATCA implementation agencies, through reporting by a Financial Institution to such a foreign government (other than the U.S. government) or its agency, followed by automatic exchange such information provided in the form of reports from the Tax Service.

B. A participating foreign financial institution. The term "Participating foreign financial institution" means a Financial Institution that has agreed to comply with the requirements of an Agreement with a foreign financial institution, including a Financial Institution described in Model 2 of an Intergovernmental Agreement that has agreed to comply with the requirements of an Agreement with a foreign financial institution. The term "Participating foreign financial institution" also includes a branch of a U.S. Accountable Financial Institution that is a qualified intermediary, unless that branch is a Model 1 Accountable Foreign Financial Institution. For the purposes of this definition, the term "Agreement with a Foreign Financial institution" means an agreement that establishes requirements for a Financial Institution to comply with Section 1471 requirements.(b) The U.S. Internal Revenue Code. Additionally, for the purposes of this definition, the term "Model 2 Intergovernmental Agreement" means an agreement between the United States or the Treasury Department and a foreign government (other than the U.S. government) or one or more of its agencies to implement FATCA by reporting a Financial Institution directly to the IRS in accordance with the requirements of the Agreement with a foreign financial institution, supplemented by the exchange of information between such a foreign government (other than the U.S. government) or its agency and the IRS.

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1 "Controlled foreign corporation" means any foreign corporation if the voting rights of more than 50 percent of the total total number of eligible voting shares of all categories of such corporation are owned, or the total value of the shares of such corporation is owned, or is considered to be owned, by "shareholders of the United States" on any day d 1 "Controlled foreign corporation" means any foreign corporation if the voting rights of more than 50 percent of the total total number of eligible voting shares of all categories of such corporation are owned, or the total value of the shares of such corporation is owned, or is considered to be owned, by "shareholders of the United States" on any day during the tax year of such foreign corporation. The term "shareholder of the United States" means, in reerm "shareholder of the United States" means, in relation to any foreign corporation, a person of the United States who owns, or is considered to own, 10 percent or more of the total voting rights of all categories of sharense Arbitration Law Company Kazakhstan Law Firm Court Cases

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