On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on the Elimination of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

Home / Decree / On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on the Elimination of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on the Elimination of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

Decree of the President of the Republic of Kazakhstan dated December 25, 1995 N 2726

1. To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on the Elimination of DoubleTaxation and the Prevention of Fiscal Evasionwith Respect to Taxes on Income, signed in Almaty on August 23, 1995.

2. This Decree shall enter into force from the date of publication.

Presidentof the Republic of Kazakhstan

application

The Conventionbetween the Government of the Republic of Kazakhstan andBy the Government of the Islamic Republic of Pakistanon the Elimination of Double Taxation and the Prevention ofFiscal Evasion with respect to Taxes on Income*

(the text is unofficial)

The Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan, wishing to conclude a Convention on the Elimination of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed on the following:

Article 1. Persons to whom the Convention applies This Convention applies to persons who are residents of one or both of the Contracting States.

Article 2. Taxes covered by the Convention

1. This Convention shall apply to taxes on income imposed by or on behalf of a Contracting State, or by its subdivisions or local authorities, regardless of the manner in which they are levied.

2. Income taxes are all types of taxes levied on the total amount of income or on individual elements of income, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of salaries or salaries paid by enterprises, as well as taxes levied on income from capital gains.

3. The existing taxes to which the Convention applies are, in particular: (a) in the Republic of Kazakhstan: (i) income tax on legal entities and individuals, (ii) property tax on legal entities and individuals (hereinafter referred to as the "Kazakhstan tax");

b) In the Islamic Republic of Pakistan: (i) income tax, (ii) super tax, and (iii) supplementary tax (hereinafter referred to as the "Pakistan Tax").

4. The Convention also applies to any identical or substantially similar taxes that are imposed in addition to or in place of existing taxes after the date of signature of the Convention.

The competent authorities of the Contracting States will notify each other of any significant changes that will be introduced into their respective tax laws.

Article 3. General definitions

1. For the purposes of this Convention, unless the context otherwise requires: (a) The term: (i) "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the laws governing taxes of Kazakhstan apply.; (ii) "Pakistan", used in a geographical sense, means Pakistan, as defined in the Constitution of the Islamic Republic of Pakistan, includes any area outside the territorial waters of Pakistan, which, according to the laws of Pakistan and international law, is an area in which Pakistan exercises sovereign rights and exclusive jurisdiction over the natural resources of the seabed, subsoil, and the water column. b) the term "person" includes an individual, a company or any other association of persons; (c) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes; (d) The terms "Contracting State" and "other Contracting State" mean Pakistan or Kazakhstan, depending on the context.; e) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State; (e) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when a ship, river, aircraft or road or rail transport is operated exclusively between locations in the other Contracting State; (g) The term "competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative; (ii) in Pakistan: the Central Revenue Authority or its authorized representative; (h) The term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, partnership or any other association which has acquired its status as such on the basis of the applicable legislation of a Contracting State.

2. As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State in respect of taxes to which the Convention applies.

Article 4. Resident

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there by reason of his domicile, residence, place of management or place of establishment, or any other criterion of a similar nature. However, this term does not include any person of a country other than a Contracting State who is liable to tax in that State only in respect of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, his status shall be determined as follows: (a) He shall be deemed to be a resident of the State in which he has a permanent home at his disposal, if he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident of the State in which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the State in which he has an habitual abode; (c) If he has an habitual abode in both States or in neither he shall be deemed to be a resident of the State of which he is a national; d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement.

3. If, by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour to resolve the matter by mutual agreement, but if the competent authorities are unable to reach such agreement, such person shall not be deemed to be a resident of either Contracting State for the purposes of obtaining benefits in in accordance with this Convention.

Article 5. Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment"means a permanent place of business through whichthe business activities of the enterprise are carried out in whole or in part.

2. The term "permanent establishment" includes, in particular::a) place of management,b) branch,c) office;d) the factory;e) the workshop;f) the salary paid for the purpose of renting;g) premises for receiving and processing orders;h) permanent exhibition and sale;i) a mine, an oil or gas well, a quarry or any other placeof extraction of natural resources.

3. The term "permanent establishment" also includes:

a) a construction site or a construction, installation or assembly facility or services related to the supervision of the performance of these works, if only such a site or facility has existed for more than 6 months, or such services have been provided for more than 6 months; and b) an installation or structure used for the exploration of natural resources, or services related to the supervision of the performance of these works, or a drilling rig or vessel used for the exploration of natural resources, if only such use lasts for more than 6 months, or such services are provided for more than 6 months; and c) the provision of services, including consulting services by residents through employees or other personnel hired by the resident for such purposes, but only if activities of this nature continue (for such or a related project) within the country for more than 6 months.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not be considered as including: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storage, demonstration or delivery; (c) the maintenance of stocks goods or products belonging to an enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise; (e) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature.

5. Notwithstanding the provisions of paragraphs 1 and 2, if a person other than an agent with an independent status to whom paragraph 6 applies acts on behalf of an enterprise and has and habitually exercises authority in a Contracting State to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity which this person undertakes for the enterprise, except, if only the activity of such person is limited to that referred to in paragraph 4, which, if carried out through a permanent place of business, does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) does not in itself transform one of these companies into a permanent establishment of the other.

Article 6. Income from immovable property

1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other State.

2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop mineral resources, sources and other natural resources; marine, river, aircraft, road transport and railway rolling stock are not considered as immovable property.

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

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

Article 7. Profit from entrepreneurial activity

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment situated there. If an enterprise carries out or has carried out business activities, as mentioned above, then the profits of the enterprise may be taxed in another State, but only to the extent that relates to: a) such a permanent establishment; (b) Sales in that other State of goods or products that match or are similar to goods or products that are sold through a permanent establishment; or (c) other business activities carried out in that other State that are identical or similar in nature to business activities carried out through such a permanent establishment.

2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on or has carried on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment shall include the profits that it could make if it were an independent and separate enterprise engaged in the same or similar activities., under the same or similar conditions, and operated in complete independence from the enterprise of which it is a permanent establishment.

3. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. It is not allowed to deduct to a permanent establishment the amounts paid to its head office or any of the other offices of the resident by paying royalties, fees or other similar payments for the use of patents or other rights, or by paying commissions for specific services provided or for management, or by paying interest on the amount lent to the permanent establishment.

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

5. If the information available to the competent authority of one of the Contracting States or which can be easily obtained by it is not sufficient to determine the profits or expenses of a permanent establishment, the profits may be calculated in accordance with the tax laws of that State. For the purposes of this paragraph 5, information will be considered as easily obtainable if the taxpayer provides the information to the requesting competent authority within 91 days from the date of the written request by the competent authority for such information.

6. If profits include types of income or gains from the increase in the value of property, which are specifically mentioned in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article. 7. Profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure.

Article 8. Sea and air transport

1. Profits earned by a resident of a Contracting State from the operation of ships, aircraft or road and rail transport in international traffic shall be taxable only in that State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international organization for the operation of vehicles.

Article 9. Associated enterprises

1. Where: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in each case, conditions are created or established between two enterprises in their commercial or financial relations that differ from those that would be created between two independent enterprises, then any profit that could have been credited to one of them, but due to the presence of these conditions was not credited to him, may be included It is included in the profits of this enterprise and is taxed accordingly.

2. If a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - the profits on which an enterprise of the other Contracting State is taxed in that other State, and the profits thus included, are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises had been such as exist between independent enterprises, then that other State may do appropriate adjustments to the amount of tax levied on this profit. In determining such an adjustment, the other provisions of this Convention should be considered, and the competent authorities of the Contracting States will consult with each other, if necessary.

Article 10. Dividends

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed: (a) 12.5 per cent of the total amount of the dividends if the beneficial owner is a company that owns, directly or indirectly, at least 10 percent of the capital of the company paying dividends; b) 15 percent of the total amount of dividends in all other cases. This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid.

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

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there and a holding company, in in respect of which dividends are paid, it really refers to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.

5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by the company, except if such dividends are paid to a resident of that other State or the holding company in respect of which the dividends are paid is actually a permanent establishment or a permanent base located in that other State.

Article 11. Interest

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 12.5 per cent of the total amount of the interest.

3. Notwithstanding the provisions of paragraph 2 of this article, interest arising in a Contracting State shall be exempt from taxation in that State if it is received and it is owed to the Government of the other Contracting State or local authorities, or any other agencies of that Government or local authorities.

4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured, giving or not giving the right to participate in debtors' profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities. securities, bonds, or debentures. Penalties for late payments are not considered as interest for the purposes of this article.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services with a permanent base located there in that other State, and a debt claim in which in respect of which interest is paid, it really refers to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a subdivision thereof, a local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such interest arises in the State in which such a permanent establishment or permanent base is located.

7. If, due to a special relationship between the payer and the actual owner of interest, or between both of them and any other person, the amount of interest related to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of interest in the absence of such a relationship, the provisions of this The articles apply only to the last mentioned amount. In such a case, the excess part of the payment is subject to taxation in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

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

Article 12. Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 15 per cent of the total amount of the royalties.

3. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or for granting the right to use any copyright in works of literature, art or science, including computer programs, cinematographic films, any patent, trademark, design or model, plan, secret formula or process, or for information (know-how) related to industrial, commercial or scientific experience, and payments for the use or grant of the right to use industrial, commercial or scientific equipment, or for any technical, managerial, or consulting services.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the right or property, in respect of which royalties are paid, they are actually associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.

5. Royalties shall be deemed to have arisen in a Contracting State if they are paid for the use or for the right to use rights or property in that State.

6. If, as a result of a special relationship between the payer and the actual owner of the royalties or between both of them and any other person, the amount of royalties related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalties in the absence of such a relationship, the provisions of this The articles apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.

7. The provisions of this article shall not apply if the primary purpose or one of the primary purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid was to benefit from this article through such creation or transfer of rights.

Article 13. Income from the increase in the value of property

1. Income earned by a resident of a Contracting State from the alienation of immovable property as defined in Article 6 and located in the other Contracting State may be taxed in that other State.

2. Income earned by a resident of a Contracting State from the alienation of: a) shares other than shares that are traded on a substantial regular basis on an officially recognized stock exchange, receiving the value or most of their value directly or indirectly from immovable property located in the other Contracting State, or b) shares in a partnership or trust whose property consists mainly of immovable property located in the other Contracting State or of the shares referred to in subparagraph (a) above., may be taxed in that other Contracting State.

3. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, excluding such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State.

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

5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14. Independent personal services

1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that State unless such services are provided or have been provided in the other Contracting State and: (a) the income relates to a fixed base that the individual has or has had on a regular basis in the other Contracting State. Or b) such individual is present or has been present in that other State for a period or periods exceeding a total of 183 days in any 12-month period. In such a case, income related to services may be taxed in that other State in accordance with principles similar to those contained in article 7, which determines the amount of profits related to a permanent establishment.

2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, dentists, lawyers, engineers, architects and accountants.

Article 15. Dependent personal services

1. Subject to the provisions of articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in connection with an employment shall be taxable only in that State unless the employment is performed in the other Contracting State, if the employment is performed in such a manner that remuneration received from there may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient resides in that other State for a period or periods not exceeding a total of 183 days within the limits of of any 12-month period; and b) the remuneration is paid by the employer, or on behalf of the employer who is not a resident of another State; and c) the remuneration is not paid by a permanent establishment or a permanent base that the employer has in another State.

3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship, river, aircraft or motor vehicle or railway vehicle operated in international traffic may be taxed in the Contracting State in which the operating enterprise is a resident.

Article 16. Directors' fees Directors' fees and other similar payments received by a resident of a Contracting State in his capacity as a member of the board of directors or a similar body of a company that is a resident of the other Contracting State may be taxed in that other State.

Article 17. Artists and athletes

1. Notwithstanding the provisions of articles 14 and 15, a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraph 1, income earned by an entertainer or athlete who is a resident of a Contracting State from his personal activities carried on in the other Contracting State shall be taxable only in the first-mentioned Contracting State if the activities in the other State are supported wholly or substantially by public funds of the first-mentioned Contracting State, including any of its divisions or local authorities.

Article 18. Pensions and other payments

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment and any annuity paid to such resident shall be taxable only in that State.

2. The term "annuity" means a fixed amount that is periodically paid to an individual at a fixed time throughout his life or a certain or fixed period of time with the obligation to make such payments in return for adequate and full remuneration in money or monetary terms.

3. Alimony and other malicious amounts (including child support payments) arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

Article 19. Public service

1. (a) Remuneration, other than a pension, paid by a Contracting State or a subdivision or local authority thereof to any natural person in respect of services rendered to that State or subdivision or local authority shall be taxable only in that State. b) However, such remuneration shall be taxable only in the other Contracting State if the service is performed in that State and the individual is a resident of that State who: (i) is a national of that State, or (ii) has not become a resident of that State solely for the purpose of performing the service.

2. (a) Any pension paid by a Contracting State or a subdivision or local authority thereof, or from funds created by them, to an individual in respect of services rendered to that State or its subdivision or local authority, shall be taxable only in that State. b) However, such a pension is taxable only in the other Contracting State if the individual is a resident and a national of that State.

3. The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a subdivision or local authority thereof.

Article 20. Students, interns and interns

1. A student, or an intern, or an intern who is or was a resident of one of the Contracting States immediately prior to arriving in another State solely for the purposes of his education or internship, shall be exempt from taxation in that other State for: a) payments made to him by persons located outside that other State for the purposes of his residence, education, or internships, and b) remuneration for work in this State in the amount not exceeding 500 USD during any "fiscal year", provided, that such work is directly related to his studies or is carried out for the purpose of his residence.

2. The benefits under this Article shall apply only for such period of time as may be justified, either academically or normally required to complete the study or internship undertaken, but under no circumstances shall any individual have the benefits under this Article for more than five related years from the date of his first arrival in that other Contracting State.

Article 21. Professors, teachers and researchers

1. A professor or teacher who is or was a resident of one of the Contracting States immediately prior to coming to the other Contracting State for the purpose of teaching or employed in an approved institution in that other Contracting State shall be exempt from taxation in that other State on any remuneration for such teaching or research for a period not exceeding five years from the date of his arrival in this other State.

2. This Article does not apply to income from research activities if such research is undertaken primarily for the personal benefit of an individual or persons.

5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14. Independent personal services

Article 15. Dependent personal services

Article 17. Artists and athletes

Article 18. Pensions and other payments

Article 19. Public service

Article 20. Students, interns and interns

Article 21. Professors, teachers and researchers

2. This Article does not apply to income from research activities if such research is undertaken primarily for the personal benefit of an individual or persons.

3. For the purposes of this Article, an individual shall be deemed to be a resident of a Contracting State in the "income year" in which he visits the other Contracting State, or in the immediately preceding "income year".

4. For the purposes of paragraph 1, "approved institution" means an institution that has been approved in this regard by the competent authority of the Contracting State concerned.

Article 22. Other income Items of income of a resident of a Contracting State arising in the other Contracting State which are not dealt with in the preceding articles of this Convention may be taxed in that other State.

Article 23. Elimination of double taxation

1. In the case of Kazakhstan, double taxation shall be eliminated as follows: (a) If a resident of Kazakhstan receives income which, in accordance with the provisions of this Convention, may be taxed in Pakistan, Kazakhstan will allow an amount equal to the income tax paid in Pakistan to be deducted from the income tax of that resident; the amount of the deductible amounts provided for in the preceding paragraph shall not exceed exceed the amounts that would have been accrued to this income in Kazakhstan at the rates applicable in it. b) if a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, is taxable only in Pakistan, Kazakhstan may include this income in the tax base, but only for the purpose of determining the tax rate on such other income as is subject to taxation in Kazakhstan.

2. In the case of Pakistan, double taxation is eliminated as follows: (a) If a resident of Pakistan receives income that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, Pakistan will allow an amount equal to the income tax paid in Kazakhstan to be deducted from the income tax of that resident; the amount of the deductible amounts provided for in the preceding paragraph shall not exceed exceed the amounts that would have been accrued to this income in Pakistan at the rates applicable there. b) If a resident of Pakistan receives income that, in accordance with the provisions of this Convention, is taxable only in Kazakhstan, Pakistan may include that income in the tax base, but only for the purpose of determining the tax rate on such other income or capital as is taxable in Pakistan. 3. For the purposes of paragraphs 1 and 2 of this Article, a tax payable in a Contracting State shall be deemed to include any amount that is due but is not paid in accordance with the exemption or benefit provided for by the laws of the Contracting State concerned on the promotion of economic activity.

Article 24. Non-discrimination

1. Nationals of a Contracting State shall not be subject in the other Contracting State to taxation other or more burdensome or related obligations than taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances. This provision also applies, notwithstanding the provisions of article 1, to persons who are not residents of one or both of the Contracting States.

2. Stateless persons who are residents of a Contracting State shall not be subjected in any of the Contracting States to any taxation or any related obligations other or more burdensome than taxation and related obligations to which national persons of the State are or may be subjected in the same circumstances. If the competent authorities of the Contracting States confirm that such stateless persons are not nationals of any other State and are competent for the purposes of paragraphs 1 and 2 of this Article.

3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11, paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they were paid to a resident of the first mentioned State.

5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto which are other or more burdensome than the taxation and related obligations to which they are subject or other similar enterprises of the first mentioned State may be at risk.

6. Nothing contained in this article shall be interpreted as obliging each Contracting State to grant to residents of the other Contracting State any personal benefits, exemptions and discounts for tax purposes which are granted by its residents.

7. Notwithstanding the provisions of article 2, the provisions of this article shall apply to taxes of any kind and type.

Article 25. Mutual agreement procedure

1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States, submit his case for examination to the competent authorities of the Contracting State of which he is a resident, or, if His case falls under paragraph 1 of article 24 of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavour, if it considers the claim to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with the Convention. Any agreement reached must be implemented regardless of any time limits available in the domestic laws of the Contracting States.

3. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement and understanding of the preceding paragraphs. If, in order to reach an agreement, it would be advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a commission consisting of representatives of the competent authorities of the Contracting States. In addition, the competent authorities of the Contracting States will meet at least once every two years in their respective capitals, in turn, to discuss issues related to the application of this Convention.

4. If any difficulties or doubts arising in connection with the interpretation or application of this Convention cannot be resolved by the competent authorities in accordance with the preceding paragraphs of this article, the matter may be referred to arbitration with the consent of the competent authorities and the taxpayer(s), if the taxpayer gives written consent to recognition of the arbitration award as binding. The arbitration decision on a specific issue is binding on both States. The procedure for consideration of such issues by States is established through the exchange of notes through diplomatic channels. After the expiration of a period of three years following the entry into force of this Convention, the competent authorities shall consult with each other to determine the appropriateness of the exchange of diplomatic notes. The provisions of this paragraph will enter into force after the States have reached an agreement through the exchange of diplomatic notes.

Article 26. Exchange of information

1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation is not contrary to the Convention. The exchange of information is not limited to article 1. Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution or consideration of appeals concerning taxes covered by the Convention.. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions.

2. In no case should the provisions of paragraph 1 be interpreted as imposing obligations on the Contracting States.: (a) To take administrative measures contrary to the laws or accepted administrative practices of this or another Contracting State; (b) To provide information that cannot be obtained under the laws or customary administrative practices of this or another Contracting State.; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (public practice).

Article 27. Diplomatic agents and consular staff None of the provisions of this Convention shall affect the tax privileges of employees of diplomatic missions and consular employees granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 28. Entry into force

1. This Convention is subject to ratification in each of the Contracting States, and the instruments of ratification will be exchanged as soon as possible.

2. This Convention shall enter into force on the date of the exchange of instruments of ratification, and its provisions shall apply from 1 January 1996.

Article 29. Termination

1. This Convention shall remain in force until terminated by one of the Contracting States. Each Contracting State may terminate the Convention after the end of 5 years from the date of entry into force of the Convention by notifying in writing through diplomatic channels of the termination of the Convention at least six months before the end of any calendar year. In such a case, the Convention shall terminate: (i) with respect to taxes withheld at source on amounts paid or due on or after 1 January of the year following the expiration date of the six-month period, and (ii) with respect to other taxes for the taxable period beginning on or after 1 January. January of the year following the expiration date of the six-month period. In witness whereof, the undersigned representatives, being duly authorized thereto by their respective Governments, have signed this Convention. Done in two copies on the twenty-third day of August 1995 in English, Kazakh, and Russian, all texts are equally authentic. In case of discrepancies in the texts, the English text will be decisive.

At the signing today of the Convention between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, the undersigned have agreed on the following provisions, which form an integral part of this Convention:

1. With regard to Article 7: it is understood that - in the case of Pakistan, income tax levied on a provisional basis as a percentage of total payments or receipts is considered applicable regardless of any provisions contrary to those contained in paragraphs 2 and 3 of this Article or any provision of Article 24; - similarly, such taxation will be permitted in the case of Kazakhstan, how and when it will be produced.

2. With regard to Article 10: in the event that the Government of the Islamic Republic of Pakistan adopts a law on the collection of income taxes, the Republic of Kazakhstan will agree to enter into negotiations to supplement the provisions of the Convention signed on August 23, 1995, through an additional protocol to reflect such a provision.

3. With regard to Article 25: Regardless of the legislation of the Contracting States, the information exchanged in accordance with this Article will include banking information, including information regarding a third party dealing with the taxpayer(s), and the information will be readily available.

4. With regard to Article 27: The Convention will be in force with respect to taxation of the income of air transport enterprises derived from their international activities from the date when such enterprises began operating their flights in another State.

Done in two copies on the twenty-third day of August 1995 in English, Kazakh, and Russian, all texts are equally authentic. In case of discrepancies in the texts, the English text will be decisive.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases