On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

Home / RLA / On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Sweden for the Avoidance 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 Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

Law of the Republic of Kazakhstan dated July 9, 1998 No. 270

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, concluded in Moscow on March 19, 1997.

President of the Republic of Kazakhstan

The Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of the Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

 (Bulletin of International Treaties of the Republic of Kazakhstan, 1999, No. 5, Article 85) (Entered into force on October 2, 1998 - J. "Diplomatic Courier", special issue No. 2, September 2000, p. 166)

The Government of the Republic of Kazakhstan and the Government of the Kingdom of Sweden, wishing to conclude a Convention for the Avoidance 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 and other persons as provided for in the special terms of the Convention.

Article 2 Taxes covered by the Convention

1. Taxes to which this Convention applies: (a) In the Republic of Kazakhstan: (i) corporate income tax; (ii) personal income tax; (hereinafter referred to as the "Kazakhstan tax"). (b) In Sweden: (i) the national income tax, including the seafarers' tax and the withholding tax on dividends; (ii) the non-resident income tax; (iii) the income tax on non-resident artists and athletes; and (iv) the municipal income tax; (hereinafter referred to as the "Swedish tax"). 2. The Convention shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the taxes referred to in paragraph 1. The competent authorities of the Contracting States shall notify each other of any significant changes that have been introduced into their respective tax laws.

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: a) terms: (i) "Kazakhstan" means the Republic of Kazakhstan. When used geographically, 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) "Sweden" means the Kingdom of Sweden, and when used geographically, includes the national territory, territorial sea of Sweden, as well as other maritime areas in which Sweden exercises sovereign rights or jurisdiction in accordance with international law; (b) the term "person" includes an individual, a company, and any other association of persons; (c) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes and, in the case of Kazakhstan, includes a joint-stock company, limited liability company or any other legal entity or organization that is subject to income taxation; (d) The terms "Contracting State" and "other Contracting State State" means Kazakhstan or Sweden, 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; (f) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; (g) The term "competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative; (ii) in Sweden: the Minister of Finance, his authorized representative, or an authority designated as the competent authority for the purposes of this Convention; (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 deriving its status 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 will, unless the context otherwise requires, have the meaning it has under the laws of that State relating to 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 on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature. (a) However, this term does not include any person who is liable to tax in that State solely in respect of income from sources in that State or capital located therein. b) In the case of income earned by a partnership or from joint ownership (estate), this term applies only to the extent that this income is taxed in that State as income of a resident in his own hands, or in the hands of his partners or recipients of dividends. (c) The term also includes the Contracting State itself or its political subdivision, local authorities, the Central Bank of Sweden and the National Bank of Kazakhstan. (d) The term also includes any company or organization established under the laws of a Contracting State that operates solely for the purpose of paying pensions or benefits to employees, even if such company or organization is exempt from taxation in the State in which it is organized. 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 is considered 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 States, he is considered to be a resident of the State with which he has the closest personal and economic ties (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 State, he shall be deemed to be a resident of the State in which he habitually resides; (c) If he habitually resides in both States, or in neither of them. of these, he is considered 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 will resolve 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.

Article 5 Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part. 2. The term "permanent establishment" includes, in particular:: a) place of management; b) branch office; (c) An office; (d) a factory; (e) a workshop; (f) a mine, an oil or gas well, a quarry, or any other place of extraction of natural resources; g) a construction site or a construction, installation or assembly facility, or services related to the supervision of these works, but only if such a site or facility has existed for more than 12 months, or such services are provided for a period of more than 12 months; (h) An installation or structure used for the exploration of natural resources or services related to the supervision of these works, or a drilling rig or vessel used for the exploration of natural resources, but only if such use lasts for more than 12 months or such services are provided for more than 12 months; and i) 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 have been ongoing (for such or a related project) within the country for more than 12 months. 3. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" should be considered as non-inclusive.: 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 a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose 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; f) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), providing that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 4. Notwithstanding the provisions of paragraphs 1 and 2, if a person other than an agent with an independent status to whom paragraph 5 applies acts in a Contracting State for the benefit of an enterprise of the Other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activity that that person undertakes for the enterprise if such a person has and usually uses the authority in that State to conclude contracts on behalf of the enterprise, with the exception of, if the activity of such a person is limited to that referred to in paragraph 3, which, if carried out through a permanent place of business, does not transform that permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 5. An enterprise of a Contracting State shall not be considered as having a permanent establishment in the other Contracting State solely by virtue of the fact that it carries on business in that other State through a broker, commission agent or any other agent with an independent status, provided that these persons act within the framework of their normal activities. 6. 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 (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 will in any case include property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law apply in relation to land ownership, buildings, the usufruct of immovable property, and rights to variable or fixed payments as compensation for development or the right to develop mineral reserves, springs and other natural resources; marine, river and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use in any other form of immovable property. 4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and 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 business or has carried on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out or has carried out activities as indicated above, the profits of this enterprise may be taxed in another State, but only in the part that relates to: (a) To such permanent establishment; (b) Sales in that other State of goods or merchandise that match goods or merchandise that are sold through a permanent establishment; or (c) other business activities carried on in that other State, which in their nature coincide with business activities carried on through such a permanent establishment. However, if the enterprise can show that such sales, which are mentioned above in sub-paragraphs (b) and (c), were not carried out by a permanent establishment, then these paragraphs do not apply. 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 includes the profits that it could have received as a separate and independent enterprise engaged in the same or similar activities in the same or similar areas. under similar conditions, and operating 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 for a permanent establishment to deduct amounts (other than reimbursement of actual expenses) paid to its head office or any of the other resident offices 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 of, lent to a permanent establishment. 4. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. If profits include types of income that are specifically mentioned in other articles of this Convention, the provisions of these articles are not affected by the provisions of this Article. 6. For the purposes of the preceding paragraphs, profits attributable to a permanent establishment are determined using the same method annually, unless there are sufficient and compelling reasons to change it.

 Article 8 Sea and air transport 1. Profits earned by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic are taxable only in that State. 2. With respect to profits earned by the Scandinavian Airline System (SAS) air transport consortium, the provisions of paragraph 1 apply only to that part of the profits that relate to participation in this consortium by AB Aerotransport (AVA), the Swedish partner of the Scandinavian Airline System (SAS). 3. The provisions of paragraph 1 also apply to profits from participation in a pool, joint venture or international transport agency.

Article 9 Associated companies 1. In the case when: a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b) the same persons are directly or indirectly involved in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in both cases, conditions are created or established between the 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 was not credited to him due to these conditions, can be included in the profit of this enterprise and taxed, accordingly, by tax. 2. If a Contracting State includes in the profits of an enterprise of that State - and, accordingly, taxes - profits in respect of which tax has been collected from an enterprise of the other Contracting State in that other State, and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if there were the same agreement between the two enterprises that and between two independent enterprises, then this other State will make the necessary adjustments to the amount of tax it has accrued on this profit. In determining such an adjustment, due account will be taken of the other provisions of this Convention, 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 and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax levied in such case shall not exceed: a) 5 percent of the total amount of dividends if the actual owner is a company (other than a partnership) that directly owns at least 10% of the voting rights in the company paying the 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 relation to the profits from which the dividends are paid. 3. The term "dividends", as used in this Article, means income from shares or other rights that are not debt claims, 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 resident. distribution. In the case of Kazakhstan, this term includes, in particular, income transferred abroad to foreign participants in a joint venture established under the legislation of Kazakhstan. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on or has carried 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 or provided independent personal services in that other State from a permanent base located there, and the holding company in respect of which dividends are paid, is indeed associated with such a permanent establishment or fixed base. In this 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 if the holding company in respect of which the dividends are paid is actually affiliated or has been affiliated with a permanent establishment. or a permanent base located in that other State, and the company's undistributed profits are not subject to taxes on undistributed profits., even if the dividends paid or retained earnings consist wholly or partly of profits or income arising in that other State. 6. Nothing in this Convention shall be construed as preventing a Contracting State from taxing the income of a company having a permanent establishment in that State in addition to the tax that would be levied on the income of a company that is a resident of that Contracting State, provided that the rate of such additional tax does not exceed 5 per cent of the amount of such income, which were subject to such additional tax in previous taxable years. For the purposes of this paragraph, the term "income" means profits relating to such permanent establishment in that State (including income from the alienation of property forming part of the business property specified in paragraph 3 of Article 13 of such permanent establishment) in accordance with Article 7, in the year or previous years, after deduction from them: a) losses from business activities related to such permanent establishments (including losses from the alienation of property, forming part of the business assets of such permanent establishments) this year and previous years, to the extent permitted by the domestic law of the Contracting State in which the permanent establishment is located; and (b) all income taxes payable in that State on such profits, other than the additional tax specified here. 7. If, in any Convention on the Elimination of Double Taxation concluded by Kazakhstan with a third State that is at that time a member of the Organization for Economic Cooperation and Development (OECD), Kazakhstan agrees to exempt the dividends referred to in subparagraph (a) of paragraph 2 arising in Kazakhstan from the Kazakh tax or to limit the tax rate established in this subparagraph, such The exemption or lower rate will automatically apply to Sweden as defined in paragraph 2 (a) and paragraph 7 of this Article.

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 10 per cent of the total amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest shall be taxable only in the Contracting State of which the recipient of the interest is a resident if one of the following requirements is met: (a) The payer or recipient of interest is the Contracting State itself, its political subdivision or local authority, or the Central Bank of the Contracting State; b) interest paid in respect of a loan provided or guaranteed by Swedcorp, the Swedish International Fund AB (Swedfund Intepnational AB) or the Swedish Export Credits Guarantee Board or any other government agency for the purpose of promoting exports or development, if the loan is provided or guaranteed on preferential terms conditions. 4. The term "interest" used in this article means income from debt claims of any kind, secured or unsecured by collateral and 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 from these securities., bonds or debentures. The penalty for late payments is 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, being a resident of a Contracting State, carries on or has carried on business in the other Contracting State in which the interest arises through a permanent establishment located there, or provides or has provided independent personal services in that other State from a permanent base located there and a debt obligation in respect of which interest is being paid, they really relate to such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14.6, as the case may be, shall apply. Interest shall be deemed to arise in a Contracting State if the payer is a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has or has had a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is paid has arisen and the costs of paying such interest are borne by such permanent establishment or permanent base, then Such interest is considered to have arisen in the State in which the permanent establishment or permanent base is located or was located. 7. If, as a result of a special relationship between the payer and the actual owner of the interest or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this Article apply only to the last mentioned amount. In such a case, the excess part of the payments shall continue to be taxed in accordance with the laws of each of the Contracting States, with due regard to the other provisions of this Convention. 8. If, in any Convention for the Avoidance of Double Taxation concluded by Kazakhstan with a third State that is a member of the Organization for Economic Cooperation and Development (OECD), Kazakhstan agrees to exempt the interests referred to in paragraph 2 arising in Kazakhstan from the Kazakh interest tax or to limit the tax rate stipulated in this paragraph, such exemption or a lower rate will be It is automatically applied as if it were defined in paragraph 2 of this Convention. If, in any such Convention, Kazakhstan has agreed to extend the exemptions referred to in paragraph 3 of this Article for interest payable on loans guaranteed by a bank or on debt obligations arising from the sale on credit by an enterprise of a Contracting State of any products or industrial, commercial or scientific equipment to an enterprise of another Contracting State, such exemptions will be automatically to be applied in relations with Sweden.

Article 12 Royalty 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 is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the total amount of the royalties. In the case of royalties described in paragraph 3 (b), the beneficial owner may choose to calculate the tax on such income on the basis of net income, as if such income related to a permanent establishment or permanent base in the Contracting State in which the royalties originated. 3. The term "royalty", when used in this article, means: a) payments of any kind received as remuneration for the use or for the right to use any copyrights to works of literature, art or scientific work, including computer programs, videotapes and cinematographic films and films for radio and television broadcasts, any patent, trademark, design or model, plan, secret formula or process, or for other similar rights or property or information related to industrial, commercial or scientific experience; and b) payments for the use or right to use industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on or has carried on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides or has provided 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, are indeed associated with such a permanent establishment or fixed base. In this 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 the payer is a resident of that State. However, if the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has or has had in a Contracting State a permanent establishment or permanent base with which the obligation to pay royalties is associated, and such royalties are associated with such permanent establishment or permanent base, then such royalties shall be deemed to have originated in the State in which which is or has been a permanent establishment or permanent base. 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 for which they are 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 Article shall apply only to the last mentioned amount. In such a case, the excess part of the payments will continue to be taxed in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention. 7. If, in any Convention for the Avoidance of Double Taxation concluded by Kazakhstan with a third State that is a member of the Organization for Economic Cooperation and Development (OECD), Kazakhstan agrees to exempt any royalties referred to in paragraph 2 arising in Kazakhstan from the Kazakh royalty tax or to limit the tax rate stipulated in this paragraph, then such exemption or a lower The rate will be automatically applied to any such royalties as if it were defined in this Article.

Article 13 Property value increase 1. Income earned by a resident of a Contracting State from the alienation of immovable property referred to 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 alienation: a) shares other than shares that are traded on a substantial and regular basis on an officially recognized stock exchange, which derive their value or most of their value directly or indirectly from immovable property located in another Contracting State, or b) shares in a partnership whose property consists mainly of immovable property located in another Contracting State. in the other Contracting State, or of the shares referred to in subparagraph (a) above, may be taxed in that other 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 or had 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, including such income from the alienation of such permanent establishment (one or together 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 or aircraft operated in international traffic or from the alienation of movable property pertaining to the operation of such ships or aircraft shall be taxable only in that Contracting State. With respect to the proceeds from alienation received by the Scandinavian Airlines System (SAS) air transport consortium, the provisions of this paragraph apply only to the share of income that relates to the ownership in this consortium of AB Aerotransport (AVA), the Swedish partner of the Scandinavian Airlines System (SAS). 5. Gains from the alienation of any property not mentioned in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident. 6. Notwithstanding the provisions of paragraph 5, gains from the alienation of shares or other corporate rights of a company that is a resident of one of the Contracting States derived by an individual who was a resident of that State and who became a resident of the other Contracting State may be taxed in the first-mentioned State if the alienation of shares or other corporate rights took place at any time the time during the ten years following the date when the individual ceased to be a resident of the first-mentioned State.

Article 14 Independent personal services 1. Income earned by an individual who is 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, except in the case when he has or has had a regularly accessible permanent base in the other Contracting State for carrying out his activities. If it has or has had such a permanent base, the income may be taxed in another State, but only in that part of it that relates to or was related to this permanent base. 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or pedagogical activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.

 Article 15 Dependent personal services 1. Subject to the provisions of Articles 16, 18 and 19, 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, except in cases where the employment is performed or has been performed in the other Contracting State. If an employment is performed or has been performed in this way, the remuneration received for that work may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: a) the recipient is or has been in another State for a period or periods not exceeding a total of 183 days in any 12-month period beginning or ending in the fiscal year in question; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State; and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has or has had in another State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State. If a Swedish resident receives remuneration in respect of employment performed on board an aircraft operated in international traffic by the Scandinavian Airlines System Consortium (SAS), such remuneration is taxable only in Sweden.

 Article 16 Directors' fees Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or other similar body of a company which 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, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities carried on in the other Contracting State, may be taxed in that other State.. 2. Where income in respect of personal employment performed by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman were carried on.

 Article 18 Pensions, annuities and similar payments 1. Pensions and other similar remuneration, payments under social insurance legislation and annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in the first-mentioned Contracting State. 2. The term "annuity" means a fixed amount to be paid periodically at a fixed time during life or for a specific or fixed period of time, under an obligation to make payments in exchange for appropriate and full monetary or equivalent remuneration.

 Article 19 Public service 1. (a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to an individual in respect of services rendered to that State or a political subdivision or local authority thereof shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other 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 providing services. 2. The provisions of Articles 15 and 16 shall apply to remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof.

Article 20 Students and interns Payments received by a student or trainee who is or was immediately prior to arrival in a Contracting State a resident of the other Contracting State and is located in the first-mentioned State solely for the purpose of his studies or internships, and intended for residence, study or internship, shall not be taxed in that State, provided that such payments arise from sources, located outside this State.

Article 21 Other income 1. The income of a resident of a Contracting State, wherever it arises, not mentioned in the preceding articles of this Convention, shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 if the person receiving such income, being a resident of a Contracting State, carries on or has carried on business in the other Contracting State through a permanent establishment located there or provides or has provided independent personal services in that other State through the permanent base located there and the rights or property in respect of which such income is paid, indeed, they are 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.

Article 22 Elimination of double taxation 1. In the case of Kazakhstan, double taxation is eliminated as follows: a) If a resident of Kazakhstan earns income that, according to the provisions of this Convention, can be taxed in Sweden, Kazakhstan will allow deduction from the income tax of this resident an amount equal to the income tax paid in Sweden. This deduction, however, should not exceed the portion of income tax that is calculated before the deduction is granted, and which relates, depending on the circumstances, to income that may be taxed in Sweden. (b) If a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, is taxable only in Sweden, Kazakhstan may include that income in the tax base, but only for the purpose of determining the tax rate on such other income as is taxable in Kazakhstan. 2. In the case of Sweden, double taxation will be eliminated as follows: a) If a resident of Sweden earns income that, under the laws of Kazakhstan and in accordance with the provisions of this Convention, can be taxed in Kazakhstan, Sweden will allow, in accordance with the provisions of Swedish legislation regarding the offset of foreign taxes (although they may change from time to time, without changing its basic principle), a deduction from the tax on such income an amount equal to the Kazakh tax paid in respect of such income. (b) If a resident of Sweden earns income that, in accordance with the provisions of this Convention, is taxable only in Kazakhstan, Sweden may, when establishing the graduated Swedish tax rate, take into account income that is taxable only in Kazakhstan. (c) Notwithstanding the provisions of subparagraph (a) of this paragraph, dividends paid by a company that is a resident of Kazakhstan to a company that is a resident of Sweden are exempt from Swedish tax in accordance with the provisions of Swedish law granting tax exemption on dividends paid to Swedish companies by subsidiaries from abroad.

 Article 23 Non-discrimination 1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation that is different or more burdensome than the taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances. This provision, notwithstanding the provisions of Article 1, also applies to persons who are not residents of one or both of the Contracting States. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in the same activity. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State for the purpose of determining the taxable profits of such enterprise shall be deductible on the same terms as if they had been paid to a resident of the first the mentioned State. Similarly, any debts owed by an enterprise of a Contracting State to a resident of the other Contracting State will, for the purpose of determining the taxable capital of such enterprise, be deducted on the same terms as if they were owed to a resident of the first-mentioned State. 4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subject in the first-mentioned State to taxation or related obligations more burdensome than taxation and related obligations to which other similar enterprises of the first-mentioned State are or may be subject.. 5. Nothing contained in this article shall be interpreted as obliging each Contracting State to grant to residents of the other Contracting State any personal allowances, exemptions and reductions for tax purposes based on civil status or family obligations that are granted to its residents. 6. The provisions of this Article, notwithstanding the provisions of Article 2, shall apply to taxes of any kind and nature.

 Article 24 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 national legislation of those States, submit his case to the competent authority of the Contracting State of which he is a resident, or, if his case falls under the under paragraph 1 of Article 23, of the Contracting State of which he is a national. The case must be submitted for consideration 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 shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States may communicate directly with each other for the purpose of reaching an agreement within the meaning of the preceding paragraphs.

 Article 25 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 relating to 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 should use the information only for these purposes. They may disclose information during an open court session or when making court decisions. 2. In no case will the provisions of paragraph 1 be interpreted as imposing an obligation on the Contracting States: (a) Apply administrative measures that differ from the legislation and administrative practices of that or another Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or the other Contracting State; c) provide information that would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (public order).

Article 26 Diplomatic agents and consular staff Nothing in this Convention affects the fiscal privileges of diplomatic missions and consular staff or employees of consular missions granted by the general rules of international law or in accordance with the provisions of special agreements.

Article 27 Limitation of benefits 1. Notwithstanding any provisions of this Convention, when (a) a company which is a resident of a Contracting State derives its income mainly from other States: (i) from activities such as banking, shipping, lending or insurance; or (ii) from acting as a headquarters, coordination center, or similar organization providing administrative services or other support to a group of companies that conduct business primarily in other Countries; and b) if it were not for the application of the double taxation method normally used by that State, such income would result in significantly lower taxes under the laws of that State than income from similar activities carried out within that State or from acting as a headquarters, coordination center or similar organization providing administrative services or other support to a group of companies carrying on business in that State, as appropriate, any provisions of this Convention, The tax exemption or reduction provisions do not apply to the income of such company and the dividends paid by such company. 2. The provisions of Article 11 shall not apply if the main purpose or one of the main purposes of any person connected with the formation or assignment of debt obligations in respect of which interest is paid was to obtain the opportunity to use Article 11 by creating such debt obligation or assigning it. 3. The provisions of Article 12 shall not apply if the main purpose or one of the main purposes of any person involved in the creation or assignment of rights in respect of which royalties are paid is to benefit from Article 12 through such creation or assignment. 4. It is agreed that when a Contracting State intends to waive the benefits of the Convention to a resident of the other Contracting State in the application of paragraphs 1, 2 or 3 of this Article, the competent authorities of the first Contracting State will consult with the competent authorities of the other Contracting State.

 Article 28 Entry into force 1. Each Contracting State shall notify the other of the completion of the procedures required by its legislation for the entry into force of this Convention. 2. The Convention will enter into force on the 30th day after the receipt of the last of these notifications and will apply thereafter.: (a) Withholding taxes in respect of amounts payable or deductible on or after the first of January of the year following the entry into force of the Convention; (b) Other taxes in respect of tax years beginning on or after the first of January following the entry into force of the Convention.

 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 through diplomatic channels by sending a written notice of termination no later than 6 months before the end of any calendar year after the expiration of a period of 5 years after the date of its entry into force. In this case, the Convention is terminated.: a) withholding taxes in respect of amounts paid or deductible on or after the first of January of the year following the one in which the termination notice was sent; b) for other taxes, in respect of tax years beginning on or after the first of January following the one in which the notice of termination was sent. In witness whereof, the undersigned representatives, duly authorized thereto by their respective Governments, have signed this Convention. Done in Moscow, March 19th, 1997, in the Kazakh, Swedish, English and Russian languages, all texts are equally authentic. In case of discrepancies between the texts, the English text will be decisive.

President

Republic of Kazakhstan

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