On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Property and its Protocol
The Law of the Republic of Kazakhstan dated December 15, 2010 No. 361-IV
To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Property and its Protocol, signed in Astana on November 6, 2006.
President of the Republic of Kazakhstan N. Nazarbayev
Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Property
(Bulletin of International Treaties of the Republic of Kazakhstan, 2011, No. 2, Article 20) (Entered into force on January 19, 2011)
The Government of the Republic of Kazakhstan and the Government of the Republic of Armenia, desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Property, have agreed as follows:
Article 1
Persons to whom the Convention applies
This Convention applies to persons who are residents of one or both States.
Article 2
Taxes covered by the Convention
1. This Convention applies to taxes on income and on property levied on behalf of a State, its central or local authorities, regardless of the method of their collection. 2. Income and property taxes are all types of taxes levied on the total amount of income, on the total amount of property or on individual elements of income or property, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of wages or salaries paid by enterprises, as well as taxes on property value increase. 3 1. This Convention applies to taxes on income and on property levied on behalf of a State, its central or local authorities, regardless of the method of their collection. 2. Income and property taxes are all types of taxes levied on the total amount of income, one total amount of property or on individual elements of income or property, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of wages or salaries paid by enterprises, as well as taxes on property value increase. 3. The existing taxes to which this Convention applies are in particular: in the Republic of Kazakhstan: a) corporate income tax; b) individual income tax; c) property tax; (hereinafter referred to as "Kazakhstan taxes"); in the Republic of Armenia: a) income tax; b) income tax; c) property tax; (hereinafter referred to as "Armenian taxes"). 4. This Convention shall also apply to any taxes identical or substantially similar to onvention shall also apply to any taxes identical or substantially similar to those referred to in paragraph 3 of this article which are imposed in addition to or in place of existing taxes after the date of entry into force of this Convention. The competent authorities of the States will notify each other of any significant changes that will occur in the national laws of the States concerning taxation.
Article 3
General definitions
1. For the purposes of this Convention, the following terms apply: a) "Kazakhstan" means the Republic of Kazakhstan and, when used in a geographical sense, includes the State territory of the Republic of Kazakhstan and the zones in which the Republic of Kazakhstan can exercise its sovereign rights and jurisdiction, in accordance with its national legislation and international treaties to which it is a party.; (b) "Armenia" means the Republic of Armenia and, when used geographically, means the territory, including land, waters, subsoil and airspace, in which the Republic of Armenia exercises its sovereign rights and jurisdiction in accordance with national and international law; (c) "State" means, depending on the context, Kazakhstan or Armenia; d) "person" - includes an individual, a company and any other association of persons; (e) "Company" means any corporate entity or any economic unit that is considered a corporate entity for tax purposes; (f) "enterprise" means any type of business activity; (g) "enterprise of a State" and "enterprise of another State" mean, respectively, an enterprise operated by a resident of the State, and an enterprise operated by a resident of another State; (H) "I(H) "International carriage" means any carriage by sea, aircraft, or road operated by an enterprise of a State, except in cases where the ship, aircraft, or road transport is operated exclusively between locations in another State; (i) "Competent authority" means: (i) in Kazakhstan: the Ministry of Finance of the Republic of Kazakhstan or its authorized representative; (ii) in Armenia: the Minister of Finance and Economy of the Republic of Armenia and the Head of the State Tax Service under the Government of the Republic of Armenia or(ii) in Armenia: the Minister of Finance and Economy of the Republic of Armenia and the Head of the State Tax Service under the Government of the Republic of Armenia or their authorized representatives; j) "national person" means: (i) an individual who has the nationality of the State; (ii) a legal entity, partnership or association that has obtained its status in accordance with the national legislation of the State; (k) "entrepreneurial activity" includes the provision of professional services and other activities of an independent nature; l) "place of effective management" means the place where the main management is carried out and strategic commercial decisions are made necessary for the conduct of business activities of a legal entity. 2. In the application of this Convention, any term not defined therein will have the meaning, unless the context otherwise requires, that it has at that time under the national law of the State in respect of taxes to which this Convention applies. Any meaning of the term under the applicable tax legislation of the State prevails over the meaning given to the term under other laws of that State.
Article 4
The resident
1. For the purposes of this Convention, the term "resident of a State" means any person who, under the national law of that State, is liable to tax there on the basis of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature. The term "resident of the State" also includes the State itself, its central or local authorities, or the Central (National) Bank of the State. Persons who are subject to taxation in a State only in respect of income from sources in that State or in respect of property located there are not residents. 2. If, in accordance with the provisions of paragraph 1 of this article, an individual is a resident of both States, his status shall be determined as follows: a) he is considered a resident only of the State in which he has a permanent home available to him.; if he has a permanent home available to him in both States, he is considered a resident only of the State in which he has closer personal and economic relations (center of vital interests); b) if the State in which he has a center of vital interests cannot be determined, or if he does not have an existing in his use of a permanent home in any of the States, he is considered a resident only of the State in which he usually resides.; (c) If he has his habitual residence in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) If the resident status cannot be determined in accordance with subparagraphs (a) to (c), the competent authorities of the States shall decide on the matter by mutual agreement. 3. If, in accordance with the provisions of paragraph 1 of this article, a person other than an individual is a resident of both States, he shall be deemed to be a resident only of the State in which his place of effective management is located.
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) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, an oil or gas well, a quarry, an installation, a structure or any other place of exploration (including a ship) or extraction of natural resources. 3. A construction site or a construction, installation, or assembly facility forms a permanent establishment only if such a site or facility exists for more than 6 months in any twelve-month period. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: a) the use of facilities solely for the purpose of storing, delivering or displaying goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purposes of storage, delivery or display; (c) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or collecting information for the enterprise;) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2 of this article, if the person is other than an agent with an independent status to whom paragraph 6 of this article applies, - acts on behalf of an enterprise and has, and usually uses, the authority in a State to conclude contracts on behalf of the enterprise, that enterprise is considered to have a permanent establishment in that State in respect of any activity that that person undertakes for the enterprise, unless its activities are limited to those activities referred to in paragraph 4 of this article, 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 is not considered to have a permanent establishment in a State simply because it carries out business activities in that State through a broker, commission agent or any other agent with an independent status, provided that such persons act within the framework of their normal activities. 7. The fact that a company that is a resident of a State controls or is controlled by a company that is a resident of another State or that carries out business activities in that other State (either through a permanent establishment or otherwise) does not transform one of these companies into a permanent establishment of the other.
Article 6
Income from real estate
1. Income earned by a resident of a State from immovable property (including income from agriculture or forestry) located in another State may be taxed in that other State. 2. The term "immovable property" has the meaning that it has in accordance with the national legislation of the State in which the property in question is located. The term, in any case, includes property auxiliary to immovable property; livestock and equipment used in agriculture and forestry; land use and land ownership rights; usufruct of immovable property and rights to variable or fixed payments as compensation for the development or for the right to develop mineral resources, springs and other natural resources. Ships, aircraft, or road transport are not considered as immovable property. 3. The provisions of paragraph 1 of this article 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 of this article shall also apply to income from immovable property of an enterprise.
Article 7
Profit from business activities
1. The profits of a State enterprise are taxable only in that State, unless the enterprise carries out or has carried out business activities in another State through a permanent establishment located there. If an enterprise carries on or has carried on business in another State, the profits of the enterprise may be taxed in that other State, but only in so far as they relate to: (a) Such permanent establishment; (b) Sales in that other State of goods or merchandise that are identical to goods or merchandise sold through a permanent establishment; or (c) other business activities carried on in that other State that are identical in nature to business activities carried on through such a permanent establishment. 2. Subject to the provisions of paragraph 3 of this article, if an enterprise of a State carries on business in another State through a permanent establishment located there, then in each of the States this permanent establishment includes the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, under the same conditions. or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. When determining the profit of a permanent establishment, it is allowed to deduct documented expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. A permanent establishment is not entitled to deduct from the tax base the amounts paid by the permanent establishment to the enterprise (other than compensation for expenses incurred): a) in the form of royalties, royalties and other payments for the use of patents or other rights; b) in the form of commissions for services or for management; c) in the form of interest on a loan provided to him by the enterprise (except for banks). The profit of a permanent establishment should not include amounts (other than compensation for expenses incurred) received by the permanent establishment from the enterprise.: a) in the form of royalties, fees and other payments for the use of patents or other rights; b) in the form of commissions for services provided or for management; c) in the form of interest on a loan provided by him to an enterprise (with the exception of banks). 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 of this article, profits attributable to a permanent establishment are determined in the same way annually, unless there are sufficient and compelling reasons to change this procedure.
Article 8
Income from international transportation
1. Income earned by a resident of a State from the operation in international transportation of vehicles specified in subparagraph (H) of paragraph 1 of Article 3 of this Convention shall be taxable only in that State. 2. The income of a resident of a State from the rental of vehicles specified in subparagraph (H) of paragraph 1 of Article 3 of this Convention, as well as containers and related equipment for their operation in international traffic, shall be taxable only in that State. 3. The provisions of paragraphs 1 and 2 of this article shall also apply to income earned by a resident of a State from his participation in joint activities for the operation of vehicles, but only with respect to that part of the income that relates to his share in joint activities.
Article 9
Associated companies
1. If: a) an enterprise of a State participates directly or indirectly in the management, control or capital of an enterprise of another State, or b) the same persons directly or indirectly participate in the management, control or capital of an enterprise of a State and an enterprise of another State, and in each case conditions are created or established between the two enterprises in their commercial or financial relations, other than those that would take place between two independent enterprises, then any profit that could be credited to one of them, but due to these conditions, it was not credited to him, it can be included in the profit of this enterprise and, accordingly, taxed. 2. If a State includes in the profits of an enterprise of that State and, accordingly, taxes the profits for which an enterprise of another State is taxed in that other State, and the profits thus included are profits that would be accrued to an enterprise of the first-mentioned State if the relationship between the two enterprises were such as exists between independent enterprises, then this other State will make an appropriate adjustment to the amount of tax levied on such profits. In determining such an adjustment, the other provisions of this Convention should be taken into account and the competent authorities of the States should consult with each other, if necessary.
Article 10
Dividends
1. Dividends paid by a company that is a resident of a State to a resident of another State may be taxed in that other State. 2. However, such dividends may also be taxed in the State of which the company paying the dividends is a resident, in accordance with the national legislation of that State, but if the actual owner of the dividends is a resident of another State, the tax so charged should not exceed 10 percent of the total amount of the dividends. The provisions of this paragraph shall not affect the taxation of the company in respect of profits from which dividends are paid. 3. The term "dividends", as used in this Convention, 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 national legislation of the State in which the company is a resident., distributing profits. 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the actual owner of the dividends, who is a resident of the State, carries out business activities in another State, of which the company paying the dividends is a resident, through a permanent establishment located there, and the holding company or participation in connection with which the dividends are paid is actually associated with such a permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 5. If a company that is a resident of a State receives profits or income from another State, that other State shall not levy any tax on dividends paid by that company, except in cases where such dividends paid to a resident of that other State are actually related to a permanent establishment located in that other State and cannot levy on undistributed the company's profits are taxed on retained earnings, even if the dividends paid or retained earnings consist entirely or partially of income, formed in this other State. 6. Nothing in this Convention may prevent a State from taxing the profits of a company resident in another State relating to a permanent establishment located in that State in addition to the tax that is levied on the profits of a company that is a national of that State, provided that any additional tax so assessed does not it will exceed 5 percent of the amount of such profit, which was not subject to such additional taxation in previous taxable years. For the purposes of this paragraph, profits are determined after deducting from them all taxes other than the additional tax referred to in this paragraph levied in the State in which the permanent establishment is located.
Article 11
Percentages
1. Interest arising in a State and paid to a resident of another State may be taxed in that other State. 2. However, such interest may also be taxed in the State in which it arises and in accordance with the national legislation of that State, but if the recipient, being the actual owner of the interest, is a resident of another State, the tax so charged should not exceed 10 percent of the total amount of interest. 3. Notwithstanding the provisions of paragraph 2 of this article, interest incurred in a State shall be exempt from taxation in that State if it is owed and received by another State, its central or local authorities, or the Central (National) Bank of that other State, or any other similar organization that may be subsequently agreed between the competent authorities. States. 4. The term "interest", as used in this Convention, 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, bonds, or debentures. Penalties for late payments are not considered as interest for the purposes of this article. 5. The provisions of paragraphs 1 and 2 of this article shall not apply if the actual owner of the interest, who is a resident of the State, carries out business activities in another State in which the interest arises through a permanent establishment located there and the debt claim in respect of which the interest is being paid is actually connected with such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 6. Interest is considered to arise in a 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 the State or not, has a permanent establishment in the State in connection with which the debt on which the interest is paid has arisen, and such interest is paid by such permanent establishment, then such interest is considered to arise in the State in which it is located. such a permanent establishment. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In this case, the excess part of the payment is subject to taxation in accordance with the national legislation of each 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 these debt claims.
Article 12
Royalties
1. Royalties arising in a State and paid to a resident of another State may be taxed in that other State. 2. However, such royalties may also be taxed in the State in which they arise and in accordance with the national legislation of that State, but if the recipient, being the actual owner of the royalties, is a resident of another State, the tax so charged should not exceed 10 percent of the total amount of 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 software, cinematographic films, as well as any products used for broadcasting, television or mass consumption, any patent, trademark, design or model, plan, secret formula or process, or for information related to industrial, commercial or scientific experience, and payments for the use or grant of the right to use industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the actual owner of the royalties, who is a resident of the State, carries out business activities in another State in which the royalties originated through a permanent establishment located there and the right or property in respect of which the royalties are paid is actually connected with such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 5. Royalties are considered to arise in a State if the payer is a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of the State or not, has a permanent establishment in the State in connection with which the obligation to pay royalties has arisen, and such royalties are paid by this permanent establishment, then such royalties are considered to have arisen in the State in which the permanent establishment is located. 6. If, as a result of a special relationship between the payer and the actual owner of the royalty or between both of them and any other person, the amount of the royalty relating to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalty in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the payment is subject to taxation in accordance with the national legislation of each 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 alienation of property
1. Income earned by a resident of a State from the alienation of immovable property as defined in article 6 of this Convention and located in another State may be taxed in that other State. 2. Income earned by a resident of a State from the alienation of shares that receive more than 50 percent of their value directly or indirectly from immovable property located in another State may be taxed in that other State. 3. Income earned by a resident of a State from the alienation of movable property forming part of the business property of a permanent establishment that an enterprise of the State has in another State, including income from the alienation of such a permanent establishment (separately or in combination with the entire enterprise), may be taxed in that other State. 4. Income earned by a resident of a State from the alienation of ships, aircraft, or motor vehicles operated in international transportation, or movable property related to the operation of such ships, aircraft, or motor vehicles, is taxable only in that State. 5. Income from the alienation of any property other than that referred to in the preceding paragraphs of this article is taxable only in the State of which the person alienating the property is a resident.
Article 14
Income from employment
1. Subject to the provisions of articles 15, 17, and 18 of this Convention, salaries and other similar remuneration earned by a resident of a State in connection with an employment shall be taxable only in that State, unless the employment is performed in another State. If the employment is performed in another State, remuneration received in connection with the performance of the employment may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1 of this article, remuneration received by a resident of a State in connection with an employment performed in another 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 in any twelve-month period beginning or ending in the relevant tax year; and (b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and c) the remuneration costs are not borne by a permanent establishment that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration received in respect of an employment performed on board a ship, aircraft or road transport operated by a resident of a State in international traffic may be taxed in that State.
Article 15
Directors' fees
Directors' fees and other similar payments received by a resident of a State as a member of the board of directors or a similar body of a company that is a resident of another State may be taxed in that other State.
Article 16
Artists and athletes
1. Notwithstanding the provisions of article 14 of this Convention, income earned by a resident of a State as an artist, such as a theater, film, radio or television artist, or a musician, or as an athlete from his personal activities carried out in another State, may be taxed in that other State. 2. If income from personal activities carried out by an art worker or athlete in this capacity is accrued not to the art worker or athlete himself, but to another person, this income may, notwithstanding the provisions of articles 7 and 14 of this Convention, be taxed in the State in which the art worker or athlete's activities are carried out.
Article 17
Pensions and other similar payments
In accordance with the provisions of paragraph 2 of article 18 of this Convention, pensions and other similar payments paid for past work to a resident of a State are taxable only in that State.
Article 18
Public service
1. Salaries and other similar remuneration, other than a pension, paid by the State or its central or local authorities to an individual for services performed for that State or its central or local authorities, shall be taxable only in that State. However, such wages and other similar remuneration are taxable only in another State if the service is performed in that other State and an individual who is a resident of that other State: (a) is a national of that other State; or (b) has not become a resident of that other State solely for the purpose of performing his service. 2. Any pension paid by the State or its central or local authorities, or from funds created by them, to an individual for service performed for that State or its central or local authorities, is taxable only in that State. However, such a pension is taxable only in another State if the individual is a resident and a citizen of that other State. 3. The provisions of articles 14, 15, 16 and 17 of this Convention shall apply to salaries, salaries and other similar remuneration, and to pensions, in respect of services related to business activities carried out by the State or its central or local authorities.
Article 19
Students
Payments that a student or intern who is or was a resident of another State immediately before arriving in the State and is located in the first-mentioned State solely for the purpose of obtaining education or internship receives for the purposes of his maintenance, education or internship are not taxable in that State, provided that the sources of these amounts are outside of this State.
Article 20 Other income
1. The types of income of a resident of a State, regardless of the source of their origin, which are not mentioned in the previous articles of this Convention, are taxable only in that State. 2. The provisions of paragraph 1 of this article shall not apply to income other than income from immovable property defined in paragraph 2 of article 6 of this Convention, if the recipient of such income, being a resident of a State, carries out business activities in another State through a permanent establishment located in it, and the right or property in connection with which the income is received indeed, they are associated with such a permanent institution. In such a case, the provisions of article 7 of this Convention shall apply.
Article 21 Property
1. Property represented by immovable property referred to in article 6 of this Convention, owned by a resident of a State and located in another State, is taxable only in that other State. 2. Property represented by movable property forming part of the business property of a permanent establishment, which an enterprise of a State has in another State, shall be taxed in that other State. 3. Property represented by ships, aircraft, or motor vehicles operated by a resident of a State in international traffic, and movable property related to the operation of such ships, aircraft, or motor vehicles, is taxable only in that State. 4. All other elements of the property of a resident of a State are taxable only in that State.
Article 22
Elimination of double taxation
1. If a resident of a State receives income or owns property that, according to the provisions of this Convention, may be taxed in another State, the first-mentioned State will allow: a) deduct from the income tax of that resident the amount of income tax paid in that other State; b) deduct from the property tax of that resident the amount of property tax paid in that other State. These deductions, in any case, shall not exceed the portion of the income or property tax calculated before the deduction relating to income or property that may be taxed in that other State. 2. If, in accordance with any provision of this Convention, the income or property earned by a resident of a State is exempt from tax in that State, that State may nevertheless take into account the tax-exempt income or property when calculating the amount for the remainder of that resident's income or property.
Article 23
Non-discrimination
1. National persons of a State shall not be subject in another State to taxation more burdensome than taxation to which national persons of that other State are or may be subject under the same circumstances, in particular with regard to residence. This provision, notwithstanding the provisions of article 2 of this Convention, also applies to persons who are not residents of one or both States. 2. The taxation of a permanent establishment that an enterprise of a State has in another State should not be less favorable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision should not be interpreted as obliging a State to provide residents of another State with any personal tax benefits and deductions for tax purposes based on their civil status or marital status, which it provides to its residents. 3. Except in cases where the provisions of paragraph 1 of article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 of this Convention apply, interest, royalties and other payments made by an enterprise of a State to a resident of another State shall, for the purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if they were paid to a resident of the first State. the mentioned State. Similarly, any debt owed by an enterprise of a State to a resident of another State must, for the purposes of determining the taxable capital of such an enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned State. 4. Enterprises of a State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of another State should not be subject to taxation in the first-mentioned State that is more burdensome than taxation to which other similar enterprises of the first-mentioned State are or may be subject. 5. The provisions of this article, notwithstanding the provisions of Article 2, shall apply to all types of taxes.
Article 24
Mutual agreement procedure
1. If a person considers that the actions of one or both 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 laws of those States, submit his case to the competent authority of the State of which he is a resident, or, if his case falls under the the effect of paragraph 1 of Article 23 of this Convention, to the competent authority of the State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Convention. 2. The competent authority of a State shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of another State, with a view to avoiding taxation not in accordance with this Convention. Any agreement reached will be executed regardless of any time limits provided for by the national laws of the States. 3. The competent authorities of the States shall endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of this Convention. They may also consult with each other with a view to eliminating double taxation in cases not provided for in this Convention. 4. The competent authorities of the States may enter into direct contacts with each other in order to reach agreement within the meaning of the preceding paragraphs of this Convention. If it is advisable to organize an oral exchange of views in order to reach an agreement, such an exchange may take place within the framework of a meeting of a special commission consisting of representatives of the competent authorities of the States.
Article 25
Information exchange
1. The competent authorities of States shall exchange information that is subject to the provisions of this Convention or domestic legislation relating to taxes of any kind levied on behalf of States or their central or local authorities, to the extent that taxation does not conflict with this Convention. The exchange of information is not limited to articles 1 and 2. 2. Any information received by a State in accordance with paragraph 1 is considered confidential in the same way as information obtained under the domestic law of that State and is disclosed only to persons or authorities (including courts and administrative authorities) involved in the assessment or enforcement, prosecution or consideration of appeals concerning taxes specified in paragraph 1 of this article. Such persons or authorities use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions. 3. In no case should the provisions of paragraphs 1 and 2 be interpreted as imposing an obligation on the State.: (a) To take administrative measures contrary to the laws and administrative practices of that or another State; (b) To provide information that cannot be obtained under the laws or customary administrative practices of that or another 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). 4. If information is requested by a State in accordance with this article, another State shall use the information-gathering means at its disposal to obtain the requested information, even if that other State may not need such information for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but in no case will such a restriction be considered as allowing a State to refuse to provide information solely because it has no personal interest in such information. 5. In no case will the provisions of paragraph 3 be considered as allowing the State to refuse to provide information solely because the information is under the jurisdiction of a bank, other financial institution, nominee owner or a person acting in an agency or in the position of a trustee, or because such information affects the interests of a person's property.
Article 26
Tax collection assistance
1. The competent authorities of the States shall assist each other in collecting income claims. Such assistance is not limited to articles 1 and 2. The competent authorities of the States may, by mutual agreement, establish procedures for the application of this article. 2. The term "income claim" used in this article means the amount due in respect of taxes of any kind levied on behalf of States or their central or local authorities, to the extent that taxation does not contradict this Convention or any other international treaty to which they are parties, as well as interest, administrative expenses, etc. penalties and fees and security costs related to this amount. 3. If a revenue claim of a State must be fulfilled in accordance with the laws of that State and is enforced by a person who is currently unable, in accordance with the laws of that State, to prevent its collection, such revenue claim, at the request of the competent authority of another State, will be recognized for collection purposes by the competent authority of the other State. Such income claim is subject to collection by another State, in accordance with the provisions of its legislation applicable to the collection of its own taxes, as if the income claim were a revenue claim of that other State. 4. If a revenue claim of a State is a claim in respect of which that State may, in accordance with its legislation, take security measures in order to ensure collection, such revenue claim, at the request of the competent authority of that State, shall be recognized for the purpose of taking security measures by the competent authority of another State. This other State shall take security measures in respect of this income claim in accordance with the provisions of its legislation, as if this income claim were a revenue claim of this other State, even if at the time of taking such measures the income claim is not implemented in the first-mentioned State or belongs to a person who has the right to prevent its collection. 5. Notwithstanding the provisions of paragraphs 3 and 4, an income claim recognized by a State in accordance with paragraphs 3 and 4 in that State is not subject to time limits or prioritization applied to income claims in accordance with the laws of that State regarding the nature of the claim. In addition, an income claim recognized by a State in accordance with paragraphs 3 or 4 in that State does not have priority applied to that income claim under the laws of another State. 6. Court cases concerning the existence, legality, or amount of a State's income claim are not filed with the courts or administrative authorities of another State. 7. If, after the request has been sent by a State in accordance with paragraphs 3 or 4 and before another State has collected and transferred the relevant income claim to the first-mentioned State, the relevant income claim ceases to be valid.: a) in the case of a request conforming to paragraph 3, when the revenue claim of the first-mentioned State can be fulfilled in accordance with the legislation of that State and belongs to a person, which is currently unable, in accordance with the law of that State, to prevent its collection; or (b) in the case of a request pursuant to paragraph 4, where a revenue claim is a claim in respect of which that State may, in accordance with its law, take measures to preserve the amount of the revenue claim in order to ensure collection, the competent authorities of the first-mentioned States shall immediately notify the competent authorities of the other State of this fact and at the option of the other State., The first-mentioned State may suspend or withdraw its request. 8. In no case shall the provisions of this article be interpreted as imposing obligations on States.: a) to take administrative measures contrary to the legislation and administrative practice of this or another b) take measures contrary to State policy (public order);; (c) Provide assistance if the other State has not taken all appropriate measures to collect or preserve the income claim, as appropriate, in accordance with the laws of the States or administrative practices; (d) Provide assistance in cases where the administrative burden on that State is disproportionate to the benefits received by the other State.
Article 27
Employees of diplomatic missions and consular offices
Nothing in this Convention affects the tax privileges of employees of diplomatic missions and consular institutions to whom such privileges are granted by the general rules of international law or in accordance with the provisions of international treaties to which States are Parties.
Article 28 Entry into force
1. This Convention is subject to ratification and shall enter into force on the date of receipt of the last written notification that the States have completed the internal procedures necessary for its entry into force. 2. This Convention applies: (a) Taxes withheld at the source of payment in respect of amounts paid or deductible on or after 1 January of the calendar year following the year of entry into force of this Convention; and (b) Other taxes in respect of the tax period beginning on or after 1 January of the calendar year following the year of entry into force of this Convention.
Article 29
Changes and additions
By mutual agreement of the States, amendments and additions may be made to this Convention, which are formalized by separate protocols that are integral parts of this Convention. The Protocols are subject to ratification and enter into force on the date of receipt of the last written notification that the States have completed the internal procedures necessary for their entry into force.
Article 30
Termination
This Convention remains in force until one of the States terminates its operation. Any State may terminate the Convention by giving written notice of termination through diplomatic channels at least six months before the end of any calendar year following the expiration of a period of five years from the date of entry into force of this Convention. In such a case, this Convention shall cease to be in force.: (a) In respect of taxes withheld at the source of payment, in amounts payable or deductible on or after January 1 of the year following the year of written notice of termination; and (b) in respect of other taxes, for the tax period beginning on or after January 1 of the year following for the year of sending a written notice of termination of its validity.
Done in Astana on November 6, 2006, in two original copies each in Kazakh, Armenian and Russian languages. All texts have the same validity. In case of disagreement in the interpretation of the provisions of this Convention, the States will be guided by the text in Russian.
FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN OF THE REPUBLIC OF ARMENIA
Protocol to the Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of the Republic of Armenia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on Property
When signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Property, the States agreed that the following provisions form an integral part of this Convention:
With regard to paragraph 4 of article 5 of the Convention The provisions of paragraph 4 of article 5 of this Convention do not include cases of sale of goods or merchandise by an enterprise.
With respect to paragraph 2 of Article 8 of the Convention, for the purposes of paragraph 2 of Article 8 of this Convention, income from the rental of vehicles includes income from the rental of ships or aircraft with crew and motor vehicles in international traffic.
Done in Astana on November 6, 2006, in two original copies each in Kazakh, Armenian and Russian languages. All texts have the same validity. In case of disagreement in the interpretation of the provisions of this Protocol, the States will be guided by the text in Russian.
FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN OF THE REPUBLIC OF ARMENIA
The RCPI's note. The following is the text of the Convention and its Protocol in Armenian.
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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