On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria on the Avoidance of Double Taxation with respect to Taxes on Income and Capital

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On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria on the Avoidance of Double Taxation with respect to Taxes on Income and Capital

Law of the Republic of Kazakhstan dated July 9, 1998 No. 269

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria on the Avoidance of Double Taxation with respect to Taxes on Income and Capital, concluded in Almaty on November 13, 1997.

The President of the Republic of Kazakhstan application

The Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of the Republic of Bulgaria for the Avoidance of Double Taxation with respect to taxes on income and capital*

*(Bulletin of International Treaties, Agreements and Individual Legislative Acts of the Republic of Kazakhstan, 1998, No. 6, art. 55)

The Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria, wishing to conclude a Convention on the Avoidance of Double Taxation with respect to taxes on Income and capital, in confirmation of their desire to develop and deepen mutual economic relations, have agreed on the following:

Chapter 1 Scope of the Convention

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

Article 2 Taxes to which the Convention applies 1. This Convention applies to taxes on income and on capital imposed on behalf of a Contracting State or local authorities, regardless of the method of their collection. 2. Taxes on income and on capital are all types of taxes levied on total income, on total capital, or on individual elements of income or capital, including taxes on income from the alienation of movable or immovable property and taxes on total salaries and salaries paid by enterprises, as well as taxes levied on income to increase the value of the fixed capital. 3. The existing taxes to which the Convention applies are, in particular: a) in the Republic of Bulgaria: (i) General income tax; (ii) income tax; (iii) the building tax; (hereinafter referred to as the "Bulgarian Taxes"); (b) in the Republic of Kazakhstan: (i) the corporate and individual income tax; (ii) the corporate and individual property tax; (hereinafter referred to as the "Kazakhstan Tax"). 4. The Convention also applies to any similar taxes that will be levied in addition to or in place of the existing taxes after the date of signature of the Convention, as well as to any other tax, as may be determined and agreed upon by an exchange of letters between the competent authorities of the Contracting States. The competent authorities of the Contracting States shall notify each other of any significant changes that will be introduced into their existing tax legislation.

 Chapter II Definitions

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) The term "Bulgaria" means the Republic of Bulgaria and, when used in a geographical sense, means the territory and territorial sea within which it exercises its State sovereignty, as well as the continental shelf and exclusive economic zone within which it exercises sovereign rights. rights and jurisdiction in accordance with international law. (b) The term "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and 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;) the terms "Contracting State" and "other Contracting State" mean Bulgaria or Kazakhstan, depending on the context; (d) The term "person" includes an individual, a company and any other body of persons; (e) The term "company" means any corporate body or any economic unit which is treated as a corporate body for tax purposes; (f) 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; (g) The term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, partnership or association which has acquired its status on the basis of the applicable legislation of a Contracting State; (h) The term "international carriage" means any carriage by sea, air or road operated by an enterprise of a Contracting State, except when the sea, air or road transport is operated exclusively between locations in the other Contracting State; (i) The term "competent authority" means: (i) in the case of Bulgaria: the Minister of Finance or its authorized representative; (ii) in the case of Kazakhstan: the Ministry of Finance or its authorized representative. 2. As regards the application at any time of the provisions of this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that State for the purposes of taxes to which the Convention applies. Any meaning under the current tax legislation of that State will take precedence over the meaning provided for the term in other laws of that State.  

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 nationality, permanent residence, domicile, place of management, place of establishment or any other criterion of a similar nature. However, this term does not include any person who is subject to taxation in that State solely in respect of income from sources in that State or in respect of capital held therein. 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 a resident only of the State in which he has a permanent home at his disposal; if he has a permanent home belonging to him in both States, he is considered a resident of the State with which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the State in which he has an habitual abode; (c) If he has an habitual abode in both States or in neither In one of them, he is considered to be a resident of the State of which he is a citizen.; (d) If he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the State under the laws of which he was created.

Article 5

Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a fixed 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 or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: (a) A construction site or a construction or installation facility, or related observational services, only if such a site or facility has existed for more than 12 months or such services have lasted for more than 6 months; (b) an installation or structure used for the exploration of natural resources or related observational services, or a drilling rig or a vessel used for natural resource exploration only if such use lasts for more than 6 months or such services last for more than 6 months. 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 or displaying goods or wares belonging to the enterprise; (b) the maintenance of stocks of goods and wares belonging to the enterprise solely for the purpose of storing or displaying; (c) the maintenance of stocks of goods and wares owned by 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 for collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; and (f) the maintenance of a fixed place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the fixed place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, or maintains a stock of goods or merchandise belonging to the enterprise from which such goods or merchandise are regularly supplied on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity that that person undertakes for the enterprise, except, if only the activity of such a person is limited to that referred to in paragraph 4, which, if carried out through a permanent place of business, it does not make that permanent place of business a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State, or that carries on business in that other State (either through a permanent establishment or otherwise) By itself, it does not turn one of these companies into a permanent establishment of the other.

Article 6 Income from immovable property 1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop mineral resources, sources and other natural resources; marine, air and road transport are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.  

Chapter III Taxation of income

Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out business activities, as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to such a permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries 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 receive if it were an independent and separate enterprise engaged in the same or similar activities, under such circumstances under the same or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. However, such deduction is not allowed for amounts if any of them are paid (in a manner other than as reimbursement of actual expenses) by a permanent establishment to the head office of the enterprise or any of its offices in the form of royalties or other similar payments for the use of patents or other rights, or in the form of commissions for special services provided or for management, or (except in the cases of banking enterprises) in the form of interest on the amount lent by the enterprise 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. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure. 6. If profits include types of income that are specifically mentioned in other Articles of this Convention, the provisions of these Articles shall not be affected by the provisions of this Article.  

Article 8 International transport 1. Profits earned by an enterprise of a Contracting State from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in that Contracting State. 2. For the purposes of this Article, profits from the operation of sea, air or road transport will mean profits earned from the transportation of passengers, mail, livestock or goods by the mentioned means of transport, including: a) profits from rent based on the fractum of sea, air or road transport; b) profits from the use, maintenance or rental of containers, (including trailers and related container transportation equipment) used to transport goods or merchandise; if the lease, use or maintenance, as appropriate, in accordance with sub-paragraphs (a) and (b), is incidental to the operation of sea, air or road transport in international traffic. 3. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international organization for the operation of vehicles.  

Article 9 Associated companies 1. Where: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in each case, conditions are created or established between two enterprises in their commercial and financial relations that differ from those between independent enterprises, then any profit that could have been credited to one of them, but due to the presence of these conditions was not credited to him, can be included in the profit of this one. enterprises and is taxed accordingly. 2. If a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - the profits on which an enterprise of the other Contracting State is taxed in that other State and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises had been such as have developed between independent enterprises, then that other State may make appropriate adjustments to the amount of tax levied in it on this profit. In determining such an adjustment, the other provisions of this Convention should be considered, and the competent authorities of the Contracting States will consult with each other, if necessary.  

Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged will not exceed 10 percent of the total amount of the dividends. The competent authorities of the Contracting States will determine the method of applying these restrictions by mutual agreement. This paragraph does not affect the taxation of the company in respect of profits from which dividends are paid. 3. The term "dividends", when used in this Article, means income from shares or other rights that are not debt claims, income from profit-sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company is a resident, distributing profits. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there and a holding company, including in respect of which dividends are paid, it really refers to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may neither 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 in fact a permanent establishment or permanent neither tax the company's undistributed profits with a tax on undistributed profits located in this other State., even if dividends are paid or retained earnings consist wholly or partly of profits or income arising in that other State. 6. Nothing in this Convention may be interpreted as preventing a Contracting State from taxing the income of a company relating to a permanent establishment in that State in addition to the tax that is levied on the income of a company that is a resident of that State, provided that any additional tax so assessed does not exceed 10 per cent of the amount of such income. taxes that were not subject to additional taxes in the previous taxable year.  

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. The competent authorities of the Contracting States shall, by mutual agreement, determine the method of applying this restriction. 3. Notwithstanding the provisions of paragraph 2, interest incurred in a Contracting State and paid to the Government of the other Contracting State, its designated authority or local authority, or the National Bank of that other State or another financial institution wholly owned by that State, shall be exempt from tax in the first-mentioned State. 4. The term "interest", as used in this Article, means income from debt claims of any kind, secured or unsecured 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 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 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services with a permanent base located in that other State, and a debt claim in respect of which payments are made the interest really applies to such a permanent establishment or permanent base. In such a case, the provisions of Articles 7 or 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such interest arises in the State in which such a permanent establishment or permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of 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 such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention. 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 through such creation or transfer.

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 will not exceed 10 percent of the total amount of the royalties. 3. The term "royalties", as used in this Article, means payments of any kind received as remuneration for the use or for granting the rights to use any copyright in works of literature, art or science, including software, video and cinematographic films and films, films or discs for radio- any patent, trademark, design or model, plan, secret formula or process, or for the use or grant of the right to use industrial, commercial or scientific equipment, or payments for information (know-how) related to industrial, commercial or scientific experience. 4. The provisions of this Article shall also apply to payments for technical services related to the sale, use or right of use described in paragraph 3.5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there, and the right or property in respect of which royalties are paid that are actually associated with such a permanent establishment or permanent base. In such a case, the provisions of Articles 7 or 14, as the case may be, shall apply. 6. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, a local authority or a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen, and such royalties are associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in the State where in which a permanent establishment or permanent base is located. 7. If, as a result of a special relationship between the payers 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 it is paid exceeds the amount that would have been agreed between the payer and the actual owner 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 shall be taxable in accordance with the laws of each Contracting State, with due regard to 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 rights in respect of which royalties are paid was to benefit from this Article through such creation or transfer.  

Article 13 Income from the increase in the value of property 1. Income earned by a resident of a Contracting State from the alienation of immovable property 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 the alienation of: (a) shares other than shares traded on a substantial and regular basis on an officially recognized stock exchange that derive their value or most of their value directly or indirectly from immovable property located in the other Contracting State, or (b) shares in the property of persons who other than natural persons, if such property consists mainly of immovable property located in the other Contracting State or of shares referred to in subparagraph (a) above., may be taxed in this 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 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 (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State. 4. Gains from the alienation of ships, aircraft or road vehicles operated in international traffic by an enterprise of a Contracting State, or movable property related to the operation of said means of transport, shall be taxable only in that Contracting State. 5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.  

Article 14 Income from independent professional and other 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 is taxable only in that State unless he has a permanent base in the other Contracting State on a regular basis. If it has such a permanent base, the income may be taxed in another State, but only in the part that relates to this permanecle 14 Income from independent professional and other 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 is taxable only in that State unless he has a permanent base in the other Contracting State on a regular basis. If it has such a permanent base, the income may be taxed in another State, but only in the part that relates to this permanent base. 2. The term "professional services" specifically includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects and accountants.

Article 15 Income from employment 1. Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration earned by a resident of a Contracting StaArticle 15 Income from employment 1. Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration earnea resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is performed in the other Contracting State. If the employment is performed in this way, such remuneration as received from there may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuNotwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient resides in the other State for a period or periods not exceeding a total of 183 days in any 12-month period beginning and 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 another State; and c) the remuneration is not paid by a permanent establishment or a fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment performed on board a ship, aircraft or road transport operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State.

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

Article 17 Art workers 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 actiWhere income in respect of personal activities exercised 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 are exercised. 3. Notwithstanding the provisions of paragraphs 1 and 2, income referred to in this Article shall be exempt

Article 18 Pensions 1. Pensions and other similar remuneration arising in a Contracting State and paid to a resident of the other Contracting State for past employment may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, pensions and other payments made by a Contracting State under a public scheme that is part of the social insurance system of that State shall be taxable only in that State.

Article 19 Public service 1. Remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State. 2. However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State.; or (ii) has not become a resident of that State solely for the purpose of performing service. 2. The provisions of Articles 15, 16, and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof.

Article 20 Students 1. Payments that a student or trainee who is or was immediately prior to arrival in a Contracting State a resident of the other Contracting State, and who is in the first-mentioned State solely for the purpose of obtaining education or training, receives for the purpose of his residence, education or training, shall not be taxed in that State, provided that such payments they arise from sources outside this State. 2. Income earned by a student or trainee in respect of activities carried out in the Contracting State in which he is located solely for the purpose of education or training shall not be taxed in that State as long as such income does not exceed the amount of the national average salary for the previous calendar year.  

Article 21 Professors and researchers 1. Remuneration received by an individual who, immediately prior to arrival in a Contracting State, is or was a resident of the other Contracting State and who is located in the first-mentioned State for the purpose of teaching or scientific research at a recognized university, other institution of higher education or college, shall be exempt from tax in the first-mentioned State on any remuneration for such teaching or research during the a period not exceeding two years from the date of his first arrival in this State for this purpose. 2. The provisions of the above paragraph do not apply to income from teaching or research, if such activity is undertaken by an individual not in the public interest, but primarily for the private benefit of any person or persons.

 Article 22 Other income 1. Types of income of a resident of a Contracting State, regardless of where they arise, which are not considered 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 recipient of such income, being a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State with a permanent establishment located there. a permanent establishment, and the right or property in respect of which income is paid is actually associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 3. However, if such income is derived by a resident of a Contracting State from sources in that other Contracting State, such income may also be taxed in the State in which it arises and according to the laws of that State.

 Chapter IV Taxation of capital

Article 23 Capital 1. Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base available to a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State. 3. Capital represented by ships, aircraft or road vehicles operated by a resident of a Contracting State in international traffic and movable property pertaining to the operation of such means of transport shall be taxable only in that State. 4. All other elements of the capital of a resident of a Contracting State are taxable only in that State.

Chapter V Methods of eliminating double taxation

Article 24 Elimination of double taxation 1. In Bulgaria, double taxation is eliminated as follows: a) if a resident of Bulgaria receives income or owns capital that, according to the provisions of this Convention, may be taxed in Kazakhstan, Bulgaria will allow as a deduction from the tax on the income or capital of this resident an amount equal to the tax paid in Kazakhstan. Such deduction, however, will not exceed that portion of the tax or capital tax calculated prior to the deduction, which may relate to income or capital that may be taxed in Kazakhstan. (b) If, in accordance with any provisions of this Convention, the income or capital earned by a resident of Bulgaria is exempt from tax in Bulgaria, Bulgaria may nevertheless take into account the exempt amount when calculating the amount of tax on the remaining income from the resident. 2. In Kazakhstan, double taxation is eliminated as follows: If a resident of Kazakhstan receives income or owns capital that, according to the provisions of this Convention, may be taxed in Bulgaria, Kazakhstan will allow: a) how to deduct from the income tax of this resident an amount equal to the income tax paid in Bulgaria; b) how can an amount equal to the capital tax paid in Bulgaria be deducted from the capital tax of this resident?; The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be accrued on the same income in Kazakhstan at the rates applicable there.

 Chapter VI Special provisions

Article 25 Non-discrimination 1. Nationals of a Contracting State shall not be subject in the other Contracting State to taxation or related obligations other or more burdensome than taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of one or both of the Contracting States. 2. Stateless persons who are residents of a Contracting State shall not be subject in both Contracting States to any taxation or related obligation other or more burdensome than taxation and related obligations to which nationals of the State concerned are or may be subject in the same circumstances. 3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in the same activity. This provision should not be interpreted as obliging a Contracting State to provide a resident of the other Contracting State with any personal benefits, deductions and discounts for tax purposes based on civil status or family obligations that it provides to its own residents. 4. Except where the provisions of paragraph 1 of Article 9, paragraphs 7 and 8 of Article 11, or paragraphs 7 and 8 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions, as if they were paid to a resident of the first mentioned State. Similarly, any debts owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been granted to a resident of the first-mentioned State. 5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any related obligations that are other or more burdensome than taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State may be affected.  

Article 26 Mutual agreement procedure 1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States, submit his case for consideration to the competent authority of the Contracting State of which he is a resident or, if his case falls within under paragraph 1 of Article 25, of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if it considers the claim to be well-founded and if it cannot itself 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 will be executed regardless of any time restrictions under the domestic legislation of the Contracting State. 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 this Convention. They may also consult with each other to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement within the meaning of the preceding paragraphs. If it is advisable to have an oral exchange of views, such an exchange may take place within the framework of a commission consisting of representatives of the competent authorities of the Contracting States.

Article 27 Exchange of information 1. The competent authorities of the Contracting States shall exchange such information as is necessary for the implementation of the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation under them is not contrary to the Convention. The exchange of information is not limited to Article 1. Any information thus obtained by a Contracting State is considered secret, 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) engaged in the assessment or collection, enforcement or prosecution, or consideration of appeals in respect of taxes on which are 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 should the provisions of paragraph 1 be interpreted as imposing an obligation on Contracting States to: (a) take administrative measures that differ from the legislation and administrative practice of that or another Contracting State; (b) provide information that cannot be obtained under the legislation or ordinary administrative practice of that or another Contracting State.; c) provide information that will disclose any business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (public practice).

 Article 28 Members of diplomatic missions and consular posts Nothing in this Convention affects the tax privileges of members of diplomatic missions and consular posts in accordance with the general rules of international law or in accordance with the provisions of special agreements.  Protocol At the time of signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital, the Contracting States agreed on the following provisions, which form an integral part of the Convention: Regarding Article 4, paragraph 1: Any person who is a national of Bulgaria and a resident of a third country, and who receives income from sources in the Republic of Kazakhstan, will not enjoy the benefits provided for in this Convention.  

Chapter VII Final provisions

Article 29 Entry into force 1. This Convention is subject to ratification. The Contracting States will notify each other of the fulfillment of the constitutional requirements for the entry into force of this Convention. 2. The Convention shall enter into force on the date of the last of the notifications referred to in paragraph 1 and its provisions shall apply: (a) with respect to taxes levied at source to amounts of income earned on or after 1 January of the calendar year following the year in which the Convention enters into force.; and (b) In respect of other taxes on income and on capital, such taxes levied in any taxable year beginning on or after 1 January of the calendar year following the year in which the Convention enters into force.

 Article 30 Termination 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 giving notice of termination at least six months before the end of any calendar year following a period of five years from the date on which the Convention enters into force. In such a case, the Convention shall cease to apply: (a) in respect of taxes withheld at source to amounts of income earned on or after 1 January of the calendar year following the year in which notification is given; and (b) in respect of other taxes on income and capital, to such taxes levied in any taxable year., starting with or after 1.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention. Done in two copies in Almaty, on the 13th of November 1997, in the Kazakh, Bulgarian, Russian and English languages, all texts are equally authentic. In case of divergence of interpretation, the English text will be decisive.

President

Republic of Kazakhstan

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