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

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

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

The Law of the Republic of Kazakhstan dated December 30, 2019 No. 298-VI SAM.

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol, signed in Nur-Sultan on May 15, 2019.

President of the Republic of Kazakhstan

K. TOKAEV

Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Cyprus on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on January 17, 2020)

The Government of the Republic of Kazakhstan and the Government of the Republic of Cyprus, desiring to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income,

We have agreed on the following:

Article 1 Persons to whom the Convention applies

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

Article 2 Taxes covered by the Convention

1. This Convention applies to taxes on income imposed on behalf of a Contracting State or its political subdivisions, central or local authorities, regardless of the method of their collection.

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

3. The existing taxes to which this Convention applies are, in particular::

a) in Kazakhstan:

(i) corporate income tax; and

(ii) Individual income tax.

(hereinafter referred to as the "Kazakhstan Tax");

(b) In the case of the Republic of Cyprus:

(i) Income tax;

(ii) Corporate income tax;

(iii) special contributions for the Defense of the Republic;

(iv) Capital gains tax

(hereinafter referred to as the "Cyprus Tax")

4. This Convention shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to or in place of the existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes in their tax laws.

Article 3 General definitions

1. For the purposes of this Convention, unless the context otherwise requires:

(a) The terms "Contracting State" and "other Contracting State" mean Kazakhstan or Cyprus, depending on the context.;

b) the term "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, the term "Kazakhstan" includes the State territory of the Republic of Kazakhstan and the zones in which Kazakhstan exercises its sovereign rights and jurisdiction in accordance with its legislation and international treaties to which it is a party.;

(c) The term "Cyprus" means the Republic of Cyprus and, when used in a geographical sense, includes the national territory, as well as the territorial sea, any area outside the territorial sea, including adjacent zones, exclusive economic zones and the continental shelf, which are defined or may be defined in accordance with the laws of Cyprus and in accordance with international law, in particular as a zone within which Cyprus can exercise sovereign rights and jurisdiction;

d) the term "person" means an individual, a company and any other association of persons;

e) the term "company" means any corporate entity or any organization that is treated as a corporate entity for tax purposes.;

(f) The term "enterprise" applies to the conduct of any business activity;

(g) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise which is a resident of a Contracting State and an enterprise which is a resident of the other Contracting State;

(h) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise whose place of effective management is in a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State.;

(i) The term "competent authority" means:

(i) in Kazakhstan: the Ministry of Finance or its authorized representative;

(ii) in Cyprus, the Minister of Finance or an authorized representative of the Minister;

(j) The term "national", in relation to a Contracting State, means:

(i) any natural person having the nationality or nationality of that Contracting State; and

(ii) any legal person, partnership or association which has obtained such status on the basis of the applicable laws of that Contracting State;

(k) The term "business activity" includes the performance of professional services and other activities of an independent nature.

2. As regards the application of this Convention at any time by a Contracting State, any term not defined therein shall have a meaning, unless the context otherwise requires, in accordance with the laws of that Contracting State in respect of taxes to which the Convention applies, any definition of the term in accordance with the tax laws of that Contracting State shall prevail over the definition given by a term under other laws of that Contracting State.

Article 4 Residency

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that Contracting State, is liable to tax there on the basis of his domicile, registration or incorporation, residence, place of management or any other criterion of a similar nature, and also includes a Contracting State and any political subdivision, central or local authority.. However, this term does not include any person who is liable to tax in that Contracting State, only in respect of income from sources located in that Contracting State.

2. If by reason of the provisions of paragraph 1 of this article an individual is a resident of both Contracting States, then his status shall be determined as follows:

a) He shall be deemed to be a resident only of the Contracting State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident only of the Contracting State in which he has closer personal and economic relations (center of vital interests);

(b) If the Contracting 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 only of the Contracting State in which he has an habitual abode.;

(c) If he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national.;

(d) If the residence status of an individual cannot be determined in accordance with the provisions of subparagraphs (a) to (c) of this paragraph, the competent authorities of the Contracting States shall resolve the matter by mutual agreement.

3. Where by reason of the provisions of paragraph 1 of this article a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident only of the Contracting 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) place of management;

b) branch office;

c) office;

d) the factory;

e) workshop;

(f) A mine, mine, oil or gas well, quarry, installation, facility (including a drilling rig or marine vessel) or any other place of exploration or extraction of natural resources, as well as related observational services.

3. The term "permanent establishment" also includes:

a) a construction site or a construction, installation or assembly project, or any monitoring services related to such site or project for a period of more than 6 months during any twelve-month period;

(b) The provision of services, including consulting services, by a resident through employees or other personnel employed by the resident for such purposes, or through a related party, but only if activities of that nature continue (for such or a related project) within a Contracting State for a period or periods totaling more than 183 days in a twelve-month period.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" does not include:

a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise;

b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purposes of storage, display or delivery;

(c) The maintenance of a stock of goods or merchandise belonging to an enterprise solely for the purposes of processing by another enterprise;

d) the maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or collecting information for the enterprise;

(e) The maintenance of a permanent place of business solely for the purpose of carrying on any other activity for the enterprise;

(f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities referred to in subparagraphs (a) to (e) of this paragraph, provided that such activities referred to in subparagraphs (a) to (e) of this paragraph, or in the case of subparagraph (f) of this paragraph, the combined activities of the permanent place of business have preparatory or auxiliary character.

5. Paragraph 4 of this article does not apply to a fixed place of business used or maintained by an enterprise if that enterprise or an enterprise closely associated with it carries on business through that or another place in the same Contracting State and

(a) This place or another place constitutes a permanent establishment for the enterprise or an enterprise closely related to it in accordance with the provisions of this article, or

(b) The aggregate activity resulting from a combination of activities carried out by two enterprises through that location or by the same enterprise or a closely related enterprise through two locations is not of a preparatory or auxiliary nature, provided that the business activity carried out by the two enterprises through that location or by the same enterprise or a closely related With him, an enterprise across two locations represents complementary functions that are part of a common business activity.

6. Notwithstanding the provisions of paragraphs 1 and 2 of this article, but subject to the provisions of paragraph 7 of this article, if a person acts in a Contracting State on behalf of an enterprise and thus habitually enters into contracts, or habitually plays a major role in concluding contracts that are usually concluded without significant changes on the part of the enterprise, and these the contracts are valid:

a) on behalf of the enterprise, or

(b) To transfer ownership or grant the right to use property belonging to that enterprise, or which the enterprise has the right to use, or

c) for the provision of services by this enterprise,

That enterprise shall be regarded as having a permanent establishment in that Contracting State in respect of any activity which that person carries on for the enterprise, unless the activity of such person is limited to the activities referred to in paragraph 4 of this article, which, even when carried out through a permanent establishment, do not transform that permanent establishment into a permanent establishment in accordance with the provisions of the mentioned paragraph.

7. (a) Paragraph 6 does not apply if a person acting in a Contracting State on behalf of an enterprise of the other Contracting State carries on business in the first-mentioned Contracting State as an independent agent and acts on behalf of the enterprise in the ordinary course of his business. If, however, a person acts solely or almost exclusively on behalf of one or more enterprises with which he is closely related, this person should not be considered as an independent agent within the meaning of this paragraph in relation to any such enterprise.

b) For the purposes of this article, a person is closely associated with an enterprise if, based on all relevant facts and circumstances, one has control over the other, or both are under the control of the same persons or enterprises. In any case, a person should be considered as closely related to an enterprise if one directly or indirectly owns more than 50 percent of the beneficial ownership interest in the other (or, in the case of a company, more than 50 percent of the total voting and share price of the company or the beneficial ownership interest in the company), or if the other person owns directly or indirectly more than 50 percent of the beneficial ownership interest (or, in the case of a company, more than 50 percent of the total voting and share price of the company or the beneficial ownership interest in the company) in the person and the enterprise.

8. If 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 carries on business in that other Contracting State (either through a permanent establishment or otherwise), this in itself does not transform one of these companies into a permanent establishment of the other.

Article 6 Income from immovable property

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

2. The term "immovable property" is defined by the legislation of the Contracting State in which the property in question is located. Such a term, in any case, includes property auxiliary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of legislation on land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for development or the right to develop a deposit. mineral raw materials, springs, and other natural resources. Ships and aircraft 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 an enterprise of a Contracting State shall be taxable only in that Contracting State, unless that enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business as described above, profits that relate to a permanent establishment in accordance with the provisions of paragraph 2 may be taxed in that other Contracting State in so far as they relate to such permanent establishment.

2. Subject to the provisions of paragraph 3 of this article, if a resident of one Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State such permanent establishment shall include the profits that it could receive if it were a 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 profits 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 Contracting State in which the permanent establishment is located or elsewhere.

4. In cases where it is common practice in a Contracting State to determine the profits attributable to a permanent establishment on the basis of a proportional distribution of the total profits of the enterprise to its various subdivisions, nothing in paragraph 2 of this article shall prevent a Contracting State from determining taxable profits by such distribution as is customary in practice, however, the method of distribution chosen should be, corresponding to the principles of this article.

5. No profit is attributed to a permanent establishment on the basis of a simple purchase by a permanent establishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs of this article, the profits attributable to a permanent establishment are determined annually using the same method, unless there is a sufficient and compelling reason to change it.

7. If profits include types of income that are dealt with separately in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.

Article 8 International carriage

1. Profits earned by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic are taxable only in that State.

2. For the purposes of this article, profits earned from the operation of ships or aircraft in international traffic include profits earned from leasing ships or aircraft for a full-time (period or flight) or bareboat charter.

3. Profits of an enterprise of a Contracting State from the use, maintenance or rental of containers (including trailers, barges and related container transportation equipment) used for the transportation of goods or merchandise shall be taxable only in that State, except when such containers are used for the transportation of goods or merchandise exclusively between locations within the other Contracting State. states.

4. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint business activities or an international organization for the operation of vehicles.

Article 9 Associated enterprises

1. If:

(a) An enterprise of one Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

(b) The same persons are directly or indirectly involved in the management, control or capital of an enterprise of one Contracting State and an enterprise of the other Contracting State, and in any case conditions are created or established between the two enterprises in their commercial or financial relations that differ from those that would take place between two independent enterprises, then any profits that could have been credited to one of the enterprises, but due to the existence of such conditions were not credited to it, can be included in the profit of such an enterprise and, accordingly,, taxed.

2. If one Contracting State includes in the profits of an enterprise of that State and, accordingly, taxes profits in respect of which an enterprise of the other Contracting State is taxed in that other State, and thus the profits included are profits that would have accrued to an enterprise of the first-mentioned State if conditions between the two enterprises had been such that If they exist between independent entities, then this other State will make an appropriate adjustment to the amount of tax calculated 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 Contracting States should, if necessary, consult each other.

Article 10 Dividends

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

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and in accordance with the laws of that Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

a) 5 percent of the total amount of dividends, if the actual owner is a company (other than a partnership) that directly owns at least 10 percent of the capital of the company paying dividends;

b) 15 percent of the total amount of dividends in all other cases.

The provisions of this paragraph shall not affect the taxation of the profits of the company from which the dividends are paid.

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

4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the dividends, who is a resident of one 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, and the participation in respect of which the dividends are paid is actually connected with such permanent establishment.. In such a case, the provisions of article 7 of this Convention shall apply.

5. If a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not levy any tax on dividends paid by such company, except in cases where such dividends are paid to a resident of that other State or where the interest in respect of which the dividends are paid is actually connected with a permanent establishment. located in that other State, and the company's undistributed profits may not be taxed on undistributed profits., even if the dividends paid or retained earnings consist wholly or partly of profits or income arising in that other State.

6. Nothing in this Convention may be interpreted as preventing a Contracting State from imposing a special tax on the profits of a company relating to a permanent establishment in that Contracting State, in addition to the tax that could be imposed on the profits of a company that is a resident of that Contracting State, provided that any additional tax so calculated, should not exceed 5 percent of the amount of such profit. For the purposes of this paragraph, profits shall be determined after deduction of all taxes other than the additional tax referred to in this paragraph levied in the Contracting State in which the permanent establishment is located.

Article 11 Interest

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

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that Contracting State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the interest.

3. Notwithstanding the provisions of paragraph 2 of this article, interest incurred in a Contracting State shall be exempt from taxes in that Contracting State if the beneficial owner of the interest is the Government of the other Contracting State or a political subdivision, central or local authority, Central Bank or any other financial institution wholly owned by the Government of the other Contracting State.

4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in the debtor's profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on such securities, bonds, or debentures.

5. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the interest, who is a resident of one Contracting State, carries on business in the other Contracting 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 linked to such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply.

6. Interest shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting 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 in a Contracting State in connection with which the obligation to pay interest arises and the costs of such interest are borne by the permanent establishment, such interest shall be deemed to arise in the Contracting State in which the interest is incurred. in which such a permanent establishment is located.

7. If, due to a special relationship between the payer and the actual owner 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 in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned the amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

Article 12 Royalties

1. Royalties arising in one Contracting State and paid to the beneficial owner of the royalties who is a resident of the other Contracting State may be taxed only 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 Contracting State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the royalties.

3. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or rights to use any copyright in literary, artistic or scientific works, software, including cinematographic films, recordings for radio or television broadcasting, any patent, trademark, design or model, plan, a secret formula or process, or for information (know-how) related to industrial, commercial or scientific experience, and payments for the use or granting of the right to use industrial, commercial or scientific equipment. However, the term "royalties" will not include income or payments for the use or right to use ships or aircraft.

4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the royalties, who is a resident of one Contracting State, carries on business in the other Contracting State in which the royalties arise 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 shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting 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 in a Contracting State in connection with which the obligation to pay royalties arises and the costs of such royalties are borne by the permanent establishment, such royalties shall be deemed to arise in the Contracting State in which where the permanent establishment is located.

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

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 defined in Article 6 and located in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment of an enterprise of one Contracting State in the other Contracting State, including gains from the alienation of such permanent establishment (alone or in combination with the enterprise), may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such ships or aircraft shall be taxable only in the Contracting State of the enterprise.

4. Income earned by a resident of a Contracting State from the alienation of shares or comparable interests in the capital of a company deriving more than 50 percent of its value, directly or indirectly, from immovable property located in the other Contracting State may be taxed in that other Contracting State.

5. Paragraph 4 does not apply to value gains received from the sale of shares listed on a recognized stock exchange.

6. Gains from the alienation of any property other than that provided for in paragraphs 1, 2, 3 and 4 of this article shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 Income from employment

1. Subject to the provisions of articles 15, 17 and 18, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration received in connection with it may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if:

a) the recipient is in another 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 another 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 derived in respect of an employment performed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State.

Article 15 Directors' fees

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

Article 16 Artists and athletes

1. Notwithstanding the provisions of article 14 of this Convention, 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 personal activities of that resident carried on in the other Contracting State, may be taxed in that other State. Where income from personal activities exercised by an entertainer or a sportsman acting as such accrues not to the entertainer or sportsman himself but to another person, such income may, notwithstanding the provisions of article 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

2. The provisions of paragraphs 1 and 2 of this article shall not apply to income derived from activities carried out by an entertainer or sportsman in a Contracting State if his visit to that State is wholly or substantially financed from public funds of one or both Contracting States, or by a political subdivision, central or local authority. In such a case, the income is taxable only in the Contracting State of which the artist or athlete is a resident.

Article 17 Pensions

Subject to the provisions of paragraph 2 of article 18, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that State.

Article 18 Public service

1. (a) Salaries, wages and other similar remuneration paid by a Contracting State or a political subdivision, central or local authority thereof to an individual in respect of services rendered to that Contracting State or its political subdivision, central or local authority shall be taxable only in that Contracting State.

(b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in the other Contracting State and the individual is a resident of the other Contracting State.:

(i) is a national of the other Contracting State; or

(ii) has not become a resident of the other Contracting State solely for the purpose of performing such service.

2. (a) Notwithstanding the provisions of paragraph 1 of this article, pensions and other similar remuneration paid by a Contracting State or from established funds of such Contracting State, or by a political subdivision, central or local authority thereof, to an individual in respect of services rendered to that Contracting State or its subdivision, central or local authority, shall be subject to taxable only in that Contracting State.

(b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident and a national of the other Contracting State.

3. The provisions of articles 14, 15, 16 and 17 of this Convention shall apply to salaries, wages, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision, central or local authority thereof.

Article 19 Students or interns

1. Payments that a student or an intern who is or was immediately prior to arrival in one Contracting State a resident of the other Contracting State and is located in the first-mentioned Contracting State solely for the purpose of education or internship, receives for the purposes of his maintenance, education or internship, shall not be taxed in that Contracting State, provided that such payments are made from sources outside that Contracting State.

2. In respect of grants, scholarships, other similar remuneration and remuneration from employment not specified in paragraph 1 of this article, the student or trainee referred to in paragraph 1 of this article, during such study or internship, shall be entitled to the same benefits, discounts or deductions in respect of taxes granted to residents of a Contracting State. in which he resides.

Article 20 Teachers, professors, and researchers

An individual who is or was, immediately prior to arrival in one Contracting State, a resident of the other Contracting State and is present in the first-mentioned Contracting State for the primary purpose of teaching, lecturing or conducting scientific research in an educational organization or research institute of a Contracting State accredited by the Government of the first-mentioned Contracting State, shall be exempt from taxation in the first-mentioned Contracting State for a period of two years from the date of his first arrival in the first-mentioned Contracting State in respect of remuneration for such teaching, lecturing or conducting scientific research.

Article 21 Off-land activities

1. The provisions of this article shall apply notwithstanding any other provisions of this Convention.

2. An enterprise of a Contracting State operating off-land in the other Contracting State shall, subject to paragraphs 4 and 5, be deemed to be carrying on business in that other State through a permanent establishment located there.

3. The term "off-land activity", as used in this article, means activities that are carried out off-land in a Contracting State related to the exploration or exploitation of the seabed, subsurface and natural resources located in that State, and includes the installation and operation of pipes and other installations under or above the sea surface in that State.

4. The provisions of paragraph 2 shall not apply in cases where off-shore activities are carried out in the other Contracting State for a period or periods not exceeding a total of 30 days in any twelve-month period beginning or ending in the relevant financial year. For the purposes of applying this paragraph:

(a) if an enterprise of a Contracting State carrying on activities off-land in the other Contracting State is associated with another enterprise carrying on substantially similar activities off-land in that other Contracting State, the former enterprise shall be deemed to carry on all such activities of the latter enterprise, with the exception of activities that are carried on at the same time as And his own;

(b) an enterprise is considered to be related to another enterprise if one of the participants is directly or indirectly involved in the management, control or ownership of the capital of the other, or if the same person or persons are directly or indirectly involved in the management, control or ownership of the capital of both enterprises.

5. The provisions of paragraph 2 shall not apply to the supply or transportation of personnel by sea or aircraft to a place where off-shore activities are carried out, or to the operation of tugboats or anchor transport and towing vessels (AHTS) related to such activities.

6. (a) Subject to the provisions of subparagraphs (b) and (c) of this paragraph, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of employment related to off-land activities in the other Contracting State may, to the extent that such duties are performed off-land in that other State, be taxed in that other State.

(b) However, such remuneration is taxable only in the first-mentioned State if:

(i) the recipient is present in another State in connection with such employment for a period or periods not exceeding a total of 30 days in any twelve-month period beginning or ending in the relevant financial year, and

(ii) the remuneration is paid by or on behalf of an employer who is not a resident of another State, and

(iii) remuneration costs are not borne by a permanent establishment that the employer has in another State.

(c) Salaries, wages and other similar remuneration in respect of an employment performed on board a ship or aircraft operated by an enterprise of a Contracting State involved in the supply or transportation of personnel to a place where off-shore activities are carried out, or in respect of any employment performed on board tugboats or anchored transport andtugboats (AHTS) operated by an enterprise of a Contracting State in connection with such activities are taxable only in that State.

7. Income earned by an enterprise of a Contracting State from alienation:

(a) Exploration or development rights;

(b) Movable property located in the other Contracting State and used in connection with an off-land activity, as defined in paragraph 3, carried out in the other State, subject to the provisions of paragraph 2; or

(c) Shares or comparable interests deriving their value or most of their value, directly or indirectly, from such rights, or from such property, or from such rights and such property combined;

may be taxed in that other State.

In this paragraph, "exploration or development rights" means the rights to assets that will be obtained from the exploration or exploitation of the seabed, subsurface and their natural resources in another Contracting State, including rights to interest or benefits from such assets.

Article 22 Other income

1. Types of income of a resident of a Contracting State, regardless of the source of their origin, not provided for in the preceding articles of this Convention, shall be taxable only in that Contracting State.

2. The provisions of paragraph 1 of this article shall not apply to income other than income from immovable property, as defined in paragraph 2 of Article 6 of this Convention, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there and the rights or property in respect of which income is being paid, and they are indeed associated with such a permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply.

Article 23 Elimination of double taxation

1. In the case of Cyprus, double taxation is eliminated as follows:

Subject to the provisions of the tax legislation of Cyprus concerning the offset of foreign taxes, in respect of Cypriot taxes payable, in respect of any type of income received from Kazakhstan, taxes paid in accordance with the legislation of Kazakhstan and this Convention may be offset. However, the offset should not exceed that part of the Cyprus tax calculated before the offset was made, which corresponds to this type of income.

2. In the case of Kazakhstan, double taxation is eliminated as follows:

When a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, may be taxed in Cyprus, Kazakhstan will allow the deduction from the income tax of that resident of an amount equal to the tax paid in Cyprus.

However, such a deduction should in any case not exceed the portion of the tax calculated before the income deduction was submitted, depending on the case that may be taxed in Kazakhstan.

Article 24 Non-discrimination

1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation which is different or more burdensome than the taxation or related obligation to which nationals of that other State are or may be subjected in the same circumstances, in particular with respect to residency.

2. Stateless persons who are residents of a Contracting State shall not be subject in any of the Contracting States to any taxation or any related obligation that is different or more burdensome than the taxation and related obligation to which national persons of the State concerned are or may be subjected in the same circumstances, in particular, regarding residency.

3. The taxation of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision may not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State any personal tax benefits, discounts and deductions for tax purposes based on their civil status or marital status, which it grants to its residents.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 4 of Article 11 or paragraph 4 of Article 12 apply, interest, royalties and other payments made by an enterprise of one Contracting State to a resident of the other Contracting State shall, for the purposes of determining the taxable profits of such resident, be deductible on the same terms as if they were paid 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 obligation that is different or more burdensome than taxation and related obligation to which others are or may be subject. similar enterprises of the first mentioned State.

6. The provisions of this article, notwithstanding the provisions of article 2, shall apply to taxes of any kind and type.

Article 25 Mutual agreement procedure

1. If a person considers that the actions of one or both of the Contracting States result in or will result in taxation of such person not complying with the provisions of this Convention, such person may, regardless of the remedies provided for by the national legislation of those Contracting States, submit his case to the competent authority of either of the Contracting State of which he is a resident, or, if His case falls within the scope of paragraph 1 of article 24 of this Convention 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 that do not comply with the provisions of this Convention.

2. The competent authority shall endeavour, if it considers such a declaration 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 the other Contracting State with a view to avoiding taxation not in accordance with this Convention. Any agreement reached is executed regardless of any time limits provided for by the national legislation of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention.

4. The competent authorities of the Contracting States may enter into direct contacts with each other, including through joint commissions composed of themselves or their representatives, in order to reach an agreement in accordance with the preceding paragraphs of this article.

Article 26 Exchange of information

1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the administration or application of national legislation relating to taxes of any kind and description levied on behalf of the Contracting States or their political subdivisions or local authorities to the extent that taxation does not contradict this Convention. The exchange of information is not limited to articles 1 and 2.

2. Any information received by a Contracting State in accordance with paragraph 1 of this Article shall be considered confidential, as well as information received in accordance with the national legislation of that State, and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in both assessment or collection, enforcement or prosecution, or review appeals in respect of taxes referred to in paragraph 1 of this article, as well as supervision of all of the above. Such persons or authorities may use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes if such information can be used for such other purposes in accordance with the laws of both States and the competent authority of the State authorizing such use.

3. The provisions of paragraphs 1 and 2 may not be interpreted as imposing obligations on a Contracting State.:

(a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State;

(b) To provide information that cannot be obtained under the laws or in the ordinary course of the administration of that or the other Contracting State;

(c) To 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 (ordre public).

4. If information is requested by one Contracting State in accordance with this Article, the other Contracting State shall take its own measures to collect the requested information, even if such information is not required by that other State for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but such limitations cannot be interpreted as allowing a Contracting State to refuse to provide information solely because there is no intrinsic interest in such information.

5. The provisions of paragraph 3 may not be interpreted as authorizing a Contracting State to refuse to provide information solely because the holder of the information is a bank, another financial institution, a nominee holder or a person acting as an agent or attorney, or because the information concerns a person with ownership rights.

Article 27 Assistance in tax collection

1. The Contracting States shall assist each other in fulfilling income requirements. Such assistance is not limited to articles 1 and 2 of this Convention. The competent authorities of the Contracting 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 of debt owed in respect of taxes of any kind and description levied on behalf of the Contracting States or their political subdivisions, central or local authorities, to the extent that taxation does not contradict this Convention or any other act to which the Contracting States are Parties. Of the State, including interest, administrative fines and the costs of collecting or imposing interim measures related to such an amount.

3. If a revenue claim of a Contracting State is enforceable under the laws of that Contracting State and the debtor thereof is a person who, under the laws of that Contracting State, does not prevent its enforcement, such revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for enforcement purposes by the competent authority of the other Contracting State. Such income claim shall be enforced by that other Contracting State in accordance with the provisions of its legislation applicable to the compulsory collection of its own taxes, as if that income claim were a revenue claim of that other Contracting State.

4. If a revenue claim of a Contracting State is a claim in respect of which that Contracting State may, under its law, impose interim measures for the purpose of its enforcement, such revenue claim shall, at the request of the competent authority of that Contracting State, be accepted for the purpose of imposing interim measures by the competent authority of the other Contracting State. The other Contracting State shall impose interim measures of protection in respect of such income claim in accordance with the provisions of its legislation, as if the income claim were a revenue claim of that other Contracting State, even if, at the time of imposition of such measures, such income claim is not enforceable in the first-mentioned Contracting State or the debtor is a person who has the right to prevent its execution.

5. Notwithstanding the provisions of paragraphs 3 and 4 of this article, a revenue claim accepted by a Contracting State in accordance with paragraphs 3 or 4 of this Article shall not be subject in that Contracting State to temporary restrictions or to the determination of any priority applicable to the revenue claim in accordance with the laws of that Contracting State with respect to the nature of the claim. In addition, a revenue claim accepted by a Contracting State in accordance with paragraphs 3 or 4 of this Article shall not have priority in that Contracting State applicable to such revenue claim under the laws of the other Contracting State.

6. Legal actions concerning the existence, legality or amount of a revenue claim of a Contracting State shall not be initiated in a court or other administrative authorities of the other Contracting State.

7. If at any time after the request is sent by a Contracting State in accordance with paragraphs 3 or 4 of this Article and before the other Contracting State has fulfilled the relevant income claim and transferred the relevant amount to the first-mentioned Contracting State, the relevant income claim ceases to be:

(a) In the case of a request pursuant to paragraph 3 of this article, a revenue claim of the first-mentioned Contracting State that is enforceable under the laws of that Contracting State and the debtor thereof is a person who cannot, under the laws of that Contracting State, prevent its enforcement; or

(b) In the case of a request pursuant to paragraph 4 of this article, a revenue claim of the first-mentioned Contracting State in respect of which that Contracting State may, under its law, impose interim measures for the purpose of its enforcement.,

The competent authority of the first-mentioned Contracting State will immediately notify the competent authority of the other Contracting State of this fact and, at the option of the other Contracting State, the first-mentioned Contracting State will either suspend or withdraw its request.

8. The provisions of this article may not be interpreted as imposing obligations on a Contracting State.:

(a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State;

b) take measures contrary to public policy (ordre public);

(c) Provide assistance if the other Contracting State has not taken all appropriate measures to enforce or, as appropriate, impose interim measures available under its legislation or administrative practice.;

(d) To provide assistance in cases where the administrative costs to that Contracting State are disproportionate to the benefits received by the other Contracting State.

Article 28 Employees of diplomatic missions and consular institutions

Nothing in this Convention affects the tax privileges of employees of diplomatic missions and consular institutions granted by the general rules of international law or in accordance with the provisions of special international treaties.

Article 29 The right to benefits

Notwithstanding the other provisions of this Convention, benefits under this Convention shall not be granted with respect to an element of income if it is reasonable to conclude, taking into account all relevant facts and circumstances, that obtaining this benefit was one of the main purposes of any arrangement or transaction, which resulted in direct or indirect benefits, unless it is established that the provision of benefits in these circumstances was in accordance with the aims and objectives of the relevant provisions of this Convention.

Article 30 Entry into force

1. This Convention shall enter into force on the date of receipt, through diplomatic channels, of the last written notification informing the Contracting State of the completion of the internal procedures necessary for its entry into force.

2. The Convention enters into force:

a) in Kazakhstan:

(i) for taxes withheld at the source of payment in respect of income earned on or after the first of January of the calendar year following the year in which the Convention entered into force; and

(ii) for other taxes on income, in respect of taxes imposed for any tax year beginning on or after the first of January of the calendar year following the year in which the Convention enters into force.

b) in Cyprus:

(i) for taxes withheld at the source of payment in respect of amounts paid or offset starting on the first of January following the date of entry into force of this Convention; and

(ii) for other taxes, in respect of tax years beginning on the first of January following the date of entry into force of the Convention.

3. Notwithstanding the provisions of paragraph 2, the provisions of Article 27 (tax collection assistance) will not enter into force until Cyprus confirms through diplomatic channels that such assistance can be provided in accordance with its national legislation. Cyprus will provide such confirmation to Kazakhstan within six months from the date of entry into force of the relevant national law of Cyprus, and Article 27 (assistance in tax collection) will enter into force from the date on which such confirmation is sent.

Article 31 Termination

This Convention is in force without time limits, however, any Contracting State may, by June 30 inclusive of any calendar year beginning after the expiration of a period of five years from the date of entry into force, send a written notice of termination to the other Contracting State through diplomatic channels. In this case, the Convention is terminated.:

a) in Kazakhstan:

(i) for taxes withheld at the source of payment in respect of income earned on or after the first of January of the calendar year following the year of notification of termination; and

(ii) for other income and capital taxes, in respect of taxes payable for any tax year beginning on or after the first of January of the calendar year following the year of notification of termination.

b) in Cyprus:

(i) for taxes withheld at the source of payment in respect of amounts paid or offset after the end of the calendar year in which such notification is given; and

(ii) for other taxes, in respect of taxable years beginning after the end of the calendar year in which such notification is submitted.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention.

Done in duplicate in the city of Nur-Sultan on May 15, 2019, in the Kazakh, Russian, English and Greek languages, all texts are equally authentic. In the event of any disagreement in the interpretation of the provisions of this Convention, the Contracting States shall refer to the English text.

For the Government

Republic of Kazakhstan

For the Government

Republic of Cyprus

Alikhan Smailov

First Deputy

The Prime Minister

Republic of Kazakhstan -

Minister of Finance

Republic of Kazakhstan

Nikos Christodoulidis

Minister of Foreign Affairs

Republic of Cyprus

protocol

When signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, both parties agreed that this Protocol is an integral part of the Convention.:

1. Regarding article 26 "Exchange of information":

1.1 The requesting Contracting State shall provide the following information when making a request for information in accordance with Article 26 in order to demonstrate the intended significance of the information requested:

(a) identification data of the person under investigation or investigation;

(b) a statement regarding the requested information, including the nature and form in which the requesting Contracting State wishes to receive the information from the requested Contracting State;

(d) there are grounds to believe that the requested information is contained in the requested Contracting State or is in the possession or control of a person within the jurisdiction of the requested Contracting State;

(e) to the best of our knowledge, the name and address of any person who is believed to be in possession of the requested information;

(f) a statement that the request complies with the laws and administrative practices of the requesting Contracting State, and that if the requested information were in the jurisdiction of the requesting Contracting State, the competent authority of the requesting Contracting State would be able to obtain the information in accordance with the laws of the requesting Contracting State or within the framework of normal administrative practices, and that this complies with the Convention;

(g) a statement that the requesting Contracting State has exhausted all means available in its territory to obtain information, with the exception of those that would entail extreme difficulties.

1.2 Information requested by a Contracting State will not be provided until the requesting State has appropriate provisions in place on a reciprocal basis and/or has applied appropriate administrative practices to provide the requested information.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol.

Done in duplicate in the city of Nur-Sultan on May 15, 2019, in the Kazakh, Russian, English and Greek languages, all texts are equally authentic. In the event of any disagreement in the interpretation of the provisions of this Protocol, the Contracting States shall refer to the English text.

For the Government

Republic of Kazakhstan

For the Government

Republic of Cyprus

Alikhan Smailov

First Deputy

The Prime Minister

Republic of Kazakhstan -

Minister of Finance

Republic of Kazakhstan

Nikos Christodoulidis

Minister of Foreign Affairs

Republic of Cyprus

President

Republic of Kazakhstan

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