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

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

Law of the Republic of Kazakhstan dated October 4, 2013 No. 134-V

To ratify The Convention between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and its Protocol, done in Abu Dhabi on December 22, 2008.

President of the Republic of Kazakhstan N. NAZARBAYEV

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND THE GOVERNMENT OF THE UNITED ARAB EMIRATES ON THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION REGARDING INCOME TAXES

(Entered into force on November 27, 2013 - Bulletin of International Treaties of the Republic of Kazakhstan 2014, No. 1, art. 4)

The Government of the Republic of Kazakhstan and the Government of the United Arab Emirates, guided by their desire to strengthen and develop economic relations by concluding a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed as follows:

Article 1 PERSONS TO WHOM THE CONVENTION APPLIES

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

Article 2 TAXES COVERED BY THE CONVENTION

1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political or administrative subdivisions, or local authorities, or local governments, regardless of the method of their collection. 2. Income taxes are all types of taxes levied on the total amount of income or on individual elements of income, including taxes on income from the alienation of movable or immovable property, taxes on the total amount of salaries or remuneration paid by enterprises, as well as taxes on capital gains. 3. The existing taxes to which this Convention applies are, in particular: (a) in the case of the Republic of Kazakhstan: (i) corporate income tax; (ii) individual income tax (hereinafter referred to as the "Kazakhstan Tax"); (b) in the case of the United Arab Emirates: (i) income tax; and (ii) corporate tax (hereinafter referred to as "UAE Taxes"). 4. This Convention shall also apply to any identical or substantially similar taxes that are imposed by either Contracting State after the date of signature of this Convention in addition to or in place of the existing taxes referred to in paragraph 3. The competent authorities of the Contracting States shall notify each other of any significant changes that occur in their taxation 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 the Republic of Kazakhstan or the United Arab Emirates, depending on the context; (b) the term “Kazakhstan” means the Republic of Kazakhstan. When used in a geographical sense, the term “Kazakhstan” includes the State territory of the Republic of Kazakhstan and the zones in which the Republic of Kazakhstan exercises sovereign rights and jurisdiction in accordance with its national legislation and international treaties to which it is a party.; (c) the term "United Arab Emirates" means the United Arab Emirates and, when used in a geographical sense, means the space whose territory falls under their sovereignty, as well as the territorial waters, airspace and underwater space in which the United Arab Emirates operates in accordance with international law and the national legislation of the United Arab Emirates, sovereign rights, including the mainland and islands, under its jurisdiction in relation to any activity, activities related to the extraction or exploitation of natural resources; (d) the term “person“ includes an individual, a company, and any other combination of persons; (e) the term “company“ means any corporate entity or any economic unit that is treated as a corporate entity 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: in the case of any of the Contracting States, any natural person holding the nationality of a Contracting State and all legal entities, partnerships, associations or any other economic entity that has obtained its status on the basis of national legislation; (h) the term “international carriage“ means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; (i) the term “competent authority" means: (i) in the case of Kazakhstan, the Ministry of Finance or its authorized representative; and (ii) in the case of the UAE, the Ministry of Finance or its authorized representative. 2. As regards the application of this Convention by any Contracting State, any term not defined therein shall have the meaning which it has at that time under the national law of that Contracting State in respect of taxes to which this Convention applies.

Article 4 RESIDENT

1. For the purposes of this Convention, the term “resident of a Contracting State” means: (a) in the case of the Republic of Kazakhstan: The term "resident of the Republic of Kazakhstan" means any person who, according to the legislation of the Republic of Kazakhstan, is subject to taxation there on the basis of his domicile, residence, place of management, place of establishment or any other similar criterion. The term also includes the Republic of Kazakhstan and any political subdivision or local government. However, this term does not include any person who is subject to taxation in Kazakhstan only in respect of income from sources in Kazakhstan. (b) in the case of the United Arab Emirates: (i) a national of the UAE, any natural person who is considered a resident under the national legislation of the UAE, or any company and any other legal entity that operates or is established in the UAE; (ii) The Government of the United Arab Emirates or any political subdivision or local government; (iii) any government institutions established under public law, such as the Central Bank, foundations, corporations, authorities, institutions, partnerships, agencies or any similar entities established in the United Arab Emirates; 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 is deemed to be a resident 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 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 a center of vital interests cannot be determined, or if he does not If he has a permanent home at his disposal in either Contracting State, he shall be deemed to be a resident 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 of the Contracting State of which he is a national; (d) if his status cannot be determined in accordance with the provisions of subparagraphs (a) to (c). In accordance with paragraph 2 of this Article, the competent authorities of the Contracting States shall resolve this issue by mutual agreement. 3. If, by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident 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) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) a mine, oil or gas well, quarry, or any other place of extraction or exploration of natural resources, or related observational services. 3. The term ”permanent establishment“ also includes: (a) a construction site, a construction, installation or assembly facility, or services related to the supervision of these works, if such a site or facility lasts for more than 9 months; (b) the provision of services, including consulting services, by an enterprise of a Contracting State through employees or other personnel in the other Contracting State, but only if activities of this nature continue for a similar project or a related project for a period or periods not exceeding 6 months in any twelve-month period. 4. Notwithstanding the provisions of paragraphs 1 to 3 of this article, the term “permanent establishment” is not considered to 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 purpose of storage, demonstration, or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise; (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.; (f) the maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in sub-paragraphs (a) to (e) paragraph 4 of this article, inclusive, provided that the combined activities of a permanent place of business resulting from such a combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2 of this article, if a person other than an agent with an independent status to whom paragraph 6 of this article applies acts in a Contracting State on behalf of an enterprise of the other Contracting State, he shall be deemed to have a permanent establishment in the first-mentioned Contracting State if: (a) such person has and regularly exercises in the first-mentioned Contracting State the main powers to negotiate and conclude contracts for or on behalf of such enterprise, or (b) such person contains in this (first mentioned) Stocks of goods or merchandise belonging to an enterprise from which it regularly sells goods or merchandise for or on behalf of that enterprise, except for the activities of such person limited to those activities referred to in paragraph 4 of this article, which, if carried out through a permanent place of business, does not transform that permanent place of business. to 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 Contracting 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 Contracting 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 Contracting State. However, the tax levied in this way must be reduced by 50% if the actual owner of income derived from immovable property is the State itself or local authorities, political subdivisions, local government bodies or local financial institutions owned by a Contracting State. 2. The term “immovable property" has the meaning that it has under the national legislation 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 apply in relation to land ownership, the usufruct of immovable property and rights to variable or fixed payments as compensation for mining or the right to develop mineral resources. resources, sources, 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 and income from immovable property used for the provision of independent personal services. 5. The provisions of paragraph 3 will not apply if the actual owner of the income is the State itself or a local body, political subdivision, local government body or its financial institutions.

Article 7 PROFIT FROM ENTREPRENEURIAL ACTIVITY

1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business activities as mentioned above, the profits of the enterprise may be taxed in another State, but only to the extent that relates to: (a) such permanent establishment; (b) sales in that other State of goods or merchandise that are identical or similar to goods or merchandise sold through a permanent establishment; or (c) other business activities carried on in that other State that are identical or similar in nature to business activities carried on through such permanent establishment. 2. Subject to the provisions of paragraph 3 of this article, if an enterprise of a Contracting State carries on or has carried on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities. under the same or similar conditions, and acted 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. It is not allowed to deduct to a permanent establishment the amounts paid to its head office or any of the other offices of the resident by paying royalties, fees or other similar payments in return for the use of patents or other rights, or by paying commissions for specific services provided or for management, or by paying interest on the amount lent to a permanent establishment. 4. To the extent that it is common practice in a Contracting State to determine the profits attributable to a permanent establishment on the basis of the proportional distribution of the total profits of the enterprise by its various divisions, nothing in paragraph 2 of this article prevents a Contracting State from determining taxable profits by such distribution as is dictated by practice, however, the method of proportional distribution chosen should to produce results consistent with the principles contained in this article. 5. No profit should be attributed to a permanent establishment due to the mere purchase by the permanent establishment of goods or merchandise for the enterprise. 6. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way annually, unless there are sufficient and compelling reasons to change this procedure. 7. If profits include types of income that are specifically mentioned in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article.

Article 8 SEA AND AIR TRANSPORT

1. Profits earned by a resident of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State. 2. The provisions of paragraph 1 of this article shall also apply to profits earned by a resident of a Contracting State from his participation in a pool, joint venture or international transport agency. 3. In this article, the term "profit" includes: (a) the sale of passenger tickets on behalf of other businesses; (b) bus service operations related to transportation from the airport to the city; (c) advertising and commercial propaganda; (d) transportation of goods by freight transport connecting the depot to the port or airport.

Article 9 ASSOCIATED ENTERPRISES

1. If: (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 any case between the two enterprises in their commercial or financial the relationship creates or establishes conditions different from those that would take place between two independent enterprises, then any profit, which could have been credited to one of them, but was not credited to him due to these conditions, may be included in the profit of this enterprise and, accordingly, taxed. 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 Contracting State and the profits thus included are profits that would accrue to an enterprise of the first-mentioned Contracting State if the relationship between the two enterprises were such that between independent enterprises, then that other Contracting State will make an appropriate adjustment to the amount of tax levied on such profits. In determining such an adjustment, the other provisions of this Convention should be taken into account, and the competent authorities of the Contracting States should 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 Contracting State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident in accordance with the national laws of that State, but if the beneficial owner of the dividends is a company (other than a partnership) that directly owns at least 10 percent of the capital of the company paying the dividends, the tax so charged It should not exceed 5 percent of the total amount of dividends. This paragraph does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, dividends paid by a company which is a resident of a Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the dividends is: (a) in the case of Kazakhstan: (i) The Government of the Republic of Kazakhstan, a political subdivision or local authorities; (ii) The National Bank of the Republic of Kazakhstan; (iii) Samruk-Kazyna National Welfare Fund JSC; and (iv) any other such governmental financial institutions as may be agreed from time to time between the Contracting States; (b) in the case of the UAE: (i) the UAE Government, a political subdivision or local government, local government financial institutions; (ii) the UAE Central Bank; (iii) the Abu Dhabi Investment Authority Abu Dhabi; (iv) Abu Dhabi Investment Consulate; (v) Abu Dhabi Economic Development Fund; (vi) Mobadala; (vii) Holdin Dubai; (viii) Dubai World; (ix) Abu Dhabi International Oil Company; (x) any other governmental financial institutions that may be agreed from time to time between the Contracting States. 4. The term “dividends”, when used in this article, means income from shares, shares of mining enterprises, shares of founders 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 under the laws of the Contracting State of which the profit-distributing company is a resident. 5. 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 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 Contracting State from a permanent base and holding company located there, including in respect of which dividends are paid, is indeed associated with such a permanent establishment or fixed base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 6. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may not levy any tax on dividends paid by that company, except in cases where such dividends are paid to a resident of that other Contracting State or the holding company in respect of which the dividends are paid is actually affiliated with a permanent establishment. or a permanent base located in that other Contracting State, and the company's undistributed profits shall not be taxed on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of income generated in that other Contracting State. 7. Nothing in this Convention may be interpreted as preventing a Contracting State from taxing the profits of a company relating to a permanent establishment in that State in addition to the tax assessed on the profits of a company that is a national of that State, provided that any additional tax so assessed does not exceed 5 per cent. the amount of such profit that was not subject to such additional taxation in previous tax years. 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 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 in accordance with the national laws of that State, but if the recipient, being 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. The competent authorities of the Contracting States shall, by mutual agreement, determine the method of applying this restriction. 3. 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/government securities and income from bonds or debentures, including premiums and winnings. for these securities, bonds, or debentures. Penalties for late payments are not considered as interest for the purposes of this article. 4. 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 in that other State from a permanent base located there and a debt claim in respect of which interest is paid, indeed, it 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. Interest shall be deemed to arise in a Contracting State if the payer is the Government of that State, its political subdivision, local authorities 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. 6. 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 national legislation of each Contracting State, taking into account the other provisions of this Convention. 7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this article by creating or transferring these debt claims. 8. Notwithstanding the provisions of paragraph 2 of this article, interest arising in a Contracting State will be exempt from tax in that State if it is received and actually belongs to: (a) in the case of Kazakhstan: (i) The Government of the Republic of Kazakhstan, a political subdivision or a local authority; (ii) the National Bank of the Republic of Kazakhstan; (iii) Samruk-Kazyna National Welfare Fund JSC; and (iv) any other such governmental financial institutions as may be agreed from time to time between the Contracting States; (b) in the case of the UAE: (i) the UAE Government, a political subdivision or a local authority, local government financial institutions; (ii) the UAE Central Bank; (iii) the Abu Dhabi Investment Authority Abu Dhabi; (iv) Abu Dhabi Investment Consulate; (v) Abu Dhabi Economic Development Fund; (vi) Mobadala; (vii) Holdin Dubai; (viii) Dubai World; (ix) Abu Dhabi International Oil Company; (x) any other governmental financial institutions that may be agreed from time to time between the Contracting States.

Article 12 ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and in accordance with the national laws of that Contracting State, but if the recipient is the beneficial owner of the royalties and 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.: (a) for the use or for granting the right to use any copyright in works of literature or art (including cinematographic films and films, or tapes for radio or television broadcasting); and (b) for the use or rights to use, any copyright in scientific works, patent, trademark, design or model, plan, secret formula or process, or the right to use industrial, commercial or scientific equipment, or information relating to industrial, commercial or scientific experience. 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 a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the right or property, in respect of which royalties are paid, they are actually associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, a political subdivision, an administrative subdivision, a local authority or 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 or permanent base in a Contracting State in connection with which an obligation to pay royalties has arisen and such royalties are paid by that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in a Contracting State, in which a permanent establishment or permanent base is located. 6. If, as a result of a special relationship between the payer and the actual owner of the royalty or between both of them and any other person, the amount of the royalty relating to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalty in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the national legislation of each Contracting State, taking into account the other provisions of this Convention. 7. The provisions of this article shall not apply if the primary purpose or one of the primary purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid was to benefit from this article through such creation or transfer of rights.

Article 13 INCOME FROM THE INCREASE IN THE VALUE OF PROPERTY

1. Income earned by a resident of a Contracting State from the alienation of immovable property as defined in Article 6 and located in the other Contracting State may be taxed in that other Contracting State. 2. Income earned by a resident of a Contracting State from alienation: (a) shares deriving the value or most of their value directly or indirectly from immovable property located in the other Contracting State, or (b) shares in a partnership whose shares consist primarily of immovable property located in the other Contracting State or of the shares referred to in subparagraph (a) above; are taxable in that other Contracting State. 3. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, 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 Contracting State. But the tax levied in this way should be reduced by 50% of such a tax. 4. Gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State and movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State. 5. Gains from the alienation of any property other than that referred to in paragraphs 1-4 of this article shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 INDEPENDENT PERSONAL SERVICES

1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature is taxable only in that State, unless such services are provided or have been provided in the other Contracting State; and (a) income relates to a permanent base that an individual has or has had on a regular basis in the other Contracting State.; or (b) such individual is present or has been present in that other Contracting State for a period or periods exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year. In such a case, income relating to services may be taxed in that other Contracting State in accordance with principles similar to those contained in Article 7 for determining the amount of business profits and attributing business profits to a permanent establishment. 2. The term “professional services” includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, dentists, lawyers, engineers, architects and accountants.

Article 15 DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of articles 16, 17, 18, 19, 20 and 21 of this Convention, 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 Contracting State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other Contracting State. 2. Notwithstanding the provisions of paragraph 1 of this article, 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 Contracting State if: (a) the recipient is present in the other Contracting State for a period or periods not exceeding a total of 183 days in any twelve-month period of the relevant tax year; and (b) the remuneration is paid by or on behalf of the employer who is not a resident of the other Contracting State; and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in the other Contracting 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 shall be taxable in the Contracting State of which the enterprise operating the ship or aircraft is a resident. 4. Notwithstanding the provisions of paragraphs 1 and 2 of this article, the remuneration of ground staff of an airline of a Contracting State which is a national of that State and which provides services related to the operation of an aircraft in the other Contracting State shall be taxable only in the first-mentioned Contracting State.

Article 16 TEACHERS AND RESEARCHERS

An individual who was a resident of a Contracting State immediately prior to arriving in the other Contracting State at the invitation of a university, college, school or other educational institution, and who has been in that other State for a period not exceeding 3 years for the purpose of teaching or conducting research, or both, at such an educational institution, is exempt from taxation in that other State for three years in respect of any remuneration for such teaching or research work.

Article 17 STUDENTS AND INTERNS

1. A student or trainee who, immediately prior to arrival in a Contracting State, was a resident of the other Contracting State and is present in the first-mentioned Contracting State solely for the purpose of education or internship, shall be exempt from tax in that first-mentioned Contracting State on amounts paid to him by persons living outside the first-mentioned Contracting State for the purpose of education or internship. practice. 2. An individual who, immediately prior to arrival in a Contracting State, was a resident of the other Contracting State, and who is temporarily staying in the first-mentioned State for the purpose of study, research or internship as a recipient of a grant, benefit or remuneration from scientific, educational, religious or charitable organizations, or under a technical assistance program conducted by the Government of a Contracting State, from the date of his arrival in the first-mentioned State in connection with such a visit, he is exempt from taxation in that State for a period not exceeding the grant period.

Article 18 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 of a company that is a resident of the other Contracting State may be taxed in that other Contracting State.

Article 19 PENSIONS AND OTHER SIMILAR PAYMENTS

Subject to the provisions of paragraph 2 of article 20 of this Convention, pensions, annuities and other similar payments paid to a resident of a Contracting State in respect of past employment shall be taxable only in that Contracting State.

Article 20 PUBLIC SERVICE

1. (a) Remuneration, salaries and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered for that State or for its subdivisions or authorities shall be taxable only in that State. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and an individual who is a resident of that State: (i) is a national of that Contracting State; or (ii) has not become a resident of that State solely for the purpose of performing services. 2. (a) Any pension paid by a Contracting State or a political subdivision or administrative subdivision thereof, or a local authority, to an individual in respect of services rendered to that State or its subdivisions or authorities, shall be taxable only in that Contracting State. (b) Notwithstanding the provisions of subparagraph (a) of this paragraph, such pension shall be taxable only in the other Contracting State if the individual is a resident of and a national of that State. 3. The provisions of articles 15, 18 and 19 of this Convention shall apply to salaries, salaries and other similar remuneration and pensions in respect of services related to commercial activities carried on by a Contracting State or its political subdivisions or local authorities.

Article 21 ARTISTS AND ATHLETES

1. Notwithstanding the provisions of articles 14 and 15 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 musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other Contracting State.. 2. Where 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 of this Convention, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised. 3. Notwithstanding the terms of paragraphs 1 and 2 of this Article, income derived from such activities carried out under cultural agreements concluded between the Contracting States shall be mutually exempt from tax if such activities are sponsored by the Government of a Contracting State or funded by a public fund of both Contracting States and these activities are not carried out for profit.

Article 22 OTHER INCOME

1. The income of a resident of a Contracting State, regardless of its source, which is not mentioned 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 earned by a resident of a Contracting State if such resident carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State through a permanent base located there, and the right or property in connection with which the income was paid is valid it is associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.

Article 23 SPECIAL PROVISION

Notwithstanding the provisions of articles 5, 7, 13 and 22 of this Convention, any income and profits earned by a Contracting State, its political subdivision, local government or local government authority, or its financial institution, arising in the other Contracting State, including gains from the alienation of movable and immovable property located in that other State, are taxed only in the State of Residence. The list of the above-mentioned financial institutions will be agreed from time to time by the competent authorities of the Contracting States.

Article 24 METHODS OF ELIMINATING DOUBLE TAXATION

1. In the case of Kazakhstan, double taxation is eliminated as follows: (a) if a resident of Kazakhstan earns income that, in accordance with the provisions of this Convention, may be taxed in the UAE, Kazakhstan will allow the deduction from the income tax of that resident an amount equivalent to the income tax paid in the UAE. The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be accrued on such resident. the same income in Kazakhstan at current rates. (b) If a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, is taxable only in the UAE, Kazakhstan may include that income in the tax base, but only for the purpose of determining the tax rate on such other income as is taxable in Kazakhstan. 2. In the case of the United Arab Emirates: (i) if a resident of the United Arab Emirates earns income that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, the United Arab Emirates will allow the deduction from the income tax of that person an amount equivalent to the income tax paid in Kazakhstan. (ii) Such deductions shall in any event not exceed the portion of the income tax accrued prior to the provision of deductions relating to income that may be taxed in that other Contracting State. (iii) If, in accordance with any provisions of this Convention, income earned belonging to a resident of a Contracting State is exempt from taxation in that Contracting State, that Contracting State may, however, when calculating the amount of tax on the remaining income of that resident, credit the exempt income or capital. (iv) For the purposes of paragraph 1 of this article, profits, income or gains in value belonging to a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention shall be deemed to have originated in that other Contracting State.

Article 25 NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of that other State are or may be subject in the same circumstances. This provision, notwithstanding the provisions of article 1, also applies to persons who are not residents of one or both of the Contracting States. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State carrying on similar activities under the same conditions. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11 or paragraph 7 of Article 12 of this Convention 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 purposes of determining the taxable profits of such enterprise, be calculated on the same terms as they would be paid to a resident of the first mentioned Contracting State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purposes of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned Contracting State. 4. Nothing contained in this article shall be interpreted as obliging a Contracting State to grant to residents of the other Contracting State any personal tax benefits, discounts or deductions for tax purposes based on their civil status or marital status, which it grants to its residents. 5. Nothing in this Article shall be considered as imposing a legal obligation on a Contracting State granting to residents of another Contracting State preferences or privileges that may be granted to any other States or their residents on the basis of the formation of customs, economic unions, free trade zones or on the basis of any agreements related wholly or partly to taxation., according to which the first mentioned State may be a part in accordance with the practice of each Contracting State. 6. 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 Contracting State to any taxation or any obligations related thereto 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. 7. In this article, the term "taxation" means taxes of any kind and description that are the subject of this Convention.

Article 26 MUTUAL AGREEMENT PROCEDURE

1. If a resident of a Contracting State considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the national laws of those States, submit his case to the competent authority of the Contracting State of which he is a resident. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Convention. 2. The competent authority of a Contracting State shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with this Convention. Any agreement reached will be executed regardless of any time limits provided for by the national 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 the Convention. They may also consult with each other with a view to eliminating double taxation in cases not provided for in this Convention. 4. The competent authorities of the Contracting States may communicate directly with each other for the purpose of applying this Convention and reaching agreement within the meaning of the preceding paragraphs.

Article 27 EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange information that is subject to the provisions of this Convention or national legislation concerning taxes of any kind levied on behalf of the Contracting States or their central or local authorities, insofar as taxation is not contrary to this Convention. The exchange of information is not limited to articles 1 and 2 of this Convention. 2. Any information received by a Contracting State in accordance with paragraph 1 shall be considered confidential in the same way as information obtained under the national legislation of that Contracting State and shall be disclosed only to persons or authorities (including courts and administrative authorities) involved in the assessment or enforcement, prosecution or consideration of appeals concerning taxes. specified in paragraph 1 or the above-mentioned provisions of this paragraph. Such persons or authorities use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be interpreted as imposing an obligation on a Contracting State.: (a) to take administrative measures contrary to the national legislation and administrative practice of that or the other Contracting State; (b) to provide information that cannot be obtained under the national legislation or the usual administrative practice 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 government policy (public practice). 4. If information is required by a Contracting State in accordance with this Article, the other Contracting State shall use its information to achieve the required information, even if that other State may not need such information for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but in no case will such a restriction be considered as allowing a Contracting State to refuse to provide information solely because it has no intrinsic interest in such information. 5. In no case will the provisions of paragraph 3 be considered to allow a Contracting State to refuse to provide information solely because information held by a bank, other financial institution, candidate, or person acting in an organization or position of trustee, or because it relates to the person's own interests.

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 to whom such privileges are granted by the general rules of international law or in accordance with the provisions of special treaties.

Article 29 AMENDMENTS

By mutual agreement of the Contracting States, amendments and additions to this Convention may be formalized by protocols that will form an integral part of this Convention.

Article 30 ENTRY INTO FORCE

1. This Convention is subject to ratification and will enter into force on the 30th day after the date of the last notification indicating that both Contracting States have completed the procedures provided for by the national legislation of each Contracting State for its entry into force. 2. This Convention applies: (a) taxes withheld at source in respect of amounts paid or deductible on or after 1 January of the calendar year following the year of entry into force of the Convention; and (b) other taxes in respect of the taxable period beginning on or after 1 January of the calendar year following the year of entry into force of the Convention.

Article 31 TERMINATION

This Convention is concluded for an indefinite period and will remain in force until the expiration of 6 months from the date on which one of the Contracting States notifies the other Contracting State in writing of its intention to terminate it. Such notification shall be given only after the expiration of the first five-year period of validity of this Convention. In this case, this Convention shall cease to be in force.: (a) in respect of taxes withheld at source, for amounts paid or deductible on or after January 1 of the year following the year of filing of the notice of termination; and (b) in respect of other taxes, for the taxable period beginning on or after January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following January 1 of the year following the year in which the termination notice was filed. In witness whereof, the undersigned, being duly authorized thereto by their Government, have signed this Convention.

Done in Abu Dhabi on December 22, 2008, in two original copies in Kazakh, Arabic, English and Russian, all texts are equally authentic. In case of a discrepancy in interpretation, the English text will be decisive.

For the Government of the Republic of Kazakhstan

For the Government United Arab Emirates Emirates

protocol

At the time of signing the Convention between the Government of the Republic of Kazakhstan and the Government of the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, the undersigned have agreed that the following provisions are an integral part of the Convention. Notwithstanding any other provisions of this Convention, it is understood that taxation of natural resources, including hydrocarbon exploration, production and exploration, is the sovereign right of the individual Emirates in whose territory investments are made. 1. With regard to paragraph 7 of article 10: The provision of this paragraph applies to privately owned companies. 2. Notwithstanding the provisions of the Convention, income arising in a Contracting State, including income from charitable organizations, and received by a resident of the other Contracting State, which constitute the pension benefits of employees, will have to be exempt from taxation in that State.

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

For the Government For the Government of the Republic of Kazakhstan United Arab Emirates

RCPI's note! The following is the text of the Convention in Arabic and English

President

Republic of Kazakhstan

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