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

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

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

Law of the Republic of Kazakhstan dated July 9, 1998 No. 268

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of Turkmenistan on the Avoidance of Double Taxation and the Prevention of Tax Evasion in Respect of Taxes on Income and on Capital, concluded in Almaty on February 27, 1997.

President of the Republic of Kazakhstan

The Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of Turkmenistan for the Avoidance of Double Taxation and the Prevention of fiscal evasion with respect to taxes on income and on capital

(Bulletin of International Treaties of the Republic of Kazakhstan, 2001, No. 2, art. 16) (Entered into force on March 10, 2000 - J. "Diplomatic Courier", special issue No. 2, September 2000, p. 183)

(Entered into force on March 10, 2000 - Bulletin of International Treaties of the Republic of Kazakhstan, 2003, No. 12, Article 93)

The Government of the Republic of Kazakhstan and the Government of Turkmenistan, guided by their desire to strengthen and develop economic, scientific, technical and cultural ties between the two Countries and desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to taxes on Income and on Capital, 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 applies to taxes on income and on capital imposed on behalf of a Contracting State or its administrative-territorial subdivisions or local authorities, regardless of the method of their collection. 2. Taxes on income and on capital are all types of taxes levied on total income, on total capital, or on individual elements of income or capital, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of salaries or salaries paid by enterprises, as well as taxes levied on income from capital appreciation. 3. The existing taxes to which the Convention applies are, in particular: a) in the Republic of Kazakhstan: (i) corporate and individual income tax; (ii) property tax on legal entities and individuals; (hereinafter referred to as "Kazakhstan Taxes");

b) in Turkmenistan: (i) income tax; (ii) personal income tax; (iii) tax for the use of mineral resources; (iv) corporate property tax; (v) payment for land; (hereinafter referred to as "taxes of Turkmenistan").

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

Article 3 General definitions

1. For the purposes of this Convention, unless the context otherwise requires: (a) the terms: (i) "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, means its territory, as well as areas defined in accordance with international law where activities may be carried out in respect of which the tax legislation of the Republic of Kazakhstan applies.; (ii) "Turkmenistan" means Turkmenistan and, when used geographically, means its territory, as well as areas defined in accordance with international law where activities may be carried out in respect of which the tax legislation of Turkmenistan applies; (b) the term "person" includes an individual, a company and any other association of persons; (c) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes.; (d) The terms "Contracting State" and "the other Contracting State" mean Kazakhstan or Turkmenistan, depending on the context; (e) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State.; (f) The term "international carriage" means any carriage by sea or aircraft, or by road or rail, operated by an enterprise of a Contracting State, except when such carriage is carried out exclusively between locations located in the other Contracting State; (g) The term "competent authority" means: (i) in Kazakhstan: Ministry of Finance and the State Tax Committee of the Republic of Kazakhstan or their authorized representative; (ii) in Turkmenistan: the Ministry of Economy and Finance and the Main State Tax Inspectorate of Turkmenistan or their authorized representative; h) the term "national person" means: (i) any natural person holding the nationality of a Contracting State; (ii) any legal person, partnership or association that has obtained its status on the basis of applicable legislation Of the Contracting State; (i) The term "capital" for the purposes of article 23 (Capital) means movable and immovable property and includes (but is not limited to) cash, shares or other documents confirming property rights, promissory notes, bonds or other debentures, as well as patents, trademarks, copyrights or other similar rights or property. 2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that State in respect of taxes to which the Convention applies.

Article 4 The resident

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, place of management or place of establishment, or any other criterion of a similar nature. The term also includes a Contracting State, its administrative-territorial unit or local authorities. It also includes any pension or other employee benefit fund, as well as any charitable organization established in accordance with the laws of a Contracting State, the income of which is normally exempt from taxation in that State. However, this term does not include any person who is subject to taxation in that State, only in respect of income from sources in that State or in respect of capital held therein. 2. Where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, his status shall be determined as follows: (a) He shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the State in which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the State in which he has an habitual abode; (c) If he has an habitual abode in both States or in neither of them, He shall be deemed to be a resident of the State of which he is a national; (d) If, in accordance with subparagraphs (a) to (c), the resident status cannot be determined, the competent authorities of the Contracting States shall resolve the matter by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the State in which the de facto governing body is located.

Article 5 Permanent establishment (representative office)

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 (representative office)", in particular, includes: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. The term "permanent establishment (representative office)" also includes: a) a construction site or a construction, installation or assembly facility or services related to the supervision of the performance of these works, if only such a site or facility has existed for more than 6 months, or such services have been provided for more than 6 months; (b) An installation or structure used for the exploration of natural resources or services related to the supervision of these works, or a drilling rig or vessel used for the exploration of natural resources, if such use lasts for more than 6 months or such services are provided for more than 6 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of stocks 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 products 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 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 subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if a person - other than the agent with an independent status referred to in paragraph 7 who acts in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment (representative office) in the first-mentioned Contracting State in respect of any activity that that person undertakes for the enterprise if that person: a) has, and usually uses, the authority in this State to conclude contracts on behalf of the enterprise, except if the activity of this person is limited to that, as indicated in paragraph 4, which, if carried out through a permanent place of business, in accordance with the provisions of this paragraph, does not make this permanent place of business a permanent establishment (representative office); b) does not have such authority, but usually maintains stocks of goods or products in the first-mentioned State for the purpose of their subsequent sale. 6. Notwithstanding the preceding provisions of this Article, an insurance company of a Contracting State, except in cases of reinsurance, will be considered to have a permanent establishment (representative office) in the other Contracting State if it collects insurance premiums in the territory of that other State or insures against possible risk there through a person who is not an agent with an independent status to which paragraph 7. 7. An enterprise is not considered to have a permanent establishment (representative office) in a Contracting State solely because it carries on business in that State through a broker, commission agent or any other agent with an independent status, provided that such persons act in the ordinary course of their business. However, if the activity of such an agent is focused entirely or almost entirely on actions for this enterprise, then within the framework of this paragraph he will not be considered as an agent with an independent status. 8. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State, or that carries on business in that other State (either through a permanent establishment (representative office) or otherwise) By itself, it does not turn one of these companies into a permanent establishment (representative office) of the other.

Article 6 Income from immovable property

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

Article 7 Profit from business activities

1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment (representative office) located there. If an enterprise carries out business activities as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to this permanent establishment (representative office). 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment (representative office) located there, in each Contracting State, that permanent establishment (representative office) includes the profits that it could receive if it were a separate and separate enterprise engaged in such activities. the same or similar activity, under the same or similar conditions, and operated in complete independence from the enterprise, of which it is a permanent establishment (representative office). 3. When determining the profit of a permanent establishment (representative office), it is allowed to deduct expenses incurred for the purposes of the permanent establishment (representative office), including administrative and general administrative expenses, regardless of whether they are incurred in the State in which the permanent establishment (representative office) is located or elsewhere. It is not allowed to deduct to a permanent establishment (representative office) the amounts paid to its head office or any of the other offices of a 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 (to the representative office). 4. If 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 among its various divisions, nothing in paragraph 2 prohibits a Contracting State from determining taxable profits by such distribution as is generally accepted; the method of distribution chosen should produce results consistent with the principles contained in this Article. 5. No profit is credited to a permanent establishment (representative office) based solely on the purchase by that permanent establishment (representative office) of goods or merchandise for the enterprise. 6. If profits include types of income that are specifically mentioned in other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article. 7. For the purposes of the preceding paragraphs, profits related to a permanent establishment (representative office) are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure.

Article 8 International carriage

1. Profits derived by an enterprise of a Contracting State from the operation of ships, aircraft, road or railway vehicles in international traffic shall be taxable only in that State. 2. Profits earned by a transport enterprise that is a resident of a Contracting State from the use, maintenance or rental of containers (including trailers and other container transportation equipment) used in international transportation for the transportation of goods and products shall be taxable only in that Contracting State, with the exception of the use of containers only in the territory of the other Contracting State. 3. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international vehicle operating organization.

Article 9 Associated companies

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

Article 10 Dividends

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident in accordance with the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends. This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. The term "dividends", when used in this article, means income from shares or other rights that are not debt claims, income from profit sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company distributing profits is a resident.. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment (representative office) located there or provides independent personal services in that other State from a permanent base located there and a holding company, including in respect of which dividends are paid, it really refers to such a permanent establishment (representative office) or permanent base. In such a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 5. If a company that is a resident of a Contracting State receives profits or income from the other Contracting State, that other State may be fully exempt from tax on dividends paid by the company, except if such dividends are paid to a resident of that other State or the holding company in respect of which the dividends are paid actually belongs to a permanent establishment (representative office) or permanent base located in this other State, neither tax the company's undistributed profits with a tax on undistributed profits, even if the dividends are paid or the undistributed profits consist wholly or partly of income earned in that other State. 6. 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 that is levied on the profits of a company that is a national of that State, provided that any additional tax so assessed does not exceed 5 percent of the amount of such profit that was not subject to such additional taxation in previous taxable 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 State. 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient and 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, interest arising from: (a) in Turkmenistan and paid to the Government of Kazakhstan or the National Bank of Kazakhstan in respect of bonds, debentures or other similar obligations is exempt from the tax of Turkmenistan; (b) in Kazakhstan and paid to the Government of Turkmenistan or the Central Bank of Turkmenistan in respect of bonds, debentures or other similar obligations, they are exempt from the Kazakh tax. 4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured and giving or not giving the right to participate in debtors' profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities. bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this article. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment (representative office) 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, really refers to such a permanent establishment (representative office) or permanent base. In such a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, its administrative-territorial 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 paid has arisen and the costs of paying such interest are borne by such permanent establishment or a permanent base, it is considered that such interest arises in the State in which such a permanent establishment (representative office) or permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention. 8. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this article by creating or transferring these debt claims.

Article 12 Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient and beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the total amount of the royalties. 3. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or for granting the right to use any copyright in works of literature, art or science, including software, cinematographic films, any patent, trademark, design or model, plan, secret formula or process, or for information related to industrial, commercial or scientific experience and payments for the use or grant of the right to use industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 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 (representative office) located there, or provides independent personal services in that other State from a permanent base located there, and the right to or the property in respect of which royalties are paid is actually connected with such a permanent establishment (representative office) or permanent base. In such a case, the provisions of Article 7 or Article 15, 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, its administrative-territorial subdivision, a local authority or a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay the royalties has arisen, and such royalties are associated with that permanent establishment or permanent base, then such Royalties are considered to have originated in the State in which the permanent establishment (representative office) 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 laws of each Contracting State, with due regard to the other provisions of this Convention. 7. The provisions of this article shall not apply if the primary purpose or one of the primary purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid was to benefit from this article through such creation or transfer of rights.

Article 13 Technical services

1. Payments for technical services made by a company that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such payments may also be taxed in the Contracting State of which the company making payments for technical services is a resident, in accordance with the laws of that State, but if the beneficial owner of the payments for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the total amount of payments. 3. The term "payments for technical services", as used in this article, means payments of any kind to any person other than an employee, by the person making the payments, in the form of remuneration for any services of a technical, managerial or advisory nature. 4. The provisions of paragraph 1 of this article shall not apply if the beneficial owner of payments for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which such payments arise through a permanent establishment (representative office) located therein, or provides independent personal services in that other State through a permanent base located in it, payments for technical services are actually linked to such a permanent establishment (representative office) or permanent base. In such cases, the provisions of Article 7 or Article 15, as the case may be, shall apply. 5. Payments for technical services are considered to have originated in a Contracting State if the payer is the State itself, its administrative-territorial unit, a local authority or a resident of that State. However, if the person making payments for technical services, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment (representative office) in a Contracting State in connection with which an obligation has been assumed to make payments, and the costs of payment are borne by such permanent establishment (representative office), then in this case Payments for the provision of technical services are considered to have originated in the Contracting State in which the permanent establishment (representative office) is located. 6. If, due to a special relationship between the payer and the actual owner, or between both of them and some other person, the amount of payments for technical services exceeds, for any reason, 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 in the latter mentioned amount. In such a case, the excess part of the payment is subject to taxation in accordance with the laws of each Contracting State, while the other provisions of this Agreement are duly observed.

Article 14 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 State. 2. Income earned by a resident of a Contracting State from the alienation of: (a) shares, other than shares traded on a substantial and regular basis on an officially recognized stock exchange, 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 or trust, the property of which consists mainly of immovable property located in the other Contracting State or of the shares referred to in subparagraph (a) above., may be taxed in that other Contracting State. 3. Income from the alienation of movable property forming part of the business property of a permanent establishment (representative office) 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 gains from the alienation of such permanent establishment (representative office) (alone or in combination with the entire enterprise) or such permanent base, may be taxed in that other State. 4. Income earned by a resident of a Contracting State from the alienation of ships, aircraft, motor vehicles or railway vehicles operated in international traffic or movable property related to the operation of such aircraft, ships, motor vehicles or railway vehicles shall be taxable only in that Contracting State. 5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.

Article 15 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 State.; or (b) Such natural person is present or has been present in that other State for a period or periods exceeding a total of 183 days in any twelve-month period beginning or ending in that calendar year. In such a case, income related to services may be taxed in that other State in accordance with principles similar to those contained in Article 7 for determining the amount of profit and attributing business profits to a permanent establishment (representative office). 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.

Article 16 Dependent personal services

1. Subject to the provisions of Articles 17, 19, 20, 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 derived therefrom 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 resides in that other State for a period or periods not exceeding a total of 183 days in any twelve-month period. a period beginning or ending in a given calendar year; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State; and c) the remuneration is not paid by a permanent establishment (representative office) or a permanent base that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship, aircraft, road or railway vehicle operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship or aircraft is a resident.

Article 17 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 18 Artists and athletes

1. Notwithstanding the provisions of Articles 15 and 16, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete from his personal activities carried on in the other Contracting State may be taxed in that other State. 2. Where income in respect of personal activities carried on 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, 15 and 16, be taxed in the Contracting State in which the activities of the entertainer or sportsman are carried on. 3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities carried on in a Contracting State by art workers or athletes if the visit to that State is entirely financed from public funds of one or both of the Contracting States, their administrative-territorial divisions or local authorities. In such a case, the income is taxable only in the Contracting State of which the entertainer or athlete is a resident.

Article 19 Pensions

Subject to the provisions of paragraph 2 of Article 20, 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 20 Public service

1. (a) Salaries, salaries and other similar remuneration, other than a pension, paid by a Contracting State or an administrative-territorial subdivision or a local authority thereof to any natural person in respect of services rendered to that State or an administrative-territorial subdivision or a local authority shall be taxable only in that State. (b) However, such salaries, salaries and other similar remuneration shall be taxable only in the other Contracting State if the service is performed in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of performing the service. 2. (a) Any pension paid by, or from funds created by, a Contracting State or an administrative-territorial subdivision or local authority to an individual in respect of services rendered to that State or its subdivision or authority shall be taxable only in that State. (b) However, such pension is 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 16, 17 and 19 shall apply to salaries, salaries and other similar remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or an administrative-territorial subdivision or local authority thereof.

Article 21 Students and interns

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

Article 22 Other income

1. Types of income of a resident of a Contracting State, regardless of where they originated, which are not considered in the preceding articles of this Convention, are taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 if the recipient of such income is a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment (representative office) located there and provides independent personal services in that other State through a permanent establishment (representative office) located in that other State. there is a permanent base, and the right or property in connection with which the income was paid, they are indeed associated with such a permanent establishment (representative office) or permanent base. In such a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 3. In addition to the provisions of paragraphs 1 and 2, types of income of a resident of a Contracting State not mentioned in the preceding Articles of this Convention and arising in the other Contracting State may also be taxed in that other State.

Article 23 Capital

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

Article 24 Elimination of double taxation

1. If a resident of a Contracting State earns income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned State will allow: (i) to deduct from the income tax of that resident an amount equal to the income tax paid in that other State; (ii) to deduct from the capital tax for this resident, the amount equal to the capital tax paid in that other State; The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be assessed on the same income at the rates applicable in the first-mentioned State. 2. If a resident of a Contracting State receives income or owns capital which, in accordance with the provisions of this Convention, is taxable only in the other Contracting State, the first-mentioned State may include that income or capital in the tax base, but only for the purpose of determining the tax rate on such other income or capital as is taxable in that State. 3. For the purposes of the preceding paragraph of this Article, a tax paid in a Contracting State shall be deemed to include tax that would have been paid if it had not been for a benefit or reduction granted under the provisions of the laws of that Contracting State on preferential treatment, provided that such benefit or reduction was granted in respect of income derived from carrying on activities in that State's territory. States.

Article 25 Non-discrimination

1. Nationals of a Contracting State shall not be subject in the other Contracting State to taxation other or more burdensome or related obligations than taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances, in particular with respect to residency. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of one or both of the Contracting States. 2. Stateless persons who are residents of a Contracting State shall not be subject in any of the Contracting States to any taxation or any related obligations other or more burdensome than taxation and related obligations to which national persons of the State are or may be subject under the same circumstances. 3. The taxation of a permanent establishment (representative office) which an enterprise of a Contracting State has in the other Contracting State should not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision should not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with any personal benefits, deductions and tax rebates based on their civil status or family obligations, which it provides to its own residents. 4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12, paragraph 6 of Article 13 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions, as if they were paid to a resident of the first mentioned State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned State. 5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State. 6. Notwithstanding the provisions of Article 2, the provisions of this Article shall apply to taxes of any kind and type.

Article 26 Mutual agreement procedure

1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his case falls under paragraph 1 of Article 25 of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if it considers the claim to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State, with a view to avoiding taxation not in accordance with the Convention. Any agreement reached must be implemented regardless of any time limits available in the domestic laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement and understanding of the preceding paragraphs. If, in order to reach an agreement, it would be advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a commission consisting of representatives of the competent authorities of the Contracting States.

Article 27 Information exchange

1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation does not conflict with the Convention. The exchange of information is not limited to Article 1. Any information received by a Contracting State is considered confidential in the same way as information obtained under the domestic law of that State and is disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution or consideration of appeals concerning taxes covered by the Convention. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions. 2. In no case should the provisions of paragraph 1 be interpreted as imposing obligations on Contracting States: (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 administrative practice of that or another Contracting State.; c) provide information that would disclose any trade, business, industrial, commercial, or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (public practice).

Article 28 Tax collection assistance

1. The competent authorities of the Contracting States undertake to assist each other in the collection of taxes, together with interest, costs and civil penalties, relating to such taxes, referred to in this article as "income claim". 2. Requests for assistance by the competent authorities of the Contracting States in collecting a revenue claim include confirmation by such authority that, according to the legislation of that State, the revenue claim has been definitively established. For the purposes of this article, a revenue claim is definitively established if a Contracting State, in accordance with its domestic law, has the right to collect a revenue claim and the taxpayer has no further rights to withhold such collection. 3. A revenue claim of a Contracting State that has been accepted for collection by the competent authority of the other Contracting State is collected by the other State as if such a claim were a revenue claim of that State definitively established in accordance with the provisions of its laws relating to the collection of its taxes. 4. The amount of taxes collected by the competent authority of a Contracting State in accordance with this article shall be forwarded to the competent authority of the other Contracting State. Expenses incurred in connection with tax collection assistance are covered by the first-mentioned State, and all extraordinary expenses are borne by another State. 6. According to this Article, tax collection assistance is not provided to a Contracting State in respect of a taxpayer to the extent that the tax claim relates to a period during which the taxpayer was not a resident of one or the other Contracting State. 7. Notwithstanding the provisions of Article 2 of this Convention, the provisions of this article shall apply to taxes of any kind and type, with the exception of customs duties and taxes. 8. Nothing in this Article shall be interpreted as imposing obligations on any Contracting State to apply administrative measures of a nature different from those applied in the collection of its own taxes or those that would be contrary to its public policy (public practice).

Article 29 Members of diplomatic missions and consular institutions

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

Article 30 Entry into force

1. This Convention will be ratified and the instruments of ratification will be exchanged as soon as possible. 2. The Convention enters into force after the exchange of instruments of ratification and its provisions will apply: (a) with respect to taxes levied at source, to amounts of income paid on or after the first of January of the calendar year following the year of entry into force of the Convention.; (b) In respect of other taxes on income and on capital, such taxes payable for any fiscal year beginning on or after the first of January of the calendar year following the year in which the Convention enters into force.

Article 31 Termination

This Convention shall remain in force until terminated by one of the Contracting States. Each Contracting State may terminate the Convention by giving written notice through diplomatic channels of the termination of the Convention at least six months before the end of any calendar year. In such a case, the Convention shall cease to apply: (a) with respect to taxes withheld at source, to amounts of income paid on or after the first of January of the year following the one in which the notice of termination was given.; and (b) in respect of other taxes on income and on capital, for the taxable period beginning on or after the first of January of the year following that in which the notice of termination was given.

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

Done in two copies on February 27, 1997 in Almaty in Kazakh, Turkmen and Russian languages. In case of differences in interpretation of the texts, the Russian text should be taken as the basis.

For the Government For the Government of the Republic of Kazakhstan Turkmenistan

President

Republic of Kazakhstan

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