On the ratification of the Convention between the Republic of Kazakhstan and the Kingdom of Belgium on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and Capital

Home / RLA / On the ratification of the Convention between the Republic of Kazakhstan and the Kingdom of Belgium on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and Capital

On the ratification of the Convention between the Republic of Kazakhstan and the Kingdom of Belgium on the Avoidance of Double Taxation and the Prevention of Tax Evasion in respect of Taxes on Income and Capital

The Law of the Republic of Kazakhstan dated November 9, 1998 No. 296

To ratify the Convention between the Republic of Kazakhstan and the Kingdom of Belgium on the Avoidance of Double Taxation and the Prevention of Tax Evasion in Respect of Taxes on Income and Capital, signed in Almaty on April 16, 1998.

President of the Republic of Kazakhstan

Convention * between the Republic of Kazakhstan and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income and Capital

(Entered into force on April 13, 2000 - Bulletin of International Treaties of the Republic of Kazakhstan, 2003, No. 8, Article 51)

The Government of the Republic of Kazakhstan and the Government of the Kingdom of Belgium, wishing 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 of its political and administrative 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 wages or salaries paid by enterprises, as well as taxes levied on from the income from the increase in the value of the property. 3. The existing taxes to which the Convention applies are, in particular: (a) in the Republic of Kazakhstan: (i) income tax on legal entities and individuals; (ii) the corporate and individual property tax; (hereinafter referred to as the "Kazakhstan Tax")

b) In the Kingdom of Belgium: (i) personal income tax; (ii) corporate tax; (iii) corporate income tax; (iv) non-resident income tax; (v) additional crisis deductions; including advance payments, additional fees to these taxes and advance payments and additional payments to personal income tax,

(hereinafter referred to as the "Belgian Tax").

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

Article 3 General definitions

1. For the purposes of this Convention, unless the context requires otherwise: (a) the term: (i) "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and continental shelf, in which Kazakhstan, for certain purposes, may exercise sovereign rights and jurisdiction in in accordance with international law and in which the tax legislation of Kazakhstan is applied; (ii) "Belgium" means the Kingdom of Belgium and, when used geographically, means the territory of the Kingdom of Belgium, including territorial waters and any other areas of maritime and airspace over which the Kingdom of Belgium exercises sovereign rights or jurisdiction in accordance with international law; (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 enterprise that is treated as a corporate entity for tax purposes; (d) The terms "A Contracting State" and "the other Contracting State" mean Kazakhstan or Belgium, depending on the context.; (e) The terms "enterprise of one Contracting State" and "enterprise of the other Contracting State" respectively mean an enterprise operated by a resident of one 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 by air operated by an enterprise of one Contracting State, except where Sea or air transport is operated exclusively between locations in the other Contracting State.; (g) The term "competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative, and (ii) in Belgium: the Minister of Finance or his authorized representative; (h) The term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal entity, partnership or any other association deriving its status on the basis of the applicable legislation of a Contracting State; (i) The term "capital" for the purposes of Article 22 means movable or immovable property and includes (but is not limited to) cash, shares or other documents confirming property rights, promissory notes, bonds or other documents confirming debt obligations, as well as patents, trademarks, copyrights or other similar rights or property. 2. As regards the application of this Convention at any time by a Contracting State, any term not defined in the Convention shall have the meaning which is assigned by the laws of that State in respect of taxes to which the Convention applies, unless the context otherwise requires.

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 permanent residence, domicile, place of management, place of establishment or any other criterion of a similar nature, and also includes that State and any of its political and administrative subdivisions or local authorities.. However, this term does not include persons who are subject to taxation in that State with respect only to income from sources in that State or capital invested in it. 2. In cases where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, his status shall be determined as follows: (a) He is considered to be a resident of the State in which he has a permanent home at his disposal.; if he has a permanent home belonging to him in both States, he is considered to be a resident of the State in which he has closer personal and economic ties (center of vital interests); b) if the State in which he has his center of vital interests cannot be determined, or if he does not have a permanent home belonging to him The dwelling is not located in any State, it is considered to be a resident of the State in which it usually resides.; (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 he is a national of both States or a national of neither of them, the competent authorities of the Contracting States shall settle the matter 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, then he shall be deemed to be a resident of the State in which his place of effective management is situated.

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, the following: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (f) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes the following: (a) A construction site or a construction, installation, or assembly facility in a Contracting State, or services related to the supervision of these works, if such a site or facility exists or such services are provided for more than 12 months in that Contracting State.; and (b) an installation or structure used for the exploration of natural resources in a Contracting State, or related control work, or a drilling rig or vessel used for the exploration of natural resources, unless such use lasts for more than 12 months in that Contracting State.; and c) the provision of services within a Contracting State, including consulting services, by a resident through employees or other personnel employed by the resident for such purposes and residing in that Contracting State, but only in cases where the duration of such activities (for the same or related project) within that Contracting State is more than more than 12 months. 4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" is considered not 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 storing, displaying or delivering; (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 collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other activity for the enterprise that is preparatory or auxiliary in nature.; (f) The maintenance of a permanent place of business solely for any combination of the activities referred to in subparagraphs (a) to (e), provided that the work of the permanent place of business in its entirety resulting from such combination is of a preparatory or auxiliary nature. 5. If, in addition to the agent with the independent status referred to in paragraph 6, another person, regardless of the provisions of paragraphs 1 and 2, acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity, which this person undertakes for the enterprise, except if the activity of this person is limited to that specified in paragraph 4, which, if it is carried out through a permanent place of business, it does not make this permanent place of business a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State solely by virtue of the fact that it carries on business in that State through a broker, a general agent-commission agent or any other trusted person of independent status, provided that such persons act in the ordinary course of their business. 7. The fact that a company that is a resident of one 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 (through a permanent establishment or otherwise), does not in itself transform one of these companies into a permanent establishment of the other.

Article 6 Income from immovable property

1. Income earned by a resident of 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 according to the legislation of the Contracting State in which the property in question is located. The term in any case includes ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of the general law relating to land ownership apply, the usufruct of immovable property and rights to variable or fixed amount of payments as remuneration for the development or the right to develop mineral deposits, sources of and other natural resources; sea and air transport are not considered real estate. 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 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 shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out business activities, as indicated above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to this permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could have received if it had been a separate and independent enterprise engaged in the same or similar activities, under the same conditions. or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. When determining the profit of a permanent establishment, it is allowed to deduct expenses incurred for the purposes of the permanent establishment's business activities, including administrative and general administrative expenses, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. However, such deduction is not permitted in respect of amounts, if any, paid (other than reimbursement of actual expenses) by a permanent establishment to the head office of the enterprise or any of its other branches in the form of royalties, fees or other similar payments in payment for the use of patents or other rights, or in the form of commissions for specific services or management provided., or, except in the cases of banking institutions, in the form of interest on sums of money lent to a permanent establishment. Also, when determining the profit of a permanent establishment, the amounts accrued (other than reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other branches in the form of royalties, fees or other similar payments in payment for the use of patents or other rights, or in the form of commissions for services provided, or for management, or, except in the cases of banking institutions, in the form of interest on sums of money lent to the head office of the enterprise or any of its other branches. 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 a proportional distribution of the total profits of the enterprise to its various divisions, nothing in paragraph 2 prevents a Contracting State from determining taxable profits by such distribution as is dictated by practice; however, the method of distribution chosen should produce results that consistent with the principles contained in this article. 5. No profit is attributed to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 6. For the purposes of the preceding paragraphs, the profits attributable to a permanent establishment are determined annually using the same method, unless there is a compelling and sufficient reason to change it. 7. Where profits include the types of income referred to separately in other articles of this Convention, the provisions of these articles shall not be affected by the provisions of this article.

Article 8 Sea and air transport

1. Profits derived from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is located. 2. For the purposes of this Article, profits from the use of sea or air transport in international transport include, in particular: (a) profits derived from the full lease of sea or air transport and profits derived from the lease on the basis of freight of a sea or aircraft used in international transport; (b) Profits derived from the use or rental of containers, if such profits are additional or concomitant to the profits to which the provisions of paragraph 1. 3 apply. If the place of effective management of the shipping company is located on board the ship, then it is considered to be located in the Contracting State in which the ship's home port is located; or if there is no such home port, in the Contracting State of which the owner of the vessel is a resident. 4. The provisions of paragraph 1 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 one Contracting State and an enterprise of the other Contracting State, and in each case between the two enterprises in their respective commercial and financial relationships create or establish conditions different from those that would take place between two independent enterprises, then any profit that could have been credited to one of them, but was not credited to him due to these conditions, can be included in the profit of this enterprise and, accordingly, taxed.

Article 10 Dividends

1. Dividends paid by a company which is a resident of one Contracting State to a resident of the other Contracting State may be taxed in that other 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: (a) 5 per cent of the gross amount of the dividends if the beneficial owner of the dividends is the company, which directly or indirectly owns at least 10 percent of the capital of the company paying dividends; b) 15 percent of the gross amount of dividends in all other cases. This paragraph 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, from the use of shares or the exercise of rights, mining shares, founder shares or other rights that are not debt claims that entitle to profit sharing, as well as income paid in the form of interest, which is considered income from shares under the tax code. the legislation of the State in which the paying company is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends through a permanent establishment located there is a resident, or performs independent personal services in that other State from a permanent base located there, and the holding company, in respect of which the dividends are paid to, indeed 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. In the event that a company that is a resident of one Contracting State receives profits or income from the other Contracting State, that other State may completely exempt from taxes the dividends paid by that company, except in cases where such dividends are paid to a resident of that other State or in the case where the holding company in respect of which the dividends are paid, does refer to a permanent establishment or permanent base in that other State, and the company's undistributed profits are not subject to taxes on undistributed profits, even if dividends are paid or the undistributed profits consist wholly or partly of profits or income generated in that other State. 6. None of the provisions of this Convention shall be interpreted as preventing a Contracting State from imposing a special tax on the profits of a company to be attributed to a permanent establishment in that State, in addition to the tax that would be payable on the profits of a company that is a national of that State, provided that the amount of any additional tax It should not exceed 5 percent of the amount of such profit, which was not subject to such additional tax in previous tax years. For the purposes of this regulation, profits shall be determined after deducting from them the amount of all taxes other than the additional tax referred to in this paragraph imposed in the Contracting State in which the permanent establishment is located and after deducting any amount reinvested in that permanent establishment.

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 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 gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest shall be exempt from taxation in the Contracting State in which it arises if it is: (a) interest paid to the other Contracting State, its political and administrative subdivision or local authority, or the Central Bank of that other State.; (b) Interest paid in respect of a loan granted, guaranteed or insured, or a loan granted, guaranteed or insured by an organization or institution belonging to that State, its political and administrative subdivision or a local authority whose purpose is to facilitate exports. 4. The term "interest", as used in this article, means income from debt claims of any kind, regardless of mortgage security and regardless of ownership of the right to participate in the debtor's profits, and in particular income from government securities and income from bonds or debentures, including premiums and awards on these securities, bonds or debt obligations. However, for the purposes of this article, the term "interest" does not include penalties for late payments or interest considered dividends under paragraph 3 of Article 10.5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of one Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there, or performs independent personal services in that other State from a permanent base located there, and a debt claim based on which the interest is paid on, really refers to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14.6, as the case may be, shall apply. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a political and administrative subdivision, a local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is paid has arisen and the costs of paying such interest are borne by such permanent establishment or permanent base, it shall be deemed that such interest is incurred in the State in which the permanent establishment or permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any third party, 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 portion of the payment shall be taxable in the Contracting State in which the interest is incurred in accordance with the laws of that State. 8. The provisions of this article shall not apply if the primary purpose 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 beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross 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 grant of the right to use any copyright in works of literature, art or science, including software, cinematographic films and films or recordings used for television- or broadcasting, any patent, trademark, design or model, project, secret formula or technological process, or for information related to industrial, commercial or scientific experience and payments for the use or 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 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 if they are actually associated with such a permanent establishment or permanent base. In these cases, 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 and administrative subdivision, or a local authority, or a resident of that State. However, if the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen and the costs of paying such royalties are borne by a permanent establishment or permanent base, such royalties shall be deemed to arise. in the State in which the permanent establishment or permanent base is located. 6. If, as a result of a special relationship between the payer and the actual owner or between both of them and any other person, the amount of royalties related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article apply only to the last mentioned amount. In this case, the excess part of the payments is subject to taxation in the Contracting State in which the royalties arise, in accordance with the laws of that State. 7. The provisions of this article shall not apply if the primary purpose of any person involved in the creation or transfer of rights in respect of whom 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 referred to in Article 6 and located in the other Contracting State may be taxed in that other State. 2. Income earned by a resident of a Contracting State from the alienation of: (a) shares other than those listed on an officially recognized Stock Exchange, most of the value of which is related to immovable property located in the other Contracting State, or (b) shares in a partnership whose assets include mainly immovable property located in the other Contracting State. May be taxed in that other State. 3. Income from the alienation of movable property forming part of the business property of a permanent establishment that an enterprise of one Contracting State has in the other Contracting State, or movable property belonging to a permanent base held by a resident of one Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State. 4. Gains from the alienation of ships or aircraft operated in international traffic or movable property related to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is located. 5. Gains from the alienation of any type of property other than that mentioned in the preceding paragraphs 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 shall be taxable only in that State, unless such services are provided in the other Contracting State; and (a) the income relates to a permanent base that an individual has on a regular basis in that other Contracting State.; or (b) Such resident is present in that other State for a period or periods exceeding a total of 183 days in any consecutive twelve-month period. 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 business profits and attributing business profits to a permanent establishment. 4. 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 15 Dependent personal services

1. Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived 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 way, such remuneration as received from there may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient resides in the other State for a period or periods not exceeding a total of 183 days in any consecutive 12-month period.in a monthly consecutive period. (b) The remuneration is paid by or on behalf of an employer who is not a resident of another State, and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is located.

Article 16 Company managers

1. 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. The preceding provision also applies to payments received in connection with the termination of functions that, according to the legislation of the Contracting State of which the company is a resident, are considered functions of a similar nature as those performed by the person referred to in the aforementioned provision. 2. Remuneration received by the person referred to in paragraph 1 from the company in connection with the termination of day-to-day functions of a managerial or technical nature and remuneration received by a resident of a Contracting State in respect of his personal activities as a partner of a company other than a company with equity that is a resident of the other Contracting State may be taxed in in accordance with the provisions of Article 15, as if such remuneration were remuneration, the employee's salary in relation to the employment and references to the "employer" would be references to the company.

Article 17 Artists and athletes

1. Notwithstanding the provisions of Articles 14 and 15, income earned by a resident of a Contracting State as a cultural or artistic worker, such as a theater, film, radio or television artist, musician, or athlete, from his personal activities carried on in the other Contracting State, may be taxed in that other State. 2. Where income from personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised. 3. The provisions of paragraphs 1 and 2 shall not apply if the activities carried out in one Contracting State are supported primarily from public funds of the other Contracting State or its political and administrative subdivision or local authority. In this case, the income derived from such activities is taxable only in that other Contracting State.

Article 18 Pensions and other payments

1. Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State as remuneration for past work, and any annuity paid to such a resident, shall be taxable only in that State. 2. However, pensions and other benefits, periodic or non-periodic, paid in accordance with the social security legislation of a Contracting State may be taxed in that State. This provision also applies to pensions and benefits paid in accordance with a State program organized by a Contracting State to supplement the benefits provided for by this legislation. 3. The term "annuity" means a fixed amount to be paid periodically to an individual at a fixed time throughout his life, or for a defined or fixed period of time in accordance with an obligation to make payments in return for adequate and full remuneration in money or monetary terms.

Article 19 Public service

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to an individual in respect of services rendered to that State or its political subdivision or local authority, shall be taxable only in that State. (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in 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 services. 2. (a) Any pension paid by a Contracting State or a political subdivision or local authority thereof, or from funds created by them, to an individual in respect of services rendered to that State or its administrative subdivision or local 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 15, 16, 17 and 18 shall apply to salaries, wages 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 subdivision or local authority thereof.

Article 20 Students, interns, teachers and researchers

1. 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 arise from sources outside this State. 2. Remuneration paid by a Contracting State, its administrative subdivision or a local authority, or by the legislative authority of that State or a governing body to an individual in his capacity as a teacher or researcher, shall be taxable only in that State.

Article 21 Other income

1. The income of a resident of a Contracting State, irrespective of where it originated, which is not dealt with in the preceding articles of this Convention, shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property defined in paragraph 2 of Article 6 if the recipient of such income is a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State through a permanent base located there, and the right or property in connection with which the income is received really belongs 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.

Article 22 Capital

1. Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State or movable property belonging to a permanent establishment held by a resident of one Contracting State in the other Contracting State for the purpose of providing independent services may be taxed in that other State. 3. Capital represented by ships and aircraft owned and operated by an enterprise of a Contracting State in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in the Contracting State in which the place of effective management of such enterprise is located. 4. All other elements of the capital of a resident of a Contracting State are taxable only in that State.

Article 23 Elimination of double taxation

1. In the case of Kazakhstan, double taxation is eliminated as follows: (a) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Belgium, Kazakhstan shall allow: (i) as a deduction from the income tax of that resident an amount equal to the amount of income tax paid in Belgium; (ii) as a deduction from the capital tax of this resident, an amount equal to the amount of capital tax paid in Belgium; In any case, the amount of such deduction will not exceed the amount of tax determined on the same income or capital at the rates applicable in Kazakhstan. (b) If a resident of Kazakhstan earns income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Belgium, Kazakhstan 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 Kazakhstan. 2. In Belgium, double taxation is eliminated as follows: (a) If a resident of Belgium receives income or owns elements of capital that are taxed in Kazakhstan in accordance with the provisions of this Convention other than those of paragraph 2 of Article 10, paragraphs 2 and 7 of Article 11 and paragraphs 2 and 6 of Article 12, Belgium shall exempt such income or such elements of capital from taxation, but may, when calculating the amount of tax on the rest of the income or capital of this resident, apply the tax rate that would be applicable, if such income or such elements of capital would not be exempt from taxation. (b) Subject to the provisions of Belgian law relating to the deduction from Belgian tax of the amount of taxes paid outside Belgium in cases where a resident of Belgium receives items of his total income for Belgian tax purposes that are dividends subject to taxation in accordance with paragraph 2 of Article 10 and are not exempt from Belgian tax in accordance with subparagraph (c) below, interest subject to taxation in accordance with paragraphs 2 or 7 of Article 11, or royalties, subject to taxation in accordance with paragraphs 2 or 6 of Article 12, the Kazakh tax levied on this income is allowed as a discount in relation to the Belgian tax related to such income. c) Dividends received by a company that is a resident of Belgium from a company that is a resident of Kazakhstan are exempt from corporate income tax in Belgium in accordance with the conditions and within the time limits provided for by Belgian law. (d) In cases where, in accordance with Belgian law, losses incurred by an enterprise operated by a resident of Belgium from a permanent establishment located in Kazakhstan have actually been deducted from the profits of that enterprise for its taxation in Belgium, the tax exemption provided for in subparagraph (a) does not apply in Belgium to profits of other taxable periods, to be attributed to this institution to the extent that this profit was also exempt from taxation in Kazakhstan, based on compensation for the aforementioned losses.

Article 24 Non-discrimination

1. Nationals of a Contracting State in the other Contracting State shall not be subject to any other or more burdensome taxation or any obligations related thereto to which nationals of that other State are or may be subject in the same circumstances, in particular with regard to residency. This provision, notwithstanding the provisions of article 1, also applies to persons who are not residents of one or neither of the Contracting States. 2. Stateless persons who are residents of a Contracting State are not subject to different or more burdensome taxation or any obligations related thereto in any of the Contracting States to which nationals of the State concerned are or may be subjected in the same circumstances. 3. The taxation of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision should not be interpreted as obliging one Contracting State to provide residents of the other Contracting State with any personal benefits, deductions and tax rebates based on civil status or family obligations that it provides to its own residents. 4. Except where the provisions of article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purposes of the taxable profits of such enterprise, be deductible on the same terms as if they had been paid to a resident of the first-mentioned State. States. 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 nature.

Article 25 Mutual agreement procedure

1. If an individual 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 legislation 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 24 of the State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention. 2. The competent authority 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 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 national legislation of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. 4. The competent authorities of the Contracting States shall agree on the administrative measures necessary to comply with the provisions of the Convention and, in particular, the evidence that must be provided by residents of one of the Contracting States in order to exercise in the other State the right to tax exemption or reduction provided for in the Convention. 5. The competent authorities of the Contracting States shall carry out a direct mutual exchange of communications for the application of the Convention.

Article 26 Information exchange

1. The competent authorities of the Contracting States shall exchange the information necessary to comply with the provisions of this Convention or the national laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation is not contrary to the Convention. The exchange of information is not limited to article 1. Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the national legislation of that State and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution of or consideration of appeals concerning taxes provided for in the Convention.. Individuals or authorities use this information only for these purposes. They may provide information during public court sessions or court proceedings. 2. In no case may the provisions of paragraph 1 be interpreted as imposing on a Contracting State an obligation to: (a) carry out administrative measures that deviate from the legislation and administrative practice of that or another Contracting State; (b) provide information that cannot be obtained under the legislation or in the ordinary course of administrative practice of that or another Contracting State; (c) provide information that would disclose any trade, business, industrial, a commercial or professional secret, or a trade process, or information the disclosure of which would be contrary to public interests (principles of statehood).

Article 27 Tax collection assistance

1. The competent authorities of the Contracting States shall take measures to assist each other in the notification and collection of taxes, together with interest, expenses and administrative penalties relating to such taxes, referred to in this article as "tax claim". 2. Requests for assistance by the competent authorities of a Contracting State in collecting a tax claim include confirmation by such authority that, according to the legislation of that State, the tax claim has been definitively established. For the purposes of this article, a tax claim is definitively established if a Contracting State, in accordance with its domestic law, has the right to collect the tax claim and the taxpayer has no further rights to withhold such collection. 3. The requirements that are the subject of a request for assistance are not a priority in the Contracting State providing the assistance, and the provisions of paragraph 1 of article 26 also apply to any information that, by virtue of this article, is submitted to the competent authority of one of the Contracting States. 4. A tax claim of a Contracting State which has been accepted for collection by the competent authority of the other Contracting State shall be collected by the other State as if such claim were the other State's own tax claim definitively established in accordance with the provisions of its legislation relating to the collection of its taxes. 5. The amounts collected by the competent authorities of one Contracting State in accordance with this Article shall be transferred to the competent authority of the other Contracting State. 6 . According to this article, a Contracting State makes a request only if that State has exhausted all means in its own territory to collect its tax claim. 7. No assistance under this article shall be provided for a tax claim of 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 either Contracting State. 8. None of the provisions of this article shall be interpreted as imposing on any Contracting State an obligation 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 order). 9. In respect of tax claims that are open to appeal, the competent authority of a Contracting State may, in order to protect its rights, request the competent authority of the other Contracting State to take protective measures provided for by the legislation of that other State; the provisions of the preceding paragraphs shall apply mutatis mutandis to such measures.

Article 28 Members of diplomatic missions and consular posts

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

Article 29 Entry into force

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 domestic legislation of each State for its entry into force. The Convention applies to: (a) Taxes withheld at source in respect of amounts paid or deductible on or after the first day of January 1 of the calendar year following the year of entry into force of the Convention; (b) In respect of other taxes on income, for taxable periods beginning on or after the first of January of the calendar year in which the Convention enters into force; (c) In respect of taxes on capital imposed on elements of capital existing on the first of January of any year beginning in the year in which the Convention enters into force.

Article 30 Termination

This Convention shall remain in force until terminated by one of the Contracting States. Each of the Contracting States may terminate the Convention through diplomatic channels by giving notice of termination at least six months before the end of any calendar year following the expiration of five years from the date of entry into force of the Convention. In this case, the Convention shall terminate: (a) in respect of taxes withheld at source on amounts paid or deductible on or after the first of January of the year following the one in which the termination was notified; (b) in respect of other taxes on income for taxable periods beginning on or after on the first of January of the year following the one in which the notice of termination was given.; (c) In respect of taxes on capital imposed on elements of capital existing on the first of January of the year following the one in which the notice of termination was given. In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Convention.

Done in duplicate in Almaty, today, April 16, 1998, in the Kazakh, Russian, Dutch, French and English languages, all texts being equally authentic. In case of discrepancies in the texts, the English text is decisive.

Protocol

At the time of signing the Convention between the Republic of Kazakhstan and the Kingdom of Belgium for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income and Capital, the undersigned agreed that the following provisions should form an integral part of the Convention. 1. To Article 2: It is understood that the terms "pre-payments, additional charges to these taxes and pre-payments and additional payments to personal income tax" used in subparagraph (b) of paragraph 3 include: - withholding tax on mobile income (dividends, interest and royalties); - withholding tax on fixed income; - withholding tax on income from professional activities; - local taxes, additional to personal income tax and withholding tax on fixed income. 2. To Article 4: The term "resident of a Contracting State" also includes any institution or organization established under the laws of a Contracting State that operates solely for the purpose of providing pension or employee benefits, even if such institution or organization is exempt from tax in the State in which it is established. 3. To Articles 6 and 7: It is understood that an enterprise of one Contracting State that is engaged in the development of mineral deposits, sources or other natural resources in the other Contracting State carries out such activities in that other State through a permanent establishment located in the latter, to which the provisions of paragraphs 1-6 of Article 7 apply. Such an enterprise is also considered to be carrying out such activities in that other State through a permanent establishment located in the latter, to which the provisions of paragraphs 1-6 of Article 7 apply, if it has the right to develop mineral deposits, sources or other natural resources in that other State. 4. To Article 7: (a) (i) In cases where an enterprise of one Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment located in the latter, the profits of that permanent establishment will not be determined on the basis of the total amount received by the enterprise, but only on the basis of remuneration related to the actual activities of a permanent establishment for such sales or business activities; (ii) In the case of contracts, in particular for the inspection, supply, installation or construction of industrial, commercial or scientific equipment or premises, or for public works in a place where an enterprise has a permanent establishment, the profits of such permanent establishment are not determined on the basis of the total amount of the contract; it is determined only on the basis of that part of the contract, which is actually performed by a permanent establishment. (b) However, profits derived from the sale of goods or merchandise of the same or similar type as the goods or merchandise sold, or from other activities or such or similar activities carried out through a permanent establishment, may be considered to be attributable to that permanent establishment, provided that it is proven that the transaction was intended to avoid taxation. in the Contracting State in which the permanent establishment is located. (c) In the case of a banking institution, a permanent establishment may be allowed to deduct the amounts paid to its head office or any of the other branches of the enterprise in the form of interest on the amounts of money lent to it in the form of a loan, as opposed to the capital provided to it. However, this deduction is limited to the usual amounts that would be paid if the permanent establishment were a separate and independent enterprise that maintains relations with the head office or any of the other branches of the enterprise on a completely independent basis. 5. To Article 10: (a) Dividends paid by a company that is a resident of one Contracting State to a company that is a resident of the other Contracting State shall be exempt from taxation in the first of the said States, provided that such dividends are paid as compensation for investments amounting to at least fifty million United States dollars in the company, paying dividends. Such tax exemption applies from January 1 of the year immediately following the year in which the investment amounted to fifty million US dollars, but does not apply after a period of ten years starting from January 1 of the year immediately following the year in which the actual owner of the dividends began investing in the company paying dividends. This provision shall apply only for a period of twenty years, beginning on January 1 of the year immediately following the year in which the Convention enters into force. b) Since the Convention for the avoidance of double taxation is in force between Kazakhstan and an OECD member country and this Convention does not provide for a special tax provided for in paragraph 6 of Article 10 of this Convention, enterprises operated by a resident of Belgium are not subject to this special tax.

6. To Article 11: In the case of Belgium, it is understood that the provisions of subparagraph (B) of paragraph 3 apply to a loan granted, guaranteed or insured, or a loan granted, guaranteed or insured by: - The Office of the National du Ducroire; - Association pour la Coordination du Finance a Moyen Terme des Exportations Belges (Association for the Coordination of Financing of the Belgian Export); - Saumite roig la Promotion des Exportations de Biens d'eguipement Colleges(Sorgomech) (Committee for the Promotion of the Export of Belgian Equipment (Kompromex); - Institut de Reescompte et de Garantie (Institute for the Recalculation of Bills and Guarantees). 7. To Article 12: (a) If in any agreement for the avoidance of double taxation that Kazakhstan intends to conclude after the date of signature of this Convention with a third State that is a member of the European Union, and in which Kazakhstan has agreed to the exemption or reduction of the tax rate provided for in paragraph 2, the Contracting States shall enter into negotiations. (b) In the application of paragraph 2 of Article 12 of the Convention, payments for technical assistance or technical services are not considered payments for information related to industrial, commercial or scientific experience, but are taxable in accordance with the provisions of Article 7 or Article 14, as appropriate. (c) In the case of royalties paid for the use or the right to use industrial, commercial or scientific equipment, the beneficial owner may decide to calculate the amount of tax on such income on a net basis, as if such income were to be attributed to a permanent establishment or fixed base located in the Contracting State in which the royalties arise.. (d) It is understood that Articles 14 and 7 apply to payments made to pay for the purchase of software for personnel or work use by the buyer or to pay for the alienation of rights related to software (transfer of full ownership of software). (e) The provisions of paragraph 3 of Article 12 do not apply to the equipment referred to in paragraph 2 of Article 8. 8. To Article 13: Paragraph 2 does not apply if the profits referred to in this paragraph are obtained during the reorganization of the corporation, merger, separation or similar measures. 9. To Article 25: The provisions of paragraphs 1 and 2 of Article 25 also apply to cases of economic double taxation that may occur as a result of the application of Article 9.

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

Done in two copies in Almaty, today, April 16, 1998, in the Kazakh, Dutch, French, English and Russian languages, all texts being equally authentic. In case of discrepancies between the texts, the English text is decisive.

* * *

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases