On the ratification of the Convention between the Republic of Kazakhstan and the Kingdom of Norway on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and Capital

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

Law of the Republic of Kazakhstan dated December 15, 2005 No. 104

To ratify the Convention between the Republic of Kazakhstan and the Kingdom of Norway on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and on Capital, signed in Oslo on April 3, 2001.

President of the Republic of Kazakhstan

THE CONVENTION <*> between AGREEMENT BETWEEN THE REPUBLIC OF KAZAKHSTAN AND THE KINGDOM OF NORWAY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION ON INCOME AND ON CAPITAL

(Entered into force on January 24, 2006 - Bulletin of International Treaties of the Republic of Kazakhstan, 2006, No. 2, art. 23)

The Government of the Republic of Kazakhstan and the Government of the Kingdom of Norway, reaffirming their aspirations to develop and strengthen economic, scientific, technical and cultural cooperation between the two States and desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and on Capital, We have agreed on the following:

CHAPTER I SCOPE OF THE CONVENTION

Article 1 PERSONS TO WHOM THE CONVENTION APPLIES

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

Article 2 TAXES COVERED BY THE CONVENTION

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its regional or local authority, irrespective of the manner in which they are levied.

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

3. The existing taxes to which the Convention applies are, in particular: (a) in the case of Kazakhstan: (i) income tax on legal entities and individuals; (ii) property tax on legal entities and individuals (hereinafter referred to as the "Kazakhstan Tax"); (b) in the case of Norway: (i) National income tax; (ii) district municipal income tax; (iii) municipal income tax; (iv) contributions to the national Tax Equalization Fund; (v) national capital tax; (vi) a municipal capital tax; (vii) a national tax relating to income and capital earned from the exploration and development of subsea oil resources, activities and related works, including transportation of petroleum products by pipeline; and (viii) national fees for the remuneration of non-resident artists (hereinafter referred to as "Norwegian tax").

4. The Convention shall also apply to any identical or substantially similar taxes which are imposed by each of the Contracting States after the date of signature of the Convention in addition to or in place of the existing taxes.

CHAPTER II DEFINITIONS

Article 3 GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise requires: (a) (i) the term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the laws governing taxes of Kazakhstan apply.; (ii) The term "Norway" means the Kingdom of Norway, including any territory outside the territorial waters of the Kingdom of Norway in which the Kingdom of Norway, in accordance with Norwegian law and in accordance with international law, may exercise its rights with respect to the seabed and subsoil and their natural resources; the term does not include Svalbard, Jean Mayenne and the Norwegian territories in Antarctica ("biland"); (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 entity that is treated as a corporate entity for tax purposes and, in the case of Kazakhstan, includes a joint-stock company, a limited liability company or any other legal entity that is subject to taxation as a corporate entity; (d) The terms "Contracting State" and "other Contracting State" means Kazakhstan or Norway, 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 a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft The vessel 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; (ii) in Norway: the Minister of Finance and Customs 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 association that has obtained such status on the basis of the current legislation of a Contracting State.

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 that it has at that time under the laws of that State in respect of taxes to which the Convention applies, and any meaning under the applicable tax laws of that State shall prevail over the meaning given by the term according to other laws of this State.

Article 4 RESIDENT

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature, and also includes that State and any of its regional or local authorities. It also includes any pension or other employee benefit program, as well as any charitable organization established in accordance with the law of a Contracting State. However, this term does not include any person who is subject to taxation in that State solely in respect of income from sources in that State or capital held therein.

2. If by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then 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 at his disposal in both States, he is considered 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 does not have a permanent home available to him in either 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 he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement.

3. 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: (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: (a) a construction site or a construction, installation or assembly facility, or monitoring services related thereto, but only if such a site or facility has existed for more than 12 months or such services have been provided for more than 12 months; (b) an installation or construction used for the exploration of natural resources, or observation services related to them, or a drilling rig, but only if such use lasts for more than 6 months or such services are provided for more than 6 months; (c) The provision of services, including consulting services, through employees or other personnel employed for such purposes, but only if activities of this nature have been ongoing (for such or a related project) within the country for more than 12 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 storing, displaying or delivering; (c) the maintenance of stocks 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 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 an agent with an independent status to whom paragraph 6 applies acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity which that person undertakes for the enterprise, unless the activities of such person are limited by the provisions referred to in paragraph 4, which, if carried out through a permanent place of business, does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph.

6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) does not in itself transform one of these companies into a permanent establishment of the other.

CHAPTER III TAXATION OF INCOME

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 apply in relation to land ownership, the usufruct of immovable property and rights to variable or fixed payments as compensation for mining or the right to develop deposits. mineral resources, springs and other natural resources; ships and aircraft 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 ENTREPRENEURIAL ACTIVITY

1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business activities, as mentioned above, the profits of the enterprise may be taxed in another State, but only in that part which relates to: a) such permanent establishment; (b) Sales in that other State of goods or merchandise that match goods or merchandise that are sold through such permanent establishment; or (c) other business activities carried on in that other State that are similar in nature to business activities carried on through such permanent establishment.

2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were a separate and separate 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. In determining the profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. It is not allowed to deduct to a permanent establishment the amounts paid to its head office or to any of the other offices of the resident by paying royalties, fees or other similar payments in compensation for the use of patents or other rights, or in the form of commissions for special services provided or for management, or by paying interest on the amount lent to the permanent establishment.

4. To the extent that it is customary 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 proportional distribution chosen should produce results, consistent with the principles contained in this Article.

5. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise.

6. If the information available or readily obtainable by the competent authority of a Contracting State is not sufficient to determine the profits or expenses of a permanent establishment, the profits may be calculated in accordance with the tax laws of that State. For the purposes of this paragraph, information will be considered as easily obtainable if the taxpayer provides the information to the requesting competent authority within 91 days from the date of the competent authority's written request for such information.

7. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure.

8. If profits include types of income that are specifically mentioned in other Articles of this Convention, the provisions of these Articles shall not be affected by the provisions of this Article.

Article 8 SEA AND AIR TRANSPORT

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

2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international operating agency.

3. The provisions of paragraphs 1 and 2 apply to profits earned by the union of Norway, Denmark and Sweden as the Scandinavian Airlines System (SAS) air transport consortium, but only to profits earned by Det Norske Luftfartsselskap A/S (DNL), a Norwegian member of the Scandinavian Airlines System (SAS), in proportion to its share in this organization.

Article 9 ASSOCIATED ENTERPRISES

If (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in any case between the two enterprises in their commercial or financial the relationship creates or establishes conditions different from those that would take place between two independent enterprises, then any profit 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 a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed: (a) 5 per cent of the total amount of the dividends if the beneficial owner is the company which directly owns at least 10 percent of the capital of the company paying dividends; b) 15 percent of the total amount of dividends in all other cases. The provisions of this paragraph shall not affect the taxation of the company in respect of profits from which dividends are paid.

3. The term "dividends", when used in this Article, means income from shares, mining shares, shares of founders or other rights that are not debt claims, income from profit-sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares in accordance with the legislation. The State in which the profit-distributing company 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 located there or provides independent personal services in that other State from a permanent base and holding company located there, in respect of which pays dividends, is indeed associated with such a permanent establishment or permanent base. In this case, the following provisions apply: Article 7 (Profit from entrepreneurial activity) or Article 14 (Independent personal services), as appropriate.

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

6. Nothing in this Convention shall be construed as preventing a Contracting State from levying a tax on the income of a company having a permanent establishment in that State in addition to the tax that would be levied on the income of a company that is a resident of that State, provided that the amount of any additional tax so levied should not exceed 5 per cent. amounts of income that were not subject to such additional taxation in previous taxable years. For the purposes of this paragraph, the term "income" means profits, including any gains in value, attributable to a permanent establishment in a Contracting State in the year and previous years after deduction of all taxes other than the additional tax referred to herein, levied by that State on such profits.

Article 11 INTEREST

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

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

3. The term "interest", as used in this Article, means income from debt claims of any kind, secured or unsecured by collateral, 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.

4. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if: (a) The interest is paid in respect of bonds, debentures or other similar obligations of the Government of that Contracting State or its regional or local authority, provided that the beneficial owner of the interest is a resident of the other Contracting State. States; b) interest is paid on debt owed by a resident of Kazakhstan to a resident of Norway in respect of a loan granted, guaranteed or insured, or a loan granted, guaranteed or insured by the Central Bank of Norway, the Norwegian Export Credit Guarantee Institute or A/S Export Finance or any other institution that may be agreed periodically between the competent authorities of the Contracting States; c) interest is paid on debt owed by a resident of Norway to a resident of Kazakhstan in respect of a loan granted, guaranteed or insured, or a loan granted, guaranteed or insured by the National Bank of the Republic of Kazakhstan or an Eximbank or other institution, which may be agreed periodically between the competent authorities of the Contracting States.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest is a resident of a Contracting State. Carries on business in the other Contracting State in which interest is incurred through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the debt claim in respect of which interest is being paid actually relates to such permanent establishment or permanent base. In this case, the following provisions apply: Article 7 (Profit from entrepreneurial activity) or Article 14 (Independent personal services), as appropriate.

6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, its regional or 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 a debt has arisen on which interest is being paid and such interest is being paid by such permanent establishment or permanent base, such interest shall be deemed to be arise in the State in which such a permanent establishment or permanent base is located.

7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this Article apply only to the last 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, 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 per cent of the total amount of the royalties.

3. Notwithstanding paragraph 2 of this Article, the beneficial owner of royalties in respect of leasing, as defined in paragraph 4 of this Article, may, at his option, be taxed in the Contracting State in which the royalties arise, as if the right or property in respect of which such royalties are paid were actually connected with a permanent establishment or a permanent base in that Contracting State. In this case, the following provisions apply: Article 7 (Profit from entrepreneurial activity) or  Article 14 (Independent personal services) of this The Convention applies, as appropriate, to income and deductions (excluding depreciation charges) related to such right or property.

4. 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 computer programs, cinematographic films, any patent, trademark, design or model, plan, secret formula or process., or for information (know-how) related to industrial, commercial or scientific experience and payments for the use or for granting the right to use industrial, commercial or scientific equipment.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there and the right or property in respect of which royalties are paid that are actually associated with such a permanent establishment or permanent base. In this case, the following provisions apply: Article 7 (Profit from entrepreneurial activity) or Article 14 (Independent personal services), as appropriate.

6. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, its regional or local authority, or a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen and such royalties are associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in the State where in which such a permanent establishment or permanent base is located.

7. 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.

8. If, in any Convention for the Avoidance of Double Taxation concluded by Kazakhstan with a third State that is a member of the Organization for Economic Cooperation and Development (OECD) on the date of signing this Convention, Kazakhstan agrees after that date to exclude any type of right or property from the definition contained in paragraph 4 of this Article or to exempt royalties arising in Kazakhstan, from the Kazakh royalty tax or to limit the tax rates provided for in paragraph 2, then such determination or exemption, or a lower rate will be automatically applied as if it were provided for in paragraph 4 or paragraph 2, respectively.

9. The provisions of this Article shall not apply if the primary purpose or one of the primary purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid was to benefit from this Article through such creation or transfer of rights.

Article 13 INCOME FROM THE INCREASE IN THE VALUE OF PROPERTY

1. Income earned by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 (Income from immovable property) 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 their value or most of their value directly or indirectly from immovable property located in the other Contracting State, or (b) participation in a partnership or trust fund (trust), the assets of which consist primarily of immovable property located in the other Contracting State or of shares referred to in subparagraph (a) above, 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 which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State.

4. Income earned by a resident of a Contracting State 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 that Contracting State.

5. Gains from the alienation of shares or other corporate rights of a company that is a resident of a Contracting State, and gains from the alienation of any other securities that are subject in that State to the same tax regulation as gains from the alienation of such shares or other rights obtained by an individual who was a resident of that State and who, after receiving such shares, rights or securities that have become a resident of the other Contracting State may be taxed in the first-mentioned State if the alienation of shares, rights or securities occur at any time during the five years following the date on which the individual ceased to be a resident of the first-mentioned State.

6. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 INDEPENDENT PERSONAL SERVICES

1. Income earned by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that State. However, such income may also be taxed in the other Contracting State if: (a) an individual is present in the other State for a period or periods exceeding a total of 183 days in any 12-month period.; or (b) An individual has a permanent base, regularly accessible to him, in that other State for the purpose of carrying out his activities; but only in that part of it which relates to services provided in that other State.

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 15 DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16 (Directors' fees), 18 (Pensions, annuities, social security payments and alimony) and 19 (Public service), 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 performed in another Contracting State. If the employment is performed in this manner, such remuneration received in connection with such work 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 12-month period.monthly period; and (b) the remuneration is paid by or on behalf of an employer who is a resident of the State of which the recipient is a resident and whose business does not consist in the employment of labour; and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in that other 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 of which the enterprise operating the ship or aircraft is a resident.

4. If a Norwegian resident receives remuneration in respect of an employment performed on board an aircraft operated in international traffic by the Scandinavian Airlines System Consortium (SAS), such remuneration shall be taxable only in the Contracting State of which the recipient is a resident.

Article 16 DIRECTORS' FEES

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

Article 17 ARTISTS AND ATHLETES

1. Despite the provisions According to Articles 14 (Independent personal services) and 15 (Dependent personal services), income earned by a resident of a Contracting State as an artist, such as a theater, film, radio or television artist or musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other State. The state.

2. If income from personal activities carried out by an art worker or an athlete in this capacity is credited not to the art worker or athlete himself, but to another person, then this income, despite the provisions of Articles 7 (Profits from business activities), 14 (Independent personal services) and 15 (Dependent personal services) may be taxed in the Contracting State in which the activities of an artist or athlete are carried on.

3. The provisions of paragraphs 1 and 2 shall not apply to income from activities carried on in a Contracting State by an artist or athlete if the visit to that State is substantially financed from public funds of the other Contracting State or its regional or local authorities. In this case, income is taxed only in the State where the art worker or athlete is a resident.

Article 18 PENSIONS, ANNUITIES, SOCIAL INSURANCE PAYMENTS AND ALIMONY

1. Pensions (including Government pensions and social security payments) and annuities paid to a resident of a Contracting State shall be taxable only in that State.

2. Alimony and other maintenance payments paid to a resident of a Contracting State shall be taxable only in that State. However, any alimony or other maintenance payments paid by a resident of one Contracting State to a resident of the other Contracting State in an amount not permitted to the payer as an allowance shall be taxable only in the first-mentioned State.

Article 19 PUBLIC SERVICE

1. (a) Salaries, wages and other similar remuneration, other than pensions, paid by a Contracting State or a regional or local authority thereof to an individual in respect of services rendered to that State or its regional or 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 services are performed in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) has not become a resident of that State solely for the purpose of performing the services.

2. The provisions of Articles 15 (Dependent personal services) and 16 (Directors' fees) shall apply to salaries, salaries and other similar remuneration, other than pensions, in respect of services rendered in connection with a business carried on by a Contracting State or its regional or local authority.

Article 20 STUDENTS

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 located in the first-mentioned State solely for the purpose of obtaining education or internship, intended for their maintenance, education or internship, shall not be taxed in that State if the sources of these payments are located outside of outside of this State.

Article 21 OFFSHORE ACTIVITIES

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

2. A person who is a resident of a Contracting State carries on offshore activities in the other Contracting State related to the exploration or exploitation of the seabed and subsoil and their natural resources located in that other State, subject to paragraphs 3 and 4 of this Article, shall be deemed, in respect of such activities, to be carrying on business in that other State. in another State through a permanent establishment or permanent base located in it.

3. The provisions of paragraph 2 shall not apply if the activity is carried out for a period not exceeding a total of 30 days in any 12-month period. However, for the purposes of this paragraph: (a) An activity carried out by an enterprise associated with another enterprise will be considered to be carried out by the enterprise with which it is associated if the activity in question is substantially similar to that carried out by the last mentioned enterprise.; b) two enterprises are considered to be associated if one is controlled directly or indirectly by the other or both are controlled directly or indirectly by a third party or persons.

4. Profits earned by a resident of a Contracting State from the transportation of reserves or personnel to or between locations where activities related to the exploration or exploitation of the seabed and subsoil and their natural resources are carried out in a Contracting State, or from the operation of tugboats and other vessels auxiliary to such activities, shall be taxable only in the Contracting State, which the company is a resident of.

5. (a) Subject to subparagraph (b) of this paragraph, salaries, wages and similar remuneration received by a resident of a Contracting State in connection with employment related to the exploration or exploitation of the seabed and subsoil of the seabed and their natural resources located in the other Contracting State may, to the extent that if this activity is carried out offshore in this other State, it will be taxed in this other State. However, such remuneration is subject to taxation only in the first-mentioned State if the employment is carried out offshore for an employer who is not a resident of another State, and for a period or periods not exceeding a total of 30 days in any 12-month period.; (b) Salaries, salaries and similar remuneration received by a resident of a Contracting State in connection with an employment performed on board a ship or aircraft engaged in transporting supplies or personnel to or between locations where activities related to the exploration or exploitation of the seabed and subsoil and their natural resources are carried out in in the other Contracting State, or in connection with an employment performed on board tugboats or other vessels operated in support of such activities, may be taxed in the Contracting State of which the undertaking carrying on such activities is a resident.

6. Income earned by a resident of a Contracting State from the alienation of: (a) exploration or development rights; or (b) property located in the other Contracting State and used in connection with the exploration or exploitation of the seabed and subsoil and their natural resources located in that other State; or (c) shares deriving their value or most of its value, directly or indirectly from such rights or such property, or from such rights and such property combined, may be taxed in that other State. In this paragraph, "exploration or development rights" means the rights to assets that will be obtained as a result of exploration or exploitation of the seabed and subsoil and their natural resources in another Contracting State, including rights to interest or benefits from such assets.

Article 22 OTHER INCOME

1. The income of a resident of a Contracting State, irrespective of its source, which is not mentioned in the preceding Articles of this Convention, shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 (Income from immovable property) if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located therein or provides independent personal services in that other State. services through a permanent base located there and the right or property in respect of which income was paid, indeed, they are associated with such a permanent establishment or permanent base. In this case, the following provisions apply: Article 7 (Profit from entrepreneurial activity) or Article 14 (Independent personal services), as appropriate.

CHAPTER IV TAXATION OF CAPITAL

Article 23 CAPITAL

1. Capital represented by immovable property referred to in Article 6 (Income from immovable property) owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other State.

2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base used by 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 or aircraft owned by a resident of a Contracting State and operated 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.

CHAPTER V METHODS OF ELIMINATING DOUBLE TAXATION

Article 24 ELIMINATION OF DOUBLE TAXATION

In accordance with the provisions and subject to the limitations of the laws of the Contracting States (which may be amended from time to time without changing their basic principle): (a) If a resident of a Contracting State receives income which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned Contracting State will allow: (i) deduction from the income tax of that resident of an amount equal to the income tax paid in the other Contracting State; (ii) Deduction from the capital tax of that resident of an amount equal to the capital tax paid in the other State. However, such deduction shall in any case not exceed that portion of the income tax or capital tax accrued prior to the provision of the deduction relating to income or capital that may be taxed in the other Contracting State.; (b) If, in accordance with any provision of the Convention, income earned or capital owned by a resident of a Contracting State is exempt from tax in that State, that State may, however, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempt income or capital.

CHAPTER VI SPECIAL PROVISIONS

Article 25 NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of that other State are or may be subjected in the same circumstances. This provision, despite the provisions of Article 1 (Persons to whom the Convention applies) also applies 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 subjected in the other Contracting State to any taxation or any related obligations other or more burdensome than taxation and related obligations to which nationals of that other State are or may be subjected in the same circumstances.

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

4. Except when the provisions apply Articles 9 , paragraph 7 Article 11 or paragraph 7 Articles 12, 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 on the same terms 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. 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 to the competent authority of the Contracting State of which he is a resident, or, if his case falls under the under paragraph 1 of Article 25 (Non-discrimination), to the competent authority 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 this 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 case by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in accordance with this Convention. Any agreement reached will be executed regardless of any time limits provided for by the 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 an agreement within the meaning of the preceding paragraphs. If it is advisable to organize an oral exchange of views in order to reach an agreement, 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 EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange the information necessary to comply with the provisions of this Convention and the domestic laws of the Contracting States concerning taxes imposed by a Contracting State to the extent that taxation under that law does not conflict with this Convention. The exchange of information applies to taxes of any kind and type and is not limited to Article 1 (Persons to whom the Convention applies). Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic law 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, or consideration of appeals concerning taxes levied on behalf of this State. Such persons or authorities use the information only for these purposes. They may disclose this information during court proceedings or when making court decisions.

2. In no case shall the provisions of paragraph 1 be interpreted as imposing an obligation on a Contracting State.: (a) To take administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or the other 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 ASSISTANCE IN TAX COLLECTION

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 a Contracting State 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, under its domestic law, has the right to collect a revenue claim and the taxpayer has no further rights to withhold such collection.

3. The claims that are the subject of a request for assistance shall not take precedence over taxes due in the Contracting State providing such assistance and the provisions of paragraph 1. Articles 26 (Mutual Agreement procedure) also apply to any information that, by virtue of this Article, is provided by the competent authority of a Contracting State.

4. A revenue 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 that State's own revenue claim definitively established in accordance with the provisions of its laws relating to the collection of its taxes.

5. 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. However, unless otherwise agreed by the competent authorities of the Contracting States, ordinary expenses incurred in connection with tax collection assistance shall be borne by the first-mentioned State and any unforeseen expenses incurred in this way shall be borne by the other State. As soon as a Contracting State assumes that unforeseen expenses may be incurred, it shall inform the other Contracting State thereof and indicate the estimated amount of such expenses.

6. If a tax claim of a Contracting State has not been definitively established due to the fact that it is subject to appeal or other judicial proceedings, that State may, in order to protect its income, apply to the other Contracting State to take temporary freezing measures on its behalf, which are available to the other State in accordance with the legislation of that State. another Country. If another State accepts such a request, such interim measures shall be taken by that other State as if the taxes owed to the first-mentioned State would be the other State's own taxes.

7. According to this Article, a Contracting State shall make a request only if a taxpayer who has tax arrears does not have sufficient property in that State to collect the taxes due.

8. According to this Article, tax collection assistance is not provided to a Contracting State in respect of a taxpayer to the extent that the income claim relates to a period during which the taxpayer was not a resident of one or the other Contracting State.

9. Despite the provisions Article 2 (Taxes to which the Convention applies) 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.

10. 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 order).

Article 29 MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

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

CHAPTER VII FINAL PROVISIONS

Article 30 ENTRY INTO FORCE

1. Each of the Contracting States shall notify the other of the completion of the procedures required by its legislation for the entry into force of this Convention.

2. The Convention shall enter into force on the date of receipt of the last of these notifications and shall therefore apply: (a) To taxes withheld at source, on dividends, interest or royalties, in respect of amounts paid or credited on or after the first day of the second month following the month in which the Convention enters into force.(b) In respect of other taxes, during taxable periods 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

The term of this Convention is not limited, but any of the Contracting States may send, through diplomatic channels, written notification of termination to the other Contracting State on or before June 30th of any calendar year beginning after the end of the period of five years after the date of its entry into force. In such a case, the Convention shall cease to apply to taxes on income and on capital in respect of the calendar year (including accounting periods beginning in that year) following the one in which the notification was given. In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention. Done in Oslo on April 3, 2001, in two copies in Kazakh, Norwegian, Russian and English. In case of disagreement in the interpretation of the texts, the English text will be decisive.

For the Government For the Government of the Republic of Kazakhstan Kingdom of Norway

President

Republic of Kazakhstan

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