On the ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Property
The Law of the Republic of Kazakhstan dated November 9, 1998 No. 289
To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Property, signed in Paris on February 3, 1998.
President of the Republic of Kazakhstan
Convention * between the Government of the Republic of Kazakhstan and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Property
*(Entered into force on August 1, 2000 - Bulletin of International Treaties of the Republic of Kazakhstan, 2004, No. 5, Article 26)
The Government of the Republic of Kazakhstan and the Government of the French Republic,
Desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income and Property,
We have agreed on the following:
Article 1 Persons to whom the Convention applies This Convention applies to persons who are residents of one or both of the Contracting States.
Article 2 Taxes to which the Convention applies 1. This Convention applies to taxes on income and on property imposed on behalf of a Contracting State or of its political and administrative subdivisions or local authorities, regardless of the manner in which they are levied. 2. Income and property taxes are all taxes levied on total income, on common property, or on individual elements of income or property, including taxes on income from the alienation of movable or immovable property, taxes on the total amount of salaries or salaries paid by enterprises, as well as taxes on income from property appreciation. 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 France: (i) income tax ("l'impot sur le révenu"); (ii) corporate tax ("l'impot sur le societe"); (iii) payroll tax ("la tache sur le salaires"); (IV) the solidarity tax on property ("l'impot de solidarite sur la fortune"); (hereinafter referred to as the "French tax"). 4. The Convention also applies to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to or in place of existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes that will be introduced into their respective tax laws.
Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) the terms "Contracting State" and "other Contracting State" mean Kazakhstan or France, depending on the context; (b) the term "Kazakhstan" means the Republic of Kazakhstan. When used in a geographical sense, the term "Kazakhstan" includes the State territory of the Republic of Kazakhstan and the zones in which Kazakhstan can exercise its sovereign rights and jurisdiction in accordance with its legislation and international law, and in which its tax legislation applies.; (c) The term "France" means the European and overseas parts of the French Republic, including the territorial sea and any area outside the territorial sea in which, in accordance with international law, the French Republic exercises sovereign rights for the purpose of exploration and exploitation of the natural resources of the seabed and its underground part and in the water column; (d) The term "person" includes an individual, a company, or any other association of persons; (e) The term "company" means any legal entity or any economic unit which, for tax purposes, is treated as a legal entity; (f) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State.; (g) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; (h) The term "competent authority" means: (i) in the case of Kazakhstan: the Minister of Finance or his authorized representative; ((ii) In the case of France: the Minister of Budget or his authorized representative; (i) The term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, company, partnership or any other association established under the applicable laws of a Contracting State. 2. As regards the application of the Convention by a Contracting State, any term not defined therein shall have the meaning which it has under the laws of that State in respect of taxes to which the Convention applies. The meaning of the term under the tax legislation of that State will take precedence over the meaning provided for such a term in other branches of the law of that 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 by reason of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature. The term also includes a Contracting State, its political and administrative subdivisions, and a local government body and their legal entities related to the public legal sector. 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 in respect of property located there. 2. Where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, his status shall be determined as follows: (a) he is considered a resident of the State in which he has a permanent home.; if he has a permanent home in both States, he is considered to be a resident of the State with which he has the closest personal and economic relations (center of vital interests); b) if the State in which he has a center of vital interests cannot be determined, or if he does not have a permanent home in either State he is considered to be a resident of the State in which he 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 Contracting 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. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the State in which his place of effective management is situated. If it is not possible to determine where the place of effective management of a person is located, the competent authorities of the Contracting States will seek to come to an agreement on where the place of effective management of such person is located. A person shall be deemed, for the purposes of this Convention, to be a resident of the State in which the place of effective management is located, as agreed between the competent authorities of the Contracting States. However, if such competent authorities cannot reach an agreement, such person shall not be deemed to be a resident of either of the two Contracting States for the purposes of the application of this Convention.
Article 5 Permanent establishment
1. For the purposes of this Convention, the term "permanent establishment" means a fixed 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, only if such a site or facility has existed for more than 12 months; (b) an installation or structure used for natural resource exploration or a drilling rig or vessel used for natural resource exploration, only if such use lasts for more than 12 months; (c) Monitoring services for the site or facility referred to in subparagraph (a), or with the installation or facility referred to in subparagraph (b), and carried out in the Contracting State in which the site or facility, or installation, or facility, is located, but only if the activity of this nature continues for more than 12 months; d) the provision of other services, including consulting services by the enterprise through employees or other personnel hired by the enterprise 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 supplying goods or merchandise belonging to the enterprise; (b) The maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or 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 fixed place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the fixed place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, if the person is 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 that that person carries out for the enterprise, unless the activity of such person is limited to that referred to in paragraph 4 and if that activity through a permanent place of business, would not allow this permanent place of business to be considered as a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise is not considered to have a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or 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) By itself, it does not turn one of these companies into a permanent establishment of the other.
Article 6 Income from immovable property 1. Income from immovable property (including income from agriculture or forestry) may be taxed in the Contracting State in which the immovable property is located. 2. The term "immovable property" has the meaning that it has under the legislation of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or the right to develop mineral reserves, sources and other natural resources; sea, river and air vessels 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. 5. If shares or other rights in a company, trust or any similar entity give rise to ownership of immovable property located in a Contracting State and owned by that company, trust or similar entity, income derived from the direct use, rental or use in any other form of that ownership right may be taxed in that State. notwithstanding the provisions of Articles 7 and 14.
Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on or has carried on business in the other Contracting State through a permanent establishment located therein. If an enterprise carries out or has carried out business activities as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to this permanent establishment. 2. Subject to the provisions of paragraph 3, when an enterprise of a Contracting State carries on or has carried on business in the other Contracting State through a permanent establishment located there, in each Contracting State that permanent establishment shall include the profits that it could have received if it had been an independent and separate enterprise engaged in the same or similar activities under such circumstances. under the same or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the Contracting State in which the permanent establishment is located or elsewhere. However, such deduction is not allowed for amounts if any of them are paid (with the exception of actual expenses incurred) by a permanent establishment to the head office of the enterprise or any of its offices in the form of royalties, fees, similar payments in connection with the use of patents or other rights, or in the form of commissions, for special services provided or for management, or, except in the cases of banking enterprises, in the form of interest on the amount lent to a permanent establishment. Similarly, with respect to a permanent establishment, the amounts transferred (with the exception of actual expenses incurred) that permanent establishments charge to the head office of the enterprise or any other office of the enterprise in the form of royalties, fees, similar payments in connection with the use of patents or other rights, or in the form of commissions provided by special services or for management, or, except in the cases of banking enterprises, in the form of interest on the amount lent to the head office of the enterprise or any of its offices. 4. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. 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. 6. Where profits include the types of income referred to separately in other articles of this Convention, the provisions of those articles shall not be affected by the provisions of this Article.
Article 8 Sea and air transport 1. Profits earned by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic are taxable only in that State. Such profit includes income earned by the enterprise from activities related to the operation of ships or aircraft in international transportation. 2. If the place of effective management of a maritime transport enterprise is located on board a ship, it shall be deemed 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 ship's operator is a resident. 3. The provisions of paragraph 1 also apply to profits from participation in a pool, joint venture or international operating agency.
Article 9 Associated companies 1. When (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in each case between the two enterprises in their commercial and financial If conditions are created or established in a relationship that differ from those created between independent enterprises, then any profit, which could have been received by one of them, but was not received by him due to these conditions, may be included in the profit of this enterprise and taxed accordingly. 2. In the event that a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits in respect of which an enterprise of the other Contracting State is taxed in that other State and the profits thus included are profits that would have been earned by an enterprise of the first-mentioned State if the conditions created between the two enterprises had been the same as between independent enterprises, then that other State must make appropriate adjustments to the amount of tax levied on this profit, if that other State considers adjustments justified. In determining such an adjustment, due account shall be taken of the other provisions of this Convention, and the competent authorities of the Contracting States shall consult with each other, if necessary.
Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident in accordance with the laws of that State, but if the 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 that owns directly or indirectly 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. This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. A resident of Kazakhstan who receives dividends paid by a company that is a resident of France may receive a refund of the prepayment to the extent that it was actually paid by the company in respect of such dividends. The total amount of the refunded prepayment will be considered a dividend for the purposes of this Convention. It will be subject to taxation in France in accordance with the provisions of paragraph 2.4. The term "dividends" means income from shares, shares or rights of the mining industry ("juissance"), shares of founders or other rights that are not debt claims, profit-sharing, as well as income considered as distribution under the tax laws of the Contracting State of which the company making the distribution is a resident. It is understood that the term "dividends" does not include the income referred to in Article 16.5. The provisions of paragraphs 1, 2 and 3 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 is a resident through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and a share of The share in respect of which the dividends are being paid is indeed related 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. 6. When a company that is a resident of a Contracting State receives profits or income from the other Contracting State, that other State may neither 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 in cases where the interest in respect of which the dividends are paid, Indeed, it refers to a permanent establishment or a permanent base located in that other State., neither shall the company's undistributed profits be taxed on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other State. 7. The profits of an enterprise of a resident of a Contracting State derived through a permanent establishment situated in the other Contracting State may, after being taxed in accordance with the provisions of Article 7 and after deduction of any amount reinvested in that permanent establishment, be taxed on the remaining amount in that other State, but the additional tax so levied may not exceed the rate stipulated in subparagraph (a) of paragraph 2 of this Article.
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. Notwithstanding the provisions of paragraph 2, any such interest as referred to in paragraph 1 shall be taxable only in the Contracting State of which the recipient is a resident if such recipient is the beneficial owner of the interest and if one of the following conditions is met: (a) such recipient is a Contracting State, one of its political and administrative subdivisions or local authorities, or a legal entity belonging to the public law sector, including the central bank of that State; or such interest is paid by one of these States, entities, authorities or legal entities belonging to the public sector; or b) such interest is paid in respect of any debt claim or loan guaranteed or insured by France in the case of France or a similar organization in the case of Kazakhstan. 4. The term "interest", as used in this Article, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in the debtor's profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities, bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this Article. The term "interest" does not include any types of income that are considered as dividends under the provisions 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 a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there, and the debt claim, in particular in respect of which interest is paid, it really 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. 6. 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 being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such The interest arises in the Contracting 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 other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this Article shall apply only to the last mentioned amount. In such a case, the excess part of the payment will continue to be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention. 8. The provisions of the Convention shall not apply if the debt obligation in respect of which interest is paid was created or transferred primarily for the purpose of obtaining the benefits of this Article.
Article 12 Royalty 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 is also the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the total amount of the royalties. 3. The term "royalties", as used in this Article, means payments of any kind received as remuneration for the use or for the right to use any copyright in literary, artistic or scientific works, including cinematographic films, any patent, trademark, design or model, plan, secret formula. or a process, or for information related to industrial, commercial or scientific experience (know-how) and payments for the use or for the right to use industrial, commercial or scientific equipment. 4. Notwithstanding the provisions of paragraph 2 of this Article, the actual recipient of payments for the use or for the right to use the industrial, commercial or scientific equipment referred to in paragraph 3 of this Article may choose in any tax year such option that in the Contracting State in which the royalties arise, according to the net amount of the royalties arising in that State, as if such royalties would be business profits under Article 7. In this case, the tax rate provided for in paragraph 2 of this Article will not be applied. 5. The provisions of paragraph 1 of this Article shall not apply if the beneficial owner of the royalties, being 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 which in respect of which royalties are paid, it really 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. 6. Royalties shall be deemed to arise in a Contracting State when the payer is the Contracting State itself, a political and administrative subdivision, a local authority or a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the right in respect of which the obligation to pay royalties arose and such royalties are paid by such permanent establishment or permanent base, then such royalties They will be considered to arise in the State in which the permanent establishment or permanent base is located. 7. When, as a result of a special relationship between the payer and the actual owner of the royalties, or between both of them and any other person, the amount of royalties in respect of the use, right or information for which they are paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalties in the absence of such a relationship, the provisions of this Article apply only to the last mentioned amount. In such a case, the excess part of the payments will continue to be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention. 8. The provisions of the Convention shall not apply if the right giving rise to royalties was created or transferred primarily for the purpose of taking advantage of this Article.
Article 13 Gains from the appreciation of property 1. (a) Gains derived from the alienation of immovable property as defined in Article 6 may be taxed in the Contracting State in which such immovable property is located. (b) Gains from the alienation of shares or other rights in a company, trust or similar organization, the assets of which consist primarily, directly or through a relationship between one or more other companies, of immovable property located in a Contracting State, or of rights related to such immovable property, may be taxed in that State. For the purposes of this provision, immovable property related to the industrial, commercial or agricultural activities of such a company, trust or similar organization or to the provision of its independent personal services will not be taken into account. 2. 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. 3. Gains from the alienation of property forming part of the business property of an enterprise of a Contracting State and consisting of ships or aircraft operated by such enterprise in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, and 3 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, except in the following circumstances where such income may also be taxed in the other Contracting State: (a) If he has a permanent base on a regular basis in that other State for the purposes of carrying on his activities; in this case, only that part of the income that relates to that fixed base may be taxed in that other State; b) if its presence in that other State lasts for a period or periods totaling or exceeding 183 days in the relevant tax year; in such case, only that part of the income that received from his activities carried out in that other State may be taxed in that other State. 2. The term "professional services" specifically includes 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 earned by a resident of a Contracting State in connection with an employment shall be taxable only in that State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient resides in the other State for a period or periods not exceeding a total of 183 days within any consecutive 12 months.-a monthly period beginning or ending in the relevant tax year, and b) the remuneration is paid by or on behalf of the employer, who is not a resident of another State, and (c) remuneration is not paid by a permanent establishment or a permanent base that the employer has in another State. 3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State.
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 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. Notwithstanding the provisions of Articles 14 and 15, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities carried on in the other Contracting State may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised. 3. Notwithstanding the provisions of paragraph 1, income earned by a resident of a Contracting State as an artist or athlete from his personal activities carried on in the other Contracting State shall be taxable only in the first-mentioned State if such activities in the other State are supported primarily by public funds of the first-mentioned State or its political and administrative subdivisions, or local government authorities or their legal entities related to the public legal sector. 4. Notwithstanding the provisions of paragraph 2, where income in respect of personal activities carried out by a resident of a Contracting State who is an art worker or athlete in that capacity in the other Contracting State accrues not to the art worker or athlete himself but to another person, that income, notwithstanding the provisions of Articles 7, 14 and 15, shall be taxable. taxable only in the first-mentioned State if that other person is supported primarily by the public funds of that State or its political and administrative divisions., or local authorities or their legal entities related to the public legal sector.
Article 18 Pensions and other payments 1. Except where the provisions of paragraph 2 of Article 19 apply, pensions and other similar remuneration paid in respect of past employment to a resident of a Contracting State and any annuity paid to such resident shall be taxable only in that State. 2. The term "annuity" means a fixed amount that is periodically paid to an individual at a fixed time throughout his life or a certain or fixed period of time with the obligation to make payments in return for adequate and full remuneration in money or monetary terms.
Article 19 Remuneration for public service 1. (a) 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, subdivision or authority shall be taxable only in that State. (b) However, such 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 and a national of that State and is not also a national of the first-mentioned State. 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, subdivision, or authority, shall be taxable only in that State. (b) However, such pension is taxable only in the other Contracting State if the individual is a resident of and a national of that State and is not a national of the former State. 3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with the conduct of business by a Contracting State or its political and administrative subdivision or local authority.
Article 20 Students 1. Payments which a student or a student 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 education or training, receives for his maintenance, education or training, shall not be taxed in that State, provided that such payments arise from sources outside this State. 2. Remuneration paid by a Contracting State or its local authority, or by legal entities belonging to the public sector of that State or authority, to an individual in his capacity as a teacher or researcher, shall be taxable only in that State.
Article 21 Other income 1. Types of income actually owned by a resident of a Contracting State, wherever they arise, which are not related to 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 if the actual recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State with a permanent establishment located in that other State. it has a permanent base, and the right or property in respect of which income is paid, indeed, it refers to such a permanent establishment or permanent base. In this case, the provisions of Article 7 or Article 14, as the case may be, shall apply.
Article 22 Property 1. (a) Property represented by immovable property referred to in Article 6, which is owned by a resident of a Contracting State and located in the other Contracting State, may be taxed in that other State. (b) Property represented by shares or other rights in a company, trust or similar organization, the assets of which consist primarily, directly or through a relationship between one or more other companies, of immovable property located in a Contracting State or of rights related to such immovable property, may be taxed in that State. For the purposes of this provision, immovable property related to the industrial, commercial or agricultural activities of such a company, trust or similar organization or to the provision of its independent personal services will not be taken into account. 2. Property 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 belonging to a permanent establishment held 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. Property represented by property forming part of the business property of an enterprise of a Contracting State and consisting of ships and aircraft operated by such enterprise in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in that State. 4. All other elements of the property 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) When a resident of Kazakhstan receives income or owns property that, in accordance with the provisions of the Convention, can be taxed in France, Kazakhstan will allow: i) as a deduction from the income tax of this resident of an amount equal to the income tax paid in France; ii) as a deduction from the property tax of this resident of an amount equal to the property tax paid in France. In any case, such a deduction will not exceed the tax levied on the same income or property in Kazakhstan at the rates applicable there. (b) If a resident of Kazakhstan receives income or owns property that, in accordance with the provisions of this Convention, is taxable only in France, Kazakhstan may include that income or property in the tax base, but only for the purpose of determining the tax rate on such other income or property as is taxable in Kazakhstan. 2. In the case of France, double taxation is eliminated as follows: a) Regardless of the other provisions of the Convention, income that is taxed in Kazakhstan or is not taxed anywhere except in Kazakhstan in accordance with the provisions of this Convention is taken into account for calculating French tax, in cases where such income is not exempt from corporate tax in accordance with French domestic law. In this case, the Kazakh tax is not deducted from such income, but the actual recipient is entitled, according to the conditions and restrictions stipulated in subparagraphs (i) and (ii), to a tax offset relative to the French tax. Such a tax offset will be equal to: (i) in the case of income other than that referred to in subparagraph (ii), the amount of French tax relating to such income, provided that the recipient is subject to Kazakh tax in respect of such income.; (ii) with respect to income - subject to French corporate tax - referred to in Article 7 and paragraph 2 of Article 13, and with respect to income referred to in Articles 10, 11, 12, paragraph 1 of Article 13, paragraph 3 of Article 15, Article 16 and paragraphs 1 and 2 of Article 17, the amount of tax paid in Kazakhstan in accordance with the provisions of these articles; however, such a tax offset should not exceed the amount of French tax related to such income.; b) A French resident who owns property that may be taxed in Kazakhstan in accordance with paragraphs 1 or 2 of Article 22 is also taxed in France in respect of such property. The French tax is calculated by providing a tax offset equal to the amount of tax on this property paid in Kazakhstan. However, such a tax offset should not exceed the amount of French tax related to such property. (c) (i) It is understood that the term "amount of French tax relating to such income" as used in subparagraph (a) means: - when the tax on such income is calculated by applying a pro rata rate, the amount of the corresponding net income is multiplied by the rate that is actually applied to such income.; - when the tax on such income is calculated by applying a progressive scale, the amount of the corresponding net income is multiplied by the rate derived from the ratio of the tax actually paid on all net income taxed under French law to the amount of this total net income. This interpretation will be applied by analogy to the term "amount of French tax relating to such property" as it is used in subparagraph (b). (ii) It is understood that the term "amount of tax paid in Kazakhstan", as used in sub-paragraphs (a) and (b), means the amount of Kazakh tax actually and definitively paid in respect of the types of income or property in question, in accordance with the provisions of the Convention, by their actual recipient or owner, who is a resident of France.
Article 24 Non-discrimination 1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related requirement other or more burdensome than taxation and related obligations to which nationals of that other State are or may be subject under the same circumstances, in particular with regard to residence.. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of one or both of the Contracting States. 2. Stateless persons who are residents of a Contracting State shall not be subjected in any of the Contracting States to any taxation or any related obligation other or more burdensome than taxation and related obligations 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 a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of an enterprise of that other State engaged in the same activity. This provision should not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with any personal benefits, deductions and discounts for tax purposes based on their civil status or family obligations, which it provides to its own residents. 4. Except in cases where the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11 or paragraph 7 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 purpose of determining 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 or, if it is more favorable for the enterprise, on the same terms as if they were paid to a resident of a third State., which is a member of the Organization for Economic Cooperation and Development. 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 assets of that 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 related requirement other or more burdensome than taxation and related obligations to which they are subject. other similar enterprises of the first mentioned State may be at risk. 6. The provisions of this Article, irrespective of the provisions of Article 2, shall apply to taxes of any kind and description. 7. If any bilateral treaty or agreement concluded between the Contracting States, other than this Convention, to which both Contracting States are parties, includes a provision on non-discrimination or on most-favored-nation treatment, it is understood that these provisions will not apply in tax matters.
Article 25 Mutual agreement procedure 1. When a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his case is subject to paragraph 1 of Article 24 of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if it considers the claim to be well-founded and if it is not itself able to arrive at a satisfactory solution, to resolve the matter by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in accordance with the Convention. Any agreement reached must be implemented regardless of any time limits available in the domestic laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States or their representatives may enter into direct contact with each other in order to reach agreement within the meaning of the preceding paragraphs. 5. Regardless of any bilateral treaty or agreement concluded between the two Contracting States, tax matters between the Contracting States (as well as disputes concerning the application of this Convention) shall be resolved solely in accordance with the provisions of this Article, unless the competent authorities agree otherwise. 6. If an agreement cannot be reached by the competent authorities in accordance with the preceding paragraphs of this Article, the case may, if both competent authorities and the taxpayer agree, be submitted to arbitration, provided that the taxpayer confirms in writing his consent to be bound by the decision of the arbitration commission. The competent authorities may disclose to the arbitration commission such information as is necessary for the conduct of the arbitration procedure. The decision of the arbitration commission will be binding on the taxpayer and both States in relation to this case. Procedures, including the composition of the commission, should be established between the Contracting States through the exchange of notes through diplomatic channels after consultation between the competent authorities. The provisions of this paragraph will not be effective until the date specified in the exchange of diplomatic notes.
Article 26 Exchange of information 1. The competent authorities of the Contracting States shall exchange information necessary to comply with the provisions of this Convention or the domestic 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 is considered secret in the same way as information obtained under the domestic law of that State and is disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution or consideration of appeals in respect of taxes covered by the Convention.. Such persons or authorities should use the information only for these purposes. They may disclose information during an open court session or when making court decisions. 2. In no case shall the provisions of paragraph 1 be interpreted as imposing on a Contracting State an obligation to: (a) carry out administrative measures that differ from the legislation and administrative practice of that or the other Contracting State; (b) provide information that cannot be obtained under the legislation or in the ordinary course of administrative practice of that or the other Contracting State.; c) provide information that would disclose any commercial, industrial or professional secret, or trade process, or information the disclosure of which would be contrary to public order.
Article 27 Diplomatic agents and consular staff 1. Nothing in this Convention affects the tax privileges of members of diplomatic and consular missions and members of permanent missions to international organizations established by the general rules of international law or on the basis of the provisions of special agreements. 2. Notwithstanding the provisions of Article 4, an individual who is a member of the diplomatic and consular missions or permanent missions of a Contracting State located in the other Contracting State or in a third State will be considered, for the purposes of the Convention, to be a resident of the sending State if he is subject in the sending State to the same obligations with respect to taxation of his total income and property as residents of this State are subject. 3. The Convention does not apply to international organizations, their institutions or officials, and to persons who are members of diplomatic and consular missions or permanent missions of a third State located in a Contracting State and are not subject in one of the Contracting States to the same obligations with respect to taxation of their income or property to which residents of that State are subject.
Article 28 Method of application The competent authorities of the Contracting States may, jointly or separately, prescribe rules and procedures for determining the manner of application of the provisions of this Convention.
Article 29 Entry into force 1. Each Contracting State shall notify the other of the completion of the necessary procedures necessary for the entry into force of this Convention. The Convention will enter into force on the first day of the second month following the date on which the last of these notifications was received. 2. The provisions of the Convention shall apply: (a) with respect to taxes levied at source to amounts taxed on or after 1 January 1996; (b) In respect of taxes on income not levied at source, on income relating, as the case may be, to any calendar year or accounting period beginning on or after January 1, 1996; (c) In respect of other taxes, to the taxation of a tax event that will take place on or after January 1, 1996. January 1996. 3. Any taxes included in the treaties or agreements in force between the Republic of Kazakhstan and the French Republic will cease to be in force between Kazakhstan and France when the provisions of this Convention enter into force.
Article 30 Termination 1. This Convention shall remain in force indefinitely. However, after a period of five calendar years from the date on which the Convention enters into force, both Contracting States may terminate it by giving notice through diplomatic channels at least six months before the end of any calendar year. 2. In this case, the Convention will cease to apply: (a) with respect to taxes levied at source on amounts taxed after the calendar year in which the termination notice is filed; (b) with respect to taxes on income not levied at source on income related to any calendar year or accounting period, as appropriate. the period beginning after the calendar year before the end of which the termination notice was submitted; c) with respect to other taxes, to the taxation of a tax event that will take place after the calendar year before the end of which the termination notice is filed. In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention.
Done in Paris on February 3, 1998, in two copies in the Kazakh, French and Russian languages, all three texts being equally authentic.
Protocol
When signing the Convention between the Government of the Republic of Kazakhstan and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Property, the signatories agreed on the following provisions, which will form an integral part of the Convention.
1. With regard to subparagraph (a) of paragraph 3 of Article 2, the payroll tax is governed by the provisions of the Convention, applicable, as appropriate, to profits from business activities or income from independent personal services.
2. With regard to Articles 2, 4, 11, 12, 17 and 19, it is understood that the term "political and administrative divisions" means the political and administrative divisions of Kazakhstan.
3. With regard to Article 4, it is understood that the term "resident of a Contracting State" should include any partnership and any group of persons who have a place of effective management in a Contracting State and all shareholders, partners or other members of which are personally liable to tax therein in respect of their portion of profits corresponding to their rights or share in such partnerships and groups.
4. With regard to paragraph 3 of Article 5, if an enterprise (general contractor) that undertakes the execution of the entire project enters into a subcontract for a part of such a project with other enterprises (subcontractors), the period spent by any subcontractor working on the construction site should be considered as the time spent by the general contractor on construction. The subcontractor himself has a permanent establishment on the site if his activity on it lasts more than twelve months.
5. With regard to Article 7: (a) With regard to paragraph 1, profits derived from the sale of goods or merchandise of the same or similar type as those sold through a permanent establishment, or from other business activities of the same or similar type as those carried out through a permanent establishment, shall be considered as attributable to that permanent establishment, provided that it is proved that that the relevant transaction was undertaken for tax evasion in the Contracting State in which the permanent establishment is located. (b) (i) When an enterprise of a Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment located there, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but only on the basis of payments attributable to the actual activities of the permanent establishment in such sales or business activities; (ii) in the case of contracts, especially for the technical justification, supply, installation or installation of industrial, commercial or scientific equipment or premises, or public works, where an enterprise has a permanent establishment, the profits of such permanent establishment should not be determined on the basis of the total amount of the contract, but only on the basis of that part of the contract that is valid implemented by a permanent establishment. Profits related to the part of the contract that is carried out in the Contracting State in which the place of effective management of the enterprise is located are taxable only in that State.
6. Each Contracting State shall endeavour to establish procedures enabling taxpayers to receive income referred to in Articles 10, 11 and 12 without withholding taxes at source in cases where the Convention provides for taxation only in the Contracting State of residence. When the Convention provides for taxation in the State where the income originates, each State will seek to establish procedures that entitle taxpayers to receive income after deduction of tax at the rate provided for in the Convention. When a declaration is made by a taxpayer, the amount of excess tax withheld in a Contracting State at the rate prescribed by domestic law must be refunded in a timely manner if the tax is withheld at a rate exceeding that provided for in the articles of the Convention.
7. If Kazakhstan agrees to a lower tax rate (including zero rate) than 5 percent in subparagraph (a) of paragraph 2 and paragraph 7 of Article 10, 15 percent in subparagraph (b) of paragraph 2 of Article 10, 10 percent in paragraph 2 of Article 11 or paragraph 2 of Article 12 in any Convention between Kazakhstan and a third State By a State that is a member of the Organization for Economic Cooperation and Development, and this Convention enters into force before, on or after the date of entry into force of this Convention., such a reduced tax rate (or zero rate), as appropriate, automatically replaces the 5 percent rate provided for in subparagraph (a) of paragraph 2 and paragraph 7 of Article 10, 15 percent in subparagraph (b) of paragraph 2 of Article 10, 10 percent in paragraph 2 of Article 11 or paragraph 2 of Article 12 of this Convention with effective from the date of entry into force of the Convention or this Convention, whichever is later. 8. The provisions of paragraph 1 of Article 24 shall apply to Contracting States, their local authorities and legal entities belonging to the public sector whose activities are non-industrial and non-commercial in nature, even if they are not in the same circumstances with respect to residency.
9. With regard to paragraph 1 of Article 24, it is understood that a natural person, legal person, partnership or association who is a resident of a Contracting State will not be considered to be in the same circumstances as a natural person, legal person, partnership or association who is not a resident of that State, even if, in the case of a legal person Such economic units, for the purposes of applying subparagraph (i) of paragraph 1 of Article 3, shall be deemed to be nationals of the Contracting State of which they are residents.
10. The provisions of this Convention shall in no way restrict France from applying the provisions of Article 212 of its Tax Code (code general des impots) or other similar provisions that would amend or replace the provisions of this Article; and shall not restrict Kazakhstan from adopting and applying provisions in its domestic legislation on substantially similar matters. for reasons.
11. Each Contracting State retains the right to tax, in accordance with its domestic law, any income of its residents whose taxation relates to the other Contracting State but which is not taken into account in the tax base in that State, in cases where such double exemption is the result of different qualifications of the income in question.
In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol.
Done in Paris on February 3, 1998, in two copies in the Kazakh, French and Russian languages, all three texts being equally authentic.
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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