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

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

The Law of the Republic of Kazakhstan dated October 14, 2016 No. 17-VI SAM

 To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Serbia on the Avoidance of Double Taxation and the Prevention of Tax Evasion in Respect of Taxes on Income and on Capital and its Protocol, signed in Astana on August 28, 2015.

President

Republic of Kazakhstan

N. NAZARBAYEV

Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Serbia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital

(Entered into force on November 24, 2016 - Bulletin of International Treaties of the Republic of Kazakhstan 2016, No. 6, art. 108)

The Government of the Republic of Kazakhstan and the Government of the Republic of Serbia,

Desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on capital,

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 covered by the Convention

1. This Convention applies to taxes on income and on capital imposed on behalf of a Contracting State or its administrative-territorial subdivisions or local authorities, regardless of the method of their collection.

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

3. The existing taxes to which this Convention applies are, in particular:

1) in Kazakhstan:

- corporate income tax;

- individual income tax;

- property tax on legal entities and individuals

(hereinafter referred to as the “Kazakhstan Tax");

2) in Serbia:

- corporate income tax;

- individual income tax;

- capital tax

(hereinafter referred to as the “Serbian Tax").

4. This 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 the existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes in their tax legislation.

Article 3 General definitions

1. For the purposes of this Convention:

1) The terms "Contracting State" and "other Contracting State" mean Kazakhstan and Serbia, depending on the context.;

 2) the term "Kazakhstan" means the Republic of Kazakhstan, and when used in a geographical sense, the term "Kazakhstan" includes the state territory of the Republic of Kazakhstan and the zones in which Kazakhstan exercises its sovereign rights and jurisdiction, in accordance with its legislation and international treaties to which it is a party.;

3) the term "Serbia" means the Republic of Serbia and, when used geographically, it includes the territory of the Republic of Serbia.;

4) the term "national person" means:

- any natural person having the nationality of a Contracting State;

- any legal entity, partnership or association that has obtained such status on the basis of the current legislation of a Contracting State;

5) the term "person" includes an individual, a company and any other association of persons;

6) the term "company" means any corporate entity or any organization that is considered as a corporate entity for tax purposes.;

(7) The terms "enterprise of one Contracting State" and "enterprise of the other Contracting State" mean, respectively, an enterprise which is a resident of one Contracting State and an enterprise which is a resident of the other Contracting State;

(8) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise whose place of effective management is in a Contracting State, except in cases where the ship or aircraft is operated exclusively between locations in the other Contracting State.;

(9) The term "competent authority" means:

- in Kazakhstan: The Ministry of Finance or its authorized representative;

- in Serbia: the Ministry of Finance or its authorized representative.

2. As regards the application at any time of this Convention by a Contracting State, any term not defined therein shall have the meaning which it has at that time under the laws of that Contracting State, unless the context otherwise requires, in respect of taxes to which this Convention applies, any meaning under the tax laws of that Contracting State. prevails over the meaning given to the term under other laws of that Contracting 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 Contracting State, is liable to tax there on the basis of his domicile, place of incorporation, residence, place of management or any other criterion of a similar nature, and also includes a Contracting State and any administrative-territorial subdivision or local authority. However, this term does not include any person who is liable to tax in that Contracting State, only in respect of income from sources in that Contracting State or capital located therein.

 2. If, by reason of the provisions of paragraph 1 of this article, an individual is a resident of both Contracting States, then his status shall be determined as follows:

(1) He shall be deemed to be a resident only of the Contracting State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident only of the Contracting State in which he has closer personal and economic relations (center of vital interests);

(2) If the Contracting 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 Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode.;

(3) If he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national.;

(4) If the residence status of an individual cannot be determined in accordance with the provisions of subparagraphs (1) to (3) of this paragraph, the competent authorities of the Contracting States shall resolve the matter by mutual agreement.

 3. If by reason of the provisions of paragraph 1 of this article a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident only of the Contracting State in which his place of effective management is located.

Article 5 Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part.

2. The term "permanent establishment" includes, in particular::

1) Management location;

2) Branch office;

3) office;

4) the factory;

5) the workshop;

6) a point of sale;

7) a warehouse in relation to a person providing storage space to other persons; and

8) a mine, a mine, an oil or gas well, a quarry, a drilling rig or a marine vessel, or any other place of exploration or extraction of natural resources, as well as related surveillance services.

3. The term "permanent establishment" also includes:

1) a construction site or a construction, installation or assembly project or monitoring services related to such a site, activity or project for more than 9 months;

2) the provision of services, including consulting services, by the enterprise through employees or other personnel employed by the enterprise for such purposes, but only if activities of that nature continue (for such or a related project) within a Contracting State for a period or periods exceeding 183 days within any twelve-month period.

For the purposes of this subparagraph, if an enterprise of a Contracting State providing services in another Contracting State for a certain period of time is associated with a second enterprise that provides similar services in that other Contracting State for such or related projects through one or more individuals who are located and provide the same services in that other State. In a Contracting State, it is considered, that the first-mentioned enterprise provides services in the other Contracting State for such or related projects through such persons. For the purposes of the preceding sentence, an enterprise is considered to be related to the second enterprise if one of them is controlled directly or indirectly by the second, or both enterprises are controlled directly or indirectly by the same persons, regardless of whether such persons are residents of a Contracting State or not.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" does not include:

1) the use of facilities solely for the purpose of storing, displaying, or delivering goods or merchandise belonging to the enterprise;

2) the maintenance of a stock of goods or wares belonging to the enterprise solely for the purposes of storage, display or delivery;

3) the maintenance of a stock of goods or products belonging to an enterprise solely for the purposes of processing by another enterprise;

4) the maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise;

5) the maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activity for the enterprise;

6) the maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs 1) to 5) of this paragraph, provided that the cumulative activities of the permanent place of business resulting from such a combination are of a preparatory or auxiliary nature.

 5. Notwithstanding the provisions of paragraphs 1 and 2 of this article, if a person other than an agent with an independent status to whom paragraph 6 of this article applies acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, such enterprise shall be deemed to have a permanent establishment in that Contracting State. In respect of any activity that that person carries out for the benefit of the enterprise, unless the activity of such person is limited to the activities referred to in paragraph 4 of this article., which, if carried out through a permanent place of business, does not transform that permanent place of business into a permanent establishment in accordance with the provisions of such paragraph.

6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that Contracting State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are carried out entirely or almost entirely on behalf of such an enterprise, and conditions are created between such an enterprise and the agent in their commercial and financial relations that differ from those that could be established between independent enterprises, he is not considered an agent with an independent status within the meaning of this paragraph.

 7. Notwithstanding the preceding provisions of this article, an insurance organization of one Contracting State, excluding reinsurance, forms a permanent establishment in the other Contracting State if it collects contributions in the territory of the other Contracting State or insures risks while there through a person other than an agent with an independent status to whom the provisions of paragraph 6 of this article apply..

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

Article 6 Income from immovable property

1. Income earned by a resident of one Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other Contracting State.

2. The term "immovable property" is defined by the legislation of the Contracting State in which the property in question is located. Such a term, in any case, includes property auxiliary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of legislation on land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for development or the right to develop a deposit. mineral raw materials, springs, and other natural resources. Ships and aircraft are not considered as immovable property.

 3. The provisions of paragraph 1 of this article shall apply to income derived from the direct use, rental or use of immovable property in any other form.

 4. The provisions of paragraphs 1 and 3 of this article shall also apply to income from immovable property of an enterprise and 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 shall be taxable only in that Contracting State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business as mentioned above, the profits of the enterprise may be taxed in the other Contracting State, but only in that part which relates to such a permanent establishment.

 2. Subject to the provisions of paragraph 3 of this article, if an enterprise of one Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State such permanent establishment shall include the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, under the same or similar conditions, and 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.

 4. If 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 among its various divisions, then nothing in paragraph 2 of this article prohibits that Contracting State from determining taxable profits by such distribution based on customary practice, but the method of distribution chosen should produce results, consistent with the principles contained in this article.

5. If the information available to the competent authority of a Contracting State is insufficient to determine the profits of a permanent establishment of an enterprise, nothing in this article prohibits the application of any law or regulation of that Contracting State regarding the determination of the tax arrears of such a permanent establishment through an assessment by the competent authority of that Contracting State of the profits of that permanent establishment subject to taxation, provided, that such laws or regulations are applied in accordance with the principles of this Article, taking into account information available to the competent authority of a Contracting State.

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

7. For the purposes of the preceding paragraphs of this article, profits attributable to a permanent establishment are determined in the same way annually, 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 such articles shall not be affected by the provisions of this article.

Article 8 International carriage

1. Profits from the operation of ships and aircraft in international traffic are taxable only in the Contracting State in which the place of effective management of the enterprise is located.

2. If the place of effective management of a shipping 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, in the absence of such home port, in the Contracting State of which the person operating the ship is a resident.

3. The provisions of paragraph 1 of this article shall also apply to profits from participation in a pool, joint venture or international organization for the operation of vehicles.

Article 9 Associated enterprises

1. If:

1) an enterprise of one Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

(2) The same persons participate directly or indirectly in the management, control or capital of an enterprise of one Contracting State and an enterprise of the other Contracting State,

and in any case, conditions are created or established between two enterprises in their commercial or financial relations that differ from those that would take place between two independent enterprises, then any profit that could have been credited to one of the enterprises, but because of the existence of such conditions was not credited to it, may be included in the profits of such an enterprise are taxed accordingly.

2. If one Contracting State includes in the profits of an enterprise of that Contracting State and, accordingly, taxes profits in respect of which an enterprise of the other Contracting State is taxed in that other Contracting State, and thus the profits included are profits that would have accrued to an enterprise of the first-mentioned Contracting State if conditions between the two enterprises had been those that exist between independent enterprises, that other Contracting State will make an appropriate adjustment to the amount of tax calculated on such profits. In determining such an adjustment, the other provisions of this Convention should be taken into account, and the competent authorities of the Contracting States should, if necessary, consult with each other.

Article 10 Dividends

1. Dividends paid by a company that is a resident of one Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and in accordance with the laws of that Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

1) 10 percent of the total amount of dividends, if the actual owner is a company (other than a partnership) that directly owns at least 25 percent of the capital of the company paying dividends.;

2) 15 percent of the total amount of dividends in all other cases.

The provisions of this paragraph shall not affect the taxation of the profits of the company from which the dividends are paid.

3. The term "dividends", as used in this article, means income from shares or other rights, other than debt claims, that contribute to profits, as well as income from other corporate rights that are subject to the same tax treatment as income from shares under the laws of the Contracting State in which the company distributing the shares is a resident. profit.

 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the dividends, who is a resident of one Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there, or provides independent personal services in that other Contracting State from a permanent base located there, and a holding company in respect of which dividends are paid, indeed, it is associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 15 of this Convention, as the case may be, shall apply.

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

6. Notwithstanding the provisions of this Convention, if a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, the profits of the permanent establishment may be subject to additional tax in that other Contracting State in accordance with its law, but the additional tax so assessed shall not exceed 10 per cent of the amount of such profits after deduction of income tax therefrom. taxes and other taxes on income levied in that other Contracting State.

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

Article 11 Interest

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

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

 3. Notwithstanding the provisions of paragraph 2 of this article, interest arising in one Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other Contracting State if the recipient is the beneficial owner of the interest and such interest receives:

1) The Government of the other Contracting State or its administrative-territorial subdivisions or local authorities;

2) The Central or National Bank of the other Contracting State.

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 such securities., bonds or debentures.

 5. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the interest, who is a resident of one Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there, or provides independent personal services in that other Contracting State from a permanent base located there, and a debt claim, in respect of which interest is being paid, it is indeed associated with such a permanent establishment or fixed base. In such a case, the provisions of article 7 or article 15 of this Convention, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting 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 an obligation to pay interest arises and the costs of such interest are borne by a permanent establishment or permanent base, such interest shall be deemed to be arise in the Contracting State in which such permanent establishment or permanent base is located.

7. If, due to a special relationship between the payer and the actual owner 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 in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned the amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

8. The provisions of this article shall not apply if the primary purpose or one of the primary 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 through such creation or transfer.

Article 12 Royalties

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

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the 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 grant of the right to use any copyright in literary, artistic or scientific works, including cinematographic films, or films or magnetic recordings used for radio or television broadcasts, and software, any patent, trademark a brand, design or model, plan, secret formula or process, or the use or grant of the right to use industrial, commercial or scientific equipment, or information related to industrial, commercial, or scientific experience.

 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the royalties, who is a resident of one 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 Contracting State from a permanent base located there, and has the right or The property in respect of which royalties are paid is indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 15 of this Convention, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which an obligation to pay royalties arises, and the costs of such royalties are borne by a permanent establishment or permanent base, such royalties shall be deemed to arise. in the Contracting State in which the permanent establishment or permanent base is located.

6. If, due to a special relationship between the payer and the actual owner or between both of them and any other person, the amount of royalties related to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article apply only to the last mentioned amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person related to the creation or transfer of rights or property in respect of which royalties are paid was to benefit from this article through such creation or transfer.

Article 13 Remuneration for technical services

1. Remuneration for technical services arising in one Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such remuneration for technical services may also be taxed in the Contracting State in which it arises and in accordance with the laws of that Contracting State, but if the beneficial owner of such remuneration for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the remuneration. for technical services.

3. The term "remuneration for technical services", when used in this article, means payments of any kind received as remuneration for the provision of any managerial, technical, or consulting services.

 4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the remuneration for technical services, who is a resident of one Contracting State, carries on business in the other Contracting State in which the remuneration for technical services arises through a permanent establishment located there or provides independent personal services in that other Contracting State, with a permanent establishment located there bases, and the remuneration for technical services is indeed linked to such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 15 of this Convention, as the case may be, shall apply.

5. Remuneration for technical services shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting State. If, however, the person paying remuneration for technical services, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which an obligation arises to pay remuneration for technical services, and the costs of such remuneration for technical services are borne by a permanent establishment or permanent base, such remuneration for technical services is deemed to arise in that Contracting State., where a permanent establishment or permanent base is located.

6. If, due to a special relationship between the payer and the actual owner or between both of them and any other person, the amount of remuneration for technical services related to the services on the basis of which they are paid exceeds the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article apply only to the last mentioned amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person related to the provision or transfer of services for which remuneration for technical services is paid was to benefit from this article through such provision or transfer.

Article 14 Income from the increase in the value of property

 1. Income earned by a resident of a Contracting State from the alienation of immovable property defined in article 6 of this Convention and located in the other Contracting State may be taxed in that other Contracting State.

2. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State, or movable property 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 income from the alienation of such permanent establishment or permanent base (alone or in combination with the entire company), may be taxed in that other Contracting State.

3. Gains from the alienation of ships, aircraft operated in international traffic, or movable property related to the operation of such ships, aircraft, are taxable only in the Contracting State in which the place of effective management of the enterprise is located.

4. Income earned by a resident of one Contracting State from the alienation of an equity interest or equivalent securities deriving more than 50 percent of their value, directly or indirectly, from immovable property located in the other Contracting State may be taxed in that other Contracting State.

 5. Gains from the alienation of any property other than that provided for in paragraphs 1, 2, 3 and 4 of this article shall be taxable only in the Contracting State of which the alienator is a resident.

Article 15 Independent personal services

1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that Contracting State, with the exception of:

1) if he has a fixed base regularly owned by him in the other Contracting State for the purposes of carrying out his activities; in this case, only that part of the income which relates to that fixed base may be taxed in that other Contracting State; or

(2) If his presence in the other Contracting State continues for a period or periods exceeding 183 days in any twelve-month period beginning or ending in the relevant financial year; in this case, only a portion of the income derived from his activities carried on in that other Contracting State may be taxed in that State. in the other Contracting State.

2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.

Article 16 Income from employment

1. Subject to the provisions of articles 17, 19, 20, 21 and 22 of this Convention, salaries, wages and other similar remuneration derived by a resident of a Contracting State in connection with an employment shall be taxable only in that Contracting State unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other Contracting State.

 2. Notwithstanding the provisions of paragraph 1 of this article, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned Contracting State if:

(1) The recipient is present in the other Contracting State for a period or periods not exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year, and

(2) The remuneration is paid by or on behalf of an employer who is not a resident of the other Contracting State, and

(3) The remuneration costs are not borne by a permanent establishment or fixed base which the employer has in the other Contracting State.

3. Notwithstanding the preceding provisions of this article, remuneration derived in connection with an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is located.

Article 17 Directors' fees

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

Article 18 Artists and athletes

 1. Notwithstanding the provisions of articles 15 and 16 of this Convention, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other Contracting State..

 2. Where income from personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, such income may, notwithstanding the provisions of articles 7, 15 and 16 of this Convention, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

 3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, income earned by a resident of a Contracting State from his personal activities as an art worker or athlete shall be taxable only in that Contracting State if his activities are fully or substantially financed by public funds of one or both Contracting States or administrative-territorial subdivisions or local authorities or The activity is carried out in the other Contracting State within the framework of a cultural or sports exchange program., agreed by both Contracting States.

Article 19 Pensions

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

Article 20 Public service

1. (1) Salaries, salaries and other similar remuneration paid by a Contracting State or its administrative-territorial subdivision or local authority to an individual in respect of services rendered to that Contracting State or its administrative-territorial subdivision or local authority shall be taxable only in that Contracting State.

(2) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in the other Contracting State and an individual who is a resident of the other Contracting State:

- is a national of the other Contracting State; or

- has not become a resident of another Contracting State solely for the purpose of performing such service.

 2. (1) Notwithstanding the provisions of paragraph 1 of this article, pensions and other similar remuneration paid from established funds by a Contracting State or its administrative-territorial subdivision or local authority to an individual in respect of services rendered to that Contracting State or its administrative-territorial subdivision or local authority shall be taxable only in the following cases: in this Contracting State.

(2) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of and a national of the other Contracting State.

 3. The provisions of articles 16, 17, 18 and 19 of this Convention shall apply to salaries, salaries, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or its administrative-territorial subdivision or local authority.

Article 21 Students or interns

1. Payments that a student or trainee who is or was immediately prior to arrival in one Contracting State a resident of the other Contracting State and is located in the first-mentioned Contracting State solely for the purpose of education, internship, receives for the purposes of his maintenance, education, internship, shall not be taxed in that Contracting State, provided that Such payments are made from sources outside that Contracting State.

 2. In respect of grants, scholarships and other similar remuneration and remuneration from employment not specified in paragraph 1 of this article, the student or trainee referred to in paragraph 1 of this article, during such training, internship, shall be entitled to the same benefits, discounts or deductions in respect of taxes granted to residents of a Contracting State. in which he resides.

Article 22 Teachers, professors and researchers

1. A natural person who resides in one Contracting State for the purpose of teaching or conducting scientific research at a university, college, school or other similar scientific research institute of that Contracting State, and who was or is immediately prior to arrival a resident of the other Contracting State, are exempt from taxation in the first-mentioned Contracting State in respect of remuneration for such teaching or scientific research for a period of two years from the date of his first arrival for such purposes, if such remuneration originated from sources outside that Contracting State.

 2. The provision of paragraph 1 of this article does not apply to remuneration from scientific research, if such scientific research is not conducted for public purposes, but mainly for the personal interests of a certain person or persons.

Article 23 Other income

1. Types of income of a resident of a Contracting State, regardless of the source of their origin, not provided for in the preceding articles of this Convention, shall be taxable only in that Contracting State.

 2. The provisions of paragraph 1 of this article shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 of this Convention if the recipient of such income, being a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located there, or provides independent personal services in that other Contracting State. through a permanent base located there, and the right or property in connection with which the income was paid, indeed, it is connected with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 15 of this Convention, as the case may be, shall apply.

 3. Notwithstanding the provisions of paragraphs 1 and 2 of this article, types of income of a resident of a Contracting State not provided for in the preceding articles of this Convention and arising in the other Contracting State shall be taxable only in that other Contracting State.

Article 24 Capital

 1. Capital represented by immovable property defined in article 6 of this Convention, owned by a resident of one Contracting State and located in the other Contracting State, may be taxed in that other Contracting 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 available to a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other Contracting State..

3. Capital represented by ships or aircraft operated in international traffic and movable property related to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is located.

4. All other elements of the capital of a resident of a Contracting State are taxable only in that Contracting State.

Article 25 Elimination of double taxation

1. If a resident of a Contracting State earns income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the other Contracting State, the first-mentioned Contracting State shall permit:

(1) A deduction from the income tax of such resident of an amount equal to the income tax paid in that other Contracting State,

(2) A deduction from the capital tax of such resident of an amount equal to the capital tax paid in that other Contracting State.

In any case, such deduction shall not exceed the amount of income or capital tax calculated prior to the deduction, as the case may be, on income or capital that may be taxed in that other Contracting State.

2. If, under any provisions of this Convention, the income or capital earned by a resident of a Contracting State is exempt from taxation in that Contracting State, that Contracting State may nevertheless, in calculating the amount of tax on the remainder of such resident's income or capital, take into account the amount of the income or capital exempt from taxation.

Article 26 Non-discrimination

 1. Nationals of one Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation which is different or more burdensome than taxation or related obligations to which nationals of that other Contracting State are or may be subject under the same circumstances, in particular with respect to residency. This provision, irrespective of the provisions of article 1 of this Convention, also applies to persons who are not residents of one or both of the Contracting States.

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

 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12, paragraph 6 of Article 13 of this Convention apply, interest, royalties, remuneration for technical services and other payments made by an enterprise of one Contracting State to a resident of the other Contracting State for the purposes of determining the taxable profits of such enterprise shall be deductible. on the same terms as if they were paid to a resident of the first-mentioned Contracting State. Similarly, any debt owed by an enterprise of one Contracting State to a resident of the other Contracting State for the purposes of determining the taxable capital of such enterprise shall be deductible under the same conditions as debt owed to a resident of the first-mentioned Contracting State.

4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned Contracting State to any taxation or any related obligation that is other or more burdensome than the taxation or related obligations to which they are or may be subject. other similar enterprises of the first-mentioned Contracting State.

 5. The provisions of this article shall apply to the taxes referred to in article 2 of this Convention.

Article 27 Mutual agreement procedure

 1. If a person considers that the actions of one or both of the Contracting States result in or will result in taxation that does not comply with the provisions of this Convention, he may, regardless of the remedies provided for by the laws of those Contracting 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 jurisdiction of subject to paragraph 1 of Article 26 of this Convention, 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 that do not comply with the provisions of this Convention.

2. The competent authority of one Contracting State shall endeavour, if it considers such a declaration 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 is executed regardless of any time limits provided for by the legislation of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. 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 contacts with each other, including through joint commissions composed of themselves and their representatives, in order to reach an agreement in accordance with the preceding paragraphs of this article.

Article 28 Exchange of information

 1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the administration or application of legislation relating to taxes of any kind and description levied on behalf of the Contracting States or their administrative-territorial subdivisions or local authorities to the extent that taxation does not contradict this Convention, in particular for to prevent fraud or tax evasion. The exchange of information is not limited to articles 1 and 2 of this Convention.

 2. Any information received by a Contracting State in accordance with paragraph 1 of this Article shall be considered confidential, as well as information received in accordance with the laws of that Contracting State, and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in both assessment or collection, enforcement or prosecution, or consideration of appeals in with respect to the taxes referred to in paragraph 1 of this article, as well as the supervision of all of the abo  2. Any information received by a Contracting State in accordance with paragraph 1 of this Article shall be considered confidential, as well as information received in accordance with the laws of that Contracting State, and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in both assessment or collection, enforcement or prosecution, or consideration of appeals in with respect to the taxes referred to in paragraph 1 of this article, as well as the supervision of all of the above. Such persons or authorities may use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions.

 3. The provisions of paragraphs 1 and 2 of this article may not be interpreted as imposing an obligation on a Contracting State.:

1) to take administrative measures contrary to the legislation and administrative practice of this or another Contracting State;

2) to provide information that cannot be obtained under the laws or in the ordinary course of the administration of that or the other Contracting State;

3) to provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to public policy (ordre public).

 4. If information is requested by one Contracting State in accordance with this Article, the other Contracting State shall take measures to collect the requested information, even if such information is not required by that other Contracting State for its own tax purposes. The o

5. The provisions of paragraph 3 of this Article may not be interpreted as authorizing a Contracting State to refuse to provide information solely because the holder of the information is a bank, another financial institution, a nominee holder or a person acting as an agent or attorney, or because the information concerns a person with ownership rights.

Article 29 Employees of diplomatic missions and consular institutions

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

Article 30 Entry into force

1. This Convention shall enter into force on the date of receipt, through diplomatic channels, of the last written notification that the Contracting States have completed the internal procedures necessary for its entry into force.

2. This Convention applies to taxes on income earned or taxes on capital held during the tax period beginning on or after the first of January of the calendar year following the year of entry into force of this Convention.

Article 31 Termination

1. This Convention shall remain in force until terminated by one of the Contracting States. Any Contracting State may terminate this Convention by giving written notice of termination through diplomatic channels no later than six months before the end of any calendar year following the expiration of a period of five years from the date of entry into force of this Convention.

2. This Convention shall cease to apply to taxes on income earned or taxes on capital held in the tax period beginning on or after the first of January of the calendar year following the year in which the notice of termination is filed.

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

Done in Astana on August 28, 2015, in two copies in the Kazakh, Russian, Serbian and English languages, all texts being equally authentic. In case of discrepancies in the texts, the English text is decisive.

For the Government of the Republic of Kazakhstan

For the Government of the Republic of Serbia

Protocol

At the time of signing the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Serbia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (hereinafter referred to as the Convention), the undersigned have agreed on the following provisions, which are an integral part of this Convention:

I. It is understood that the provisions of this Convention in no case prohibit a Contracting State from applying the provisions of its domestic legislation and measures against tax evasion or evasion actually described as such.

 II. With regard to paragraph 4 of article 14 of the Convention:

The company's shares or interests in other organizations that do not have shares (such as partnerships, trusts, or others), which receive more than 50 percent of their value directly or indirectly from immovable property located in another Contracting State, are determined by comparing the value of such immovable property and the value of the entire property of the company or other organizations that do not shares (such as partnerships, trusts, or others) excluding obligations or debts of the company or other organizations that do not have shares such as partnerships, a trust or others (secured or unsecured by a mortgage on the relevant real estate).

In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol.

For the Government of the Republic of Kazakhstan

For the Government of the Republic of Serbia

President

Republic of Kazakhstan

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