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

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

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

The Law of the Republic of Kazakhstan dated June 24, 1999 No. 401-1

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of Romania for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital, done in Bucharest on September 21, 1998.

President of the Republic of Kazakhstan  

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

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on April 21, 2000)

The Government of the Republic of Kazakhstan and the Government of Romania, guided by their desire to strengthen and develop economic, scientific, technical and cultural ties between the two Countries and desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to taxes on Income and Capital, have agreed as follows:

Article 1 Persons to whom the Convention applies This Convention applies to persons who are residents of one or both of the Contracting States.

 Article 2 Taxes to which the Convention applies 1. This Convention applies to taxes on income and on capital imposed by a Contracting State or its administrative-territorial subdivisions or local authorities, regardless of the method of their collection. 2. Taxes on income and 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, as well as taxes levied on income from capital gains. 3. The existing taxes to which the Convention applies are, in particular:: a) in the Republic of Kazakhstan: (i) corporate and individual income tax; (ii) property tax (hereinafter referred to as the "Kazakhstan Tax"); (b) In Romania: (i) a tax on income earned by individuals; (ii) a tax on profits; (iii) a tax on wages and other similar remuneration; (iv) a tax on income from agricultural activities; (V) a tax on dividends; (vi) a tax on buildings and a tax on land occupied by buildings and structures (hereinafter referred to as the "Romanian Tax"). 4. The Convention also applies to any identical or substantially similar taxes that are imposed in addition to or in place of existing taxes after the date of signature of the Convention. The competent authorities of the Contracting States will notify each other of any significant changes that will be introduced into their respective tax laws.

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) the terms "Contracting State" and "other Contracting State" mean Kazakhstan or Romania, depending on the context; (b) the terms: (i) "Kazakhstan" means the Republic of Kazakhstan. When used geographically, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and the continental shelf, in which Kazakhstan may exercise sovereign rights and jurisdiction for certain purposes in accordance with international law and in which the laws governing taxes of Kazakhstan apply.; and (ii) "Romania" means Romania and, when used in a geographical sense, means the territory of Romania, including its territorial sea, as well as the exclusive economic zone in which Romania exercises sovereignty, sovereign rights and jurisdiction in accordance with its domestic legislation and international law regarding the exploration and exploitation of natural, biological and mineral resources. resources existing in marine waters, on the seabed and in the subsurface layer of these waters; (c) The term "person" includes an individual, a company and any other association of persons; (d) The term "company" means any corporate entity or any economic unit that is treated as a corporate entity for tax purposes; (e) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State; (f) The term "international carriage" means any carriage by sea, aircraft or rail operated by an enterprise of a Contracting State, except when the ship, aircraft or rail transport is operated exclusively between locations in the other Contracting State; (g) The term "competent authority" means: (i) in Kazakhstan: Ministry of Finance or its authorized representative; (ii) in Romania: the Ministry of Finance or its authorized representative; (h) 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 which has acquired its status on the basis of the applicable legislation of a Contracting State. 2. As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State in respect of taxes to which the Convention applies.  

Article 4 Resident 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, place of management, place of incorporation, place of incorporation or any other criterion of a similar nature. However, this term does not include any person who is subject to taxation in that State solely in respect of income from sources in that State or capital held therein. 2. In cases where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, his status shall be determined as follows: (a) he is considered to be a resident of the State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both States, he is considered to be a resident of the State in which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; (c) If he has an habitual abode in both States or in neither of these, he shall be deemed to be a resident of the State of which he is a national; (d) If he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 3. If, by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, the competent authorities shall settle the matter by mutual agreement. If the competent authorities are unable to reach such agreement, such person shall not be deemed to be resident in either Contracting State and shall not benefit from this Convention.

 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" specifically includes: (a) A place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) a farm or any plantation; and (g) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: a) a construction site or a construction, installation or assembly facility or services related to the supervision of the performance of these works, if only such a site or facility has existed for more than 12 months, or such services have been provided for more than 12 months; and (b) the use of an installation or drilling rig or vessel, or observational activities related to the exploration or production of natural resources in a Contracting State, unless such use lasts for more than 12 months or such activities continue for more than 12 months.; and c) 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 this nature continue (for such or a related project) for a period or periods exceeding a total of more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not be considered as including: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise, without generating income; (b) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering, without (c) The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The sale of goods or products belonging to the enterprise, exhibited at a temporary fair or exhibition, after the closure of the said fair or exhibition; (e) the maintenance of a permanent place of business solely for the purpose of purchasing goods or products, or to collect information for the enterprise; (f) the maintenance of a permanent place of business solely for the purpose of carrying out any other activity for the enterprise of a preparatory or auxiliary nature; (g) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (f), provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 7 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 undertakes for the enterprise, except if the activity of such person is limited to that referred to in paragraph 4, which, if it is carried out through a permanent place of business, it does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. Notwithstanding the preceding provisions of this article, an insurance company, with the exception of reinsurance, of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it collects insurance premiums in the territory of another State or insures risks within the borders of that territory through a person other than an agent with an independent status to whom paragraph 7.7 applies. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 8. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other State (either through a permanent establishment or otherwise) does not in itself transform one of these companies into a permanent establishment of the other.  

Article 6 Income from immovable property 1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop mineral resources, sources and other natural resources; ships, aircraft and rail transport are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.

 Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State 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 there. If an enterprise carries out or has carried out business activities as mentioned above, the profits of the enterprise may be taxed in another State, but only in the part that relates to: a) such a permanent establishment; b) sales in that other State of goods or products that match or are similar to goods or products that are sold through permanent establishment; or (c) Other business activities carried on in that other State that are identical or similar in nature to business activities carried on through such a permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on or has carried on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were an independent 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 profit of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. However, it is not allowed to deduct to a permanent establishment the amounts paid to its head office or any of the other offices of the resident by paying royalties, fees or other similar payments for the use of patents or other rights, or by paying commissions for specific services provided or for management, or by paying interest on the amount lent to the permanent establishment. 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 to its various parts, nothing in paragraph 2 should prevent that Contracting State from determining taxable profits by such proportional distribution as is customary; however, the method of proportional distribution chosen should produce a result appropriate to the principles contained in this article. 5. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 6. If profits include types of income or gains from the increase in the value of property, which are specifically mentioned in other articles of this Convention, the provisions of these articles are not affected by the provisions of this article. 7. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure.  

Article 8 International transport 1. Profits from the operation of ships, aircraft or railways in international traffic are taxable only in the Contracting State in which the place of effective management of the enterprise is Article 8 International transport 1. Profits from the operation of ships, aircraft or railways 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 maritime 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 nohe place of effective management of a maritime 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 port, in the Contracting State of which the person operating the ship is a resident. 3. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international operating agency. 4. The profits referred to in paragraph 1 of this article do not include profits earned from the operation of a hotel, the activities of which are different from the use of ships, aircraft or rail transport in international transportation.

Article 9 Associated companies 1. Where (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in each case, conditions are created or established between two enterprises in their commercial or financial relations that differ from those that would be created between two independent enterprises, then any profit that could have been credited to one of them, but due to the presence of these conditions was not credited to him, may be included It is included in the profits of this enterprise and is taxed accordingly. 2. If a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - Profits on which an enterprise of the other Contracting State is taxed in that other State and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises had been such as exist between independent enterprises, then that other State may make appropriate adjustments. to the amount of tax levied on this profit. In determining such an adjustment, the other provisions of this Convention should be considered and the competent authorities of the Contracting States will consult with each other, if necessary.

 Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged will not exceed 10 percent of the total amount of the dividends. This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. The term "dividends", when used in this article, means income from shares or other rights that are not debt claims, income from profit sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company distributing profits is a resident.. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there and a holding company in respect of which dividends are paid, it really refers to such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 15 (Independent personal services), as appropriate, shall apply. 5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may not levy any tax on dividends paid by the company, except if 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 in fact a permanent establishment or permanent a base located in this other State. 6. Notwithstanding the provisions of this Convention, the permanent establishment of a company which is a resident of a Contracting State and which carries on business in the other Contracting State may be taxed in that other State in addition to the income tax. For the purposes of this regulation, the additional income tax is determined in accordance with the domestic law of each Contracting State.  

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, interest arising in a Contracting State shall be exempt from taxation in that State if it is received and actually owned by the Government of the other Contracting State or its administrative-territorial unit or its local authority, or any agency, or banking unit, or institution of that Government, or its administrative-territorial unit.of a territorial subdivision or local authority, or, if the debt claims of a resident of the other Contracting State are guaranteed, insured or directly financed by a financial institution wholly owned by the Government of another Contracting State. 4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured, giving or not giving the right to participate in debtors' profits, and in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities. securities, bonds, or debentures. Penalties for late payments are not considered as interest for the purposes of this article. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there, and a debt claim in respect of which interest is paid, really refers to such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 15 (Independent personal services), as appropriate, shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, an administrative-territorial 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 associated with such permanent establishment or permanent base, it shall be deemed that Such interest shall arise 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 shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention. 8. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of debt claims in respect of which interest is paid was to benefit from this article by creating or transferring rights.  

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 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, including in kind, received as remuneration for the use or for granting the right to use any copyright in works of literature, art or scientific work, including cinematographic films, and films or tapes for radio or television broadcasting, public broadcasting via satellite, cable, fiber optic or other similar technology, any patent, trademark, design or model, blueprint, secret formula or process, or for the use or right to use any industrial, commercial or scientific equipment, or for information related to industrial, commercial or scientific experience. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, and the right or property in respect of which royalties are paid that are actually associated with such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 15 (Independent personal services), as appropriate, shall apply. 5. Royalties are deemed to have arisen in a Contracting State when the payer is that State itself, an administrative-territorial subdivision, a local authority or a resident of that State. However, if the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in respect of whose right or property an obligation to pay royalties has actually been established and such royalties are associated with such permanent establishment or permanent base, such royalties shall be deemed to have arisen in The Contracting State in which the permanent establishment or permanent base is located. 6. If, as a result of a special relationship between the payer and the actual owner of the royalty or between both of them and any other person, the amount of the royalty relating to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalty in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention. 7. The provisions of this article shall not apply if the main purpose or one of the main purposes of any person involved in the creation or transfer of rights in respect of which royalties are paid was to benefit from this article through such creation or transfer.

Article 13 Fees 1. Fees 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 fees 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 the beneficial owner of the fees, the tax so charged shall not exceed 10 per cent of the total amount of the fees. 3. The term "commission", as used in this article, means payments made to a broker or agent working on a commission basis, or to any other person equivalent to a broker or agent in accordance with the tax laws of the Contracting State in which such payments arise. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the commission, who is a resident of a Contracting State, carries on business in the other Contracting State in which the commission originated through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there and the activities in respect of which the commission is actually related with such a permanent establishment or permanent base. In this case, the provisions of article 7 (Business profits) or article 15 (Independent personal services), as appropriate, shall apply. 5. Fees shall be deemed to have arisen in a Contracting State if the payer is that State itself, an administrative-territorial subdivision, a local authority or a resident of that State. However, if the person paying the commission, 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 respect of whose activities an obligation to pay the commission has been established and such commissions are associated with such permanent establishment or permanent base, such commissions shall be deemed to have originated in a 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 of the commission, or between both of them and any other person, the amount of the commission paid for the work performed exceeds the amount that would have been agreed between the payer and the actual owner of the commission in the absence of such a relationship, the provisions of this article apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.  

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 referred to in Article 6 (Income from immovable property) located in the other Contracting State, or shares in a company whose assets consist wholly or mostly of such property, or shares in a partnership or trust whose assets consist wholly or mostly of immovable property located in the other Contracting State may be taxed in that other State. 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 combination in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State. 3. Income derived from the alienation of ships, aircraft or railway transport operated in international traffic or movable property related to the operation of such ships, aircraft or railway transport shall be taxable only in the Contracting State in which the place of effective management of the enterprise is located. 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 15 Independent personal services 1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature is taxable only in that State, unless such services are provided or have been provided in the other Contracting State; and (a) income relates to a permanent base that an individual has or has had on a regular basis in the other State.; or (b) Such individual is present or has been present in that other State for a period or periods exceeding a total of 183 days in any 12-month period beginning or ending in the relevant calendar year. In the cases referred to in subparagraphs (a) or (b), income related to services may be taxed in that other State in accordance with principles similar to those contained in article 7 (Profits from business activities), which determines the amount of profits related to a permanent establishment. 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 16 Dependent personal services 1. Subject to the provisions of articles 17 (Directors' fees), 19 (Pensions and other payments), 20 (Public service), salaries 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 way, the remuneration received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient resides in that other State for a period or periods not exceeding a total of 183 days in any 12-month period.a monthly period beginning or ending in the relevant calendar year, and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State, and c) the remuneration is not paid by a permanent establishment or a fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship, aircraft or railway transport 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 State.

Article 18 Art workers and athletes 1. Notwithstanding the provisions of articles 15 (Independent personal services) and 16 (Dependent personal services), income earned by a resident of a Contracting State as an art worker, such as a theater, motion picture, radio or television artist or musician, or as an athlete from his personal activities carried out by in the other Contracting State, may be taxed in that other State. 2. If income from personal activities carried out by an art worker or an athlete in this capacity is accrued not to the art worker or athlete himself, but to another person, then this income may, despite the provisions of articles 7 (Profit from entrepreneurial activity), 15 (Independent personal services) and 16 (Dependent personal services), be taxed. is taxable in the Contracting State in which the activities of the art worker or athlete are carried out. 3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from the activities referred to in paragraph 1 within the framework of cultural or sports exchanges agreed upon by the Governments of both Contracting States and not carried out for profit purposes shall be exempt from tax in the Contracting State in which such activities are carried out.  

Article 19 Pensions and other payments 1. Subject to the provisions of paragraph 2 of article 20 (Public service), pensions and other similar remuneration paid for past work performed to a resident of a Contracting State and any annuity paid to such a 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, in accordance with the accepted obligation to make such payments in return for adequate and full compensation in money or monetary terms.

 Article 20 Public service 1. (a) Remuneration, other than a pension, paid by a Contracting State or an administrative-territorial subdivision or local authority thereof to an individual in respect of services rendered to that State or its subdivision or local authority shall be taxable only in that State.; (b) However, such remuneration shall be taxable only in the other Contracting State if the service is performed in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) has not become a resident of that State solely for the purpose of performing the service. 2. (a) Any pension paid by, or from funds created by, a Contracting State or its administrative-territorial subdivision or local authority to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State; (b) However, such pension shall be taxable only in the other Contracting State. if the individual is a resident and a citizen of that State. 3. The provisions of articles 16 (Dependent personal services), 17 (Directors' fees) and 19 (Pensions and other payments) apply to remuneration and pensions in respect of services rendered in connection with the performance of business by a Contracting State or its administrative-territorial subdivision or local authority.

Article 21 Students and interns 1. A resident of a Contracting State who temporarily resides in the other Contracting State as a student or trainee who receives technical, professional or entrepreneurial training shall not be taxed in the other Contracting State for a period of 7 years in respect of payments received from abroad for the purposes of his residence, study or internship, as well as in respect of scholarships. for the duration of his studies. 2. Remuneration, if paid to a student or trainee who is a resident of a Contracting State for services rendered in another State, shall not be taxed in that other State for a period of 3 years, provided that such services are related to his studies, residence or internship.

Article 22 Professors and researchers 1. An individual who is or was a resident of a Contracting State immediately prior to his visit to the other Contracting State, who, at the invitation of any university, college, school or other similar non-profit educational institution recognized by the Government of that other Contracting State, who resides in that other Contracting State for a period not exceeding two years from the date of his first travel to that other Contracting State solely for the purpose of teaching or research, or both, in such an educational institution, is exempt from tax in that other Contracting State in respect of remuneration for teaching or research. 2. The provisions of paragraph 1 of this article shall not apply to research income if such research is undertaken not in the public interest, but for the personal benefit of a particular person or persons.

Article 23 Other income Items of income of a resident of a Contracting State arising in the other Contracting State which are not dealt with in the preceding articles of this Convention may be taxed in that other State.

Article 24 Capital 1. Capital represented by immovable property referred to in Article 6 (Income from immovable property) owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base 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. Capital represented by ships, aircraft and railway vehicles operated in international traffic and movable property related to the operation of such ships, aircraft and railway transport 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 State.

Article 25 Elimination of double taxation 1. In the case of Kazakhstan, double taxation is eliminated as follows: (a) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Romania, Kazakhstan will allow: (i) to deduct from the income tax of that resident an amount equal to the income tax paid in Romania; (ii) to deduct from the income tax the capital of this resident is an amount equal to the capital tax paid in Romania. However, in any case, these deductions should not exceed the portion of income or capital tax calculated before the deduction was granted, which, depending on the circumstances, relates to income or capital that may be taxed in Romania.; (b) If a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Romania, Kazakhstan may include that income or capital in the tax base, but only for the purpose of determining the tax rate on such other income or capital as is taxable in Kazakhstan. 2. In the case of Romania, double taxation is eliminated as follows: If a resident of Romania receives income or types of income referred to in Articles 10 (Dividends), 11 (Interest), 12 (Royalties) and 13 (Commissions), or profits, gains in property value or owns capital that, according to the legislation of Kazakhstan and in accordance with this According to the Convention, which can be taxed in Kazakhstan, Romania will allow deducting from the tax on income, on types of income, profit, income from property appreciation or on capital, an amount equal to the tax paid in Kazakhstan. However, the amount of the offset must not exceed the amount of the Romanian tax on such income, types of income, profit or increase in the value of property, or on capital calculated in accordance with the tax laws and regulations of Romania.

Article 26 Non-discrimination 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to taxation or related obligations other or more burdensome than taxation or related obligations to which nationals of that other State are or may be subjected in the same circumstances. 2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision shall not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with any personal benefits, exemptions or discounts for tax purposes due to the civil status or family responsibilities that it provides to its own residents. 3. Except where the provisions of paragraph 1 of Article 9 (Associates), paragraph 7 of Article 11 (Interest), or paragraph b of Article 12 (Royalties), or paragraph 6 of Article 13 (Commissions) apply, interest, royalties, commissions and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable profits of such an enterprise, are subject to deductions on the same terms as if they had been paid to a resident of the first-mentioned State. Therefore, any debts owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as debts owed to a resident of the first-mentioned 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 State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State.

Article 27 Mutual agreement procedure 1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his case falls under paragraph 1 of article 26 (Non-discrimination) 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 make efforts to resolve by mutual agreement any difficulties or doubts arising with regard to the interpretation or application of this Convention. They may also consult with each other to eliminate double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement and understanding of the preceding paragraphs. If, in order to reach an agreement, it would be advisable to organize an oral exchange of views, such an exchange may take place within the framework of a meeting of a commission consisting of representatives of the competent authorities of the Contracting States.  

Article 28 Assistance in the collection of taxes 1. The competent authorities of the Contracting States undertake to assist each other in the collection of taxes, together with interest, late payment penalties and penalties of a non-punitive nature, relating to such taxes, referred to in this article as "tax claim". 2. The tax claim of the competent authority of a Contracting State shall include confirmation by such authority that, according to the laws of that State, the tax claim has been definitively established. For the purposes of this article, a tax claim is definitively established if a Contracting State, in accordance with its domestic law, has the right to enforce a tax claim in the collection of taxes and the taxpayer has no further rights to withhold such collection. 3. The requirements that are the subject of a request for assistance shall not take precedence over taxes due in the Contracting State providing such assistance, and the provisions of paragraph 1 of Article 27 (Mutual Agreement Procedure) shall also apply to any information that, by virtue of this article, is provided by the competent authority of a Contracting State. 4. A tax claim of the competent authority of a Contracting State which has been accepted for collection by the competent authority of the other Contracting State shall be collected by the competent authority of the other State as if such claim were related to its own taxes. 5. The amounts collected by the competent authority of a Contracting State in accordance with this Article shall be forwarded to the competent authority of the other Contracting State. 6. According to this article, tax collection assistance is not provided to a Contracting State in respect of a taxpayer to the extent that the tax claim relates to the period during which the taxpayer was a resident of another Contracting State. 7. Notwithstanding the provisions of Article 2 (Taxes to which the Convention applies), the provisions of this article shall apply to taxes of any kind and type imposed in accordance with the tax laws of a Contracting State. 8. The provisions of this Article should not be interpreted as obliging any Contracting State to apply administrative measures of a nature that differ from those applied in the collection of its own taxes or those that would be contrary to its public policy (public practice).

Article 29 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 domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation does not conflict with the Convention. The exchange of information is not limited to article 1 (Persons to whom the Convention applies). Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution or consideration of appeals concerning taxes covered by the Convention.. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions. 2. In no case should the provisions of paragraph 1 be interpreted as imposing an obligation on Contracting States to: (a) take administrative measures contrary to the laws and administrative practices of that or another Contracting State; (b) provide information that cannot be obtained under the laws or customary administrative practices of that or another Contracting State.; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to government policy (public practice).  

Article 30 Members of diplomatic missions and consular posts Nothing in this Convention affects the tax privileges of members of diplomatic missions or consular posts granted by the general rules of international law or in accordance with the provisions of special agreements.  

Article 31 Entry into force This Convention is subject to ratification and will enter into force on the 30th day after the date of the last notification notifying that both Contracting States have completed the domestic legislative procedures necessary in each Contracting State for its entry into force. The Convention applies to: (a) Taxes withheld at source on income earned on or after January 1 of the calendar year following the year in which the Convention entered into force; and (b) In respect of other taxes on profits, income and on capital received on or after 1 January of the calendar year following the year in which the Convention entered into force.  

Article 32 Termination

1. This Convention shall remain in force indefinitely.

2. Each Contracting State may notify the other Contracting State in writing, through diplomatic channels, of the termination of the Convention on or before 30 June of any calendar year following the end of the five-year period following the year in which the Convention entered into force.

In such a case, this Convention shall terminate: (a) with respect to taxes withheld at source on income earned on or after January 1 of the calendar year following the year in which the termination is notified; and (b) with respect to other taxes on profits, income and capital earned on or after January 1 of the calendar year following the year in which the termination is notified. after January 1 of the calendar year following the year in which the termination notice was filed.

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

Done in Bucharest on September 21, 1998, in two copies, in the Kazakh, Romanian, Russian and English languages, all texts being equally authentic. In case of discrepancies in the texts, the English text will be decisive.

For the government For the government Republic of Kazakhstan Romania

President

Republic of Kazakhstan

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