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

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

Law of the Republic of Kazakhstan dated December 30, 1999 No. 30

To ratify the Convention between the Republic of Kazakhstan and the Republic of Estonia on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and on Capital, signed in Astana on March 1, 1999.

President of the Republic of Kazakhstan

Convention * between the Republic of Kazakhstan and the Republic of Estonia on the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and on Capital

*(Entered into force on July 19, 2000 - Bulletin of International Treaties of the Republic of Kazakhstan, 2004, No. 5, art. 24)

The Republic of Kazakhstan and the Republic of Estonia, wishing 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 as follows:

Article 1 Persons to whom the Convention applies

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

Article 2 Taxes covered by the Convention

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner in which they are levied. 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 on capital gains. 3. The existing taxes to which the Convention applies are, in particular: (a) in Kazakhstan: (i) income tax on legal entities and individuals; (ii) property tax on legal entities and individuals; (hereinafter referred to as the "Kazakhstan Tax"); (b) in Estonia: (i) income tax tax (tulumaks); (ii) local income tax (kohalik tulumaks); (hereinafter referred to as the "Estonian Tax"). 4. The Convention also applies to any identical or substantially similar taxes that will be levied after the date of signature of the Convention in addition to or in place of existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes in 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 Estonia, 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.; (ii) "Estonia" means the Republic of Estonia and, when used geographically, means the territory of Estonia and any other area adjacent to the territorial waters of Estonia within which, under Estonian law and in accordance with international law, Estonia's rights with respect to the seabed and its subsoil and their natural resources may be exercised; 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 which, for tax purposes, is treated as a corporate entity; (e) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State and an enterprise operated by a resident of the other Contracting State.; (f) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; (g) The term "competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative, (ii) in Estonia: the Minister of Finance or his authorized representative; (h) The term "national person" means: (i) any natural person having the nationality of a Contracting State, (ii) any legal person, partnership or 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 at any time by a Contracting State, any term not defined therein, unless the context otherwise requires, shall have the meaning which it has at that time under the laws of that Contracting 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 establishment or any other criterion of a similar nature. The term also includes the Government of that Contracting State or its local authorities. However, this term does not include any person who is subject to taxation in that State solely in respect of income from sources in that State or capital held therein. 2. If by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) He shall be deemed to be a resident of the Contracting State in which he has a permanent home at his disposal.; If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the State in which he has closer personal and economic relations (center of vital interests); b) if the Contracting State in which he has a center of vital interests cannot be determined or if he does not have a permanent home available to him. If he has permanent residence in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode.; (c) If he has his habitual residence in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; (d) If the resident status cannot be determined in accordance with subparagraphs (a) to (c), the competent authorities of the Contracting States shall resolve 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 of the Contracting States shall endeavour to resolve the matter by mutual agreement and determine the manner in which this Convention applies to such person. In the absence of such consent, for the purposes of this Convention, a person in each Contracting State shall not be considered as a resident of the other Contracting State.

Article 5 Permanent establishment

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business activities of an enterprise are carried out in whole or in part. 2. The term "permanent establishment" includes in particular: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (f) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: a) a construction site, a construction, assembly or assembly facility, or an observational or consulting activity related thereto, only if such a site, facility or activity has existed for a period of more than 6 months; b) an installation or structure, including a drilling rig or vessel used for the exploration of natural resources, or an observational activities related to them, unless such use or activity lasts for a period of more than 6 months. 4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" is not considered to include: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) the maintenance of stocks of goods or products belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a fixed place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the fixed place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect of any activity that that person undertakes for the enterprise, unless the activities of such person are limited by the provisions 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. 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, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. 7. The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other Contracting 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 Contracting State. 2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term, in any case, includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law apply in relation to land ownership, any option or similar right of ownership of immovable property, the usufruct of immovable property and rights to variable or fixed payments in as compensation for the development or the right to develop mineral resources, springs and other natural resources. Sea, river and air vessels are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form, as well as to income from the alienation of immovable property. 4. If ownership of shares or other corporate rights in a company entitles the holder of such shares or corporate rights to own immovable property owned by the company, income from the direct use, rental or use in any other form of such ownership right may be taxed in the Contracting State in which the immovable property is located. 5. The provisions of paragraphs 1, 3 and 4 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 or has carried on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on or has carried on business activities as described 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, 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 shall include the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, provided 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. Expenses allowed to be deducted by a Contracting State include only expenses that are deductible under the domestic law of that Contracting State. However, such a deduction is not allowed to a permanent establishment in respect of amounts paid by the permanent establishment to the enterprise or any of its other offices by paying royalties, fees or other similar payments in compensation for the use of patents or other rights, or by paying commissions for special services provided or for management, or, with the exception of banking enterprises, by interest payments on the amount lent by the company to a permanent establishment. 4. To the extent that it is customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of a proportional distribution of the total profits of the enterprise among its various divisions, nothing in paragraph 2 prohibits that Contracting State from determining taxable profits by such distribution as is customary; however, The chosen method of proportional distribution should produce results consistent with the principles contained in this Article. 5. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 6. If profits include types of income that are specifically mentioned in other Articles of this Convention, the provisions of these Articles shall not be affected by the provisions of this Article. 7. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure. 8. Nothing in this Article shall prevent a Contracting State from applying its law relating to the taxation of any person engaged in the insurance business (as long as this law is in force on the date of signature of this Convention and has not been modified in any way so as not to affect its general character).

Article 8 Sea and air transport

1. Profits earned by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic are taxable only in that Contracting State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, in a joint venture or in an international operating agency.

Article 9 Associated enterprises

1. If: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in any case between the two enterprises in their commercial or financial relations create or establish conditions different from those that would take place between two independent enterprises, then any profit, which could have been credited to one of them, but was not credited to him due to these conditions, may be included in the profit of this enterprise and, accordingly, taxed. 2. If a Contracting State includes in the profits an enterprise of that Contracting State and, accordingly, taxes the profits on which an enterprise of the other Contracting State is taxed in that other Contracting State, and the profits thus included are profits that would accrue to an enterprise of the first-mentioned Contracting State if the relations between the two enterprises were such which exist between independent businesses, that other Contracting State will then make an appropriate adjustment to the amount of tax levied on that profit. 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 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 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 recipient is the beneficial owner of the dividends, the tax so charged shall not exceed: (a) 5 per cent of the total amount of the dividends if the beneficial owner is a company (other than a partnership) that directly owns at least 25 percent of the capital of the company paying dividends; b) 15 percent of the total amount of dividends in all other cases. This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. The term "dividends", as used in this Article, means income from shares or other rights, other than debt claims, to profit-sharing, as well as income from other corporate rights, which is subject to the same tax treatment as income from shares under the laws of the Contracting State in which the company is a resident, distributing profits. 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 Contracting State from a permanent base and holding company located there, in respect of which dividends are paid, is indeed associated with such a permanent establishment or fixed base. In this case, the provisions of Article 7 (Business profits) or Article 14 (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 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 a permanent base located in that other Contracting State. 6. A company which is a resident of a Contracting State and which has a permanent establishment in the other Contracting State may be taxed in that other Contracting State in addition to the tax on profits relating to that permanent establishment. Such tax, however, shall not exceed 5 per cent of the share of the company's profits to be taxed in the other 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 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 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 received and owned by the Government of the other Contracting State, including its local authorities, the Central Bank or any financial institution wholly owned by that Government, or interest received on loans guaranteed by that Government, shall be exempt from tax in the first-mentioned 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 in particular income from government securities and income from bonds or debentures, including premiums and winnings on these securities, bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this Article. 5. The provisions of paragraphs 1, 2 and 3 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 Contracting State from a permanent base located there and a debt claim in relation to which interest is paid to, indeed, refers to such a permanent establishment or permanent base. In this case, the provisions of Article 7 (Business profits) or Article 14 (Independent personal services), as appropriate, 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 the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, it shall be deemed that Such interest shall 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 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.

Article 12 Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. 2. However, such royalties may also be taxed in the Contracting State in which they arise and in accordance with the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 15 per cent of the total amount of the royalties. 3. The term "royalties", as used in this Article, means payments of any kind received as remuneration for the use or for granting the right to use any copyright in works of literature, art or science, including cinematographic films and films or films for radio or television broadcasting, any patent, trademark, design or model, plan, a secret formula or process, or for information relating to industrial, commercial or scientific experience and payments for the use or grant of the right to use an industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides independent personal services in that other Contracting State from a permanent base located there, and the right or property in respect of which royalties are paid, are indeed associated with such a permanent establishment or fixed base. In this case, the provisions of Article 7 (Business profits) or Article 14 (Independent personal services), as appropriate, 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 the obligation to pay royalties has arisen, and such royalties are paid by that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in a Contracting State, in which a 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, 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 13 Income from the increase in the value of property

1. Income earned by a resident of a Contracting State from the alienation of immovable property as defined in Article 6 (Income from immovable property) located in the other Contracting State, or shares in a company whose assets consist primarily of such property, or shares in a partnership or trust whose assets are derived primarily from immovable property 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 a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other Contracting State. 3. Income earned by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic by that enterprise or movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State. 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14 Independent personal services

1. Income earned by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that Contracting State unless he has a permanent base available to him on a regular basis in the other Contracting State for the purpose of carrying on such activities. If he has such a fixed base, the income may be taxed in the other Contracting State, but only in that part which relates to that fixed base. If an individual who is a resident of a Contracting State resides in the other Contracting State for a period or periods exceeding 183 days in any consecutive 12-month period beginning or ending in the relevant tax year, he shall be deemed to have a permanent base available to him on a regular basis in that other Contracting State. and the income that is derived from his activities mentioned above in that other Contracting State will relate to that permanent base. 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.

Article 15 Dependent personal services

1. Subject to the provisions of Articles 16 (Directors' fees), 18 (Pensions), 19 (Public service) and 20 (Students, professors and researchers), salaries, salaries and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that Contracting State unless The employment is not performed in the other Contracting State. If the employment is performed in this manner, such remuneration as received in respect of the employment may be taxed in that other Contracting State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment performed in the other Contracting State shall be taxable only in the first-mentioned Contracting State if: (a) the recipient resides in the other Contracting State for a period or periods not exceeding a total of 183 days within any 12-month period.-a monthly period beginning or ending in the relevant tax year, and b) the remuneration is paid by or on behalf of the employer, who is not a resident of the other Contracting State, and (c) the remuneration is not paid 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 respect of an employment performed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that Contracting State.

Article 16 Directors' fees

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

Article 17 Artists and athletes

1. Notwithstanding the provisions of Articles 14 (Independent personal services) and 15 (Dependent personal services), income earned by a resident of a Contracting State as an artist, such as a theater, film, radio or television artist, or 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. If income from personal activities carried out by an art worker or athlete in this capacity is credited not to the art worker or athlete himself, but to another person, this income, despite the provisions of Articles 7 (Profit from entrepreneurial activities), 14 (Independent personal services) and 15 (Dependent personal services), may be taxed. in the Contracting State in which the activities of the art worker or athlete are carried out. 3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities carried on in a Contracting State by an artist or athlete if the visit to that Contracting State is wholly or mainly supported by public funds of one or both Contracting States or its local authorities. In such a case, the income is taxable only in the Contracting State of which the artist or athlete is a resident.

Article 18 Pensions

1. In accordance with the provisions of paragraph 2 of Article 19 (Public service), pensions and other similar remuneration paid to a resident of a Contracting State for past work performed shall be taxable only in that Contracting State. 2. Alimony and other similar payments (including child support payments) arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other Contracting State.

Article 19 Public service

1. (a) Salaries, salaries and other similar remuneration, other than pensions, paid by a Contracting State or a local authority thereof to any individual in respect of services rendered to that Contracting State or local authority, shall be taxable only in that Contracting State. (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that Contracting State and the individual is a resident of that Contracting State who: (i) is a national of that Contracting State; or (ii) has not become a resident of that Contracting State only since the purpose of the service. 2. (a) Any pension paid by a Contracting State or its local authority or from funds created by them to an individual in respect of services rendered to that Contracting State or authority shall be taxable only in that Contracting State. (b) However, such pension is taxable only in the other Contracting State if the individual is a resident of and a national of that Contracting State. 3. The provisions of Articles 15 (Dependent personal services), 16 (Directors' fees) and 18 (Pensions and other payments) apply to salaries, salaries and other similar remuneration and pensions in respect of services related to business carried on by a Contracting State or its local authority.

Article 20 Students, professors and researchers

1. Payments received by a student, trainee or student who is or was immediately prior to arrival in a Contracting State resident of the other Contracting State and located in the first-mentioned Contracting State solely for the purpose of education or internship, intended for the purposes of their maintenance, education or internship, shall not be taxed in that Contracting State, if The sources of these payments are located outside this Contracting State. 2. An individual who visits a Contracting State for the purpose of teaching or conducting research at a university, college or other recognized educational or scientific institution in that Contracting State and who is or was a resident of the other Contracting State immediately prior to that visit shall be exempt from taxation in the first-mentioned Contracting State on remuneration for such teaching or research for a period not exceeding more than two years from the date of his first visit for this purpose. 3. The provisions of paragraph 2 of this Article shall not apply to income from research if such research is not undertaken in the public interest, but primarily for the personal benefit of a particular person or persons.

Article 21 Other income

1. The income of a resident of a Contracting State, irrespective of its source, which is not mentioned in the preceding Articles of this Convention, shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 (Income from immovable property) if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located therein or provides independent services in that other Contracting State. personal services through a permanent base located there, and the right or property in connection with which income was paid, indeed, they are associated with such a permanent establishment or permanent base. In this case, the provisions of Article 7 (Business profits) or Article 14 (Independent personal services), as appropriate, shall apply.

Article 22 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 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 used by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other Contracting State. 3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State and movable property related to the operation of such ships and aircraft shall be taxable only in that Contracting State. 4. All other elements of the capital of a resident of a Contracting State are taxable only in that Contracting State.

Article 23 Elimination of double taxation

1. In the case of Kazakhstan, double taxation is eliminated as follows: (a) If a resident of Kazakhstan earns income or owns capital that, according to the provisions of this Convention, may be taxed in Estonia, Kazakhstan will allow: (i) deduction from the income tax of that resident an amount equal to the income tax paid in Estonia; (ii) deduction from the tax on the capital of this resident, an amount equal to the capital tax paid in Estonia. Such deduction, however, should not exceed the amount that would have been accrued in accordance with the regulations and rates applicable in the Republic of Kazakhstan if the aforementioned income had been received or the capital owned in the Republic of Kazakhstan. b) If a resident of Kazakhstan earns income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Estonia, 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 Estonia, double taxation will be eliminated as follows: (a) If an Estonian resident earns income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, unless its domestic legislation provides for a most-favored-nation regime, Estonia will allow: (i) the amount deducted from the income tax of that resident, equal to the income tax paid in Kazakhstan; (ii) deduct from the capital tax of that resident an amount equal to the capital tax paid in Kazakhstan. Such deduction, however, in both cases will not exceed the portion of the income or capital tax in Estonia calculated before the deduction was granted, which, depending on the circumstances, relates to income or capital that may be taxed in Kazakhstan. b) For the purposes of subparagraph (a), if a company that is a resident of Estonia receives dividends from a company that is a resident of Kazakhstan, in which it owns at least 10 percent of the shares with full voting rights, the tax paid in Kazakhstan includes not only the tax paid on dividends, but also the tax, paid on the basic profit of the company from which the dividends were paid.

Article 24 Non-discrimination

1. Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of the other Contracting State are or may be subject in the same circumstances, in particular with respect to residency. This provision, notwithstanding the provisions of Article 1 (Persons to whom the Convention applies), also applies to persons who are not residents of one or both of the Contracting States. 2. Stateless persons who are residents of a Contracting State shall not be subject in any of the Contracting States to any taxation or any related obligations other or more burdensome than taxation and related obligations to which nationals of the Contracting State concerned are or may be subject under the same circumstances. 3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other Contracting State than the taxation of enterprises of that other Contracting State engaged in similar activities. This provision should not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with personal tax benefits, deductions and discounts for tax purposes based on their civil status or family obligations that it provides to its residents. 4. Except where the provisions of paragraph 1 of Article 9 (Associated enterprises), paragraph 7 of Article 11 (Interest) or paragraph 6 of Article 12 (Royalties) apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible on the same terms conditions as if they were paid to a resident of the first-mentioned Contracting State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purposes of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned Contracting State. 5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subject in the first-mentioned Contracting State to any taxation or any related obligations 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 Contracting State. 6. Notwithstanding the provisions of Article 2 (Taxes to which the Convention applies), the provisions of this Article apply to taxes of all kinds and types.

Article 25 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 Contracting States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his The case falls within the scope of paragraph 1 of Article 24 (Non-discrimination), to the competent authority of the Contracting State of which it is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case 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 will be executed regardless of any time limits provided for by the national laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement within the meaning of the preceding paragraphs. If, in order to reach an agreement, it is advisable to organize an oral exchange of views, such an exchange may take place within the framework of a joint commission consisting of representatives of the competent authorities of the Contracting States.

Article 26 Exchange of information

1. The competent authorities of the Contracting States shall exchange the information necessary to comply with the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies to the extent that taxation under such legislation does not conflict with this 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 considered confidential in the same way as information obtained under the domestic law of that Contracting 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 bodies 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 in the ordinary course of administrative practice 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 order). 3. The competent authorities of the Contracting States may conclude an additional agreement to establish the necessary procedure for the implementation of the provisions of this Article.

Article 27 Limitation of benefits

Notwithstanding any other provisions of this Convention, a resident of a Contracting State will not receive benefits from any reduction or exemption from taxes provided for in this Convention provided by another Contracting State if the main or one of the main purposes of the establishment or existence of such a resident or any person associated with such a resident was to receive benefits under the provisions of this Convention. which would not otherwise be provided.

Article 28 Members of diplomatic missions and consular posts

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

Article 29 Entry into force

1. The Governments of the Contracting States will notify each other of the completion of the constitutional requirements for the entry into force of this Convention. 2. The Convention shall enter into force on the date of the last notification referred to in paragraph 1 and its provisions shall apply in both Contracting States: (a) With respect to taxes levied at source on income earned on or after the first of January of the calendar year following the year in which the Convention enters into force; (b) In respect of other taxes on income and taxes on capital, taxes levied for any fiscal year beginning on or after the first of January of the calendar year following the year in which the Convention enters into force.

Article 30 Termination

This Convention shall remain in force until terminated by one of the Contracting States. Each Contracting State may terminate the Convention by giving written notice through diplomatic channels of its termination at least six months before the end of any calendar year. In such a case, the Convention shall cease to be in force in both Contracting States: (a) With respect to taxes levied at source on income earned on or after the first of January of the calendar year following the year in which the notification was filed; (b) In respect of other taxes on income and taxes on capital, taxes levied for any tax year beginning on or after the first of January of the calendar year following the year in which the notification was filed.

In witness whereof, the undersigned, being duly authorized thereto, have signed this Convention. Done in Astana on March 1, 1999, in two originals, each in the Kazakh, Estonian, Russian and English languages, all texts being equally authentic. If there is a discrepancy between the texts, the English text is decisive.

Protocol

When signing the Convention between the Republic of Kazakhstan and the Republic of Estonia for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income and Capital (hereinafter referred to as the "Convention"), the undersigned have agreed on the following provisions, which form an integral part of this Convention. With regard to paragraph 6 of Article 10 (Dividends): To the extent that the additional income tax referred to in paragraph 6 is not levied in accordance with the domestic laws of both Contracting States, the provisions of paragraph 6 of Article 10 (Dividends) shall not apply. In the case of the imposition of such a tax in both Contracting States, the competent authorities shall, by mutual agreement, determine the date from which the provisions of paragraph 6 will be applicable in both Contracting States.

Done in Astana on March 1, 1999, in two originals, each in the Kazakh, Estonian, Russian and English languages, all texts being equally authentic. In case of discrepancies between the texts, the English text is decisive.

President

Republic of Kazakhstan

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