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

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

Law of the Republic of Kazakhstan dated November 30, 2009 No. 208-IV

To ratify the Convention between the Republic of Kazakhstan and Japan on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol, signed in Tokyo on December 19, 2008.

President of the Republic of Kazakhstan N. Nazarbayev

Unofficial translation

Convention between the Republic of Kazakhstan and Japan on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on December 30, 2009)

The Republic of Kazakhstan and Japan, desiring to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed as follows:

Article 1

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

Article 2

1. This Convention applies to the following taxes: (a) In the case of Kazakhstan: (i) corporate income tax; and (ii) individual income tax (hereinafter referred to as "Kazakhstan taxes"); (b) in Japan: (i) Income tax; (ii) corporate tax; and (iii) local personal taxes (hereinafter referred to as "Japanese taxes"). 2. The Convention also applies to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to or in place of those referred to in paragraph 1. The competent authorities of the Contracting States will notify each other of any significant changes that will be made in their tax laws within a reasonable period of time after such changes.

Article 3

1. For the purposes of this Convention, unless the context otherwise requires: (a) the term "Kazakhstan" means the Republic of Kazakhstan, and when used geographically includes the State territory of the Republic of Kazakhstan and the zones in which Kazakhstan may exercise its sovereign rights and jurisdiction, in accordance with its legislation and international treaties to which it is a party. is; (b) the term "Japan", when used geographically, means the territory of Japan, including its territorial waters, in which laws relating to Japanese taxes apply and the entire area outside its territorial waters, including the seabed and subsoil, on which Japan can exercise its sovereign rights, in accordance with international law; and (c) the terms "A Contracting State" and "the other Contracting State" mean Kazakhstan or Japan, depending on the context.; (d) the term "tax" means a Kazakh tax or a Japanese tax, depending on the context; (e) the term "person" includes an individual, a company and any other association of persons; (f) the term "company" means any corporate entity or any organization that is considered as a corporate entity for tax purposes; (g) the term "enterprise" applies to the conduct of any business activity; (h) 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; (i) the term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except in cases where when a ship or aircraft is operated exclusively between locations in another Contracting State; (j) The term "national person" means: (i) in the case of Kazakhstan, any natural person who holds Kazakh citizenship and any legal entity, partnership or association that has obtained such status on the basis of current legislation in Kazakhstan; and (ii) in the case of Japan, any natural person holding Japanese citizenship and any legal entity established or organized in accordance with Japanese law, and any organization without a legal entity considered for Japanese Tax purposes as a legal entity established or organized in accordance with Japanese law; (k) the term "competent authority" means: (i) in the case of Kazakhstan, the Ministry of Finance or its authorized representative; and (ii) in the case of Japan, the Minister of Finance or his authorized representative;  (l) The term "entrepreneurial activity" includes the provision of professional services and other activities of an independent nature; 2. Where the Convention is applied at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the laws of that Contracting State for the purposes of taxes to which the Convention applies, any meaning under the applicable tax laws of that Contracting State shall prevail over the meaning, attached to the term under other legislation of that Contracting State.

Article 4

1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that Contracting State, is liable to tax there on the basis of his domicile, residence, place of main or head office, place of management, place of establishment or any other criterion of a similar nature, and also includes that Contracting State and any political subdivision or local the authority. However, this term does not include any person who is liable to tax in that Contracting State, only in respect of income from sources in that Contracting State. 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 only of the Contracting State in which he has a permanent home at his disposal.; If he has a permanent home at his disposal in both Contracting States, he shall be deemed to be a resident only of the Contracting State in which he has closer personal and economic relations (center of vital interests); (b) If the Contracting State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode; (c) If he has an habitual abode in both Contracting States. Whether in other Contracting States or in none of them, he shall be deemed to be a resident only of the Contracting State of which he is a national.; (d) If his status cannot be determined in accordance with the provisions of subparagraphs (a) to (c), the competent authorities of the Contracting States will 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, then the competent authorities of the Contracting States shall determine by mutual agreement in which Contracting State the person will be deemed to be a resident for the purposes of this Convention. In the absence of mutual agreement between the competent authorities of the Contracting States, the person will not reasonably be a resident of each Contracting State for the purposes of claiming the benefits provided for in the Convention, excluding such requirement provided for in articles 23 and 24.

Article 5

1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part. 2. The term "permanent establishment" includes in particular: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, oil or gas well, quarry; and g) an installation or structure used for, or any place of extraction or exploration of natural resources. 3. A construction site or a construction or installation project is a permanent establishment if it has existed for more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) The maintenance of a stock of goods or products belonging to the enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a permanent place of business solely for the purpose of purchasing goods or products 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 activity for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom the provisions of paragraph 6 apply - 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 to those referred to in paragraph 4, which, if and is carried out through a permanent place of business, does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. 6. An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that Contracting State through a broker, commission agent or any other agent of an independent status, provided that such persons act within the framework of their ordinary business activities. 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

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 general legislation relating to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for mining or the right to develop mineral resources. resources, sources and other natural resources; ships and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 also apply to income from immovable property of an enterprise.

Article 7

1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business as described above, the profits of the enterprise may be taxed in that other Contracting State, but only in that part which relates to such permanent establishment. 2. Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, under such circumstances under the same or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the Contracting State in which the permanent establishment is located or elsewhere. 4. No profit shall be credited to the permanent establishment based solely on the purchase of goods by that permanent establishment. or products for the company. 5. For the purposes of the preceding paragraphs of this article, 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. 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.

Article 8

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. Notwithstanding the provision of Article 2, if an enterprise of a Contracting State operates ships or aircraft in international traffic, and if an enterprise of Kazakhstan will be exempt from the enterprise tax in Japan, and if an enterprise of Japan will be exempt from any tax similar to the enterprise tax in Japan, which may henceforth be taxed in Kazakhstan. 3. The provisions of the preceding paragraphs of this article shall also apply to profits from participation in a pool, in a joint venture or in an international organization for the operation of vehicles.

Article 9

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 of the above cases between the two enterprises in their commercial or financial relationships create or establish conditions different from those that would take place between two independent enterprises., then any profit that could have been credited to one of the enterprises, but was not credited to it due to these conditions, can be included in the profit of this enterprise and, accordingly, taxed. 2. If a Contracting State includes, in accordance with the provisions of paragraph 1, in the profits of an enterprise of that Contracting State and taxes accordingly the profits on which an enterprise of the other Contracting State is taxed in that other Contracting State and where the competent authorities of the Contracting States agree, through consultations, that all or part of the profits included in the profits that would be accrued to an enterprise of the first-mentioned Contracting State, if the relationship between the two enterprises were as follows, which exist between independent enterprises, then that other Contracting State will make an appropriate adjustment to the amount of tax levied on such agreed profits. In determining such an adjustment, the other provisions of this Convention shall be taken into account. 3. Notwithstanding the provisions of paragraph 1, a Contracting State shall not modify the profits of an enterprise of that Contracting State in the circumstances specified in that paragraph after seven years at the end of the tax year in which the profits of such modification took place, but for the conditions referred to in that paragraph, were credited to the enterprise. The provision of this paragraph does not apply in case of fraud or intentional default.

Article 10

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 according to the laws of that Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: a) 5 percent of the total amount of dividends if the actual owner is a company that directly or indirectly owns in a six-month period, at least 10 percent of the voting shares of the company paying the dividends; b) 15 percent of the total amount of dividends in all other cases. This paragraph does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. The provisions of subparagraph (a) of paragraph 2 shall not apply if the dividends are paid by a company that grants deduction rights for dividends paid to its beneficiaries in calculating taxable income in the Contracting State of which the company is a resident. 4. The term "dividends", as used in this article, means income from shares or other rights other than debt claims, income from profit-sharing, and income that is subject to the same tax treatment as income from shares under the tax laws of the Contracting State in which the company distributing the profits is a resident. 5. 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 through a permanent establishment located there is a resident and the holding company in respect of which the dividends are paid is actually associated with such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 6. If a company that is a resident of a Contracting State receives profits or income from the other Contracting State, that other Contracting State may exempt from tax dividends paid by that 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 associated with a permanent establishment located in in this other Contracting State, and the company's undistributed profits shall not be taxed on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other Contracting State.

Article 11

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, being the beneficial owner of the interest, is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the interest. 3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be taxable only in the other Contracting State if: (a) The beneficial owner of the interest is the Government of that other Contracting State, a political subdivision or local authority, or the central bank of that other Contracting State, or any institution wholly owned by that Government; or (b) The beneficial owner of the interest is a resident of that other Contracting State in respect of a guaranteed debt claim insured or indirectly financed by the Government of that other Contracting State, a political subdivision or local authority, or the central bank of that other Contracting State, or any institution wholly owned by that Government; 4. For the purposes of paragraph 3, the term "central bank" and "institution wholly owned by the Government" means: (a) In the case of Kazakhstan: (i) the National Bank of the Republic of Kazakhstan; (ii) JSC Development Bank of Kazakhstan; (iii) JSC Kazakhstan State Insurance Corporation for Export Credit and Investment Insurance; and (iv) such other similar institutions, the capital of which is wholly owned by the Government of the Republic of Kazakhstan, which from time to time may be agreed between By the Governments of the Contracting States through the exchange of diplomatic notes; (b) In the case of Japan: (i) the Bank of Japan; (ii) the Japan Finance Corporation; (iii) the Japan International Cooperation Agency; (iv) the Japan Export and Investment Insurance; and (v) such other similar institutions, the capital of which is wholly owned by the Government of Japan, as may be agreed from time to time between the Governments of the Contracting States through the exchange of diplomatic with notes. 5. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured and giving or not giving the right to participate in debtors' profits, and in particular income from government or government securities and income from bonds or debentures, including premiums and winnings on these securities, bonds or debentures and all other income subject to a similar tax regime as income from lending money in accordance with the tax laws of a Contracting State., in which the income was generated. The income referred to in article 10 shall not be considered as interest for the purposes of this Convention. 6. 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 and the debt claim in respect of which the interest is being paid actually relates to such permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 7. 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 in a Contracting State in connection with which an interest-bearing debt has arisen and such interest is paid by such permanent establishment, such interest shall be deemed to arise in a Contracting State, in which such a permanent establishment is located. 8. 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

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 according to the laws of that Contracting State, but if the recipient, being the beneficial owner of the royalties, is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the royalties. 3. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or for granting the right to use any work of literature, art or science, including cinematographic films and films or films for radio or television broadcasting, any patent, trademark, design or model, plan, or secret formula. or a process, or for the use or grant of the right to use industrial, commercial or scientific equipment, or for information relating 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 and the right or property in respect of which the royalties are paid is actually connected with such permanent establishment. In such a case, the provisions of article 7 of this Convention 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 in a Contracting State in connection with which the obligation to pay royalties has arisen and such royalties are associated with that permanent establishment, then such royalties shall be deemed to have arisen in the Contracting State in which the permanent establishment is located.. 6. If, as a result of a special relationship between the payer and the actual owner of the royalties or between both of them and any other person, the amount of royalties related to the use, rights 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 royalties 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.

Article 13

1. Income earned by a resident of a Contracting State from the alienation of immovable property as defined in Article 6 and located in the other Contracting State may be taxed in that other Contracting State. 2. Income earned by a resident of a Contracting State from the alienation of shares in a company or interest in a partnership or trust, if such shares or interest derive more than 50 percent of their value, directly or indirectly, from immovable property referred to in Article 6 and located in that other Contracting State, may be taxed in the other Contracting State. 3. Unless the provisions of paragraph 2 apply, profits earned by a resident of a Contracting State from the sale of shares issued by a company that is a resident of the other Contracting State may be taxed in that other Contracting State if the owner of the shares is the alienator (together with any other related shares or associated persons, or in combination with such), the amount of which is not less than 25 percent of the total amount of shares issued by such a company, at any other time during the tax year in which the alienation took place. 4. Gains from the alienation of any property other than immovable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of such permanent establishment (alone or in combination with the entire enterprise), may be taxed in that other Contracting State. 5. Income earned by an enterprise of a Contracting State from the alienation of ships or aircraft operated by such enterprise in international traffic, or any property other than immovable property related to the operation of such ships or aircraft, shall be taxable only in that Contracting State. 6. Gains from the alienation of any property other than that referred to in the preceding paragraphs of this article shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14

1. Subject to the provisions of articles 15, 17 and 18, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that Contracting State, unless the employment is performed in the other Contracting State. If the employment is performed in the other Contracting State, such remuneration derived therefrom may be taxed in that other Contracting 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 Contracting State if: (a) The recipient is present in that other Contracting State for a period or periods not exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year; (b) The remuneration is paid by or on behalf of the employer who is not a resident of that other Contracting State; and (c) the remuneration is not borne by a permanent establishment which the employer has in that other Contracting State. 3. Notwithstanding the preceding provisions of this article, remuneration derived by an enterprise of a Contracting State in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in that Contracting State.

Article 15

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

Article 16

1. Notwithstanding the provisions of Articles 7 and 14, income earned by a resident of a Contracting State as a theater, motion picture, radio or television artist or musician, or as an athlete, from his personal activities carried on in the other Contracting State, may be taxed in that other Contracting State. 2. Where income from personal activities exercised by an entertainer or Athlete in that capacity accrues not to the entertainer or Athlete himself but to another person, that income may, notwithstanding the provisions of articles 7 and 14, be taxed in the Contracting State in which the entertainer or Athlete's activities are exercised.

Article 17

Subject to the provisions of paragraph 2 of article 18, pensions and other similar payments of the beneficial owner who is a resident of a Contracting State are taxable only in that Contracting State.

Article 18

1. (a) Salaries, salaries and other similar remuneration paid by a Contracting State or a political subdivision or local authority to an individual in respect of services rendered to that Contracting State or a political subdivision or local authority in the performance of functions of a governmental nature 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 other Contracting State and an individual who is a resident of that other Contracting State who: (i) is a national of that other Contracting State; or (ii) has not become a resident of that other Contracting State solely for the purpose of performing services. 2. (a) Notwithstanding the provisions of paragraph 1, pensions or other similar remuneration paid by or from funds created by a Contracting State or a political subdivision or local authority to an individual in respect of services rendered to that Contracting State or political subdivision or local authority shall be taxable only in that Contracting State. (b) However, such pensions or other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of and a national of that other Contracting State. 3. The provisions of articles 14, 15, 16 and 17 shall apply to salaries, salaries, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or local authority.

Article 19

Amounts that a student or trainee who is or immediately before arriving in a Contracting State was a resident of the other Contracting State and is located in the first-mentioned Contracting State solely for the purpose of education or internship, receives for the purposes of his maintenance, education or internship, shall not be taxed in the first-mentioned Contracting State, provided that The sources of these amounts are located outside the first-mentioned Contracting State.

Article 20

Notwithstanding any other provisions of this Convention, any income or profits earned by a passive partner with unlimited liability in respect of Tokumei Kumiai passive partnership contracts or other similar contracts may be taxed in the Contracting State in which such income or profits arise and in accordance with the laws of that Contracting State.

Article 21

1. The types of income of a resident of a Contracting State, the beneficial owner of such income, regardless of the source of their origin, which are not mentioned in the preceding articles of this Convention (hereinafter referred to in this article as "other income"), are taxable only in that Contracting State. 2. The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 if the beneficial owner of such other income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located therein and the right or property in connection with which the transaction was conducted the payment of other income is indeed related to such a permanent establishment. In such a case, the provisions of article 7 of this Convention shall apply. 3. If, as a result of the special relationship between the resident referred to in paragraph 1 and the payer, or between both of them and any other person, the amount of the other income exceeds the amount that would have been agreed between them in the absence of such a relationship, the provisions of this article shall apply only to the latter-mentioned amount. In such a case, the excess part of the payments shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.

Article 22

1. In the case of Kazakhstan: a) if a resident of Kazakhstan earns income that, in accordance with the provisions of this Convention, can be taxed in Japan, Kazakhstan will allow an amount equal to the Japanese tax paid in Japan to be deducted from the income tax of that resident. However, the amount of the deduction should not exceed the part of the Kazakh tax that relates to such income. (b) If, in accordance with any provisions of the Convention, income earned by a resident of Kazakhstan is exempt from tax in Kazakhstan, Kazakhstan may nevertheless take into account tax-exempt income when calculating tax on the remainder of that resident's income. 2. In accordance with the provisions of Japanese law, a tax paid in any country other than Japan is offset against Japanese tax.: (a) If a resident of Japan receives income in Kazakhstan that may be taxed in Kazakhstan in accordance with the provisions of this Convention, the amount of Kazakhstani tax paid by that resident in respect of such income shall be offset against Japanese tax. However, the offset amount should not exceed the portion of the Japanese tax that relates to such income. (b) If the income earned in Kazakhstan is dividends paid by a company that is a resident of Kazakhstan, a company that is a resident of Japan and that owns at least 10 percent of the voting shares or the amount of outstanding shares of the company paying the dividends during the six-month period immediately prior to the date on which the dividend payment obligations are confirmed, then The offset will take into account the Kazakh tax payable by the company paying the dividends in respect of its income. 3. For the purposes of the preceding paragraphs of this article, income of the beneficial owner of a resident of a Contracting State that may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise in that other Contracting State.

Article 23

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 that other Contracting State are or may be subject in the same circumstances, in particular with respect to residents. Notwithstanding the provisions of article 1, the provisions of this paragraph shall also apply to a person who is not a resident of one or both of the Contracting States. 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 Contracting State than the taxation of enterprises of that other Contracting State engaged in similar activities. The provisions of this paragraph shall not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State any personal tax benefits, discounts and deductions for tax purposes based on their civil status or marital status that it grants to its residents. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 8 of Article 11, paragraph 6 of Article 12 or paragraph 3 of Article 21 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 purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if they would be paid to a resident of the first-mentioned Contracting State. 4. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned Contracting State to any taxation or any obligations related thereto that are other or more burdensome than taxation and related obligations to which they are or may be subject. other similar enterprises of the first-mentioned Contracting State may be affected. 5. The provisions of this article, notwithstanding the provisions of article 2, shall apply to taxes of any kind and character imposed by a Contracting State or by political subdivisions or local authorities.

Article 24

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 to the competent authority of the Contracting State of which he is a resident, or, if His case falls within the scope of paragraph 1 of article 23, to the competent authority of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Convention. 2. The competent authority shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation inconsistent with the provisions of this Convention. Any agreement reached will be executed regardless of any time limits provided for by the domestic laws of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement within the meaning of the preceding paragraphs of this article.

Article 25

1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Convention or the administration or application of domestic legislation relating to taxes of any kind levied on behalf of the Contracting States or their political subdivisions or local authorities to the extent that taxation is not contrary to this Convention. The exchange of information is not limited to articles 1 and 2. 2. Any information obtained by a Contracting State in accordance with paragraph 1 shall be considered secret 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) related to tax assessment or collection or enforcement or prosecution of permits. appeals concerning taxes referred to in paragraph 1, or control of the above. Such persons or authorities use the information only for such purposes. They may disclose information during an open court hearing or when making court decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be interpreted as imposing an obligation on a Contracting State.: (a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State; (b) To provide information that cannot be obtained under the laws or customary administrative practices of that or another 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. 4. If information is required by a Contracting State in accordance with this Article, the other Contracting State shall use its information to achieve the required information, even if that other Contracting State may not need such information for its own tax purposes. The obligation contained in the previous sentence is subject to the limitations of paragraph 3, but in no case will such a restriction be considered as allowing a Contracting State to refuse to provide information solely because it has no intrinsic interest in such information. 5. In no case shall the provisions of paragraph 3 be interpreted as authorizing a Contracting State to refuse to provide information solely because the holder of the information is a bank, another financial institution, a nominee holder or a person acting as an agent or attorney, or because the information relates to the property rights of a person.

Article 26

1. The Contracting States shall assist each other in the collection of taxes to the extent necessary to prevent any such exemption or reduction of the tax rate, provided that this Convention should not be used by persons who are not authorized to such benefits. When making such collections, a Contracting State must be responsible to the other Contracting State for such amounts collected. 2. In no case shall the provisions of paragraph 1 be interpreted as imposing obligations on a Contracting State.: (a) To take administrative measures contrary to the laws and administrative practices of that or another Contracting State; (b) To take measures contrary to public policy.

Article 27

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

Article 28

1. Each Contracting State will send a notification through diplomatic channels to the other that the domestic procedures for the entry into force of this Convention have been completed. The Convention shall enter into force on the thirtieth day after the date of receipt of the last notification. 2. The Convention applies: (a) In respect of taxes withheld at source, in respect of amounts paid or deductible on or after 1 January of the calendar year following the year of entry into force of the Convention; (b) In respect of taxes on income not withheld at source, in respect of income for any tax year beginning on or after 1 January of the calendar year following the year of entry into force of the Convention; and (c) in respect of other taxes, in respect of any taxable period beginning on or after 1 January of the calendar year following the year of entry into force of the Convention.

Article 29

This Convention shall remain in force until terminated by one of the Contracting States. Any Contracting State may terminate the Convention by giving written notice of termination through diplomatic channels at least six months before the end of any calendar year following the expiration of a period of five years from the date of entry into force of the Convention. In this case, the Convention is terminated.: (a) In respect of taxes withheld at source, in respect of amounts paid or deductible on or after January 1 of the calendar year following the year of receipt of such notification; (b) In respect of taxes on income not withheld at source, in respect of income for any tax year beginning on or after January 1 of the calendar year following for the year of receipt of such notification; and c) in respect of other taxes, in respect of any taxable period beginning on or after January 1 of the calendar year following the year of receipt of such notification.

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

Done in Tokyo on December 19th, 2008, in English.

FOR THE REPUBLIC OF KAZAKHSTAN FOR JAPAN

Protocol

As part of the signing of the Convention between the Republic of Kazakhstan and Japan for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the "Convention"), the Republic of Kazakhstan and Japan have agreed to the following provisions, which are an integral part of the Convention. 1. With regard to paragraph 2 of article 9 of the Convention: If Kazakhstan makes an adjustment in accordance with this paragraph, nothing in the provision of this paragraph should be interpreted as imposing obligations on Kazakhstan to coordinate profit adjustments. 2. With regard to paragraph 3 of article 9 of the Convention: It is understood that nothing in this paragraph should be interpreted as preventing Kazakhstan from changing the profits of a Kazakh enterprise derived from the use of subsurface use contracts in accordance with the provisions of paragraph 1 of the article before the end of the five-year period from the date of completion of the contract. 3. With regard to paragraph 2 of article 12 of the Convention: (a) in the case of royalties arising in Kazakhstan, the term "amount of royalties" means an amount equivalent to 50 per cent of the total amount of royalties; (b) In the case of royalties arising in Japan, the term "10 percent of the royalty amount" means 5 percent of the total royalty amount. 4. With regard to paragraph 5 of article 25 of the Convention: A Contracting State may refuse to provide information related to confidential communication between a prosecutor, legal adviser or other generally accepted legal representatives in their role and their clients within the framework of such communication, protected from disclosure in accordance with the domestic law of that Contracting State. 5. Nothing in this Convention may be interpreted as preventing a Contracting State from imposing additional taxes on profits (other than those derived from the operation of ships or aircraft in international traffic) of a company resident in the other Contracting State relating to the permanent establishment of the company located in the first-mentioned Contracting State, in addition to the tax, which is calculated on the profits of a company that is a resident of the first-mentioned Contracting State, provided that, that any additional tax accrued in this way will not exceed 5 percent of the total amount of such profits. For the purposes of this paragraph, the profits subject to additional tax shall be determined after deduction from the profits attributable to the permanent establishment of all taxes during the tax period other than the additional tax levied in the first-mentioned Contracting State during the tax period.

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

Done in Tokyo on December 19th, 2008, in English.

FOR THE REPUBLIC OF KAZAKHSTAN FOR JAPAN

The RCPI's note. The following is the text of the Convention in English.

President

Republic of Kazakhstan

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