On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto

On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Protocol thereto

The Law of the Republic of Kazakhstan dated January 8, 2019 No. 214-VI SAM.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and its Protocol, signed in Astana on September 29, 2017.

President Republic of Kazakhstan

N. NAZARBAYEV

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

(Entered into force on February 22, 2019 - Bulletin of International Treaties of the Republic of Kazakhstan 2019, No. 1, Article 11)

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

Desiring to conclude an Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income,

have agreed on the following:

Article 1 Persons to whom the Agreement applies

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

Article 2 Taxes covered by the Agreement

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or its central or local authorities, regardless of the method of their collection.

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

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

a) in the Republic of Kazakhstan:

(i) Corporate income tax;

(ii) Individual income tax;

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

(b) In the Republic of Croatia:

(i) Income tax;

(ii) Income tax;

(iii) the local income tax and any other penalty levied on one of these taxes;

(hereinafter referred to as the "Croatian Tax").

4. This Agreement shall also apply to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes that have occurred in their respective tax laws.

Article 3 General definitions

1. For the purposes of this Agreement, unless the context otherwise requires:

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

(b) The term "Croatia" means the territory of the Republic of Croatia, as well as the maritime zones adjacent to the external borders of the territorial sea, including the seabed and subsoil, on which the Republic of Croatia exercises its sovereign rights and jurisdiction in accordance with international law and the legislation of the Republic of Croatia;

d) the term "tax" means, depending on the context, the Kazakh tax or the Croatian tax;

(e) The term "person" includes an individual, a company, and any other body of persons;

(f) The term "company" means any corporate entity or any organization that is treated as a corporate entity for tax purposes;

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

(h) The term "international carriage" means any carriage by sea, aircraft or road operated by an enterprise of a Contracting State, except when the ship, aircraft or road transport is operated exclusively between locations in the other Contracting State.;

(i) The term "competent authority" means:

(i) in Kazakhstan: the Ministry of Finance or its authorized representative;

(ii) in Croatia: the Minister of Finance or his authorized representative;

(j) 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 legislation in force in a Contracting State.

2. As regards the application of the Agreement 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 State in respect of taxes to which the Agreement applies, any meaning of the term under the applicable tax laws of that State shall prevail over the meaning given by the term according to other laws of this State.

Article 4 The resident

1. For the purposes of this Agreement, 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, or any other criterion of a similar nature, and also includes the State itself, any of its central and 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.

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

a) he is considered a resident only of the State in which he has a permanent home at his disposal; if he has a permanent home at his disposal in both States, he is considered a resident only of the State in which he has closer personal and economic relations (center of vital interests);

(b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in any State, he shall be deemed to be a resident only of the State in which he habitually resides.;

(c) If he has his habitual residence in both States or in neither of them, he shall be deemed to be a resident only of the 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 of this article a person other than an individual is a resident of both Contracting States, then he shall be deemed to be a resident only of the State in which his place of effective management is located.

Article 5 Permanent establishment

1. For the purposes of this Agreement, 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) Management location;

b) separation;

c) the office;

d) the factory;

(e) A workshop; and

(f) A mine, mine, oil or gas well, quarry, installation, facility or any other place of exploration or extraction of natural resources.

3. The term "permanent establishment" also includes:

a) a construction site or a construction or installation project, only if they have been in existence for more than 12 months;

(b) The provision of services, including consulting services, by a resident of one of the Contracting States through employees or other personnel, if activities of this nature continue for such or a related project within the other Contracting State for a period or periods exceeding 6 months within any twelve-month period.

4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" does not 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 purposes of storage, display or delivery;

(c) The maintenance of stocks of goods or merchandise 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 fixed place of business solely for the purpose of carrying on 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 referred to in subparagraphs (a) to (e), provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature.

5. Notwithstanding the provisions of paragraphs 1 and 2, if the person is other than an agent with an independent status to whom paragraph 6 applies - carries on business on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity that that person carries on 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 State through a broker, commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

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 carries on business in that other State (either through a permanent establishment or otherwise) does not in itself mean that any such company is a permanent establishment of another.

Article 6 Income from immovable property

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

2. The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of the law on land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop a mineral deposit, sources and other natural resources; ships, aircraft or road transport are not considered as immovable property.

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

4. The provisions of paragraphs 1 and 3 also apply to income from immovable property of an enterprise and income from immovable property used to perform independent personal services.

Article 7 Profit from entrepreneurial activity

1. The profits of an enterprise of a Contracting State are taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries out business activities as mentioned above, then the profits of the enterprise may be taxed in another State, but only in the part that relates to such a 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 the same conditions. or similar conditions and operated in complete independence from the enterprise of which it is a permanent establishment.

3. In determining the profit of a permanent establishment, expenses duly documented and incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether these expenses are incurred in the State where the permanent establishment is located or elsewhere.

4. Nothing in this article may affect the application of any legislation of a Contracting State relevant to the determination of a person's tax liability in cases where the information available to the competent authority of that Contracting State is insufficient to determine the profits attributable to a permanent establishment, provided that, on the basis of the available information, the determination of the profits of a permanent establishment It is consistent in accordance with the principles set out 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. For the purposes of the preceding paragraphs, profits attributable to a permanent establishment are determined in the same way from year to year, unless there is a sufficient and compelling reason to change this procedure.

7. If the profit includes types of income that are mentioned separately in other articles of this Agreement, the provisions of these articles are not affected by the provisions of this article.

Article 8 International carriage

1. Profits earned by a resident of a Contracting State from the operation of ships, aircraft or motor vehicles in international traffic shall be taxable only in that Contracting State.

2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint business activities or an international organization for the operation of vehicles.

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 are directly or indirectly involved in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

and in one of the two cases, conditions are created or established between two enterprises in their commercial or financial relationships that differ from those that would take place between two independent enterprises, then any profit that could have been credited to one of the enterprises, but because of the presence of these conditions was not credited to it, may be it is included in the profit of this enterprise and, accordingly, taxed.

2. If a Contracting State includes in the profits of an enterprise of that State and, accordingly, taxes the profits on which an enterprise of the other Contracting State is taxed in that other State, and the profits so included are profits that would accrue to an enterprise of the first-mentioned State if the conditions between the two enterprises were such that There are differences between two independent enterprises, then this other State will make an appropriate adjustment to the amount of tax levied on such profits. In determining such an adjustment, the other provisions of this Agreement 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 State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the 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 (other than a partnership) that directly owns at least 25 percent of the capital of the company paying dividends;

b) 10 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 term "dividends", as used in this article, means income from shares or other rights other than debt claims, income from profit-sharing, as well as income from other corporate rights that are subject to the same tax treatment as income from shares under the laws of the Contracting State in which the company 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 and the holding company in respect of which the dividends are paid is actually associated with such permanent establishment or fixed base. In such a case, the provisions of articles 7 or 14 shall apply, depending on the circumstances.

5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other 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 State, or the holding company in respect of which the dividends are paid is actually associated with a permanent establishment or permanent No tax on retained earnings is levied on the company's undistributed profits based in that other State., even if the dividends paid or retained earnings consist wholly or partly of profits or income arising in such other State.

6. Nothing in this Agreement may be interpreted as preventing a Contracting State from imposing a special tax on the profits of a company having a permanent establishment in that State, in addition to the tax that is levied on the profits of a company that is a national of that State, provided that any additional tax does not exceed 5 per cent of the amount of such profits, which It has not been subjected to such additional taxation in previous taxable years. For the purposes of this paragraph, profits are determined after deduction of all taxes other than the additional tax referred to in this paragraph, which are taxable in the Contracting State in which the permanent establishment is located.

Article 11 Interest

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

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the 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. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in the debtor's profits, and in particular income from government or government securities and income from bonds or debentures, including premiums and winnings. for these securities, bonds, or debentures. Penalties for late payments are not considered as interest for the purposes of this article.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services in that other State from a permanent base located there, and a debt claim in respect of which interest is paid, it is really connected with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 shall apply, as appropriate.

5. Interest shall be deemed to arise in a Contracting State if the payer is a resident of that State. However, if 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 paid has arisen and the costs of such interest are borne by a permanent establishment or permanent base, such interest shall be deemed to arise in The State in which such a permanent establishment or permanent base is located.

6. If, due to a special relationship between the payer and the actual owner or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In this case, the excess part of the payment is subject to taxation in accordance with the laws of each Contracting State, taking into account the other provisions of this Agreement.

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 according to the laws of that Contracting State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the royalties.

3. The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or grant of the right to use any copyright in works of literature, art or science, including cinematographic films, any patent, trademark, design or model, plan, secret formula or process, or information related to industrial, commercial or scientific experience, and payments for the use or grant of the right to use 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 arise through a permanent establishment located there or provides independent personal services with a permanent base located there in that other State, and the right or property in respect of which royalties are paid, are indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 shall apply, as appropriate.

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

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

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 defined in Article 6 and located in the other Contracting State may be taxed in that other State.

2. Income from the alienation of movable property forming part of the business property of a permanent establishment that an enterprise of one Contracting State has in the other Contracting State, or movable property belonging to a permanent base and held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including income from the alienation of such permanent establishment (separately or in conjunction with the whole enterprise) or such a permanent base, may be taxed in that other State.

3. Income earned by a resident of a Contracting State from the alienation of ships, aircraft or road transport operated in international traffic, or movable property pertaining to the operation of such ships, aircraft or road transport, shall be taxable only in that Contracting State.

4. Income earned by a resident of a Contracting State from the sale of shares deriving more than 50 per cent of their value, directly or indirectly, from immovable property located in the other State may be taxed in that other State.

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

Article 14 Independent personal services

1. Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that State, except in the case when he has a permanent base regularly available to him in the other Contracting State for the purposes of carrying out these activities. If he has such a permanent base, income may be taxed in another State, but only in the part that relates to this permanent base.

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

Article 15 Dependent personal services

1. Subject to the provisions of articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in connection with an employment shall be taxable only in that State unless the employment is performed in the other Contracting State. If the employment is performed in this way, the remuneration received in connection with it may be taxed in that other State.

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

(a) The recipient is present in another State for a period or periods not exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant calendar year; and

(b) The remuneration is paid by or on behalf of an employer who is not a resident of another State; and

c) the remuneration costs are not borne by a permanent establishment that the employer has in another State.

3. Notwithstanding the preceding provisions of this article, remuneration derived by a resident of a Contracting State from an employment performed on board a ship, aircraft or road transport operated in international traffic 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 of a company that is a resident of the other Contracting State may be taxed in that other State.

Article 17 Artists and athletes

1. Notwithstanding the provisions of articles 14 and 15, income earned by a resident of a Contracting State as an artist, such as a theater, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities carried on in the other Contracting State, may be taxed in that other State.

2. Where income from personal activities exercised by an entertainer or a sportsman in that capacity accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

Article 18 Pensions

Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that Contracting State.

Article 19 Public service

1. (a) Salaries, salaries and other similar remuneration, other than a pension, paid by the State or its central or local authorities to an individual for services performed for that State or its central or local authorities, shall be taxable only in that 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 State and an individual who is a resident of that State:

(i) Is a national of that State; or

ii) has not become a resident of that State solely for the purpose of performing his service.

2. (a) Any pension paid by a Contracting State or its central or local authorities to an individual in respect of services rendered to that State or its central or local authorities shall be taxable only in that State.

(b) However, such pension is taxable only in the other Contracting State if the individual is a resident of and a national of that State.

3. The provisions of articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or its central or local authorities.

Article 20 Students

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

Article 21 Other income

1. The types of income of a resident of a Contracting State, regardless of the source of their origin, which are not mentioned in the preceding articles of this Agreement, are taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income other than income from immovable property defined in paragraph 2 of Article 6 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 there or provides independent personal services in that other State with a permanent establishment located there. the bases, and the right or property in respect of which income is paid, are indeed associated with such a permanent establishment or permanent base. In such a case, the provisions of article 7 or article 14 shall apply, as appropriate.

Article 22 Elimination of double taxation

1. If a resident of a Contracting State earns income which, in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned State may deduct from the income tax of that resident an amount equal to the income tax paid in that other State.

However, such a deduction should not exceed the portion of income tax calculated before the deduction is granted on income that may be taxed in that other State.

2. If, in accordance with any provisions of the Agreement, income earned by a resident of a Contracting State is exempt from taxation in that State, nevertheless, that State, when calculating tax on the remainder of that resident's income, shall take into account the amount of income exempt from taxation.

Article 23 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 that other State are or may be subject in the same circumstances, in particular with respect to residency.

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

3. Except where the provisions of paragraph 1 of Article 9, paragraph 6 of Article 11 or paragraph 6 of Article 12 of this Agreement 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 were paid to a resident of the first mentioned 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 State.

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

5. Notwithstanding the provisions of article 2, the provisions of this article shall apply to taxes of any kind.

Article 24 Mutual agreement procedure

1. If a person considers that the actions of one or both of the Contracting States result in or will result in taxation that is not in accordance with the provisions of this Agreement, he may, regardless of the remedies provided for by the domestic laws of those States, submit his application to the competent authority of the Contracting State of which he is a resident, or, if his application falls under The effect of paragraph 1 of Article 23 of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation that do not comply with the provisions of the Agreement. In case of legal proceedings, the court's decision cannot be reviewed by the competent authorities of Kazakhstan.

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 matter by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in accordance with the Agreement. Any agreement reached will be executed regardless of any time limits provided for by the domestic legislation of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising in the interpretation or application of the Agreement. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Agreement.

4. The competent authorities of the Contracting States may enter into direct contacts with each other, including through a joint commission composed of them or their authorized representatives, in order to reach agreement within the meaning of the preceding paragraphs.

Article 25 Exchange of information

1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Agreement or the administration or application of domestic laws relating to taxes of any kind and description levied on behalf of the Contracting States or their central or local authorities, insofar as taxation is not contrary to the Agreement. The exchange of information is not limited to articles 1 and 2.

2. Any information received by a Contracting State in accordance with paragraph 1 shall be treated as confidential in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts and administrative authorities) involved in the assessment or collection, enforcement, or prosecution or review of appeals concerning taxes referred to in paragraph 1, or supervision of all 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 may 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 a Contracting State;

(b) To provide information that cannot be obtained under the laws or customary administrative practices of a Contracting State;

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

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information collection measures to obtain the requested information, even if such information is not required by the other State for its own tax purposes. The obligation contained in the previous sentence is limited by the provisions of paragraph 3, but in no case can such restrictions be interpreted as allowing a Contracting State to refuse to provide information solely because there is no intrinsic interest in such information.

5. In no case may 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 Employees of diplomatic missions and consular institutions

Nothing in this Agreement affects the tax privileges of employees of diplomatic missions or 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 27 Entry into force

1. This Agreement shall enter into force on the 30th day after the date of receipt by the Contracting States through diplomatic channels of the last written notification on the completion of the internal procedures necessary for the entry into force of this Agreement.

2. This Agreement applies:

a) with respect to taxes withheld at source on income earned on or after January 1 of the calendar year following the year of entry into force of the Agreement;

(b) In respect of other income taxes and taxes payable in any fiscal year beginning on or after 1 January of the calendar year following the year of entry into force of the Agreement.

Article 28 Amendments and additions

By mutual agreement of the Contracting States, this Agreement may be amended and supplemented in the form of protocols, which are an integral part of this Agreement and enter into force in accordance with Article 27.

Article 29 Termination

1. This Agreement shall remain in force until the Contracting State terminates it. Any Contracting State may terminate the Agreement by sending, through diplomatic channels, a written notice of termination at least six months before the end of any calendar year following the expiration of a five-year period from the date of its entry into force.

2. This Agreement is terminated.:

a) in respect of taxes withheld at source on income earned on or after January 1 of the calendar year following the year of receipt of the notification;

(b) In respect of other income taxes and taxes payable in any tax year beginning on or after January 1 of the calendar year following the year in which the notification is filed.

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

Done in two original copies, each in Kazakh, Croatian, Russian and English, all texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the English text shall prevail.

Astana, September 29, 2017

Zagreb, June 5, 2017

For the Government Republic of Kazakhstan

For the Government Republic of Croatia

Protocol to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income

(Entered into force on February 22, 2019 - Bulletin of International Treaties of the Republic of Kazakhstan 2019, No. 1, Article 12)

At the time of signing the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the signatories agreed to the following provisions, which are an integral part of the Agreement.

I. With regard to paragraph 3 of article 2

It is understood that in the case of the Republic of Croatia, any other fines are not considered as fines or other fees.

II. With regard to "Tax Collection Assistance", it was agreed that if, after the date of signing this Agreement, Croatia introduces into its domestic legislation provisions that allow Croatia to provide tax collection assistance, both States should immediately consult with each other on the revision of the provision of the article "Tax collection assistance".

Astana, September 29, 2017

Zagreb, June 5, 2017

For the Government Republic of Kazakhstan

For the Government Republic of Croatia

President

Republic of Kazakhstan

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