On the ratification of the Agreement between the Republic of Kazakhstan and the Federal Republic of Germany on the Avoidance of Double Taxation with respect to Taxes on Income and Property

Home / RLA / On the ratification of the Agreement between the Republic of Kazakhstan and the Federal Republic of Germany on the Avoidance of Double Taxation with respect to Taxes on Income and Property

To ratify the Agreement between the Republic of Kazakhstan and the Federal Republic of Germany on the Avoidance of Double Taxation with respect to Taxes on Income and Property, signed in Bonn on November 26, 1997.

President of the Republic of Kazakhstan

Agreement between the Republic of Kazakhstan and Federal Republic of Germany for the Avoidance of Double Taxation with respect to Taxes on income and property

 (Bulletin of International Treaties of the Republic of Kazakhstan, 1999, No. 6, Article 97) (Entered into force on December 21, 1998 - J. "Diplomatic Courier", special issue No. 2, September 2000, p. 160)

The Republic of Kazakhstan and the Federal Republic of Germany, guided by their desire to develop economic ties by removing tax barriers, 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 to which the Agreement applies 1. This Agreement applies to taxes on income and on property levied on behalf of a Contracting State, a Land, a political subdivision or a local authority, regardless of the manner in which they are levied. 2. Income and property taxes are all types of taxes levied on total income, on total property, or on individual elements of income or property, including taxes on income from the alienation of movable or immovable property, taxes on the total amount paid by an enterprise for labor, and taxes on income from property gains. 3. The existing taxes to which this Agreement applies are, in particular: a) in the Republic of Kazakhstan: taxes on income of legal entities and individuals, property tax of legal entities and individuals, tax on excess profits of subsurface users (hereinafter referred to as the "Kazakhstan tax"); b) in the Federal Republic of Germany: income tax, corporate tax, property tax and fishing tax, including the surcharges levied on them (hereinafter referred to as the "German tax"). 4. The Agreement also applies to any identical or substantially similar taxes that will be levied in addition to or in place of existing taxes after the date of signing the Agreement. The competent authorities of the Contracting States will notify each other of any significant changes that have been made in their respective tax laws.  

Article 3 General definitions 1. For the purposes of this Agreement, unless the context otherwise requires: a) the terms aa) "Kazakhstan" means the Republic of Kazakhstan and, when used in a geographical sense, includes the territory in which Kazakhstan may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law and in which the tax legislation of Kazakhstan applies.; bb) "Federal Republic of Germany" means the territory of the Federal Republic of Germany, as well as the territory of the seabed and subsoil adjacent to the territorial sea, as well as the water column above them, on which the Federal Republic of Germany, in accordance with international law and national legal acts, exercises sovereign rights and jurisdiction for the purpose of research and development of natural resources(b) The term "person" means an individual and a company; (c) The term "company" means any corporate entity or any legal entity that is treated as a corporate entity for tax purposes; (d) The terms "Contracting State" and "other Contracting State" mean the Republic of Kazakhstan or the Federal Republic of Germany, depending on the context.; (e) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a resident of a Contracting State or an enterprise operated by a resident of the other Contracting State; (f) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise with effective management in a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State; g) the term "national person" means: aa) in relation to the Republic of Kazakhstan, any natural person holding the citizenship of the Republic of Kazakhstan and any legal entity, partnership and association that have obtained their status on the basis of the current legislation of the Republic of Kazakhstan; bb) in relation to the Federal Republic of Germany, any German within the meaning of the Basic Law of the Federal Republic of Germany and any a legal entity, partnership, and association that obtained its status based on the current legislation of the Federal Republic of Germany; h) the term "competent authority" means: aa) in the case of the Republic of Kazakhstan, the Ministry of Finance or its authorized representative; bb) in the case of the Federal Republic of Germany, the Federal Ministry of Finance or the authority to which it delegates its powers. 2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein will have the meaning, unless the context otherwise requires, that it has at that time under the laws of that State concerning the taxes to which the Agreement applies.  

Article 4 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 by reason of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature. The term also includes this State, Land, political and administrative diviArticle 4 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 by reason of his domicile, residence, place of managementplace of establishment or any other criterion of a similar nature. The term also ncludes this State, Land, polid administrative division, or local authority. However, this twever, this term does not include any person who is subject to taxation in that State, only in respect of income from sources in that State or in respect of capital held therein. 2. Where, by reason of the provisions of paragraph 1 above, an individual is a resident of both Contracting States, his status shall be determined as follows: (a) he is considered to be a resident of the State in which he has a permanent home at his disposal.; If he has a permanent home available to him inf he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the State in which he has closer personal and economic relations (center of vital interests); (b) If the State in which he has a center of vital interests cannot be determined, or if he does not have a permanent home available to him. If he has permanent residence in either of the Contracting States, he shall be deemed to be a resident of the State in which he has an habitual abode.; (c) If he has an habitual abode in both States or in neither of the abode in both States o

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) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; and f) a mine, oil or gas well, quarry, or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: (a) a construction site or a construction, installation or assembly facility, if such a site or facility has been in existence for more than 12 months, and (b) an installation or facility used for natural resource exploration, or services related to monitoring the performance of these works, or a drilling rig or vessel used for natural resource exploration, if such usage lasts more than 12 months, or such services last more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is deemed not to include: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) the maintenance of a stock of goods or products belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise, or for collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a fixed place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e), provided that the combined activities of the fixed place of business resulting from such combination are of a preparatory or auxiliary nature. 5. Notwithstanding the provisions of paragraphs 1 and 2 above, if the person is other than an agent with an independent status to whom paragraph 6 below applies - acts on behalf of the enterprise and has, and habitually uses, in a Contracting State the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity that that person undertakes for the enterprise, unless the activities of such person are limited to those referred to in paragraph 4 above, which, if it is carried out through a permanent place of business, it does not transform this 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 that carries on business in that other State (either through a permanent establishment or otherwise) By itself, it does not turn one of these companies into a permanent establishment of the other.  

Article 6 Income from immovable property 1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other State. 2. The term "immovable property" has the meaning that it has under the legislation 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 private land ownership law apply, the usufruct of immovable property, and rights to variable or fixed payments as compensation for the development or right to exploit mineral resources, springs and other natural resources; ships and aircraft are not considered immovable property. 3. The provisions of paragraph 1 above apply to income from the direct use, rental or use of immovable property in any other form. 4. The provisions of paragraphs 1 and 3 above shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.

 Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State 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 in this way, 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 an independent 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. When determining the profit of a permanent establishment, it is allowed to deduct expenses that are incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, regardless of whether they are incurred in the State in which the permanent establishment is located or elsewhere. 4. No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purposes of the preceding paragraphs, profits related to a permanent establishment are determined in the same way from year to year, unless there are sufficient and compelling reasons to change this procedure. 6. This article also applies to income from partnership participation. It also applies to remuneration received by a partner from participation in a partnership for activities in the service of the partnership, for the provision of loans or for the transfer of property, if such remuneration, according to the legislation of the Contracting State in which the permanent establishment is located, relates to income received by the partner from that permanent establishment. 7. If the profit includes income that is specifically mentioned in other articles of this Agreement, the provisions of these articles are not affected by the provisions of this article.  

Article 8 Sea and air transport 1. Profits from the operation of ships or aircraft in international traffic are taxable only in the Contracting State in which the place of effective management of the enterprise is located. Article 8 Sea and air transport 1. Profits from the operation of ships or aircraft in international traffic are taxable only in the Contracting State in which the place of effective management of the enterprise is located. 2. For the purposes of this article, profits from the operation of ships or aircraft in international traffic also include: (a) income from chartering empty shippurposes of this article, profits from the operation of ships or aircraft in international traffic also include: (a) income from chartering empty ships or aircraft, and (b) income from the use, maintenance or rental of containers (including trailers and container transportation equipment) used to transport goods and merchandise if such chartering or such use, maintenance or rental, as the case may be, they are related are related to the operation of ships or aircraft in international transportation. 3. If the actual governing body of a maritime undertaking is located ooperation of vehicles.  

Article 9 Associated companies 1. In the event that (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, in these cases, conditions are created or established between the two enterprises in accordance with their commercial or financial relationships, which are different from those that would be created between two independent businesses, then any profit that could have been credited to one of them, but was not credited to him due to these conditions, can be included in the profit of this enterprise and taxed accordingly. 2. If a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State is taxed in that other State and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned State if the conditions created between the two enterprises had been such, which exist between independent enterprises, then this other State will make appropriate adjustments to the amount of tax levied on this profit. In determining such an adjustment, other provisions of this Agreement should be considered, and the competent authorities of the Contracting States will consult with each other, if necessary.  

Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident in accordance with the laws of that State, and if the beneficial owner of the dividends is a resident of the other Contracting State, the tax levied will not exceed: a) 5 percent of the gross amount of the dividends if the beneficial owner is a company (other, than a partnership), which directly owns at least 25 percent of the capital of the company paying dividends; b) 15 percent of the gross amount of dividends in all other cases. This clause does not affect the taxation of the company in respect of the profits from which the dividends are paid. 3. In contrast to paragraphs 1 and 2 of this article, income derived from rights or debt claims involving profit-sharing (in the case of the Federal Republic of Germany, including income of a secret participant derived from equity participation as such, income from loans containing the right to profit-sharing ("partiarisches Darlehen"), and bonds with the right to participate in profits) may be taxed in accordance with the laws of the Contracting State in which they originated, if they are deductible in that State when calculating the profits of the payer of these incomes. 4. The term "dividends" used in this article means income from shares, rights or certificates of profit-sharing (Genubrechte und Genubshein), mining shares, founding shares or other income that, according to the legislation of the State in which the profit-distributing company is resident, is subject to the same taxation as income from shares. The term "dividends" also includes the income of a secret participant from his equity participation as such, from loans containing the right to participate in profits, and bonds with the right to participate in profits or similar payments, as well as distribution according to certificates of investment funds or investment trusts. 5. The provisions of paragraphs 1 and 2 above shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there or provides independent personal services in that other State through a permanent base located there, and participates in in respect of which dividends are paid, it really refers to such a permanent establishment or such a permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 6. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may neither levy any tax on dividends paid by the company, except if such dividends are paid to a resident of that other State or the participation in respect of which the dividends are paid actually relates to a permanent establishment or permanent neither tax the company's undistributed profits on undistributed profits located in that other State., even if dividends are paid or retained earnings consist wholly or partly of income earned in that other State. 7. Nothing in this Agreement may be interpreted as preventing a Contracting State from taxing the profits of a company relating to a permanent establishment in that State in addition to the tax levied on the profits of a company that is a resident of that State, provided that such additional tax does not exceed 5 per cent of the amount of such profits that have not been subjected to such additional taxation in previous tax years. For the purposes of this paragraph, profits shall be determined after deducting therefrom all taxes other than the additional tax referred to in this paragraph levied in the Contracting State in which the permanent establishment is located, reduced by an amount equal to 50 per cent of such profits.  

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 in accordance with the laws of that State, and 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 gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2 above, (a) Interest arising in the Federal Republic of Germany and paid to the Government of the Republic of Kazakhstan, the National Bank of Kazakhstan, the Export-Import Bank of Kazakhstan or any other similar organization that may be agreed from time to time between the competent authorities of the Contracting States shall be exempt from German tax.; b) interest arising in the Republic of Kazakhstan and paid to the Government of the Federal Republic of Germany, Deutsche Bundesbank, the German Reconstruction Credit Institution (Kreditanstalt fur Wiederaufbau) or the German Financial Company for Participation in Developing Countries (Finanzierungsgesellschaft fur Verteiligungen), and interest paid on loans guaranteed by the Hermes insurance company, are exempt from Kazakh tax; (c) Interest arising in a Contracting State shall be taxable only in the other Contracting State of which the recipient is a resident if such recipient is the beneficial owner of the interest and if such interest is paid: (a) in connection with the sale on credit of any industrial, commercial or scientific equipment; or (b) in connection with the sale on credit of any goods from one enterprise to another enterprise. 4. The term "interest", as used in this article, means income from debt claims of any kind, secured or unsecured by mortgage collateral and, in particular, income from government securities and income from bonds or debentures, including premiums and winnings on these securities, bonds or debentures. Penalties for late payments are not considered interest for the purposes of this article. However, the term "interest" does not include the income considered in article 10.5. The provisions of paragraphs 1, 2 and 3 above 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 through a permanent base located there, and a debt claim in respect of which interest is being paid, really refers to such a permanent establishment or such a permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a Land, a political administrative subdivision or a local authority, or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such interest arises in the State in which such a permanent establishment or such a permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this article shall apply only to the last mentioned amount. In this case, the excess part of the payment is subject to taxation in accordance with the laws of each Contracting State and subject to the other provisions of this Agreement.

 Article 12 Royalty 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they arise in accordance with the laws of that State, and if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the gross 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 for information related to industrial, commercial or scientific experience, as well as payments for the use or for the right to use industrial, commercial or scientific equipment. 4. The provisions of paragraphs 1 and 2 above shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there, or provides independent personal services in that other State through a permanent base located there, and rights or property, including in respect of which royalties are paid, they are actually associated with such a permanent establishment or such a permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, a Land, a political administrative subdivision or a local authority, or a resident of that State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a permanent base in connection with which the obligation to pay the royalties has arisen, and such royalties are associated with that permanent establishment or that permanent base, then such royalties shall be deemed to have arisen in that State., where a permanent establishment or permanent base is located. 6. If, as a result of a special relationship between the payer and the actual owner of the royalty or between both of them and any other person, the amount of the royalty relating to the use, right or information on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the royalty in the absence of such a relationship, the provisions of this article 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 and subject to 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 located in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of shares and similar rights in a company whose assets consist primarily of immovable property located in a Contracting State may be taxed in that State. 3. Income from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or from movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, including such income from the alienation of such permanent establishment (separately or in conjunction with the entire enterprise) or such a permanent base, may be taxed in that other State. 4. Gains from the alienation of ships or aircraft operated in international traffic or from movable property related to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is located. 5. Gains from the alienation of any property other than that referred to in paragraphs 1-4 above 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, unless he has a permanent base regularly available to him in the other Contracting State for the purpose of carrying on such 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. Where an individual who is a resident of a Contracting State resides in the other Contracting State for a period or periods exceeding a total of 183 days in any 12-month period beginning or ending in the relevant tax year, he shall be deemed to have a regularly available permanent base in that other State and income that arise from carrying out the above-mentioned activities in this other State, will relate to this permanent base. In such a case, income related to a fixed base may be taxed in that other State in accordance with principles similar to those set out in article 7 for determining the amount of business profits and attributing them to a permanent establishment. 2. The term "professional services" includes, in particular, independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of doctors, dentists, lawyers, engineers, architects and accounting experts.

 Article 15 Dependent personal services 1. Subject to the provisions of articles 16-19, 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 State, unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other State. Article 15 Dependent personal services 1. Subject to the provisions of articles 16-19, 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 State, unless the employment is performed in the other Contracting State. If the employment is performed in thinner, such remuneration derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of the above-mentionstanding the provisions of the above-mentioned paragraph 1, remuneration derived by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: (a) the recipient resides in that other State for a period or periods not exceeding a total of 183 days in any 12-a monthly period beginning or ending in the relevant tax year, and b) the remuneration is paid by or on behalf of the employer, who is not a resident of another State, and c) remuneration is not paid at the expense of a permanent establishment or permanent base that the employer has in another State. 3. The provisions of paragraph 2 above do not apply to remuneration for work within the framework of professional hiring of labor. 4. NotwithsNotwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise operating the ship or aircraft is located. 5. Contributions made for an individual who provides dependent personal services in a Contracting State to a medical and pension insurance organization established in the other Contracting State and recognized therein for tax puContributions made for an individual who provides dependent personal services in a Contracting State to a medical and pension insurance organization established in the other Contracting State and recognized therein for tax purposes, when calculating the taxable income of that person in the first-mentioned State, are taken into account in the same way, under the same conditions and in the same manner. the same amount as contributions to medical and pension insurance organizations recognized for tax purposes in this first-mentioned State, provided that: a) the said individual was not a resident of that State immediately prior to the start of his employment and had previously made contributions to these medical and pension insurance organizations, and b) these medical and pension insurance organizations were recognized by the competent authorities of the first-mentioned State as generally corresponding to those organizations that are recognized as such for tax purposes in the Russian Federation. this State. For the purposes of this paragraph: (a) the term "health insurance organization" means any organization from which an employee and his family members are entitled to receive payments in the event of temporary termination of employment due to illness; (b) the term "pension insurance organization" means an organization in which that person participates in order to ensure pension payments in respect of the employment referred to in this paragraph; (c) A "medical and pension insurance organization" is tax-recognized by a State if contributions to such an organization in that State entitle it to tax relief.  

Article 16 Directors' fees 1. Directors' fees and other similar payments derivedArticle 16 Directors' fees 1. Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. 2. Notwithstanding the provisions of article 15, payments received by a resident of a Contracting State in his capacity as an executive director or member of the management board 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 7, 14 and 15,Article 17 Artists and athletes 1. Notwithstanding the provisions of Articles 7, 14 and 15, income earned by a resident of a Contracting State as a performing 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 the following cases: in this other State. 2. Where income in respect of personal activities carried on by a performing artist or Athlete in that capacity is transferred not to the artist or athlete himself but to another person, such income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the performing artist or athlete's activities are carried on. 3. However, such income shall not be taxHowever, such income shall not be taxed in the State referred to in paragraph 1 above if the underlying activity is carried out during a visit to that State by a resident of another State and if such a visit is fully or not less than half funded by that other State, Land, political administrative unit or local authority, or an organization that is recognized in that other State as a charitable organization. In this case, such income shall be taxable only in the Contracting State of which the entertainer or athlete is a resident.  

Article 18 Pensions, annuities and similar payments 1. Pensions and similar payments or annuities paid to a resident of a Contracting State shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 above, payments received by an individual who iArticle 18 Pensions, annuities and similar payments 1. Pensions and similar payments or annuities paid to a resident of a Contracting State shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 above, payments received by an individual who is a resident of a Contracting State from the compulsory social insurance funds of the other Contracting State shall be taxable only in that other State. 3. Notwithstanding the provisions of paragraph 1 above, recurring or lump-sum payments made by one of the Contracting States or its political and administrative subdivision to a person who is a resident of the other Contracting State for damage caused as a result of war or political persecution or military or civil service (including compensation payments) are taxable only in the first-mentioned State. 4. The term "annuity" means a certain amount that The term "annuity" means a certain amount that is regularly paid on a fixed date, for life or for a certain or determinable period of time, based on an obligation to make such payments as an adequate and full counter-satisfaction in monetary or adequate

Article 19 Public service 1. Remuneration, other than pensions, paid by a Contracting State, Land, political administrative subdivision or local authority, or other legal entity in accordance with the public law of that State, to any natural person in respect of services rendered to that State, Land, political administrative subdivision or local authority, or other legal entity in accordance with the public law of that State. according to public law, it is taxed only in this State. However, such remuneration shall be taxable only in the other Contracting State if the service is performed in that State and if the individual is a resident of that State and: (a) is a national of that State or (b) has become a resident of that State not only for the purpose of performing the service. 2. (a) Any pension paid by, or from funds created by, a Contracting State, Land, political subdivision or local authority to an individual in respect of services rendered to such State, Land, subdivision or authority 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 and a national of that State. 3. The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services related to the conduct of business by a Contracting State, its Lands, a political administrative subdivision or a local authority, or another legal entity in accordance with the public law of that State. 4. The provisions of paragraph 1 above shall apply in the same way to remuneration paid under the development assistance program of a Contracting State, Land, political administrative subdivision or local authority from funds allocated exclusively by that State, Land, political administrative subdivision or their local authority, to a specialist or volunteer sent to another Contracting State for the purpose of with the consent of this other State. 5. Paragraph 1 also applies to payments made by or on behalf of the Goethe Institute and, after agreement between the competent authorities, similar institutions of the Federal Republic of Germany. If these payments are not taxable in the Federal Republic of Germany, article 15 applies.  

Article 20 Teachers, teachers and students 1. An individual who has arrived in a Contracting State at the invitation of that State or a university, college, school, museum or other cultural institution of that State, or under an official cultural exchange program for a period not exceeding two years, solely for the purpose of teaching, lecturing or conducting research in such institutions and who is or was directly prior to this visit, a resident of the other Contracting State is exempt from tax in the first-mentioned State on his remuneration for such activities., provided that such remuneration is received by him from outside this State. 2. Payments received by a student, trainee or a person undergoing vocational training who is or was immediately prior to arrival in a Contracting State a resident of the other Contracting State, and who is in the first-mentioned State solely for the purpose of study or education, and intended for residence, study and education, shall not be taxed in that State. provided that such payments originate from sources outside that State.  

Article 21 Other income 1. The income of a resident of a Contracting State, regardless of where it originated, which is not considered in the preceding articles of this Agreement, is taxable only in that State. 2. The provisions of paragraph 1 above shall not apply to income other than income from immovable property if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment located there or provides independent personal services in that other State through a permanent base located there, and rights or property, in connection with which the payment of income was made, they are really connected with such a permanent establishment or such a permanent base. In such a case, the provisions of article 7 or article 14, as the case may be, shall apply.  

Article 22 Property 1. Property represented by immovable property owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other State. 2. Property represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base held by a resident of a Contracting State in the other Contracting State for the purpose of providing independent personal services, may be taxed in that other State. 3. Property represented by ships or aircraft operated in international traffic, as well as movable property related to the operation of such ships and aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is located. 4. All other elements of the property of a resident of a Contracting State are taxable only in that State.  

Article 23 Elimination of double taxation in the State of residence 1. In the case of a resident of Kazakhstan, the tax is determined as follows: a) If a resident of Kazakhstan receives income or owns property that, according to the provisions of this Agreement, may be taxed in the Federal Republic of Germany, Kazakhstan will allow: aa) to deduct from the income tax of this resident an amount equal to the income tax paid in the Federal Republic of Germany; bb) deduct from the property tax of this resident an amount equal to the property tax paid in the Federal Republic of Germany. The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be charged on the same income in Kazakhstan at the rates applicable there. b) If a resident of Kazakhstan receives income or owns property that, in accordance with the provisions of this Agreement, is taxable only in the Federal Republic of Germany, Kazakhstan may include this income or this property in the tax base, but only for the purpose of determining the tax rate applicable to other income or other property subject to taxation in Kazakhstan. 2. With respect to a resident of the Federal Republic of Germany, taxes are established as follows: a) Income from Kazakhstan, as well as property located in Kazakhstan, which, in accordance with this Agreement, may be taxed in Kazakhstan and are not subject to subparagraph b) of this paragraph, are withdrawn from the German tax base. The Federal Republic of Germany, however, reserves the right to take into account the income or property values seized in this way when setting the tax rate. With respect to dividend income, the preceding provisions of this paragraph apply only when these dividends are paid to a company (with the exception of a partnership) that is a resident of the Federal Republic of Germany, a company that is a resident of Kazakhstan, whose capital belongs to at least 10 percent directly to a German company, and were not deducted when calculating the profits of the company paying the dividends. For the purposes of taxation of property, participation shares are also withdrawn from the tax base, the dividends on which, if they were paid, would be subject to withdrawal from the tax base in accordance with the provisions of the previous part of this subparagraph. b) Subject to the provisions of German tax legislation on the offsetting of foreign taxes in the taxation of German taxes levied on income, Kazakh taxes paid in accordance with the legislation of Kazakhstan and in accordance with this Agreement on the following income are offset: a) dividends not covered by subparagraph a) of this paragraph; bb) interest; cc) royalties; dd) income that, in accordance with paragraph 2 of Article 13 of this Agreement, may be taxed in Kazakhstan; her) income in accordance with paragraph 3 of Article 15 of this Agreement may be taxed in Kazakhstan; ff) remuneration to members of supervisory boards and boards of directors; gg) income of artists and athletes. (c) With respect to income within the meaning of articles 7 and 10 of this Agreement and the property values underlying such income, the provisions of subparagraph (a) of this paragraph shall be replaced by the provisions of subparagraph (b) of this paragraph, unless a resident of the Federal Republic of Germany provides evidence that a permanent establishment in the economic (accounting) year, in in which it made a profit, or a company that is a resident of Kazakhstan in the economic (accounting) year for which it distributed the profit, they received their gross income exclusively or almost exclusively from activities covered by numbers 1-6 of paragraph 1 of paragraph 8 of the Law of the Federal Republic of Germany on External Taxes (deutsches Austerorgesetz), or from equity investments covered by paragraph 2 of paragraph 8 of the said Law; The same provision applies to immovable property intended for the needs of a permanent establishment (paragraph 3 of Article 6 of this Agreement), as well as income from the alienation of this immovable property (paragraph 1 of Article 13 of this Agreement) and movable property representing assets of a permanent establishment (paragraph 2 of Article 13 of this Agreement). (d) Notwithstanding the provisions of subparagraph (a) of this paragraph, double taxation shall be eliminated by means of a tax offset in accordance with subparagraph (b) of this paragraph, (aa) if in the Contracting States income or property relate to different provisions of this Agreement or are attributed to different persons (except in cases pursuant to Article 9 of this Agreement) and this conflict cannot be resolved procedure in accordance with the provisions of paragraph 3 of Article 25 of this Agreement, and if, due to such different attribution or attribution, the relevant income or property values would not be subject to taxation or would be subject to insufficient taxation, or bb) if a Contracting State, after proper consultations and subject to restrictions under its national legislation, notifies the other Contracting State through diplomatic channels of other income to which it intends to apply the provisions of subparagraph (d) This paragraph. The notification takes effect only on the first day of the calendar year following the year in which the notification was transmitted and all legal requirements under the national legislation of the notifying State for the notification to take effect were fulfilled.  

Article 24 Non-discrimination 1. Nationals of a Contracting State shall not be subject in the other Contracting State to taxation other or more burdensome or related obligations than taxation or related obligations to which nationals of that other State are or may be subject in the same circumstances, in particular with respect to residency. This provision also applies, notwithstanding the provisions of article 1, to persons who are not residents of either or both Contracting States. 2. Stateless persons who are residents of a Contracting State shall not be subjected in any of the Contracting States to any taxation or any related obligations other or more burdensome than taxation and related obligations to which national persons of the State concerned are or may be subjected in the same circumstances. 3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of that other State engaged in similar activities. This provision should not be interpreted as obliging a Contracting State to provide residents of the other Contracting State with any personal benefits, exemptions and discounts for tax purposes that are provided only to its own residents. 4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible on the same terms as if they had been paid to a resident 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 purpose 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. 5. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or any obligations related thereto that are other or more burdensome than the taxation and related obligations to which they are or may be subject. other similar enterprises of the first mentioned State. 6. Notwithstanding the provisions of article 2, the provisions of this article shall apply to taxes of any kind and type.  

Article 25 Mutual agreement procedure 1. If a person considers that the actions of one or both of the Contracting States lead or will lead to his taxation not in accordance with the provisions of this Agreement, he may, regardless of the remedies provided for by the domestic law of those States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, or, if his case falls within under paragraph 1 of Article 24, of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Agreement. 2. The competent authority shall endeavour, if it considers the claim 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 must be implemented regardless of any time limits available in the domestic laws of the Contracting States. 3. The competent authorities of the Contracting States shall 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 on the elimination of double taxation in cases not provided for by the Agreement. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach agreement within the meaning of the preceding paragraphs. If, in order to reach an agreement, it would be advisable to organize an oral exchange of views, such an exchange may take place within the framework of a commission consisting of representatives of the competent authorities of the Contracting States.  

Article 26 Exchange of information 1. The competent authorities of the Contracting States shall exchange information necessary for the implementation of the provisions of this Agreement or the national legislation of the Contracting States relating to taxes covered by the Agreement, to the extent that taxation does not conflict with the Agreement. The exchange of information is not limited to article 1. Any information received by a Contracting State is considered confidential in the same way as information obtained under the domestic law of that State and is disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution or consideration of appeals concerning taxes covered by the Agreement.. Such persons or authorities use the information only for such purposes. They may disclose this information during an open court hearing or when making court decisions. 2. In no case should the provisions of paragraph 1 be interpreted as imposing an obligation on Contracting States to: (a) take administrative measures contrary to the laws and administrative practices of that or another Contracting State; (b) provide information that cannot be obtained under the laws or customary administrative practices of that or another Contracting State.; c) provide information that would disclose any trade, business, industrial, commercial or professional secret, or trade process, or information the disclosure of which would be contrary to public policy (public order).

 Article 27 Refund of tax withheld at source 1. If, in one of the Contracting States, taxes on dividends, interest, royalties or other income earned by a person who is a resident of the other Contracting State are levied by withholding at source, the provisions of this Agreement shall not affect the right of the first-mentioned State to withhold withholding tax at the rate prescribed by its domestic law. The tax withheld at the source is refunded upon the taxpayer's request if and to the extent that this tax has been reduced or not levied in accordance with this Agreement. 2. Tax refund applications must be submitted by the end of the fourth year following the calendar year in which the tax on dividends, interest, royalties or other income was withheld. 3. The Contracting State in which the income arises may require the applicant to provide evidence from the competent authority of his residence in the other Contracting State. 4. The competent authorities may, by mutual agreement, implement the provisions of this article and, if necessary, establish other procedures for the implementation of tax discounts or exemptions provided for in this Agreement.

Article 28 Application of the Agreement in special cases 1. This Agreement shall not be interpreted as preventing a Contracting State from applying the provisions of its domestic legal provisions on the prevention of tax evasion or avoidance of taxation. 2. The restrictions referred to in the provisions of paragraph 2 of article 11 and paragraph 2 of article 12 shall not apply if the main purpose of any person connected with the foundation or transfer of a debt claim in respect of which interest is paid, or with the foundation or transfer of rights in respect of which royalties are paid, was to obtain the benefits of articles 11 and 12 by grounds for such transfer without an economic reason inherent in the conduct of entrepreneurial activity. 3. If the above provisions lead to double taxation, the competent authorities will consult with each other in accordance with paragraph 3 of article 25 on how to avoid double taxation.  

Article 29 Members of Diplomatic missions and consular posts 1. Nothing in this Agreement affects the tax privileges of members of diplomatic missions or consular posts granted by the general rules of international law or in accordance with the provisions of special agreements. 2. If, in connection with the tax privileges granted to diplomatic agents or consular staff in accordance with the general rules of international law or in accordance with the provisions of special international agreements, income or property is not subject to taxation in the receiving State, the sending State has the right to tax such income or property. 3. Notwithstanding the provisions of article 4, an individual who is a member of a diplomatic mission, consular post or permanent mission of a Contracting State located in the other Contracting State or in a third State shall, for the purposes of this Agreement, be deemed to be a resident of the sending State if: (a) in accordance with international law, he is not subject to taxation in the Receiving State in respect of income received from sources located outside this State, and b) it is subject in the accrediting State to the same obligations with respect to taxes on its total income or on property as residents of that State.

 Article 30 Additional documents The attached Protocol is an integral part of this Agreement.  

Article 31 Entry into force 1. This Agreement is subject to ratification, and the instruments of ratification will be exchanged as soon as possible. 2. This Agreement shall enter into force on the date of the exchange of instruments of ratification and shall apply in both Contracting States: (a) in the case of taxes withheld at source in respect of amounts paid on or after January 1, 1996; (b) in the case of other taxes, in respect of taxes levied for tax periods, beginning on or after January 1, 1996.

Article 32  Article 32 Termination of 1. This Agreement remains in force indefinitely, but each Contracting State may, by the thirtieth of June in any calendar year that begins after the end of the five-year period from the date of entry into force of the Agreement, transmit to the other Contracting State through diplomatic channels a written notice of termination, in which case this Agreement will terminate: a) in the case of taxes withheld at source, in respect of amounts payable onhis Agreement remains in force indefinitely, but each Contracting State may, by the thirtieth of June in any calendar year that begins after the end of the five-year period from the date of entry into force of the Agreement, transmit to the other Contracting State through diplomatic channels a written notice of termination, in which case this Agreement will terminate: a) in the case of taxes withheld at source, in respect of amounts payable oan texts, the English text will be decisive.

Protocol to the Agreement between the Republic of Kazakhstan and Federal Republic of Germany for the Avoidance of Double Taxation with respect to Taxes on income and property  

The Republic of Kazakhstan and the Federal Republic of Germany agreed upon the signing in Bonn on the twenty-sixth of November 1997 of the Agreement between the two States on the Avoidance of Double Taxation with respect to Taxes on Income and Property of the following provisions, which form an integral part of the aforementioned Agreement:

1. With regard to article 7: (a) If an enterprise of a Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment located there, the profits of that permanent establishment shall be determined not on the basis of the total amount received by the enterprise, but on the basis of remuneration that relates to the actual activities of the permanent establishment in respect of such sales or business activities. (b) In the case of contracts, in particular with respect to the exploration, supply, installation or assembly of industrial, commercial or scientific equipment, or premises or public facilities, if the enterprise has a permanent establishment in the other Contracting State, the profits of such permanent establishment shall not be determined on the basis of the total value of the contract, but only on the basis of that part of the contract. which is actually carried out by a permanent establishment in the State where it is located. Profits of an enterprise of a Contracting State derived from the supply of goods to that permanent establishment, or profits related to that part of the contract which is carried out in the Contracting State in which the head office of the enterprise is located, are taxable only in that State. (c) Payments received as compensation for the provision of technical services, including research or surveys of a scientific, geological or technical nature, or engineering contracts, including related drawings, or for the provision of consulting or monitoring services, shall be considered payments to which the provisions of Article 7 or Article 14 of this Agreement apply.

2. With regard to article 12: Notwithstanding the provisions of paragraph 2 of Article 12, the beneficial owner of royalties for the use or for the right to use industrial, commercial or scientific equipment referred to in paragraph 3 of Article 12 may choose to be taxed as if the right or property in respect of which such royalties are paid is actually related to a permanent an institution or permanent base in that State. In such a case, the provisions of article 7 or article 14, as appropriate, shall apply to the determination of income and deductions (including amortization) relating to such right or property.  

3. With regard to Article 26: If, on the basis of this Agreement, information concerning natural persons is transmitted in accordance with national legislation, the following additional provisions shall apply, taking into account the legal norms of each Contracting State: (a) The receiving State may use the information only for the specified purposes and only in accordance with the conditions provided by the transmitting State. their State. (b) The receiving State shall, upon request, inform the transmitting State of the use of the transmitted information and the results obtained therefrom. (c) Information concerning individuals may be transmitted only to the competent authorities. Their subsequent transfer to other institutions may take place only with the prior consent of the competent authority of the transferring State. d) The transmitting State is obliged to monitor the reliability of the transmitted information, as well as its necessity and adequacy for the purposes pursued by the transmission of information. At the same time, the prohibitions on the transfer of information in force under national legislation should be taken into account. If it turns out that false information or information that could not be transmitted has been transmitted, then the State that accepted the information must be notified immediately. This State is obliged to correct or destroy them. f) At the request of the person concerned, he/she is given a certificate on the transfer of information concerning him/her, as well as on the intended purposes of their use. The issuance of a certificate is not mandatory if the examination of the case shows that the State interest in refusing to issue a certificate prevails over the interest of the said person in obtaining it. Otherwise, the rights of the person concerned to obtain a certificate of the information available about him are regulated by the national legislation of the Contracting State in whose territory the certificate is requested. f) If someone is unlawfully harmed as a result of the transfer of information as part of the exchange of information under this Agreement, the receiving State is responsible to him in this regard in accordance with its national legislation. It cannot, in relation to the person who suffered the damage, rely in justification on the fact that the damage was caused by the transmitting State. (g) If the national legislation of the transmitting State provides for special destruction rules for transferred information concerning natural persons, the transmitting State shall indicate this to the receiving State. Regardless of this legislation, transferred information concerning individuals is subject to destruction if it is no longer required for the purposes for which it was transferred. (h) Contracting States are required to document the transfer and receipt of information concerning natural persons. i) The transmitting State and the receiving State are obliged to take effective measures to protect information about individuals from unauthorized access to them, their unlawful modification and unlawful disclosure.

4. With regard to article 27: Each Contracting State will provide procedures so that payments of dividends, interest and royalties, which according to paragraph 2 of Article 10, paragraphs 2 and 3 of Article 11, paragraph 2 of Article 12 of the Agreement in the Source State are not subject to taxation or are subject to reduced taxation, can be made in accordance with the relevant article, without withholding tax or withholding only the stipulated tax.

5. With regard to Article 28: This Agreement shall not be interpreted as preventing the Federal Republic of Germany from levying taxes on amounts that are included in the income of a resident of the Federal Republic of Germany in accordance with the Fourth Part of the Law on External Taxes.  

6. With regard to Article 31: If the instruments of ratification are not exchanged before December 31, 1998, the Agreement will begin to apply in both Contracting States.: (a) In the case of taxes withheld at source in respect of amounts paid on or after January 1 of the calendar year in which the Agreement entered into force; (b) in the case of other taxes in respect of taxes levied for tax periods beginning on January 1 of the calendar year in which the Agreement entered into force.

This Law establishes the rules for registering the pledge of movable property in order to realize and protect the rights of individuals and legal entities who have legitimate rights to this property.

The Law of the Republic of Kazakhstan dated June 30, 1998 No. 254.

President

Republic of Kazakhstan

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