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

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

Law of the Republic of Kazakhstan dated July 9, 1998 No. 274

To ratify the Convention between the Government of the Republic of Kazakhstan and the Government of the Republic of Korea on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, concluded in Seoul on October 18, 1997. President of the Republic of Kazakhstan The Convention between the Government of the Republic of Kazakhstan and Agreement between the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

The Government of the Republic of Kazakhstan and the Government of the Republic of Korea, wishing to conclude a Convention for the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to taxes on income and Income from Property Appreciation, have agreed as follows:

Article 1 Persons to whom the Convention applies

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

Article 2 Taxes covered by the Convention 1. The existing taxes to which the Convention applies are the following, namely: a) in the Republic of Kazakhstan: (i) the corporate and individual income tax (hereinafter referred to as the "Kazakhstan Tax"). b) in Korea: (i) Income tax; (ii) corporate tax; (iii) per capita tax; (iv) special rural development tax (hereinafter referred to as the "Korean Tax").

4. The Convention shall also apply to all identical or similar taxes that are imposed in addition to, or in place of, the existing taxes after the date of signature of this Convention. At the end of each year, the competent authorities of the Contracting States will notify each other of changes made to their tax legislation.

Article 3 General definitions 1. For the purposes of this Convention, unless the context otherwise requires: (a) The term "Kazakhstan" means the Republic of Kazakhstan and, when used geographically, the term "Kazakhstan" includes territorial waters, as well as the exclusive economic zone and continental shelf, in which Kazakhstan may, for certain purposes, exercise sovereign rights and jurisdiction in accordance with international law. the law and in which the laws governing taxes of Kazakhstan are applied; (b) The term "Korea" means the Republic of Korea and, when used in a geographical sense, includes any zone adjacent to the territorial sea of the Republic of Korea, which, in accordance with international law, has been or may be defined in accordance with the legislation of the Republic of Korea. Korea as a zone where the sovereign rights of the Republic of Korea may be exercised with respect to the seabed and subsoil and natural resources; c) the terms "Contracting State" and "other Contracting State" mean Kazakhstan or Korea, depending on the context; (d) The term "tax" means the Kazakh Tax or the Korean tax, depending on the context; (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 other enterprise 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 operated by a resident of one Contracting State and an enterprise operated by a resident of the other Contracting State; (h) The term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal entity, partnership or any other association that has obtained its status on the basis of applicable law (i) The term "international carriage" means any carriage by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated exclusively between locations in the other Contracting State. j) The term "competent authority" means: (i) in Kazakhstan, the Ministry of Finance and its authorized representative, (ii) in Korea, the Ministry of Finance and Economy or its authorized representative. 2. As regards the application of this Convention by a Contracting State, any term defined in the Convention shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that State in respect of taxes to which the Convention applies.

Article 4 Resident 1. For the purposes of this Convention, the term "resident of a Contracting State" means a person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature. This term, however, does not include a person who is subject to taxation in that State, only with respect to income from sources in that State.Article 4 Resident 1. For the purposes of this Convention, the term "resident of a Contracting State" means a person who, under the laws of that State, is liable to tax there on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature. This term, however, does not include a person who is subject to taxation in that State, only with respect to income from sources in that State. 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, his status shall be determined as follows: a) He is considered to be a resident of the State in which he has a permanent home at his disposal. If he has a permanent home available in both States, he is considered a resident of the State in which he has closer and more economic relations (center of vital interests); (b) If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; (c) If he has an habitual abode in both States, or if he He usually does not live in any of them, he is considered a resident of the State of which he is a citizen.; (d) If he is a national of both States or if he is not aIf he is a national of both States or if he is not a national of either of them, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 3. If, by reason of the provisions of paragraph 1 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 of the State in which his head office or head office is located. If there are differences of opinion

The competent authorities of the Contracting State shall resolve this issue by mutual agreement.

Article 5 Permanent establishment 1. For the purposes of this Convention, the term "permanent establishment" means a permanent place of business through which the business activities of an enterprise are carried out in whole or in part. 2. The term "permanent establishment" includes the following, namely: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; and (f) a mine,

a) a construction site or a construction, installation or assembly facility, or services related to the supervision and consultation of the performance of these works, if only such a site or facility has existed for more than 12 months, or such services have been provided for more than 12 months; and (b) an installation or structure operated for the exploration of natural resources, or services related to monitoring or consulting, or a drilling rig or vessel operated for natural resources, if such use lasts for more than 12 months or such are provided for more than 12 months. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" is not considered to include: (a) The use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or 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, if the person is other than an agent with an independent status to whom paragraph 6 applies - acts on behalf of the enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activity that that person undertakes for the enterprise, unless the activity of that person is limited by the provisions specified in paragraph 4, which, if it is carried out through a permanent place of business, it does not transform the 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 only if it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that these 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), does not in itself transform one of these companies into a permanent establishment of another company.

Article 6 Income from immovable property 1. Income earned by a resident of a Contracting State from immovable property (including income from agriculture and 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 should, in any case, include property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property, and rights to variable or fixed payments as compensation for development or the right to mining of minerals, springs and other natural resources; ships and aircraft are not considered as immovable property. 3. The provisions of paragraph 1 of this Article shall also 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 of this Article shall also apply to income from immovable property of enterprises and to income from immovable property used for the provision of independent services.

Article 7 Profit from entrepreneurial activity 1. The profits of an enterprise of a Contracting State shall be taxable only in that State, unless such 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 this permanent establishment. 2. Subject to the provisions of paragraph 3 of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, in each Contracting State, that permanent establishment shall include the profits that it could have received if it had been an independent and separate enterprise engaged in the same or carried out similar activities under the same or similar conditions and operated in complete independence from such an enterprise, of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, expenses incurred for the purposes of such a permanent establishment, including management and general administrative expenses, may be deducted, regardless of whether these expenses were incurred in the State where the permanent establishment is located or elsewhere. 4. No profit is credited to the permanent establishment based solely on the purchase by that permanent establishment. the establishment of goods or products for the company. 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 compelling and sufficient reasons to change this procedure. 6. If profits include types of income that are specifically mentioned in other Articles of this Convention, the provisions of these Articles shall not be affected by the provisions of this Article.

Article 8 Sea and air transport 1. Profits of an enterprise of a Contracting State derived from the operation of ships or aircraft in international traffic are taxable only in that State. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international vehicle operating organization.

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

Article 10 Dividends 1. Dividends paid by a resident company A resident of a Contracting State who is 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, according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax levied shall not exceed: a) 5% of the gross amount of dividends if the actual owner is a company (as opposed to a partnership) that owns at least 10% of the capital of the company paying dividends; b) 15% 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. The term "dividends", when used in this Article, means income from shares, other rights that are not debt claims, income from profit-sharing, as well as income from other corporate rights, which is subject to the same tax regulation as income from shares in accordance with the laws of the State in which the company is a resident, distributing dividends. 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 through permanent establishments located there is a resident, or provides independent personal services in that other State from a permanent base located there, and the holding company, in respect of which the dividends are paid to, really refers to such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 5. If a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State shall not impose any tax on dividends paid by that company, except in the case where such dividends are paid to a resident of that other State or if the holding company in respect of which the dividends are paid actually relates to to a permanent establishment or permanent base located in that other State, neither shall the company's undistributed profits be taxed on undistributed profits, even if the dividends are paid or the undistributed profits consist wholly or partly of profits arising in that other State.

Article 11 Interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed if In the Contracting State in which they arise and in accordance with the laws of that State, but if the recipient is the beneficial owner of the interest, the tax levied shall not exceed 10% of the gross amount of the interest. 3. Notwithstanding the provisions of paragraph 2, the interest arising in one In a Contracting State, are exempt from taxation in that State. If they are received and actually owned by the Government of the other Contracting State, or its local authority, or any other institution of that Government or local authority, or if they are paid in respect of a loan granted and guaranteed by any institution of that Government and local authority. 4. The term "interest", as used in this Article, means income from debt claims of any kind, regardless of mortgage collateral and regardless of ownership of the right to participate in debtors' profits, and in particular, income from government securities and income from bonds or debentures, including premiums and winnings on these securities, bonds or debentures. Penalties for late payments are not considered as interest for the purposes of this Article. 5. The provisions of paragraphs 1 and 2 shall not apply if, in fact, the interest holder, who is a resident of one Contracting State, carries on business in the other Contracting State in which interest is incurred through a permanent establishment located there, or provides independent personal services in that other State from a permanent base located there, a debt claim on the basis of which interest is paid, really refers to such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14.6, as the case may be, shall apply. Interest shall be deemed to arise in a Contracting State if the payer is that State itself, a political and administrative subdivision, a local authority or a resident of that State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such expenses for the payment of such interest are borne by such permanent establishment or permanent base, then Such interest is considered to arise in the State in which the permanent establishment or permanent base is located. 7. If, due to a special relationship between the payer and the actual owner of the interest, or between both of them and any other person, the amount of interest relating to the debt claim on the basis of which it is paid exceeds the amount that would have been agreed between the payer and the actual owner of the interest in the absence of such a relationship, the provisions of this Article shall apply only to the last mentioned amount. In this case, the excess part of the payment is subject to taxation in accordance with the legislation of each state. Of a Contracting State, with due regard to the other provisions of this Convention. Conventions.

Article 12 Royalty 1. Royalties arising in one Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10% 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 for granting the right to use any copyright in works of literature, art or science, including cinematographic films, or films or tapes for radio - or television broadcasting, any patent, trademark, design or model, plan, secret formula or process, or for the use or grant of the right to use industrial, commercial or scientific equipment, or for information relating to industrial, commercial or scientific experience. 4. The provisions of paragraph 1 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 in that other State from a permanent base located there, and the right or property in respect of which the royalties are paid are indeed connected to these permanent establishment or permanent base. In this case, the following provisions apply: Article 7 or Article 14, as the case may be. 5. Royalties shall be deemed to arise in a Contracting State if the payer is that State itself, its political and administrative subdivision, 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 a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen, and such royalties are deemed to have arisen in the State in which the permanent establishment or permanent base is located. 6. If, as a result of a special relationship between the payer and the actual owner of the royalties, 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 shall apply only to the last mentioned amount. In this case, the excess part of the payment is still subject to taxation in accordance with the legislation of each state. Of a Contracting State, with due regard to the other provisions of this Convention. Conventions.

Article 13 Income from the increase in the value of property 1. Income earned by a resident of a Contracting State from the alienation of immovable property as defined in Article 6 and located in the other Contracting State may be taxed in that State. 2. Income earned by a resident of a Contracting State from the alienation of shares, other than shares traded on a substantial and regular basis on an officially recognized stock exchange, of the fixed capital of a company whose property consists directly or indirectly mainly (i.e. equal to or more than 75%) of immovable property located in the other Contracting State, may be taxed in this The state. 3. Income from the alienation of movable property that forms part of the commercial property of a permanent establishment that the enterprise Of a Contracting State has in the other Contracting State, or from movable property belonging to a permanent establishment held by a resident of one 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 itself (alone or in combination with the entire enterprise) or such permanent establishment itself, may be taxed in that other State. 4. Income from the alienation of ships or aircraft operated in international transportation or movable property related to the operation of such aircraft, sea or river vessels, shall be taxed only if The Contracting State in which the enterprise is resident. 5. Income from the alienation of any other property other than that mentioned in the preceding paragraphs 1, 2, 3 and 4, is taxable only if 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 regularly accessible permanent base in the other Contracting State for the purpose of carrying out his activities. If he has such a permanent base, income may be taxed in another State, but only on income related 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 activities of doctors, lawyers, engineers, architects, dentists and accountants.

Article 15 Dependent personal services 1. Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration received by a resident of one In respect of an employment of a Contracting State, are 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 received in connection with it may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment performed in the other Contracting State shall be taxable only in the first-mentioned State if: a) the recipient stays in that other State for a period or periods not exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of another State, and (c) the remuneration is not paid by a permanent establishment or fixed base that the employer has in another State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed only in that State. The state.

Article 16 Directors' fees 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 or a similar body 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. The state. 2. If income in relation to personal activities carried out by an art worker or athlete in this capacity is accrued not to the art worker or athlete himself, but to another person, this income may, notwithstanding the provisions of Articles 7, 14 and 15, be subject to the tax in which the art worker or athlete's activities are carried out. 3. Notwithstanding the provisions of paragraphs 1 and 2, income earned by an artist or athlete who is a resident of a Contracting State from his activities performed in the other Contracting State under a special cultural exchange program agreed upon between the Governments of both Contracting States may be taxed in that other State.

Article 18 Pensions 1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in connection with past employment and any annuity paid to such a resident shall be taxable only in that State. 2. The term "annuity" means a fixed amount that is periodically paid to an individual at a fixed time throughout his life or a certain or fixed period of time, in accordance with the accepted obligation to make such payments in return for adequate and full compensation in money or monetary terms.

Article 19 Public service 1. (a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof, or from funds created by them, to an individual in respect of services rendered to that State or its political subdivision or local authority, shall be taxable only in the following cases: This The state. (b) However, such remuneration shall be taxable only in the other Contracting State if the service is performed in that State and the individual is a resident of that State who: (i) is a national of that State, or (ii) did not become a resident of that State solely for the purpose of performing the service. 2. (a) Any pension paid by a Contracting State or a political subdivision or local authority, or from funds created by them, to an individual in respect of services rendered to that State or its political subdivision or local 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 of that State or a national of that State. 3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State, or a political and administrative subdivision thereof, or a local authority. 4. The provisions of paragraphs 1 and 2 shall also apply to remuneration or pensions paid by organizations that perform governmental functions as defined and agreed in the protocol.

Article 20 Students Payments received by a student or trainee 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 obtaining education or qualifications and intended for his residence and education or qualifications, shall not be taxed in that State. A State, if the sources of these payments are located outside that State.

Article 21 Professors and lecturers An individual who is or has been a resident Of a Contracting State immediately prior to arrival in another A Contracting State which, at the invitation of any university, college, school or other similar educational institution officially recognized by the Government of that other State as non-profit, has been present in that other State for no more than two years from the date of its first arrival in that other State., solely for the purpose of teaching or conducting scientific research, or both, in such an educational institution, is exempt from taxation in that other State in respect of remuneration for such teaching and research activities. This Article does not apply to income from research if such research is not conducted in the public interest, but mainly for the personal benefit of a particular person or persons.

Article 22 Other income 1. Types of income of a resident of a Contracting State, regardless of where they arise, which are not considered in the preceding articles of this Convention, shall be taxable only in that State. 2. The provisions of paragraph 1 of this Article shall not apply to income other than income from immovable property defined in paragraph 2 of Article 6 if the recipient of such income is a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located there and provides independent individual services in that other State through a permanent establishment located there. permanent base, and the right or property in connection with which the income is paid, indeed, they are associated with such a permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 23 Elimination of double taxation 1. In the case of Kazakhstan, double taxation is eliminated as follows: a) If a resident of Kazakhstan earns income in accordance with the provisions of this Convention, Kazakhstan shall allow a deduction from the income tax of that resident of an amount equal to the income tax paid in Korea. Such a deduction amount should not exceed the tax that would be charged on such income at the rates applicable in Kazakhstan. (b) If a resident of Kazakhstan receives income that, in accordance with the provisions of this Convention, is taxable only in Korea, Kazakhstan may include that income in the tax base, but only for the purpose of determining the tax rate on such other income subject to taxation in Kazakhstan. 2. In the case of a Korean resident, double taxation is eliminated as follows: Subject to the provisions of Korean law, which considers the discount as a set-off against Korean tax from tax paid in any other country except Korea (which should not affect its general principle), the Kazakh tax (excluding, in the case of dividends, the tax paid on profits from which dividends are paid), according to the legislation of Kazakhstan and in accordance with the present By convention, independently, directly or by deduction, In the case of income from sources in Kazakhstan, it is allowed as a set-off against the Korean tax paid in respect of this income. However, the offset for tax from sources in Kazakhstan should not exceed that part of the Korean tax paid on the total income subject to Korean tax.

Article 24 Non-discrimination 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to taxation or related obligations other or more burdensome than taxation and related obligations to which nationals of that other State are or may be subjected in the same circumstances, in particular with regard to residence. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of one or both of the Contracting States. 2. Taxation of a permanent establishment, which is an enterprise Of a Contracting State located in the other Contracting State, it should not be less favorable 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 another State with Of a Contracting State, any personal benefits, discounts and tax deductions based on their civil status or family obligations that it grants to its own residents. 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12 apply, interest, royalties and other payments made by an enterprise of one Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions, as if they were paid 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, in the first-mentioned State, be subject to any taxation or any obligations related thereto that are other or more burdensome than taxation and related obligations to which they are subject. other similar enterprises of the first mentioned State. 7. 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 Convention, he may, regardless of the remedies provided for by the national legislation of those States, submit his case for consideration to the competent authorities of the Contracting State of which he is a resident, and if his case falls within the scope of paragraph 1 of Article 24 of the State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of the Convention. 2. The competent authority will seek, if it considers the claim to be justified and if it is unable to come to a satisfactory solution on its own, to resolve the issue by mutual agreement with the competent authority of another State. Of a Contracting State, for the purpose of avoiding taxation not in accordance with the Convention. 3. The competent authorities of the Contracting States will seek 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 Convention. 4. The competent authorities of the Contracting States may enter into direct contact with each other in order to reach an agreement on 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 in 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 to comply with the provisions of this Convention or the domestic laws of the Contracting States concerning taxes to which the Convention applies, insofar as taxation does not conflict with the Convention. The exchange of information is not limited to Article 1. Any information received by a Contracting State is considered confidential, in the same way as information received 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 relating to taxes subject to The Convention. 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 the Contracting States: a) to take administrative measures contrary to the legislation and administrative practice, this or other (b) To provide information that cannot be obtained under the laws or in the ordinary course of administrative practice of that or the other 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 practice).

Article 27 Members of diplomatic missions and consular posts Nothing in this Convention affects the fiscal privileges of diplomatic missions and consular posts granted by general rules of international law or on the basis of special agreements.

Article 28 Entry into force

1. This Convention is subject to ratification and the exchange of instruments of ratification, which will take place in Almaty as soon as possible. Real The Convention enters into force on the thirtieth day after the exchange of instruments of ratification. 2. This Convention applies: (a) In respect of taxes withheld at source on or after the first of January of the calendar year following the year of entry into force of this Convention; Entry into force of the Convention; and (b) in respect of other taxes, for the taxable year beginning on or after the first of January of the calendar year following the year of entry into force of this Convention.

Article 29 Termination

This Convention shall remain in force until one of the Contracting States terminates it, on or after the thirtieth of June in any calendar year following the expiration of 5 years following the year in which the instruments of ratification were exchanged, notifying the other Contracting State in writing through diplomatic channels of the termination of this Convention. In this case, the Convention is terminated.: (a) In respect of taxes withheld at source on or after the first of January of the calendar year following the one in which the notice of termination is submitted; and (b) in respect of other taxes, for the taxable year beginning on or after the first of January of the calendar year following the one in which the notice of termination is submitted. In witness whereof, the undersigned representatives, duly authorized thereto by their respective Governments, have signed this Agreement. Done in duplicate in Seoul on October 18, 1997 in the Kazakh, Korean, and English languages, all texts are equally authentic. In case of discrepancies in the texts, the English text is decisive.

Protocol

At the signing of this Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the "Agreement"), the undersigned have agreed on the following provisions, which form an integral part of this Agreement:

1. With respect to Article 3, paragraph 1 (e), the term "partnership" means

An association of two or more persons to carry out commercial and entrepreneurial activities, with each investing money, property, labor, or qualifications, and each is expected to share profits and losses. In this present Agreement, the partnership, being not a legal entity, is not considered as a taxable entity. Taxation on the income or losses of the partnership passes through the partners.

2. With respect to Article 11, paragraph 3, the term "any agency" means: a) in Kazakhstan: (i) The National Bank of Kazakhstan; (ii) the People's Bank of Kazakhstan; (iii) the Export-Import Bank of Kazakhstan; (b) in Korea: (i) Bank of Korea; (ii) Export-Import Bank of Korea; (iii) Korea Development Bank.

3. If a Contracting State agrees in a contract with another country to a lower tax rate than the 10% specified in paragraph (2) of Article 11 or paragraph (2) of Article 12 in any Agreement between that State A Contracting State and a third State that is a member of the Organization for Economic Cooperation and Development, and this Agreement shall enter into force after the date of entry into force of this Agreement, when the competent authorities of one Contracting State shall notify directly the competent authorities of the other Of the Contracting State on the terms, concerning the paragraph of this Agreements with a third State after the entry into force of this Agreement The Agreement and that such a low 10% tax rate will be applied in

paragraph (2) of Article 11 or paragraph (2) of Article 12, as the case may be, of this Agreement, which shall enter into force on the date of entry into force of this Agreement.

4. With respect to Article 19, paragraph 4, the term "organizations performing a governmental function" means: a) in Kazakhstan: (i) The National Bank of Kazakhstan; (ii) the People's Bank of Kazakhstan; (iii) the Export-Import Bank of Kazakhstan; (b) in Korea: (i) The Bank of Korea; (ii) the Export-Import Bank of Korea; (iii) the Korean Development Bank; (iv) the Korean Commercial and Investment Foundation Agency.

In witness whereof, the undersigned representatives, duly authorized thereto by their respective Governments, have signed this Agreement. Done in duplicate in Seoul on October 18, 1997, in the Kazakh, Korean, and English languages, all texts are equally authentic. If there is a discrepancy in the texts, the English text will be decisive.

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President

Republic of Kazakhstan

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