On the ratification of the Convention between the Republic of Kazakhstan and the Republic of Austria on taxes on Income and Capital

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The Law of the Republic of Kazakhstan dated December 30, 2005 No. 110

To ratify the Convention between the Republic of Kazakhstan and the Republic of Austria on Taxes on Income and Capital, signed in Vienna on September 10, 2004.

President of the Republic of Kazakhstan

CONVENTION BETWEEN THE REPUBLIC OF KAZAKHSTAN AND THE REPUBLIC OF AUSTRIA ON TAXES ON INCOME AND CAPITAL <*>

(Entered into force on March 1, 2006 - Bulletin of International Treaties of the Republic of Kazakhstan, 2006, No. 3, art. 24)

The Republic of Kazakhstan and the Republic of Austria, desiring to conclude an Agreement on taxes on income and capital,

We have agreed on the following:

Article 1 PERSONS TO WHOM THE CONVENTION APPLIES

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

Article 2 TAXES COVERED BY THE CONVENTION

(1) This Convention applies to taxes on income and on capital imposed on behalf of a Contracting State or of its political and administrative subdivisions or local authorities, regardless of the method of their collection. (2) Taxes on income and capital are all types of taxes levied on the total amount of income, total amount of capital or individual elements of income or capital, including taxes on income from the alienation of movable or immovable property, taxes levied on the total amount of salaries or wages paid by enterprises, as well as taxes on value gains capital. (3) The existing taxes to which the Convention applies are, in particular: (a) in Kazakhstan: (i) corporate income tax; (ii) individual income tax; (iii) property tax; b) in Austria: (i) income tax (die Einkommensteuer); (ii) corporate tax (die Korperschaftsteuer); (iii) land tax (die Grundsteuer); (iv) agricultural and forestry enterprise tax (die Abgabe von land- und forstwirtschaftlichen Betrieben); (v) tax on the value of a vacant (unoccupied, undeveloped) plot of land (die Abgabe von Bodenwert bei unbebauten Grundstucken). (4) The Convention also applies to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to or in place of the existing taxes. The competent authorities of the Contracting States will notify each other of any significant changes in their respective tax legislation.

Article 3 GENERAL DEFINITIONS

(1) For the purposes of this Convention, unless the context otherwise requires: (a) the terms: (i) "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, carry out sovereign rights and jurisdiction in accordance with international law and in which the laws governing taxes of Kazakhstan apply; (ii) "Austria" means the Republic of Austria; (b) The term "person" includes an individual, a company and any other association of persons; (c) The term "company" means any legal entity or any independent legal entity that is treated as a legal entity for tax purposes; (d) The terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean, respectively, an enterprise, operated by a resident of a Contracting State, and an enterprise operated by a resident of the other Contracting State; (e) 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; (f) The term "competent authority" means: (i) in Kazakhstan: the Ministry of Finance or its authorized representative; ((ii) In Austria: The Federal Minister of Finance and his authorized representative; (g) The term "national person" means: (i) any natural person having the nationality of a Contracting State; (ii) any legal person, partnership or association which has obtained such status on the basis of the applicable legislation of a Contracting State. (2) As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the laws of that Contracting State for the purposes of taxation to which the Convention applies, and any meaning under the applicable tax laws of the Contracting State. prevails over the meaning given to the term under other laws of that Contracting State.

Article 4 RESIDENT

(1) For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that Contracting State, is liable to tax therein on the basis of his domicile, residence, place of management, place of establishment or any other criterion of a similar nature, and also includes that Contracting State and any of its political and administrative subdivisions or the local authority. It also includes any pension fund or similar institution and any charitable organization established under the laws of a Contracting State, the income of which is exempt from tax in that Contracting State. However, this term does not include any person who is liable to tax in that Contracting State solely in respect of income from sources in that Contracting State or in respect of capital held therein. (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 shall be deemed to be a resident only of that Contracting State in which he has permanent housing at his disposal; if he has permanent housing at his disposal in both Contracting States, he shall be deemed to be a resident of the Contracting State in which he has the closest personal and economic ties (center of vital interests); (b) If the Contracting State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode; (c) If he has an habitual abode in both Contracting States. or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national.; (d) If he is not a national of either Contracting State, the competent authorities of the Contracting States shall settle the matter by mutual agreement. (3) Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident only of the Contracting State in which his place of effective management is located.

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 in particular: (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) and a mine, an oil or gas well, a 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, or services related to the supervision of these works, if such a site or facility has existed for more than 12 months or such services have been provided for more than 12 months.; (b) and an installation or structure used for the exploration of natural resources, or services related to the supervision of these works, or a drilling rig or vessel used for the exploration of natural resources, if such use lasts for more than 12 months or such services are provided for more than 12 months. (4) Notwithstanding the preceding provisions of this section, the term "permanent establishment" is not considered to include: (a) the use of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise; (b) the maintenance of stocks of goods or merchandise belonging to the enterprise solely for the purpose of storing, displaying or delivering; (c) the maintenance of stocks of goods or products belonging to the enterprise solely for the purposes of processing by another enterprise; (d) The maintenance of a permanent place of business solely for the purpose of purchasing goods or merchandise or collecting information for the enterprise; (e) The maintenance of a permanent place of business solely for the purpose of carrying out any other preparatory or auxiliary activities for the enterprise; (f) The maintenance of a permanent place of business solely for the purpose of carrying out any combination of the activities listed in subparagraphs (a) to (e) inclusive, provided that the combined activities of the permanent place of business resulting from such combination are of a preparatory or auxiliary nature. (5) Notwithstanding the provisions of paragraphs 1 and 2, if a person other than an agent with an independent status to whom paragraph 6 applies acts on behalf of an enterprise and has, and habitually exercises in a Contracting State, the authority to conclude contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in accordance with with respect to any activity that this person undertakes for the enterprise, unless the activity of such person is limited to the activities referred to in paragraph 4, which, if it is carried out through a permanent place of business, it does not transform this permanent place of business into a permanent establishment in accordance with the provisions of this paragraph. (6) An enterprise shall not be considered as having a permanent establishment in a Contracting State solely because it carries on business in that Contracting State through a broker, commission agent or any other agent of an independent status, provided that such persons act within the framework of their normal activities. (7) The fact that a company that is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State or that carries on business in that other Contracting State (either through a permanent establishment or otherwise) does not in itself transform one of these companies into a permanent establishment of the other.

Article 6 INCOME FROM IMMOVABLE PROPERTY

(1) Income earned by a resident of a Contracting State from immovable property (including income from agriculture or forestry) located in the other Contracting State may be taxed in that other Contracting State. (2) The term "immovable property" has the meaning that it has under the laws of the Contracting State in which the property in question is located. The term in any case includes property ancillary to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of common law in relation to land ownership apply, the usufruct of immovable property and rights to variable or fixed payments as compensation for the development or right to develop mineral resources, sources and other natural resources. Ships and aircraft are not considered as immovable property. (3) The provisions of paragraph 1 shall apply to income derived from the direct use, rental or use of immovable property in any other form. (4) The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the provision of independent personal services.

Article 7 PROFIT FROM ENTREPRENEURIAL ACTIVITY

(1) The profits of an enterprise of a Contracting State shall be taxable only in that Contracting State, unless the enterprise carries on business in the other Contracting State through a permanent establishment located there. If an enterprise carries on business as mentioned above, the profits of the enterprise may be taxed in the other Contracting State, but only in that part which relates to such a permanent establishment. (2) Subject to the provisions of paragraph 3, if an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment located there, then in each Contracting State that permanent establishment includes the profits that it could receive if it were a separate and separate enterprise engaged in the same or similar activities, under the same or similar conditions, and operated in complete independence from the enterprise of which it is a permanent establishment. (3) In determining the profits of a permanent establishment, expenses incurred for the purposes of the permanent establishment, including administrative and general administrative expenses, may be deducted, regardless of whether they are incurred in the Contracting State in which the permanent establishment is located or elsewhere. (4) Insofar as it is customary for a Contracting State to determine the profits attributable to a permanent establishment on the basis of the proportional distribution of the total profits of the enterprise to its various subdivisions, nothing in paragraph 2 shall prevent that Contracting State from determining taxable profits by such distribution as is customary. However, the chosen method of proportional distribution should produce results consistent with the principles contained in this article. (5) No profit is credited to a permanent establishment based solely on the purchase by that permanent establishment of goods or merchandise for the enterprise. (6) For the purposes of the preceding paragraphs, the profits attributable 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. (7) 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. (8) The term "profit", as used in this article, includes profits earned by any partner from participating in a partnership, and in Austria from participating in a "dormant" partnership (Stille Gesellschaft) established in accordance with Austrian law.

Article 8 SEA AND AIR TRANSPORT

(1) Profits earned by a resident of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State. (2) The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint venture or international vehicle operating organization.

Article 9 ASSOCIATED ENTERPRISES

(1) If: (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; (b) Or 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 any case conditions are created or established between the two enterprises in their commercial or financial relations that differ from those that would take place between two independent enterprises, any profit which 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, accordingly, taxed. (2) If a Contracting State includes in the profits of an enterprise of that Contracting State and, accordingly, taxes the profits on which an enterprise of the other Contracting State is taxed in that other Contracting State, and the profits thus included are profits that would have accrued to an enterprise of the first-mentioned Contracting State if the relationship between the two enterprises would be those that exist between independent enterprises, then that other Contracting State will make an appropriate adjustment to the amount of tax levied on such profits. In determining such an adjustment, the other provisions of this Convention should be taken into account and the competent authorities of the Contracting States should consult with each other, if necessary.

Article 10 DIVIDENDS

(1) Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other 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 Contracting State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: (a) 5 per cent of the total amount of the dividends, if the beneficial owner The owner is a company that directly owns at least 10 percent of the capital of the company paying dividends.; b) 15 percent of the total amount of dividends in all other cases. The provisions of this paragraph shall not affect the taxation of the company in respect of profits from which dividends are paid. (3) The term "dividends", as used in this Article, means income from shares, shares of "jouissance" or rights to use "jouissance", shares of mining enterprises, shares of founders or other rights that are not debt claims, but give the right to income from profit-sharing, as well as income from other corporate rights that are subject to the same tax regulation as income from shares, in accordance with the laws of the Contracting State in which the company distributing the profits is a resident. (4) The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, who is a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment located there or provides independent personal services in that other Contracting State from a permanent base and holding company located there, in respect of which dividends are paid, is indeed associated with such a permanent establishment or fixed base. In 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 Contracting State may exempt from tax dividends paid by that company, except in cases where such dividends are paid to a resident of that other Contracting State or where the holding company in respect of which the dividends are paid is actually related to a permanent establishment or a permanent base located in that other Contracting State, and the company's undistributed profits shall not be taxed on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of income generated in that other Contracting State. (6) Nothing in this Convention may be interpreted as preventing a Contracting State from imposing additional tax on the profits of a company relating to a permanent establishment in that Contracting State in addition to the tax that is levied on the profits of a company that is a resident of that Contracting State, provided that any additional tax so assessed, it will not exceed 5 percent of the amount of such profit. For the purposes of this paragraph, profits shall be determined after deduction of all taxes other than the additional tax referred to in this paragraph levied in the Contracting State in which the permanent establishment is located and reduced by 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 Contracting State. (2) However, such interest may also be taxed in the Contracting State in which it arises according to the laws of that Contracting State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the interest. (3) Notwithstanding the provisions of paragraph 2, interest arising in one of the Contracting States shall be exempt from tax in that Contracting State provided that it is received and owned by: (a) the Government, political and administrative subdivision or local authorities of a Contracting State; (b) or the Central Bank of the other Contracting State or any other to a government bank or financial institution/agency, which will be mutually agreed upon between the Contracting States. (4) Notwithstanding the provisions of paragraph 2, interest arising in Kazakhstan and paid to an Austrian resident is exempt from tax in Kazakhstan if it is paid in respect of a loan granted, guaranteed or insured, or any other debt claim, or a loan guaranteed or insured by Osterreichische Kontrollbank AG. (5) Interest arising in a Contracting State shall be taxable only in the other Contracting State if: (a) the recipient as well as the beneficial owner of the interest is an enterprise of that other Contracting State, (b) and the interest paid in respect of debts arising from the sale on credit by the enterprise of any products or industrial, commercial or scientific equipment to an enterprise of the first-mentioned Contracting State. (6) The term "interest", as used in this section, means income from debt claims of any kind, secured or unsecured by collateral and giving or not giving the right to participate in debtors' profits, as well as 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. (7) The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, who is a resident of one Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment located there or provides independent personal services in that other Contracting State from a permanent base located there, and a debt claim, in respect of which interest is paid, it 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. (8) Interest shall be deemed to arise in a Contracting State if the payer is a resident of that Contracting State. If, however, the person paying the interest, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the debt on which the interest is being paid has arisen and such interest is being paid by such permanent establishment or permanent base, then such The interest shall arise in the Contracting State in which such permanent establishment or fixed base is located. (9) If, due to a special relationship between the payer and the actual owner of 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 interest in the absence of such a relationship, the provisions of this section apply only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, taking into account the other provisions of this Convention.

Article 12 ROYALTIES

(1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State. (2) However, such royalties may also be taxed in the Contracting State in which they arise in accordance with the laws of that Contracting State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the total amount of the royalties. (3) The term "royalties", as used in this article, means payments of any kind received as remuneration for the use or for granting 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. (4) The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties originated through a permanent establishment located there or provides independent personal services in that other Contracting State from a permanent base located there, and the right or property, in respect of which royalties are paid, is indeed associated with such a permanent establishment or fixed 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 a resident of that Contracting State. If, however, the person paying the royalties, regardless of whether he is a resident of a Contracting State or not, has a permanent establishment or permanent base in a Contracting State in connection with which the obligation to pay royalties has arisen, and such royalties are associated with that permanent establishment or permanent base, then such royalties shall be deemed to have arisen in a Contracting 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 relationship, the provisions This article applies only to the last mentioned amount. In such a case, the excess part of the payment shall be taxable in accordance with the laws of each Contracting State, with due regard to the other provisions of this Convention.

Article 13 INCOME FROM THE INCREASE IN THE VALUE OF PROPERTY

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

Article 14 INDEPENDENT PERSONAL SERVICES

(1) Income earned by a resident of a Contracting State in respect of professional services or other activities of an independent nature shall be taxable only in that Contracting State unless such services are provided or have been provided in the other Contracting State.: a) and income refers to a fixed base that an individual has or has had on a regular basis in the other Contracting State; (b) Or such natural person is present or has been present in that other Contracting State for a period or periods exceeding a total of 183 days in any twelve-month period beginning or ending in the relevant tax year. In such a case, income related to services may be taxed in that other Contracting State in accordance with principles similar to those contained in Article 7 for determining the amount of profits and attributing business profits 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, lawyers, engineers, architects, dentists and accountants.

Article 15 DEPENDENT PERSONAL SERVICES

(1) Subject to the provisions of articles 16, 18, 19 and 20, salaries, wages and other similar remuneration earned by a resident of a Contracting State in connection with an employment shall be taxable only in that Contracting State unless the employment is performed in the other Contracting State. If the employment is performed in this manner, such remuneration derived therefrom may be taxed in that other Contracting State. (2) Notwithstanding the provisions of paragraph 1, remuneration earned by a resident of a Contracting State in connection with an employment performed in the other Contracting State shall be taxable only in the first-mentioned Contracting State if: (a) the recipient resides in that other Contracting State for a period or periods not exceeding a total of 183 days. a day in any twelve-month period beginning or ending in the relevant tax year; (b) And the remuneration is paid by or on behalf of the employer who is not a resident of the other Contracting State; (c) and the remuneration is not paid by a permanent establishment or fixed base which the employer has in the other Contracting State. (3) Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment performed on board a ship or aircraft operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship or aircraft is a resident.

Article 16 DIRECTORS' FEES

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

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 an artist, such as a theater, motion picture, radio or television artist or musician, or as an athlete from his personal activities carried on in the other Contracting State, may be taxed in that other Contracting State. The state. (2) Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

Article 18 PENSIONS

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

Article 19 PUBLIC SERVICE

(1) (a) Salaries, salaries and other similar remuneration, other than a pension, paid by a Contracting State or its political and administrative subdivisions or local authorities to an individual in respect of services rendered to that Contracting State or its political and administrative subdivisions or local authorities, shall be taxable only in that Contracting State.; (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that Contracting State and an individual who is a resident of that Contracting State: (i) is a national of that Contracting State; (ii) or has not become a resident of that Contracting State solely for the purpose of service implementation. (2) (a) Any pension paid by a Contracting State or its political and administrative subdivisions or local authorities, or from funds created by them, to an individual in respect of services rendered to that Contracting State or its political and administrative subdivisions or local authorities, shall be taxable only in that Contracting State; (b) however, such pension A pension is taxable only in the other Contracting State if the individual is a resident of and a national of that Contracting State. (3) The provisions of paragraph 1 of this section shall also apply to remuneration paid to the Austrian Representative for Foreign Trade in Kazakhstan and to employees of the Austrian Representative for Foreign Trade in Kazakhstan. (4) The provisions of articles 15, 16, 17 and 18 shall apply to salaries, salaries and other similar remuneration and pensions in respect of services related to business activities carried on by a Contracting State or its political and administrative subdivisions or local authorities.

Article 20 STUDENTS

(1) Amounts which a student or trainee who is or was a resident of the other Contracting State immediately prior to his arrival in a Contracting State and is present in the first-mentioned Contracting State solely for the purpose of obtaining an education or internship receives for the purposes of his maintenance, education or internship shall not be taxed in that Contracting State, provided that the sources of these amounts are located outside this Contracting State. (2) Remuneration earned by a student or trainee who is or was formerly a resident of a Contracting State for services rendered in the other Contracting State for a period or periods not exceeding a total of 183 days in the relevant tax year shall not be taxable in that other Contracting State if the employment is directly related to with his training or internship carried out in the first-mentioned Contracting State.

Article 21 OTHER INCOME

(1) The income of a resident of a Contracting State, irrespective of its source, which is not mentioned in the preceding articles of this Convention, shall be taxable only in that Contracting State. (2) The provisions of paragraph 1 shall not apply to income other than income from immovable property as defined in paragraph 2 of Article 6 if the recipient of such income, being a resident of one Contracting State, carries on business in the other Contracting State through a permanent establishment located therein or provides independent personal services in that other Contracting State with the permanent base located there, and the right or property in connection with which the income was paid, indeed, it is connected 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 22 CAPITAL

(1) Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and located in the other Contracting State may be taxed in that other Contracting State. (2) Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or movable property relating to a permanent base available to a resident of a Contracting State in the other Contracting State for the provision of independent personal services, may be taxed in that other Contracting State. (3) Capital represented by ships and aircraft owned by a resident of a Contracting State that are operated in international traffic and movable property related to the operation of such ships or aircraft shall be taxable only in that Contracting State. (4) All other elements of the capital of a resident of a Contracting State shall be taxable only in that Contracting State.

Article 23 ELIMINATION OF DOUBLE TAXATION

(1) In Kazakhstan, double taxation is eliminated as follows: (a) if a resident of Kazakhstan earns income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Austria, Kazakhstan will allow: (i) deduction from the income tax of that resident an amount equal to the income tax paid in Austria; (ii) deduct from the capital tax of this resident an amount equal to the capital tax paid in Austria. The amount of tax deductible in accordance with the above provisions should not exceed the tax that would be assessed on the same income at the rates applicable in Kazakhstan; b) if a resident of Kazakhstan receives income or owns capital that, in accordance with the provisions of this Convention, is taxable only in Austria, Kazakhstan may include this income. or capital is included in the tax base, but only for the purpose of setting the tax rate on such other income or capital as is subject to taxation in Kazakhstan. (2) In Austria, double taxation will be eliminated as follows: (a) If an Austrian resident receives income or owns capital that, in accordance with the provisions of this Convention, may be taxed in Kazakhstan, Austria shall, in accordance with the provisions of sub-paragraphs (b), (c) and (d), exempt such income or capital from tax.; (b) If a resident of Austria receives types of income that, in accordance with the provisions of articles 10, 11 and 12, may be taxed in Kazakhstan, Austria will grant a deduction from the income tax of that resident of an amount equal to the tax paid in Kazakhstan. Such a deduction, however, will not exceed the portion of the tax accrued before the deduction, which relates to such types of income received in Kazakhstan.; (c) Dividends covered by subparagraph (a) of paragraph 2 of Article 10 and paid by a company that is a resident of Kazakhstan to a company that is a resident of Austria, in accordance with the relevant provision of Austrian domestic law, but regardless of any deviations from the minimum holding amount required by law, are exempt from tax in Austria; (d) If, in accordance with any provisions of this Convention, income earned or capital owned by an Austrian resident is exempt from tax in Austria, Austria may, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempt income or capital; f) income earned by an Austrian resident, which is considered by Austria to be taxable in accordance with this Convention in Kazakhstan, may be taxed in Austria if, after conducting a mutual agreement procedure, Kazakhstan exempts such income from tax on the basis of this Convention.

Article 24 NON-DISCRIMINATION

(1) Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of the other Contracting State are or may be subject in the same circumstances, in particular with respect to residency. This provision, notwithstanding the provisions of article 1, also applies to persons who are not residents of one or both of the Contracting States. (2) Stateless persons who are residents of the Contracting States shall not be subjected in any of the Contracting States to any taxation or any related obligation other or more burdensome than taxation and related obligations to which nationals of the Contracting State concerned are or may be subjected in the same circumstances, in particular, regarding residency. (3) The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other Contracting State than the taxation of enterprises of that other Contracting State engaged in similar activities. This provision should not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State such personal tax benefits, discounts and deductions for tax purposes based on their civil status or marital status that it grants to its residents. (4) Except where the provisions of paragraph 1 of Article 9, paragraph 9 of Article 11 or 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 purposes of determining the taxable profits of such enterprise, be deductible on the same terms as if they were paid to a resident of the first-mentioned Contracting State. Similarly, any debt owed by an enterprise of a Contracting State to a resident of the other Contracting State must, for the purposes of determining the taxable capital of such enterprise, be deductible under the same conditions as debt owed to a resident of the first-mentioned Contracting State. (5) Enterprises of a Contracting State whose capital is wholly or partly owned or controlled directly or indirectly by one or more residents of the other Contracting State shall not be subject in the first-mentioned Contracting State to any taxation or any obligations related thereto that are other or more burdensome than taxation and related obligations that other similar enterprises of the first-mentioned Contracting State are or may be subject to. (6) Notwithstanding the provisions of section 2, the provisions of this section 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 to or will lead to his taxation not in accordance with the provisions of this Convention, he may, regardless of the remedies provided for by the domestic law of those Contracting States, submit his case to the competent authority of the Contracting State of which he is a resident, or, if his case falls within the scope of paragraph 1 of article 24, to the competent authority of the Contracting State of which he is a national. The application must be submitted within three years from the date of the first notification of actions leading to taxation not in accordance with the provisions of this Convention. (2) The competent authority shall endeavour, if it considers the application to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to avoiding taxation not in accordance with this Convention. Any agreement reached will be executed regardless of any time limits provided for by the national legislation of the Contracting States. (3) The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult with each other in order to eliminate double taxation in cases not provided for by the Convention. (4) The competent authorities of the Contracting States may enter into direct contacts with each other, such an exchange may take place within the framework of a joint commission consisting of themselves or their representatives in order to reach agreement within the meaning of the preceding paragraphs.

Article 26 EXCHANGE OF INFORMATION

(1) The competent authorities of the Contracting States shall exchange the information necessary to comply with the provisions of this Convention relating to taxes to which this Convention applies to the extent that taxation under this legislation is not contrary to this Convention. The exchange of information is not limited to article 1. Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic law of that Contracting State and shall be disclosed only to persons or authorities (including courts and administrative authorities) engaged in the assessment or collection, enforcement or prosecution, or consideration of appeals concerning taxes for which The Convention is being extended. Such persons or authorities use the information only for these purposes. They may disclose this information during an open court hearing or when making court decisions. (2) In no case shall the provisions of paragraph 1 be interpreted as imposing obligations on Contracting States: (a) to take administrative measures contrary to the laws and administrative practices of that or the other Contracting State; (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 order).

Article 27 EMPLOYEES OF DIPLOMATIC MISSIONS AND CONSULAR INSTITUTIONS

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

Article 28 ENTRY INTO FORCE

(1) This Convention is subject to ratification and will enter into force on the 30th day after the date of the last notification indicating that both Contracting States have completed the procedures provided for by the domestic law of each Contracting State for its entry into force. (2) The Convention applies: (a) to taxes withheld at source in respect of amounts paid or deductible on or after January 1 of the calendar year following the year in which the Convention enters into force.; (b) And other taxes in respect of the tax period beginning on or after 1 January of the calendar year following the year of entry into force of the Convention.

Article 29 TERMINATION

This Convention shall remain in force until terminated by one of the Contracting States. Any Contracting State may terminate the Convention by giving written notice of termination through diplomatic channels at least six months before the end of any calendar year following the expiration of a period of five years from the date of entry into force of the Convention. In such a case, the Convention shall cease to apply: (a) in respect of taxes withheld at source on amounts paid or deductible on or after 1 January of the year following the year of notification; (b) and in respect of other taxes for the tax period beginning on or after 1 January of the year, following the year of notification submission. In witness whereof, the undersigned representatives, being duly authorized thereto, have signed this Convention. When signing the Convention between the Republic of Kazakhstan and the Republic of Austria concerning Taxes on Income and Capital, the Contracting States agreed that the attached Protocol forms an integral part of the Convention.

Done in Vienna on the 10th of September, 2004, in two copies in the Kazakh, German, English and Russian languages, all texts are equally authentic. In case of a discrepancy in the texts, the English text will be decisive.

FOR THE REPUBLIC OF AUSTRIA FOR THE REPUBLIC OF KAZAKHSTAN

protocol

When signing the Convention between the Republic of Kazakhstan and the Republic of Austria concerning Taxes on Income and Capital, the undersigned agreed that the following provisions form an integral part of the Convention.

Interpretation of the Convention

It is understood that the provisions of this Convention, which are drawn up in accordance with the provisions of the OECD model Convention on Income and Capital, are generally considered to have the same meaning as expressed in the OECD comments. The commentaries, which may be revised from time to time, contain means of interpretation that comply with the Vienna Convention on the Law of Treaties of May 23, 1969.

With regard to paragraph 6 of article 10

If and for the time being this Convention on taxes on income and capital is in force between Kazakhstan and a country that is currently a member of the Organization for Economic Cooperation and Development, for which the Convention does not provide for the additional tax provided for in paragraph 6 of Article 10 of this Convention, the additional tax referred to here shall not be levied on companies that are residents of Austria.

With regard to articles 11 and 12

The Contracting States have agreed that if Kazakhstan accepts a lower tax rate than 10 percent specified in paragraph 2 of Article 11 or paragraph 2 of Article 12 in any Convention between Kazakhstan and a third State that is a member of the Organization for Economic Cooperation and Development, and this Convention enters into force either before or after the date of entry into force of this Convention, The competent authority of Kazakhstan will notify the competent authority of Austria of the provisions of the relevant paragraph of this Convention with a third State immediately after the entry into force of this Convention, and such a low rate will replace the 10 percent provided for in paragraph 2 of Article 11 or paragraph 2 of Article 12 of this Convention, as appropriate, from the date of entry into force of that Convention or this Conventions, depending on which of them will enter into force later. In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol. Done in Vienna on the 10th of September, 2004, in two copies in the Kazakh, German, English and Russian languages, all texts are equally authentic. In case of a discrepancy in the texts, the English text will be decisive.

FOR THE REPUBLIC OF AUSTRIA FOR THE REPUBLIC OF KAZAKHSTAN

President

Republic of Kazakhstan

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