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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
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DT: Kazakhstan: double taxation agreement, Article 25: Non-discrimination

  • Nationals of a Contracting State and any legal person, partnership, association or other entity deriving its status as such from the law in force in that Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State and any legal person, partnership, association or other entity deriving its status as such from the law in force in that other State in the same circumstances are or may be subjected.
  • Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any other requirement connected therewith, which is other or more burdensome than the taxation and other connected requirements to which nationals of the State concerned in the same circumstances are or may be subjected.
  • The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
  • Except where the provisions of paragraph (1) of Article 9, paragraph (6) of Article 11, or paragraph (7) of Article 12 of this Convention apply and subject to the provisions of paragraph (7) of Article 11, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
  • Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
  • Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident.
  • The provisions of this Article shall apply to the taxes which are the subject of this Convention.
  • Subject to paragraph (10) of this Article, nothing in this Convention shall be construed as preventing a Contracting State from imposing in any taxation year a tax on the profits attributable to a permanent establishment in that Contracting State of a company which is a resident of the other Contracting State, in addition to the tax chargeable on those profits in accordance with Article 7 of this Convention, where -

 

 

(a) the amount of that additional tax does not exceed 5 per cent of the amount of the amount of the earnings of the company which have not been taken into account in calculating that additional tax in previous taxation years, and

(b) the amount of the profits attributable to the permanent establishment in the taxation year in question exceeds 70,000 pounds sterling.

  1. In paragraph (8) of this Article, the term “earnings” means the profits attributable to the permanent establishment in accordance with Article 7 of the Convention (including any gains from the alienation of movable property forming part of the business property of that permanent establishment in accordance with Article 13 (3) of the Convention) in any taxation year for which paragraph (8) of this Article has effect in the case of that permanent establishment, after deducting therefrom all taxes chargeable in the first-mentioned Contracting State on those profits in accordance with Articles 7 and 13 of the Convention.
  2. If, and so long as, there is a Convention for the avoidance of double taxation which has effect between Kazakhstan and a member state of the Organisation for Economic Co-operation and Development for any taxation year for which paragraph (8) of this Article has effect and does not permit the levying of an additional tax of the kind described in that paragraph in the case of a permanent establishment of a company which is a resident of that member state, that paragraph shall not have effect in the case of a permanent establishment of a company which is a resident of the United Kingdom.