Act (1997:919) About The Double Taxation Treaty Between Sweden And Kazakhstan

Original Language Title: Lag (1997:919) om dubbelbeskattningsavtal mellan Sverige och Kazakstan

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$9.99.
section 1 of the agreement for the avoidance of double taxation and

Prevention of tax evasion with respect to taxes on income

Sweden and Kazakhstan signed on 19 March 1997

apply that law in this country. The agreement is written in Swedish,

Kazakh, Russian and English. The Swedish and English text

Annex to this law.



section 2 of the agreement's tax rules shall apply only if these

involves restriction of the tax liability in Sweden that would otherwise

would exist.



3 repealed by law (2011:1388).



Transitional provisions



1997:919



1. this law shall enter into force on the day the Government determines.



2. This Act shall apply



(a)) in respect of withholding taxes, on income paid or

credited on 1 January of the year following the year in which the law comes into

force or later, and



(b)) in respect of other taxes, for taxation years beginning on

1 January of the year following the year in which the law comes into force or

later.



3. The following provisions shall no longer apply as far as

refers to the relationship between Sweden and Kazakhstan, namely



-Act (1982:708) about the double taxation treaty between Sweden

and the Soviet Union,



-Decree (1971:130) on the implementation of the Protocol between the

Sweden and Union of Soviet Socialist Republics concerning the reciprocal tax exemption

for aviation companies and their employees,



-Decree (1973:563) on the implementation of the Protocol between the

Sweden and Union of Soviet Socialist Republics concerning the reciprocal tax exemption

for shipping companies.



The specified conditions shall, however, continue to apply



(a)) in respect of withholding taxes, on income paid or

credited before 1 January of the year following the year in which the law is effective

in effect,



(b)) in respect of other taxes on income, for tax years

beginning before 1 January of the year following the year in which the law comes into

force, and



(c)) in respect of tax on wealth, on taxes imposed by

taxation year following the year in which the law comes into force or at the

prior years ' assessments.



Annex



Annex



AGREEMENT BETWEEN THE



THE KINGDOM OF SWEDEN



THE GOVERNMENT OF THE REPUBLIC OF



KAZAKHSTAN'S GOVERNMENT



AVOIDANCE OF



DOUBLE TAXATION AND



THE PREVENTION OF



TAX AVOIDANCE



WITH RESPECT TO TAXES ON



INCOME



The Government of the Kingdom of Sweden and the Republic of Kazakhstan

Government, desiring to conclude an agreement for the avoidance of

double taxation and the prevention of fiscal evasion with respect to

taxes on income,



have agreed as follows:



Article 1



Persons to whom the agreement applies



This agreement shall apply to persons who are domiciled in a

Contracting State or in both Contracting States and

other persons in accordance with what is laid down in

the agreement.



Article 2



Taxes covered by the agreement



1. The currently outgoing taxes to which this agreement

applied is:



(a)) in the Republic of Kazakhstan:



1 corporate income tax, on)



2) income tax for natural persons,



(in the following referred to as "Kazakhstani tax");



b) in Sweden:



1) state income tax, seamen's tax and

the withholding tax rate in that involved,



2) the Special income tax for non-residents,



3) the Special income tax for non-residents

artists and others, and



4) the municipal income tax;



(in the following referred to as "Swedish tax").



2. the agreement also apply to taxes for the same or essentially

Similarly, after the signing of this agreement will be incurred

In addition to or in place of the taxes referred to in paragraph

1.



The competent authorities of the Contracting States shall

notify each other of the essential changes that taken in

the respective tax laws.



Article 3



General definitions



1. Unless the context gives rise to different, have in the application

by this agreement the following expressions the following meaning:



(a)) 1) "Kazakhstan" refers to the Republic of Kazakhstan. When the expression

used in geographical sense, includes the phrase

"Kazakhstan" the territorial sea and the exclusive

economic zone and the continental shelf over which Kazakhstan, in

in some respects, in conformity with international law

may exercise sovereign rights and jurisdiction, and in

What areas of Kazakhstani tax law applies;



2) "Sweden" refers to the Kingdom of Sweden and

include, when the expression is used in the geographical sense,

The territory of Sweden, Sweden's territorial waters and other

maritime areas over which Sweden, in accordance with

the rules of international law, exercises sovereign rights or

jurisdiction;



b) "person" includes natural persons, companies and other

personal association;



c) "company" refers to the legal person or other that at

taxation is treated as a legal entity, and includes, in

relation to Kazakhstan, limited liability company ("joint stock company"),

private limited companies ("limited liability company")

and any other legal entity or organization, that there is

taxable income;



(d)) "a Contracting State" and "the other Contracting

the State "refers to Kazakhstan and Sweden, depending on

context;



e) "enterprise of a Contracting State" and "enterprise of the other

Contracting State "refers to the business carried on by the person

resident in one Contracting State and company

conducted by the resident of the other Contracting

the State;



f) "international traffic" refers to transport by ship or

aircraft used by enterprises of a Contracting State except

When the ship or aircraft are used exclusively between

places in the other Contracting State;



g) "competent authority" refers to:



1) in Kazakhstan, the Ministry of finance or its

authorised representative,



2) in Sweden, the Minister of finance or his authorised

representative or the authority which has been assigned to be competent

authority for the purposes of this agreement;



h) "national" refers to:



1) natural person which has the nationality of a

Contracting State,



2) any legal person, partnership or other

Association incorporated under the legislation of

a Contracting State.



2. Where a Contracting State applies, unless the contract is considered

no context, causing the other, each expression that does not

defined in this agreement have the meaning the term has under the

the State's legislation in respect of such taxes on the

the agreement shall apply.



Article 4



Resident



1. for the purposes of this agreement reference to the expression "person

resident in one Contracting State "person under

the laws of that State, is liable to tax there because of

domicile, residence, place of management, place of

company formation or other similar circumstances.



However, the term does not include a person) that is

taxable in that State only to income from a source in this

State or to capital situated therein.



(b)) in respect of income which is acquired by a partnership or

estate, includes the term such a person only to the extent that its

income is liable to tax in that State in the same way as income

acquired by resident there, either in

trading company or the estate, or of its part owner or

Inheritors.



c) Expression also includes a Contracting State itself,

its political subdivision, local authority, Sweden

National Bank and National Bank of Kazakhstan.



(d)) the term includes also companies or organization that

formed under the law of a Contracting State, whose

activity consists exclusively in providing pension or

benefits of employment, even if such a company or such

Organization is exempt from taxation in the Member State where the

has been formed.



2. where by reason of the provisions of paragraph 1 an individual is

a resident of both Contracting States, is determined his residence on

the following ways:



a) He shall be deemed to have established in the State where he has a home that

permanently available to him. If he has such a

property in both States, he shall be deemed to be a resident of the State with

which his personal and economic relations are strongest

(Centre of life interests);



(b)) if it cannot be settled in the State he has Center for

their living interests or if he's not in either State have

a dwelling that is permanently available to him, shall be deemed to

He is resident in the State where he usually resides.



(c)) if he usually resides in both States, or if he

not reside permanently in any of them, he shall be deemed to be a resident

in the State of which he is a national;



d) if he is a national of both States or if he is not

nationals of any of them, the competent authorities of the

Contracting States may settle the question by mutual

agreement.



3. where by reason of the provisions of paragraph 1 a person other than the

an individual is a resident of both Contracting States, shall

the competent authorities seek rule by mutual

agreement.



Article 5



Permanent establishment



1. for the purposes of this agreement reference to the expression "fixed

establishment means a fixed place of business, from

What a business is wholly or partly carried on.



2. The term "permanent establishment" includes especially:



a) place of business management,



b) branch,



c) offices,



d) factory,



e) workshop,



f) mine, an oil or gas well, a quarry or any other place of

the extraction of natural resources,



g) place for building, construction, installation or

Assembly operations or business that consists of monitoring

in connection therewith, but only where the activities in progress during a

period in excess of twelve months,



h) installation or structure used for the exploration


of natural resources or the activity of monitoring in

relation thereto, or drilling platform or ship used

on the exploration of natural resources, but only if the business

continues for a period exceeding twelve months, and



in) the provision of services, including

consultancy, by employees or other personnel

for this purpose engaged by a resident of a

Contracting State, but only if this type of activity

in progress (in relation to the same or contiguous projects) within

State for a period exceeding twelve months.



3. Notwithstanding the preceding provisions of this article shall be deemed to

the term "permanent establishment" shall not include:



(a)) the use of facilities solely for storage,

exhibition or disclosure of company-owned goods,



(b) holding of a company belonging to) stock in trade solely

for storage, exhibition or distribution,



(c) holding of a company belonging to) stock in trade solely

for working or processing by other company,



d) holding of fixed place of business

exclusively for the purchase of goods or obtaining information

for the company,



e) holding of fixed place of business

exclusively for the enterprise carrying on other activities of the

preparatory or auxiliary nature,



f) holding of a fixed place of business

exclusively for combining activities listed in

points a to e, provided that the entire operation as

conducted from the permanent place of business in

because of this combination is of a preparatory or auxiliary

art.



4. If a person who is not the independent representative on

which paragraph 5 applies-is present in a Contracting State

for an enterprise of the other Contracting State as well as in the

former Contracting State and which are regularly

using the power of attorney to conclude contracts in the name, it is considered

This company-notwithstanding the provisions of paragraphs 1 and

2-to have a permanent establishment in that State in respect of each

activity which that person carries on business. This

does not apply if the activity for which this person is

limited to such specified in point 3 and which-if the

conducted from a fixed place of business-not

would make this fixed place of business to

permanent establishment under the provisions of that paragraph.



5. Enterprises of a Contracting State are not considered to have fixed

establishment situated in the other Contracting State only on the

because the company carries on business in that State

through the intermediary of brokers, Commissioner or other independent

Representative, provided that such person thereby

conducts its usual business.



6. the fact that a company resident in a

Contracting State controls or is controlled by a

a company resident in the other Contracting State or in a

companies doing business in the other State

(either from a permanent establishment or otherwise),

not in and of itself to constitute either company a permanent establishment

for the other.



Article 6



Income from immovable property



1. income, as a person resident in one Contracting State

acquires immovable property (in that included income of agriculture

or forestry) situated in the other Contracting State, may

be taxed in that other State.



2. The term "immovable property" has the meaning the term has

According to the legislation of the Contracting State in which the property

is located. However, the term always includes accessories

immovable property, the living and the dead furniture in agriculture and

forestry, rights to which the provisions of private law

If immovable property apply, buildings, tenancies of immovable

property, and the right of changing or fixed remuneration

for the use of, or the right to use mineral occurrence,

source or another natural resource. Ships, boats and aircraft

is not considered to be real property.



3. the provisions of paragraph 1 shall apply to income acquired

through immediate use, through rental or other

use of immovable property.



4. the provisions of paragraphs 1 and 3 shall also apply to income

of immovable property belonging to the company and on the income of the firm

property used by independent professional activities.



Article 7



Income from operating



1. the Income of an enterprise of a Contracting State

acquire, shall be taxable only in that State unless the enterprise

carries on or has carried on business in the other Contracting

the State of the permanent establishment situated there.



If the enterprise carries on or has carried on business in the newly

specified manner, the company's income is taxed in the other

the State, but only so much thereof as is attributable to:



a) that permanent establishment;



b) sales of that other State of goods of the same type as the

products sold through that permanent establishment;



c) other business activities carried on in the other State as

is of the same nature as the activities of the Permanent

establishment.



The provisions of the second subparagraph (b)) and c) above is not

applicable if the entity can demonstrate that such sales or

activities have been carried out by the permanent establishment.



2. enterprises of a Contracting State carries on or has

carried on business in the other Contracting State from where

permanent establishment situated assigned, except where the provisions of

paragraph 3 shall give rise to another, in either Contracting State to the

the permanent establishment the income that it can be assumed that

establishment would have acquired if it were a standalone

companies that operated out of the same or a similar kind

under the same or similar conditions and independently completed

business with the undertaking to which the establishment belongs.



3. In determining permanent establishment income deduction is allowed

for expenses incurred for the permanent establishment, including

included expenses for management and General

management, whether the expenditure incurred in the State in which the

permanent establishment is situated or elsewhere.



However, no such deduction shall be allowed in respect of amounts (if

This does not constitute compensation for actual costs) that may have

paid by the permanent establishment to the head office

or any of its other offices, by way of royalties, fees

or other similar payments for the use of patents

or other rights, or compensation for special

services or for management, or by way of interest on

capital lent to the permanent establishment.



4. income not attributable to a permanent establishment by reason only of the

the reason to purchase goods through the permanent establishment

merchandise for the enterprise.



5. Included in income by operating income are treated especially

in other articles of this agreement, the provisions of these

articles of the rules contained in this article.



6. for the purposes of the preceding paragraphs, income is determined as

is attributable to the permanent establishment by the same procedure

from year to year, unless good and sufficient reasons causing the

other things.



Article 8



Sea and air transport



1. income, which is being acquired by an enterprise of a Contracting

State through the use of the ship or aircraft in

international traffic, be taxable only in that State.



2. the provisions of paragraph 1 apply to the income

acquired by the air transport Consortium Scandinavian Airlines System

(SAS) only in respect of that part of the income corresponding to the

share in the Consortium held by AB Aerotransport (ABA), the

Swedish part owner of Scandinavian Airlines System (SAS).



3. the provisions of paragraph 1 shall also apply to income

acquired through participation in a pool, a joint business

or an international operating agency.



Article 9



Companies with associated enterprises



1. In cases where the



a) an enterprise of a Contracting State, either directly or indirectly

participate in the management or control of a company in the other

Contracting State or owns part of the company capital,

or



(b)) the same person participates directly or indirectly in the management,

or control of an enterprise of a Contracting State

as an enterprise of the other Contracting State or own

part in both of these corporate capital, observed the following.



If between businesses in terms of trade relations or

financial relations agreed upon or prescribed conditions, as

differ from those which would have been agreed between each other

independent company, receives all the income, that without such conditions

would have been one company but who, because of

the terms in question did not come about this company, be included in the

This company's income and taxed accordingly.



2. where a Contracting State includes in the income of

a company in that State and in accordance therewith

tax income as a business in the other Contracting

the State taxed for in that other State, and it thus

ancillary income is such as would have been the company

in the first State on the terms agreed between

the enterprises had been those which would have been agreed between the

independent companies, that other State shall implement

proper adjustment of the amount of tax levied for

income in that State. for compliance with such other adjustment

provisions of this agreement and the competent authorities of the

Contracting States are in talks with each other when necessary.



Article 10



Dividend



1. Dividends paid by a company resident in one Contracting State


to a resident of the other Contracting State,

be taxed in that other State.



2. Dividends may be taxed in the

Contracting State of which the company paying the dividends has

the resident, in accordance with the laws of that State, but if the recipient

entitled to dividend tax may not exceed:



a) 5 per cent of the gross amount of the dividends if the beneficial

to dividends is a company (other than a partnership),

which directly holds at least 10% of the paying company

total voting power,



b) 15 per cent of the gross amount of the dividends in all other cases.



This paragraph does not affect the company's taxation of profit of the

the dividend is paid.



3. The term "dividends" is understood in this article income by

shares or other rights, not being debt, with the right

to share in profits, as well as income from other investments in companies, which

According to the law of the State in which the distributing company has

domicile for tax purposes is treated in the same way as income

of shares. In respect of Kazakhstan refers to the expression of particular

income transferred abroad to foreign participants in a

joint venture formed in accordance with the legislation of Kazakhstan.



4. the provisions of paragraphs 1 and 2 shall not apply if the

who is entitled to the dividends is a resident of a Contracting

State and carries on or has carried on business in the other

Contracting State, where the company paying the dividends is

residence, from where the permanent establishment situated or exercise or

has exercised independent professional activities in the other State from

where located permanent device, and the proportion due to

the dividend will be paid owns actual relation to the Permanent

the establishment or the permanent devices. In such a case

apply the provisions of article 7 or article 14.



5. If the company resident in one Contracting State acquires

income from the other Contracting State, that other

State does not tax dividends paid by the company, except to the

so far as the dividend is paid to a resident of the other

State or insofar as the percentage due to the dividend payment

paid owns or has owned the real context of the

establishment or permanent device in the other State,

nor will tax the company's undistributed profits, even if

the dividend or the undistributed profits wholly or partly

consists of income arising in that other State.



6. the provisions of this Agreement shall not preclude any Contracting

State to levy tax on corporate income attributable to the

establishment in that State, in addition to the tax which would be payable on

income that is acquired by a company resident in that State.

This additional tax shall not exceed 5% of

the part of the income for the previous tax year does not

been subjected to such additional tax. For the purposes of

This paragraph refers to the expression "income" such income which is

attributable to the permanent establishment in the State in question (including

gain on transfer of property referred to in article 13, paragraph

3, forming part of the business assets in fixed

establishment) in accordance with article 7 in a year and

the previous year after deduction of:



a) operating losses that are attributable to such fixed

establishments (including losses from the alienation of

assets forming part of the business assets in fixed

establishment) during this year and the previous year in the

extent to which the deduction for the loss relating to previous years

permitted by the Contracting State's internal law where the

permanent establishment is situated; and



b) all taxes, other than the additional tax referred to herein,

in this State payable on such income.



7. If Kazakhstan in an agreement for the avoidance of double taxation

with a third State which, at the present contract signing,

is a member of the Organization for economic cooperation and

Development (OECD), and in such contract agree to exempt

dividend referred to in paragraph 2 (a), which is derived from Kazakhstan,

from Kazakhstani tax on dividends or to limit the

the tax rate specified in the said paragraph, it shall

the exemption or reduced rate be applied automatically

as if this was provided for in paragraph 2 (a) and paragraph 6 of this

article.



Article 11



Interest rate



1. interest, stemming from a Contracting State and which

paid to a resident of the other Contracting

the State, may be taxed in that other State.



2. interest may be taxed in the Contracting

State from which it is derived, under the laws of this

State, but if the recipient is entitled to the interest, the tax is not

exceed 10 per cent of the gross amount of the interest.



3. Notwithstanding the provisions of paragraph 2, interest shall

shall be taxable only in the Contracting State in which the recipient of the

the interest is a resident if one of the following conditions is

true:



(a)) the payer or the recipient of the interest is a Contracting

State, its political subdivisions or local authorities

or central bank of a Contracting State;



b) the interest is paid on the basis of loans granted or

guaranteed by SWEDECORP (Swedish International

business assistance), Swedfund International AB,

Export credits guarantee Board, or other institution of a public

character to promote exports or development during the

condition that the credit granted or guaranteed on

particularly advantageous conditions.



4. The term "interest" for the purposes of this article the income of

each kind of claim, whether secured by mortgage

in immovable property or not, and whether it entails the right to

interest in the debtor's profits or not. The expression refers to

in particular, income from securities, issued by the State, and

income from bonds or debentures, therein included

premiums and benefits pertaining to such securities,

bonds or debentures; Penalty fee for late

payment is not considered as interest for the purpose of this

article.



5. the provisions of paragraphs 1, 2 and 3 shall not apply if the

who is entitled to the interest is resident in a Contracting State

and carries on or has carried on business in the other

Contracting State, from which the interest arises, from which

permanent establishment or exercise or have exercised

independent professional activities in the other State from where

located permanent device, as well as the claim for which

the interest is paid owns truly connected with the permanent establishment

or the permanent devices. In such a case be applied

the provisions of article 7 or article 14.



6. interest shall be deemed to arise from a Contracting State if

the payer is a resident of this State, If

However, the person paying the interest, whether he is

resident in a Contracting State or not, in a

Contracting State has or had permanent establishment or

permanent device in connection with which the liability

incurred for which the interest is paid, and the interest rate charged to the

permanent establishment or permanent device, are considered to

rate stem from the State in which the permanent establishment or

the device is permanently or previously existed.



7. where by reason of a special relationship between the payer and the

the beneficial owner of the interest or between both of them and other

person the amount of the interest, having regard to the debt claim for which

the interest is paid, exceeds the amount which would have been agreed

between the payer and the beneficial owner of the interest on such

relations do not exist, the provisions of this

article only at the latter amount. In such a case be taxed

excess amounts in accordance with the legislation of each

Contracting State in compliance with the other provisions of

This agreement.



8. If Kazakhstan in an agreement for the avoidance of double taxation

with a third State which, at the present contract signing,

is a member of the Organization for economic cooperation and

Development (OECD), and in such contract agree to exempt

interest rate referred to in paragraph 2, which are derived from Kazakhstan, from

Kazakhstani tax on interest or restrict the tax rate as

specified in that paragraph, such exemption or lower

tax rate will be applied automatically as if this had been prescribed

in paragraph 2. If Kazakhstan at the conclusion of such a contract

agree to extend the derogations set out in paragraph 3 of

This article to include interest paid on account

of the loan granted by a bank or interest paid by a

enterprises of a Contracting State to a company in the other

Contracting State in respect of credit sales of

merchandise or industrial, commercial or scientific

equipment, apply those exceptions automatically, even in

relation to Sweden.



Article 12



Royalty



1. Royalty, as derived from a Contracting State and which

paid to a resident of the other Contracting

the State, may be taxed in that other State.



2. Royalties may be taxed in the Contracting

State from which it is derived, under the laws of this

State, but if the recipient is entitled to the royalty, tax

not exceed 10 per cent of the gross amount of the royaltyns. Receiver

of such royalties referred to in paragraph 3 (b), provided

that the recipient is entitled to the royalty, choose to get the tax on

such income calculated on a net basis, as if the income has been

attributable to a permanent establishment or a permanent

device in the Contracting State in which the royalties

derived.



3. The term "royalties" in this article:




a) any payments received as compensation for

the use of, or the right to use, copyright of

literary, artistic or scientific work, herein

including computer software, videocassettes, cinema film and tape

for radio or television broadcasting, any patent, trade mark,

design or model, plan, secret formula or secret

manufacturing process or other similar property or

right, or for information concerning findings of

industrial, commercial or scientific nature; and



b) payment for the use of, or the right to use,

industrial, commercial or scientific equipment.



4. the provisions of paragraphs 1 and 2 shall not apply if the

who is entitled to the royalty is a resident of a Contracting State

and carries on or has carried on business in the other

Contracting State, from which the royalty arises, from which

permanent establishment or exercise or have exercised

independent professional activities in the other State from where

located permanent device, as well as the right or

property in respect of which the royalties are paid owns real

connected with the permanent establishment or the Permanent

the device. In such cases, apply the provisions of article 7

and article 14.



5. Royalties shall be deemed to arise from a Contracting State if

the payer is a resident of this State, If

However, the person paying the royalties, whether he is

resident in a Contracting State or not, in a

Contracting State has or had permanent establishment or

permanent device in connection with which the obligation to

pay the royalty arises, and the royalty charged to the fixed

establishment or permanent device, are considered to

royalties derived from the State in which the permanent establishment or

the device is permanently or previously existed.



6. where by reason of a special relationship between the payer and the

the person entitled to the royalties or between both of them and other

personal royalty amount, taking into account the utilization, the right

or the enlightenment for which royalties are payable, the excess

the amount which would have been agreed between the payer and the

who is entitled to royalties if such relationships are not

exist, the provisions of this article shall apply only to

the latter amount. In such a case the taxable surplus amount

According to the law of each Contracting State with

observance of the other provisions of this agreement.



7. If Kazakhstan in an agreement for the avoidance of double taxation

with a third State which, at the present contract signing,

is a member of the Organization for economic cooperation and

Development (OECD), and in such contract agree to exempt

royalties referred to in paragraph 2 and which derived from Kazakhstan,

from Kazakhstani tax on royalties or to limit the

tax rate referred to in that paragraph, this exemption

or lower rate will be applied automatically as if this had

provided for in this article.



Article 13



Capital gain



1. Profit, as a person resident in one Contracting State

acquires from the alienation of such immovable property

referred to in article 6 and situated in the other Contracting

the State, may be taxed in that other State.



2. Profit as a resident of a Contracting State

acquires the alienation of



a) shares, other than shares are regularly traded on a

recognised stock exchange, whose value in its entirety or essentially

derived directly or indirectly from immovable property situated in the

other Contracting State, or



(b)) share in trading companies, whose assets mainly consist of

immovable property situated in the other Contracting State, or

of shares specified under (a)) above,



may be taxed in that other State.



3. Gains from the alienation of movable property forming part

of the operating assets of a permanent establishment which an enterprise of the

a Contracting State has or had in the other

Contracting State or of movable property, attributable to

permanent device to exercise independent

professional activities, as a resident of a Contracting

State has in the other Contracting State, may be taxed in the

This other State. The same applies to profit because of transfer

of such a permanent establishment (alone or together with the whole

the enterprise) or of such a permanent device.



4. Profit as a resident of a Contracting State

acquires from the alienation of ships or aircraft

used in international traffic, or movable property which is

attributable to the use of such ship or aircraft;

shall be taxable only in that State.



The provisions of this paragraph apply to profits

acquired by the air transport Consortium Scandinavian Airlines System

(SAS) but only in respect of that part of the profits as corresponds to the

the stake in the consortium which is held by AB Aerotransport

(ABA), the Swedish partner of Scandinavian Airlines System

(SAS).



5. Gains from the alienation of property other than that

referred to in paragraphs 1 to 4 shall be taxable only in the Contracting

State of which the alienator is a resident.



6. Profit due to disposal of shares or other

rights in a company resident in one of the Contracting

States that is acquired by an individual who has been domiciled

in this State, and a resident of the other Contracting State

may-notwithstanding the provisions of paragraph 5 shall be taxable in the

first-mentioned Contracting State if the disposal of the shares

or rights occurs at any time during the ten

years immediately after the person ceased to have

habitual residence in the former State.



Article 14



Independent professional activities



1. income, as a physical person resident in a

Contracting State acquires through the exercise of profession or

other independent activity, shall be taxable only in that State if

He's not in the other Contracting State has or had

a permanent device which are regularly at his

disposal to pursue the activity. If he has, or has

had such a permanent device, income is taxed

in the other State but only so much of them as is

due to this permanent device.



2. The expression "liberal profession" includes especially independent

scientific, literary and artistic activities,

educational and teaching activities and such

independent operations, as a doctor, lawyer, engineer,

Architect, dentist and an accountant.



Article 15



Single service



1. the provisions of articles 16, 18 and 19 shall give rise

other, taxable wages and other similar remuneration paid by person

resident in one Contracting State receives due

employment only in that State unless the work is carried out

or have been performed in the other Contracting State. If the work

performed or has performed in that other State, receives compensation as

are there for work are taxed there.



2. Notwithstanding the provisions of paragraph 1 shall be taxable

compensation, as a person resident in one Contracting State

receipt for work performed in the other Contracting State,

only in the first-mentioned State if



(a)) the recipient resides or has resided in that other State during

period of time or time periods that do not exceed a total of 183

days in any consecutive 12-month period commencing

or stops during the tax year in question, and



b) the remuneration is paid by the employer who is not domiciled in

the other State or on his behalf, and



c) compensation does not affect the establishment or

permanent device which the employer has or has had in

the other State.



3. Notwithstanding the preceding provisions of this article,

remuneration for work performed on board the ship or

aircraft, used in international traffic by an enterprise

in one Contracting State, be taxed in that State. For person with

resident in Sweden receives income from work, which is carried out

on board an aircraft used in international transport of

the air transport Consortium Scandinavian Airlines System (SAS),

taxable income only in Sweden.



Article 16



Directors ' fees



Directors ' fees and other similar remuneration, as a person with

resident in one Contracting State receives as a member of the

Board of directors or similar body of a company resident in 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, as a resident of a Contracting State

acquire through their personal activities in the other

Contracting State in his capacity as a performer, such as theatre or

movie actor, radio or television artiste, or a musician,

or the athlete, be taxed in that other State.



2. In cases where the income through personal activities, artist

or athlete exercised in that capacity, not become the property of

the artist or sportsman himself but to another person, this

income, notwithstanding the provisions of articles 7, 14 and

15, be taxed in the Contracting State in which the artist or

athlete exercise activities.



Article 18



Pensions, annuities and similar



compensation



1. Pensions and other similar remuneration, payment under

social security legislation and annuities, which are derived from

a Contracting State and paid to a resident of

the other Contracting State, may be taxed in the

first-mentioned Contracting State.



2. The term "annuity" is understood in this article a

fixed the amount paid periodically to established


times during a person's lifetime or in specified or

ascertainable period of time, and that is due to the commitment

to enforce these payments as compensation for however

fully corresponding consideration in money or money value.



Article 19



Public service



1. a) Compensation (except for retirement), paid for by a

Contracting State, one of its political subdivisions

or local authorities to natural person because of work

performed in this State, the section or governmental

service, shall be taxable only in that State.



b However, such remuneration shall be taxable only) in the

Contracting State in which the natural person's domicile,

If the work is performed in this State, and the person in question:



1) is a national of that State, or



2) were not allowed to live in this State solely to

carry out the work.



2. the provisions of articles 15 and 16 shall apply to

compensation paid on the basis of the work carried out in connection

with business carried on by a Contracting State, one of its

political subdivisions or local authorities.



Article 20



Students and business apprentices



A student or business trainee who is, or immediately

before visiting a Contracting State a resident of the

other Contracting State and who is staying in the former

State exclusively for their education or training,

not subject to tax in that State, for the amount that he receives for

subsistence, their education or training, in

condition that the amounts derived from sources outside this

State.



Article 21



Other income



1. income as a resident of a Contracting State

acquires and which are not dealt with in the foregoing articles of this

Agreement, shall be taxable only in that State, regardless of the origin of income

derived.



2. the provisions of paragraph 1 shall not apply to income, with

excluding income from immovable property referred to in article 6

paragraph 2, if the recipient of the income is resident in a

Contracting State, carries on or has carried on business in

the other Contracting State from which permanent

establishment or exercise or have exercised independent

professional activities in the other State from where located

permanent device, and the right or property in

respect of which the income is paid is the owner of real connection with the

permanent establishment or permanent device. In

in such cases the provisions of article 7 and

Article 14.



Article 22



The Elimination of



double taxation



1. in the case of Kazakhstan, double taxation shall be avoided in

the following ways:



a) where a resident of Kazakhstan receives income that

in accordance with the provisions of this agreement may be taxed in Sweden,

to Kazakhstan from Kazakhstani income tax set off a

amount equal to the income tax paid in Sweden on

income.



Such deduction shall not, however, exceed that part of the

the treasure, estimated before the settlement that, according to

the case may be, is attributable to the income which may

taxed in Sweden.



b) where a resident of Kazakhstan receives income, which

in accordance with the provisions of this Agreement shall be taxable only in Sweden,

may Kazakhstan-but only for the determination of the tax rate on

other revenue include such income in the tax base.



2. in the case of Sweden, double taxation shall be avoided in

the following ways:



a) where a resident of Sweden acquires income according to

Kazakhstani legislation and in accordance with the provisions of

This agreement may be taxed in Kazakhstan, Sweden-with

subject to the provisions of Swedish legislation concerning

deduction of foreign taxes (even in the version in the future

can get through to change without the general principle set out

This change)-from the Swedish tax on income offset a

the Kazakh tax paid on

income.



b) where a resident of Sweden receives income, which

in accordance with the provisions of this Agreement shall be taxable only in

Kazakhstan, Sweden-in determining Swedish progressive

tax-take account of such income.



c) Notwithstanding the provisions of subparagraph (a)) in this paragraph is

dividends from companies established in Kazakhstan to companies with

resident in Sweden exempt from Swedish tax according to the

the provisions of Swedish law on tax exemption for dividends

obtained by Swedish companies by subsidiaries abroad.



Article 23



Prohibition of discrimination



1. nationals of a Contracting State shall not, in the second

Contracting State be subject to taxation or

coherent demands that are of a different kind or more onerous than

the taxation and related requirements as nationals of

the other State under the same circumstances are or may be

subject to. This provision also applies to the person who

not domiciled in a Contracting State, or in both

Contracting States.



2. the taxation on a permanent establishment which businesses in a

Contracting State has in the other Contracting State,

in that other State shall not be less favourable than

taxation of the company in the other State, that carries

activities of the same kind.



3. Except where the provisions of article 9, paragraph 1,

paragraph 7 of article 11 or paragraph 6 of article 12 apply, the

interest, royalties and other payments from the company in a

Contracting State to a resident of the other

Contracting State tax deductible in determining the

taxable income of such company on the same terms and conditions

as payment to a resident of the first State.

Similarly, debt as a company of a Contracting State has

to a resident of the other Contracting State

deductible in determining such business

taxable assets on the same terms as the debt to

person resident in that State.



4. Enterprises of a Contracting State, the capital of which is wholly or

partly owned or controlled, directly or indirectly, by a

or more persons resident in the other Contracting

the State shall not be subjected in the first State for

taxation or related requirements of other

kind or more burdensome than the taxation and thus

coherent requirements as other similar companies in the

first State are or may be subjected.



5. Nothing in this article shall be deemed to entail the obligation for

either Contracting State to grant to a resident of

the other Contracting State such personal deductions for

taxation, such exemptions or reductions for

because of marital or dependent on family, as

granted resident in their own State.



6. Notwithstanding the provisions of article 2 shall be applied

the provisions of this article on the taxes of every kind and

nature.



Article 24



The procedure for the mutual



agreement



1. If a person believes that a Contracting State or both

Contracting States took measures to him causes

or will result in taxation contrary to

the provisions of this agreement, he may, without prejudice to

his right to make use of the remedies contained in these

the internal legal order of States, submit the matter to the competent

authority of the Contracting State in which he is domiciled

or, in the case of application of article 23, paragraph 1, of the

Contracting State of which he is a national. The matter shall

be presented within three years from the time the person in question

learned about the action that gave rise to taxation

contrary to the provisions of the agreement.



2. If the competent authority finds the complaint justified but

Unable to achieve a satisfactory solution,

the authority shall seek to resolve the matter by mutual

agreement with the competent authority of the other

Contracting State in order to avoid taxation which

contrary to the agreement. Agreement shall

be carried out without prejudice to the time limits of the Contracting

States ' internal legislation.



3. the competent authorities of the Contracting States shall

by mutual agreement, seek to determine or

doubts arising concerning the interpretation or

the application of the agreement. They can also initiate consultations with a view to

eliminate double taxation in cases not covered by

the agreement.



4. the competent authorities of the Contracting States may

enter into direct relations with each other in order to meet

agreement in the cases specified in the preceding paragraphs.



Article 25



Exchange of information



1. the competent authorities of the Contracting States shall

Exchange such information as is necessary to implement the

the provisions of this agreement or of the Contracting

States ' internal legislation concerning taxes covered

by the agreement, insofar as the taxation thereunder

not contrary to the agreement. Exchange of information is limited

not by article 1. Information which a Contracting State

received shall be treated as secret in the same manner as

information obtained in accordance with the internal legislation of the

This State and shall be disclosed only to persons or authorities

(including courts and administrative authorities)

establishes, or collect the taxes which are the subject of

agreement or dealing with criminal charges or complaints regarding these

taxes. Such persons or authorities shall use the

the information only for such purposes. They may disclose

the information in public court proceedings or in

Court decisions.



2. the provisions of paragraph 1 is not considered to entail the obligation for


a Contracting State that;



a) take administrative measures derogating from the legislation and

administrative practices in force in that Contracting State, or in the

other Contracting State,



b) provide information that is not available under

legislation or the usual administrative practice in this

Contracting State or of the other Contracting State,



c) supply information which would disclose any trade secret,

industrial, commercial or professional secret, or in

trade used the process or information,

the surrender would be contrary to ordre public considerations (

public).



Article 26



Diplomatic missions and



consular officials



The provisions of this Agreement shall not affect the privileges at the

taxation which, according to the General rules of international law or

provisions of specific agreements apply

diplomatic missions and consular officials, as well as

employees at the consular establishment.



Article 27



Limitation of benefits



1. Notwithstanding the other provisions of this agreement, if



a) company resident in one Contracting State is mainly

acquires its income from other States



1) from activities such as banking, marine,

financial or insurance activities, or



2) by head office, the coordination centre

or similar entity providing administrative or

other services to a group of companies engaged in operating

mainly in other States, and



b) such income, unless the application is made by the

method for avoidance of double taxation normally applicable

of that State, be taxed significantly lower under the State's

legislation than income of similar activities carried out in

This State or income from activities of head offices;

coordination centre or similar entity providing

administrative or other services to a group of companies

carries on business in that State,



the provisions of this agreement which allow for derogation from the

taxation or reduction of tax is not applied to income

as such a company acquires nor on dividend

paid by such a company.



2. the provisions of article 11 shall not apply if the

main purpose or one of the main objectives of

the advent of the creditors in respect of which interest is payable

been to achieve the benefits of article 11.



3. the provisions of article 12 shall not apply if the

main purpose or one of the main objectives of

the advent of the rights relative to which the royalty

deleted is to obtain the benefits of article 12.



4. the Contracting States agree that when a

Contracting State is considering, on the basis of paragraphs

1-3 of this article, a resident of the other

Contracting State benefits which result from this agreement, shall

the competent authority of the first-mentioned Contracting

State shall consult the competent authority of the other

Contracting State.



Article 28



Date of entry into force



1. the Contracting States shall notify each other when they

constitutional measures taken under the respective State

legislation is required in order for this agreement to come into force.



2. the agreement shall enter into force on the thirtieth day after the date of

the last of these notifications is received and its

provisions shall apply:



(a)) in respect of withholding taxes, on amounts paid or

credited on 1 January of the year immediately following the year

This agreement enters into force or later; and



(b)) in respect of other taxes, for taxation years beginning on

1 January of the year immediately following the year in which the agreement

enters into force, or later.



Article 29



Termination



This agreement will remain in force until terminated by a

Contracting State. Each Contracting State may, at the

diplomatic channels, terminate the agreement by

notice to that effect at least six months before the expiry of any

calendar year following a period of five years from the date

When the agreement entered into force. In the event of such termination ends

the agreement will apply:



(a)) in respect of withholding taxes, on amounts paid or

credited on 1 January of the year immediately following the year

When the notice of termination is submitted or later; and



(b)) in respect of other taxes, for taxation years beginning on

1 January of the year immediately following the year in which the

notification of termination is submitted or later.



In witness whereof the undersigned, being duly

authorized by their respective Governments, have signed this

agreements.



Done at Moscow on 19 February 1997, in Kazakh, Russian,

Swedish and English languages, all texts being equally

an official record. In the event that disputes arise in interpreting

the English text shall prevail.



CONVENTION BETWEEN THE

THE GOVERNMENT OF THE

KINGDOM OF SWEDEN AND THE GOVERNMENT OF THE

REPUBLIC OF KAZAKHSTAN FOR THE AVOIDANCE OF



DOUBLE TAXATION AND THE PREVENTION OF FISCAL



EVASION WITH RESPECT TO TAXES ON INCOME



The Government of the Kingdom of Sweden and the Government of

the Republic of Kazakhstan, desiring to conclude a Convention

for the avoidance of double taxation and the prevention of

fiscal evasion with respect to taxes on income,



have agreed as follows:



Article 1



Personal scope



This Convention shall apply to persons who are residents of one

or both of the Contracting States and to other persons as

specifically provided in the Convention.



Article 2



Taxes covered



1. The existing taxes to which the Convention shall apply are:



(a)) in the Republic of Kazakhstan:



(i) the tax on profit and incomes of enterprises;



(ii) the tax on incomes of physical persons;



(hereinafter referred to as "Kazakhstan tax");



b) in Sweden:



(i) the national income tax (State

income tax), including the tax on employees at sea

(seamen's tax) and the withholding tax on dividends

(withholding tax);



(ii) the income tax on non-residents (the Special

income tax for non-residents);



(iii) the income tax on non-resident artistes and athletes

(the Special income tax for non-resident artists

etc.); and



(iv) the municipal income tax (municipal

income tax);



(hereinafter referred to as "Swedish tax").



2. The Convention shall apply also to any identical or

substantially similar taxes which are imposed after the date of

signature of the Convention in addition to, or in place of, the

taxes referred to in paragraph 1.



The competent authorities of the Contracting States shall

notify each other of any significant changes which have been

made in their respective taxation laws.



Article 3



General definition



1. For the purposes of this Convention, unless the context

otherwise requires:



(a)) the terms:



(i) "Kazakhstan" means the Republic of Kazakhstan. When

used in a geographical sense, the term "Kazakhstan" includes

the territorial waters, and also the exclusive economic zone

and continental shelf in which Kazakhstan, for certain

purposes, may exercise sovereign rights and jurisdiction in

accordance with international law and in which the law relating

to Kazakhstan tax are applicable;



(ii) "Sweden" means the Kingdom of Sweden and, when used

in a geographical sense, includes the national territory, the

territorial sea of Sweden as well as other maritime areas over

which Sweden in accordance with international law exercises

sovereign rights or jurisdiction;



(b)) the term "person" includes an individual, a company and any

other body of persons;



c) the term "company" means any body corporate or any entity

which is treated as a body corporate for tax purposes, and in

the case of Kazakhstan includes a joint stock company, a

limited liability company or any other legal entity or other

organization which is liable to a tax on profits;



(d)) the terms "a Contracting State" and "the other Contracting

State "mean Kazakhstan or Australia, as the context requires;



e) the terms "enterprise of a Contracting State" and

"enterprise of the other Contracting State" mean respectively

an enterprise carried on by a resident of a Contracting State

and an enterprise carried on by a resident of the other

Contracting State;



f) the term "international traffic" means any transport by a

ship or aircraft operated by an enterprise of a Contracting

State, except when the ship or aircraft is operated solely

between places in the other Contracting State;



g) the term "competent authority" means:



(i) in Kazakhstan, the Ministry of Finance or its

authorized representative;



(ii) in Sweden, the Minister of Finance, his authorized

representative or the authority which is designated as a

competent authority for the purposes of this Convention;



h) the term "national" means:



(i) any individual possessing the nationality of a

Contracting State;



(ii) any legal person, partnership or any other

Association deriving its status as such from the laws in force

in a Contracting State.



2. As regards the application of the Convention by a

Contracting State, any term not defined therein shall, unless

the context otherwise requires, have the meaning which it has

under the law of that State concerning the taxes to which the

Convention applies.



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

State, is liable to tax therein by reason of his domicile,

residence, place of management, place of incorporation, or any

other criterion of a similar nature.



(a)), However, this term does not include any person who is liable


to tax in that State in respect only of income from sources in

that State or capital situated therein.



b) In the case of income derived by a partnership, or estate

This term applies only to the extent that the income is subject

to tax in that State as the income of a resident, either in its

hands or in the hands of its partners or with.



(c)) The term shall also include a Contracting State itself or a

political subdivision thereof, a local authority therein, the

The Central Bank of Sweden and the National Bank of Kazakhstan.



(d)) The term shall also include any company or organization

established under the law of a Contracting State, which

operates exclusively for the purpose of furnishing a pension or

employee benefits, even if such a company or organization is

exempt from tax in the State in which it has been organized.



2. Where by reason of the provisions of paragraph 1 an

individual is a resident of both Contracting States, then his

status shall be determined as follows:



a) he shall be deemed to be a resident of the State in which he

has a permanent home available to him; If he has a permanent

Home available to him in both States, he shall be deemed to be

a resident of the State with which his personal and economic

relations are closer (centre of vital interests);



b) if the State in which he has his centre of vital interests

cannot be determined, or if he has not 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 in neither of

them, he shall be deemed to be a resident of the State of which

He is a national;



d) if he is a national of both States or of neither of them,

the competent authorities of the Contracting States shall

settle the question 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, the competent authorities of the Contracting States

shall endeavour to settle the question by mutual agreement.



Article 5



Permanent establishment



1. For the purposes of this Convention, the term "permanent

establishment "means a fixed place of business through which

the business of an enterprise is wholly or partly carried on.



2. The term "permanent establishment" includes especially:



a) a place of management;



b) a branch;



c) an office;



d) a factory;



e) a workshop;



f) a mine, an oil or gas well, a quarry or any other place of

extraction of natural resources;



g) a building site or construction or installation or assembly

project, or supervisory services connected therewith, but only

If such site or project load for more than 12 months, or such

services continue for a period of more than 12 months;



h) an installation or structure used for the exploration of

natural resources, or supervisory services connected therewith,

or a drilling rig or ship used for the exploration of natural

resources, but only if such use cargo for more than 12 months,

or such services continue for more than 12 months; and



in) the furnishing of services, including consultancy services,

by a resident through employees or other personnel engaged by

the resident for such purpose, but only where the activities of

that nature continue (for the same or connected project) within

the country for more than 12 months.



3. Notwithstanding the preceding provisions of this Article,

the term "permanent establishment" shall be deemed not to

include:



(a)) the use of facilities solely for the purpose of storage,

display or delivery of goods or merchandise belonging to the

Enterprise;



b) the maintenance of a stock of goods or merchandise belonging

to the enterprise solely for the purpose of storage, display or

delivery;



c) the maintenance of a stock of goods or merchandise belonging

to the enterprise solely for the purpose of processing by

another enterprise;



d) the maintenance of a fixed place of business solely for the

purpose of purchasing goods or merchandise or of collecting

information, for the enterprise;



e) the maintenance of a fixed place of business solely for the

purpose of carrying on, for the enterprise, any other activity

of a preparatory or auxiliary character;



f) the maintenance of a fixed place of business solely for any

combination of activities mentioned in sub paragraphs a) to (e)),

provided that the overall activity of the fixed place of

business resulting from this combination is of a preparatory or

auxiliary character.



4. Notwithstanding the provisions of paragraphs 1 and 2, where

a person-other than an agent of an independent status to whom

paragraph 5 applies-is acting in a Contracting State on

behalf of an enterprise of the other Contracting State, that

the Enterprise shall be deemed to have a permanent establishment in

the first-mentioned Contracting State in respect of any

activities which that person undertakes for the enterprise, if

such a person has and habitually exercises in that State an

authority to conclude contracts in the name of the enterprise,

unless the activities of such person are limited to those

mentioned in paragraph 3 which, if exercised through a fixed

place of business, would not make this fixed place of business

a permanent establishment under the provisions of that

paragraph.



5. An enterprise of a Contracting State shall not be deemed to

have a permanent establishment in the other Contracting State

merely because it carries on business in that other State

through a broker, general commission agent or any other agent

of an independent status, provided that such persons are acting

in the ordinary course of their business.



6. The fact that a company which is a resident of a Contracting

State controls or is controlled by a company which is a

resident of the other Contracting State, or which carries on

business in that other State (whether through a permanent

establishment or otherwise) shall not of itself constitute

either company a permanent establishment of the other.



Article 6



Income from immovable property



1. Income derived by a resident of a Contracting State from

immovable property (including income from agriculture or

forestry) situated in the other Contracting State may be taxed

in that other State.



2. The term "immovable property" shall have the meaning which

It has under the law of the Contracting State in which the

property in question is situated. The term shall in any case

the include property accessory to immovable property, livestock and

equipment used in agriculture and forestry, rights to which the

the provisions of general law respecting landed property apply,

buildings, usufruct of immovable property and rights to

variable or fixed payments as consideration for the working of,

or the right to work, mineral deposits, sources and other

the natural resources; ships, boats and aircraft shall not be

regarded as immovable property.



3. The provisions of paragraph 1 shall apply to income derived

from the direct use, letting, or use in any other form of

immovable property.



4. The provisions of paragraphs 1 and 3 shall also apply to the

income from immovable property of an enterprise and to income

from immovable property used for the performance of independent

personal services.



Article 7



Business profits



1. The profits of an enterprise of a Contracting State shall be

taxable only in that State unless the enterprise carries on or

has carried on business in the other Contracting State through

a permanent establishment situated therein.



If the enterprise carries on or has carried on business as

aforesaid, the profits of the enterprise may be taxed in the

other State but only so much of them as is attributable to:



a) that permanent establishment;



b) sales in that other State of goods or merchandise of the

the same kind as those sold through that permanent establishment;

or



c) other business activities carried on in that other State of

the same kind as those effected through that permanent

Re-establishment.



However, if the enterprise can show that such sales or

activities as mentioned in sub paragraphs b and c above)) have

not been under taken by the permanent establishment those sub-

paragraphs shall not apply.



2. Subject to the provisions of paragraph 3, where an

Enterprise of a Contracting State carries on or has carried on

business in the other Contracting State through a permanent

establishment situated therein, there shall in each Contracting

State be attributed to that permanent establishment the profits

which it might be expected to make if it were a distinct and

separate enterprise engaged in the same or similar activities

under the same or similar conditions and dealing wholly

independently with the enterprise of which it is a permanent

Re-establishment.



3. In determining the profits of a permanent establishment,

There shall be allowed as deductions expenses which are

incurred for the purposes of the permanent establishment,

including executive and general administrative expenses so

incurred, whether in the State in which the permanent

establishment is situated or elsewhere.



The permanent establishment shall not (otherwise than towards

reimbursement of actual expenses) be allowed a deduction for

amounts paid to its head office or any of the other offices of

the resident by way of royalties, fees or other similar payment

in return for the use of patents or other rights, or by way of

Commission, for specific services performed or for management,

or by way of interest on .money's lent to the permanent

Re-establishment.



4. No profits shall be attributed to a permanent establishment

by reason of the mere purchase by that permanent establishment

of goods or merchandise for the enterprise.




5. Where profits include items of income which are dealt with

separately in other Articles of this Convention, then the

the provisions of those Articles shall not be affected by the

the provisions of this Article.



6. For the purposes of the preceding paragraphs, the profits to

be attributed to the permanent establishment shall be

determined by the same method year by year unless there is good

and sufficient reason to the contrary.



Article 8



Shipping and air transport



1. Profits derived by an enterprise of a Contracting State from

the operation of ships or aircraft in international traffic

shall be taxable only in that State.



2. With respect to profits derived by the air transport

Consortium Scandinavian Airlines System (SAS) the provisions of

paragraph 1 shall apply only to such part of the profits as

corresponds to the participation held in that consortium by AB

Aerotransport (ABA), the Swedish partner of Scandinavian

Scandinavian Airlines System (SAS).



3. The provisions of paragraph 1 shall also apply to profits

from the participation in a pool, a joint business or an

international operating agency.



Article 9



Associated enterprises



1. Where:



a) an enterprise of a Contracting State participates directly

or indirectly in the management, control or capital of an

Enterprise of the other Contracting State, or



b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a

Contracting State and an enterprise of the other Contracting

State,



and in either case conditions are made or imposed between the

the two enterprises in their commercial or financial relations

which differ from those which would be made between independent

enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by

reason of those conditions, have not so accrued, may be

included in the profits of that enterprise and taxed

accordingly.



2. Where a Contracting State includes in the profits of an

Enterprise of that State-and taxes accordingly-profits on

which an enterprise of the other Contracting State has been

charged to tax in that other State and the profits so included

are profits which would have accrued to the enterprise of the

the first-mentioned State if the conditions made between the two

enterprises had been those which would have been made between

independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein

on those profits. In determining such adjustment, due regard

shall be had to the other provisions of this Convention and the

competent authorities of the Contracting States shall if

necessary consult each other.



Article 10



Dividends



1. Dividends paid by a company which is a resident of a

Contracting State to a resident of the other Contracting State

may be taxed in that other State.



2. However, such dividends may also be taxed in the Contracting

State of which the company paying the dividends is a resident

and according to the laws of that State, but if the recipient

is the beneficial owner of the dividends the tax so charged

shall not exceed



a) 5 per cent of the gross amount of the dividends if the

beneficial owner is a company (other than a partnership) which

holds directly at least 10 per cent of the voting power of the

company paying the dividends;



b) 15 per cent of the gross amount of the dividends in all

other cases.



This paragraph shall not affect the taxation of the company in

respect of the profits out of which the dividends are paid.



3. The term "dividends" as used in this Article means income

from shares or other rights, not being debt-claims,

participating in profits, as well as income from other

corporate rights which is subjected to the same taxation

treatment as income from shares by the laws of the State of

which the company making the distribution is a resident. In

case of Kazakhstan, this term includes, in particular, income

transmitted abroad to the foreign participants of a joint

venture created under the law of Kazakhstan.



4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the dividends, being a resident of a

Contracting State, carries on or has carried on business in the

other Contracting State of which the company paying the

dividends is a resident, through a permanent establishment

situated therein, or performs or has performed in that other

State independent personal services from a fixed base situated

therein, and the holding in respect of which the dividends are

paid is effectively connected with such permanent establishment

or fixed base. In such case the provisions of Article 7 or

Article 14, as the case may be, shall apply.



5. Where a company which is a resident of a Contracting State

derives profits or income from the other Contracting State,

that other State may not impose any tax on the dividends paid

by the company, except insofar as such dividends are paid to a

the resident of that other State or insofar as the holding in

respect of which the dividends are paid is effectively or was

connected with a permanent establishment or a fixed base

situated in that other State, nor subject the company's

undistributed profits to a tax on the company's undistributed

profits, even if the dividends paid or the undistributed

profits consist wholly or partly of profits or income arising

in such other State.



6. Nothing in this Convention shall be construed as preventing

a Contracting State from imposing on the earnings of a company

attributable to permanent establishments in that State, a tax

In addition to the tax which would be chargeable on the

earnings of a company which is a resident of that State,

provided that the rate of such additional tax so imposed shall

not exceed 5 per cent of the amount of such earnings which have

not been subjected to such additional tax in previous taxation

years. For the purpose of this paragraph, the term "earnings"

means the profits attributable to such permanent establishments

in that State (including gains from the alienation of property

forming part of the business property, referred to in paragraph

3 of Article 13, of such permanent establishments) in

accordance with Article 7 in a year and previous years after

deducting therefrom:



a) business losses attributable to such permanent

establishments (including losses from the alienation of

property forming part of the business property of such

permanent establishments) in such year and in previous years to

the extent a loss carryforward is permitted under internal law

of the Contracting State in which the permanent establishment

is situated; and



b) all taxes on profits charged in that State on such profits,

other than the additional tax referred to herein.



7. If in any convention for the avoidance of double taxation

concluded by Kazakhstan with a third State, being on the date

hereof a member of the Organization for Economic Co-operation

and Development (OECD), Kazakhstan would agree to exempt

dividends referred to in sub-paragraph a) of paragraph 2

arising in Kazakhstan from Kazakhstan tax or to limit the rate

of tax provided in that sub-paragraph, such exemption or lower

rate shall automatically apply in relation to Sweden as if it

had been specified in sub-paragraph a) of paragraph 2 and in

paragraph 6 of this Article.



Article 11



Interest



1. Interest arising in a Contracting State and paid to a

resident of the other Contracting State may be taxed in that

other State.



2. However, such interest may also be taxed in the Contracting

State in which it arises and according to the laws of that

State, but if the recipient is the beneficial owner of the

the interest the tax so charged shall not exceed 10 per cent of the

the gross amount of the interest.



3. Notwithstanding the provisions of paragraph 2 interest shall

be taxable only in the Contracting State where the recipient of

the interest is a resident if one of the following requirements

ice the ugly file:



(a)) the payer or the recipient of the interest is a Contracting

State itself, a political subdivision or a local authority

thereof or the Central Bank of a Contracting State;



b) the interest is paid in respect of a loan granted or

guaranteed by SWEDECORP (Swedish International

business assistance), Swedfund International AB or the Swedish

Export Credits Guarantee Board (exportkreditnämnden) or any

other institution of a public character with the objective to

promote exports or development, if the credit is granted or

guaranteed on preferential conditions.



4. The term "interest" as used in this Article means income

from debt-claims of every kind, whether or not secured by

mortgage and whether or not carrying a right to participate in

the debtor's profits, and in particular, income from government

Securities and income from bonds or debentures, including

premiums and prizes attaching to such securities, bonds or

debentures. Penalty charges for late payment shall not be

regarded as interest for the purpose of this Article.



5. The provisions of paragraphs 1, 2 and 3 shall not apply if

the beneficial owner of the interest, being a resident of a

Contracting State, carries on or has carried on business in the

other Contracting State in which the interest arises, through a

permanent establishment situated therein, or performs or has

performed in that other State independent personal services

from a fixed base situated therein, and the debt-claim in

respect of which the interest is paid is effectively connected

with such permanent establishment or fixed base. In such case

the provisions of Article 7 or Article 14, as the case may be,

shall apply.



6. Interest shall be deemed to arise in a Contracting State

When the payer is a resident of that State. Where, however, the


the person paying the interest, whether he is a resident of a

Contracting State or not, has in a Contracting State or had a

permanent establishment or a fixed base in connection with

which the indebtedness on which the interest is paid was

incurred, and such interest is borne by such permanent

establishment or fixed base, then such interest shall be deemed

to arise in the State in which the permanent establishment or

fixed base is or was situated.



7. Where, by reason of a special relationship between the payer

and the beneficial owner or between both of them and some other

person, the amount of the interest, having regard to the debt-

claim for which it is paid, exceeds the amount which would have

been agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article

shall apply only to the last-mentioned amount. In such case,

the excess part of the payments shall remain taxable according

to the laws of each Contracting State, due regard being had to

the other provisions of this Convention.



8. If in any convention for the avoidance of double taxation

concluded by Kazakhstan with a third State, being on the date

hereof a member of the Organization for Economic Co-operation

and Development (OECD), Kazakhstan would agree to exempt

interest mentioned in paragraph 2 arising in Kazakhstan from

Kazakhstan tax on interest or to limit the rate of tax provided

in that paragraph, such exemption or lower rate shall

automatically apply as if it had been specified in paragraph 2

of this Article. If in any such convention Kazakhstan were to

agree to extend the exemptions referred to in paragraph 3 of

This Article to interest paid in respect of loans granted by a

Bank or in respect of indebtedness arising on the sale on

credit, by an enterprise of a Contracting State, of any

merchandise or industrial, commercial or scientific equipment

to an enterprise of the other Contracting State, such

exemptions shall automatically apply in relation to Sweden.



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 State.



2. However, such royalties may also 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 per cent of

the gross amount of the royalties. In the case of royalties

described in sub-paragraph b) of paragraph 3, the beneficial

owner may elect to compute the tax on such income on a net

basis as if such income were attributable to a permanent

establishment or fixed base in the Contracting State in which

the royalties arise.



3. The term "royalties" as used in this Article means:



a) payments of any kind received as a consideration for the use

of, or the right to use, any copyright of literary, artistic,

or scientific work, including computer programs, video

cassettes, and cinematograph films and tapes for radio and

television broadcasting, any patent, trademark, design or

model, plan, secret formula or process, or other like right or

property, or for information concerning industrial, commercial,

or scientific experience; and



b) payments for the use of, or the right to use, industrial,

commercial, or scientific equipment.



4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the royalties, being a resident of a

Contracting State, carries on or has carried on business in the

other Contracting State in which the royalties arise, through a

permanent establishment situated therein, or performs or has

performed in that other State independent personal services

from a fixed base situated therein, and the right or property

in respect of which the royalties are paid is effectively

connected with such permanent establishment or fixed base. In

such 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

When the payer is a resident of that State. Where, however, the

the person paying the royalties, whether he is a resident of a

Contracting State or not, has in a Contracting State or had a

permanent establishment or a fixed base in connection with

which the liability to pay the royalties was incurred, and such

royalties are borne by such permanent establishment or fixed

base, then such royalties shall be deemed to arise in the State

in which the permanent establishment or fixed base is or was

situated.



6. Where, by reason of a special relationship between the payer

and the beneficial owner or between both of them and some other

person, the amount of the royalties, having regard to the use,

right or information for which they are paid, exceeds the

the amount which would have been agreed upon by the payer and the

beneficial owner in the absence of such relationship, the

the provisions of this Article shall apply only to the last-

mentioned amount. In such case, the excess part of the payments

shall remain taxable according to the laws of each Contracting

State, due regard being had to the other provisions of this

Convention.



7. If in any convention for the avoidance of double taxation

concluded by Kazakhstan with a third State, being on the date

hereof a member of the Organization for Economic Co-operation

and Development (OECD), Kazakhstan would agree to exempt any

royalties mentioned in paragraph 2 arising in Kazakhstan from

Kazakhstan tax on royalties or to limit the rate of tax

provided in that paragraph, such exemption or lower rate shall

automatically apply in relation to any such royalties as if it

had been specified in this Article.



Article 13



Capital gains



1. Gains derived by a resident of a Contracting State from the

alienation of immovable property referred to in Article 6 and

situated in the other Contracting State may be taxed in that

other State.



2. Gains derived by a resident of a Contracting State from the

alienation of:



a) shares, other than shares in which there is substantial and

regular trading on an approved Stock Exchange, deriving their

value or the greater part of their value directly or indirectly

from immovable property situated in the other Contracting

State, or



b) an interest in a partnership, the assets of which consist

principally of immovable property situated in the other

Contracting State, or of shares referred to in sub-paragraph (a))

above,



may be taxed in that other State.



(3) Gains from alienation of movable property forming part of

the business property of a permanent establishment which an

Enterprise of a Contracting State has or had in the other

Contracting State or of movable property pertaining to a fixed

base available to a resident of a Contracting State in the

other Contracting State for the purpose of performing

independent personal services, including such gains from the

alienation of such a permanent establishment (alone or with the

whole enterprise) or of such fixed base, may be taxed in that

other State.



4. Gains derived by a resident of a Contracting State from the

alienation of ships or aircraft operated in international

traffic, or movable property pertaining to the operation of

such ships or aircraft, shall be taxable only in that

Contracting State.



With respect to gains derived by the air transport consortium

Scandinavian Airlines System (SAS), the provisions of this

paragraph shall apply only to such portion of the gains as

corresponds to the participation held in that consortium by AB

Aerotransport (ABA), the Swedish partner of Scandinavian

Scandinavian Airlines System (SAS).



5. Gains from the alienation of any property other than that

referred to in paragraphs 1, 2, 3 and 4, shall be taxable only

in the Contracting State of which the alienator is a resident.



6. Notwithstanding the provisions of paragraphs 5, gains from

the alienation of shares or other corporate rights of a company

which is a resident of one of the Contracting States derived by

an individual who has been a resident of that State and who has

become a resident of the other Contracting State, may be taxed

in the first-mentioned State if the alienation of the shares or

other corporate rights occur at any time during the ten years

next following the date on which the individual has ceased to

be a resident of the first-mentioned State.



Article 14



Independent personal services



1. Income derived by an individual who is a resident of a

Contracting State in respect of professional services or other

the activities of an independent character shall be taxable only in

that State unless he has or had a fixed base regularly

available to him in the other Contracting State for the purpose

of performing his activities. If he has or had such a fixed

base, the income may be taxed in the other State but only so

much thereof as is or was attributable to that fixed base.



2. The term "professional services" includes especially

independent scientific, literary, artistic, educational or

teaching activities as well as the independent activities of

physicians, lawyers, engineers, architects, dentists and

Accountants.



Article 15



Dependent personal services



1. Subject to the provisions of Articles 16, 18, and 19,

salaries, wages and other similar remuneration derived by a

the resident of a Contracting State in respect of an employment

shall be taxable only in that State unless the employment is or

was exercised in the other Contracting State. If the employment

is or was so exercised, such remuneration as is derived

therefrom 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

the employment exercised in the other Contracting State shall be


taxable only in the first-mentioned State if:



a) the recipient is or was present in the other State for a

period or periods not exceeding in the aggregate 183 days in

any consecutive twelve month period commencing or ending in the

fiscal year concerned, and



b) the remuneration is paid by, or on behalf of, an employer

the who is not a resident of the other State, and



c) the remuneration is not borne by a permanent establishment

or a fixed base which the employer has or had in the other

State.



3. Notwithstanding the preceding provisions of this Article,

remuneration derived in respect of an employment exercised

aboard a ship or aircraft operated in international traffic by

an enterprise of a Contracting State may be taxed in that

State. Where a resident of Sweden derives remuneration in

respect of an employment exercised aboard an aircraft operated

in international traffic by the air transport consortium

Scandinavian Airlines System (SAS), such remuneration shall be

taxable only in Sweden.



Article 16



Directors ' fees



Directors ' fees and other similar payments derived by a

the resident of a Contracting State in his capacity as a member of

the board of directors or similar body of a company which is a

resident of the other Contracting State may be taxed in that

other State.



Article 17



Artistes and sportsmen



1. Notwithstanding the provisions of Articles 14 and 15, income

derived by a resident of a Contracting State as an entertainer,

such as a theatre, motion picture, radio or television artiste,

or a musician, or as a sportsman, from his personal activities

as such exercised in the other Contracting State, may be taxed

in that other 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, annuities and similar



payments



1. Pensions and other similar remuneration, disbursements under the

the social security legislation and annuities arising in a

Contracting State and paid to a resident of the other

Contracting State may be taxed in the first-mentioned

Contracting State.



2. The term "annuity" means a stated sum payable periodically

at stated times during life or during a specified or

ascertainable period of time under an obligation to make the

payments in return for adequate and full consideration in money

or money's worth.



Article 19



Government service



1. a) Remuneration, other than a pension, paid by a Contracting

The State or a political subdivision or a local authority thereof

to an individual in respect of services rendered to that State

or subdivision or authority shall be taxable only in that

State.



b) However, such remuneration shall be taxable only in the

other Contracting State if the services are rendered in that

other 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 rendering the services.



2. The provisions of Articles 15 and 16 shall apply to

remuneration in respect of services rendered in connection with

a business carried on by a Contracting State or a political

subdivision or a local authority thereof.



Article 20



Students and trainees



Payments which a student or trainee who is or was immediately

before visiting a Contracting State a resident of the other

Contracting State and who is present in the first-mentioned

State solely for the purpose of his education or training

receives for the purpose of his maintenance, education or

training shall not be taxed in that State, provided that such

payments arise from sources outside that State.



Article 21



Other income



1. Items of income of a resident of a Contracting State,

wherever arising, not dealt with in the foregoing Articles of

This Convention shall be taxable only in that 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 a Contracting State, carries on or has

carried on business in the other Contracting State through a

permanent establishment situated therein, or performs or has

performed in that other State independent personal services

from a fixed base situated therein, and the right or property

in respect of which the income is paid is effectively connected

with such permanent establishment or fixed base. In such case

the provisions of Article 7 or Article 14, as the case may be,

shall apply.



Article 22



Elimination of double taxation



1. In the case of Kazakhstan, double taxation shall be avoided

as follows:



a) Where a resident of Kazakhstan derives income which, in

accordance with the provisions of this Convention, may be taxed

in Sweden, Kazakhstan shall allow as a deduction from the tax

on the income of that resident, an amount equal to the income

tax paid in Sweden.



Such deduction shall not, however, exceed that part of the

the income tax, as computed before the deduction is given, which is

attributable, as the case may be, to the income which may be

taxed in Sweden.



b) Where a resident of Kazakhstan derives income, which in

accordance with the provisions of this Convention, shall be

taxable only in Sweden, Kazakhstan may include this income in

the tax base but only for purposes of determining the rate of

tax on such other income as is taxable in Kazakhstan.



2. In the case of Sweden, double taxation shall be avoided as

follows:



a) Where a resident of Sweden derives income which under the

laws of Kazakhstan and in accordance with the provisions of

This Convention may be taxed in Kazakhstan, Sweden shall allow

-subject to the provisions of the laws of Sweden concerning

credit for foreign tax (as it may be amended from time to time

without changing the general principle hereof)-as a deduction

from the tax on such income, an amount equal to the Kazakhstan

tax paid in respect of such income.



b) Where a resident of Sweden derives income which, in

accordance with the provisions of this Convention, shall be

taxable only in Kazakhstan, Sweden may, when determining the

graduated rate of Swedish tax, take into account the income

which shall be taxable only in Kazakhstan.



c) Notwithstanding the provisions of sub-paragraph (a)) of this

paragraph, dividends paid by a company which is a resident of

Kazakhstan to a company which is a resident of Sweden shall be

exempt from Swedish tax according to the provisions of Swedish

law governing the exemption of tax on dividends paid to Swedish

companies by subsidiaries abroad.



Article 23



Non-discrimination



1. Nationals of a 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 in the same circumstances are or may be subjected.

This provision shall, notwithstanding the provisions of Article

1, also apply to persons who are not residents of one or both

of the Contracting States.



2. 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.



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 disbursements paid by an

Enterprise of a Contracting State to a resident of the other

Contracting State shall, for the purpose of determining the

the taxable profits of such enterprise, be deductible under the

same conditions as if they had been paid to a resident of the

the first-mentioned State. Similarly, any debts of an enterprise of

a Contracting State to a resident of the other Contracting

State shall, for the purpose of determining the taxable capital

of such enterprise, be deductible under the same conditions as

If they had been contracted to a resident of the first-

mentioned State.



4. 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.



5. Nothing contained in this Article shall be construed as

obliging either Contracting State to grant to residents of the

other Contracting State any personal allowances, reliefs and

reductions for tax purposes on account of civil status or

family responsibilities which are granted to its residents.



6. The provisions of this Article shall, notwithstanding the

the provisions of Article 2, apply to taxes of every kind and

Description.



Article 24



Mutual agreement procedure



1. Where a person considers that the actions of one or both of

the Contracting States result or will result for him in

taxation not in accordance with the provisions of this

Convention, he may, irrespective of the remedies provided by

the domestic law of those States, present his case to the

competent authority of the Contracting State of which he is a

resident or, if his case comes under paragraph 1 of Article 23,

to that of the Contracting State of which he is a national. The


the case must be presented within three years from the first

notification of the action resulting in taxation not in

accordance with the provisions of the Convention.



2. The competent authority shall endeavour, if the objection

appears to it 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 the avoidance of taxation

which is not in accordance with the Convention. Any agreement

reached shall be implemented notwithstanding any time limits in

the domestic law 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 together for the elimination

of double taxation in cases not provided for in the Convention.



4. The competent authorities of the Contracting States may

communicate with each other directly for the purpose of

reaching an agreement in the sense of the preceding paragraphs.



Article 25



Exchange of information



1. The competent authorities of the Contracting States shall

Exchange such information as is necessary for carrying out the

the provisions of this Convention or of the domestic laws of the

Contracting States concerning taxes covered by the Convention,

insofar as the taxation thereunder is not contrary to the

Convention. The exchange of information is not restricted by

Article 1. Any information received by a Contracting State

shall be treated as secret in the same manner as information

obtained under the domestic laws of that State and shall be

disclosed only to persons or authorities (including courts and

administrative bodies) involved in the assessment or collection

of, the enforcement or prosecution in respect of, or the

determination of appeals in relation to, the taxes covered by

the Convention. Such persons or authorities shall use the

information only for such purposes. They may disclose the

information in public court proceedings or in judicial

decisions.



2. In no case shall the provisions of paragraph 1 be construed

so as to impose on a Contracting State the obligation:



(a)) to carry out administrative measures at variance with the

laws and administrative practice of that or of the other

Contracting State;



b) to supply information which is not obtainable under the laws

or in the normal course of the administration of that or of the

other Contracting State;



c) to supply information which would disclose any trade,

business, industrial, commercial or professional secret or

trade process, or information, the disclosure of which would be

contrary to public policy (ordre public).



Article 26



Diplomatic missions and consular



officers



Nothing in this Convention shall affect the fiscal privileges

of diplomatic missions and consular officers or employees of a

the consular establishment under the general rules of international

law or under the provisions of special agreements.



Article 27



Limitations of benefits



1. Notwithstanding any other provisions of this Convention,

the where



(a)) a company that is a resident of a Contracting State derives

its income primarily from other States



(i) from activities such as banking, shipping, financing

or insurance or



(ii) from being the headquarters co-ordination centre or

similar entity providing administrative services or other

support to a group of companies which carry on business

primarily in other States; and



b) except for the application of the method of elimination of

double taxation normally applied by that State, such income

would bear a significantly lower tax under the laws of that

State than income from similar activities carried out within

that State or from being the headquarters co-ordination centre

or similar entity providing administrative services or other

support to a group of companies which carry on business in that

State, as the case may be,



any provisions of this Convention conferring an exemption or a

reduction of taxes shall not apply to the income of such company

and to the dividends paid by such company.



2. The provision of Article 11 shall not apply if it was the

the main purpose or one of the main purposes of any person

concerned with the creation or assignment of the debt-claim in

respect of which the interest is paid to take advantage of

Article 11 by means of that creation or assignment.



3. The provisions of Article 12 shall not apply if it is the

the main purpose or one of the main purposes of any person

concerned with the creation or assignment of the rights in

respect of which the royalties are paid to take advantage of

Article 12, by means of that creation or assignment.



4. It is agreed that when a Contracting State contemplates

Book denying the benefits of the Convention to a resident of the

other Contracting State in application of paragraph 1, 2 or 3

of this Article, the competent authority of such first

Contracting State shall consult with the competent authority of

the other Contracting State.



Article 28



Entry into force



1. Each of the Contracting States shall notify the other of the

completion of the procedures required by its law for the entry

into force of this Convention.



2. The Convention shall enter into force on the thirtieth day

After the later of these notifications and shall thereupon have

effect:



a) with regard to taxes withheld at source, in respect of

amounts paid or credited on or after the first day of January

of the year next following that of the entry into force of the

Convention;



b) with regard to other taxes, in respect of taxable years

beginning on or after the first day of January next following

that of the entry into force of the Convention.



Article 29



Termination



This Convention shall remain in force until terminated by a

Contracting State. Either Contracting State may terminate the

The Convention, through diplomatic channels, by giving written

notice of termination at least six months before the end of any

calendar year after the expiration of a period of five years

from the date of its entry into force. In such case, the

Convention shall cease to have effect:



a) with regard to taxes withheld at source, in respect of

amounts paid or credited on or after the first day of January

of the year next following that in which the notice of

termination is given;



b) with regard to other taxes, in respect of taxable years

beginning on or after the first day of January next following

that in which the notice of termination is given.



In WITNESS WHEREOF, the undersigned being duly authorized by

their respective Governments, have signed this Convention.



DONE at Moscow, this nineteenth day of March 1997, in the

Kazakh, Russian, Swedish and English languages, all texts being

equally authentic. In case of divergence between the texts, the

The English text shall prevail.

Related Laws