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3 repealed by law (2011:1388).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.