Draft Agreement between the Government of the Republic of Kazakhstan and the Government of the Sultanate of Oman for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (2022)

Draft

Agreement

between the Government of the Republic of Kazakhstan and the Government of the Sultanate of Oman for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital

The Government of the Republic of Kazakhstan and the Government of the Sultanate of Oman,

Desiring to further develop their economic relationship and to enhance their co-operation in tax matters,

Intending to conclude an Agreement for the elimination of double taxation with respect to taxes on income and on capital without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Agreement for the indirect benefit of residents of third States),

Have agreed as follows:

Article 1

Persons covered

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

Article 2

Taxes covered

1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions, central or local authorities, irrespective of the manner in which they are levied.

2.There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

3. The existing taxes to which the Agreement shall apply are in particular:

a) in the case of the Republic of Kazakhstan:

(i) the corporate income tax;

(ii) the individual income tax;

(iii) the tax on property of legal persons and individuals;

(hereinafter referred to as «Kazakhstan tax»);

b) in the case of the Sultanate of Oman:

the income tax;

(hereinafter referred to as «Omani tax»).

4.The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.

Article 3

General definitions

1.For the purposes of this Agreement, unless the context otherwise requires:

a) the term «Kazakhstan» means the Republic of Kazakhstan and, when used in a geographical sense, is defined as the territory within the state border of the Republic of Kazakhstan, including land, water, subsoil, airspace over which its state sovereignty extends, as well as any zone outside the state border in which the Republic of Kazakhstan exercises or may further exercise its sovereign rights and jurisdiction in accordance with its national legislation and international law;