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The Government of Canada and the Government of the Kyrgyz
Republic, desiring to conclude an Agreement for the
avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital,
have agreed as follows:
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This Agreement shall apply to persons who are residents of
one or both of the Contracting States.
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1. This Agreement shall apply to taxes on income and on
capital imposed on behalf of each Contracting State, irrespective
of the manner in which they are levied.
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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, as well as taxes on
capital appreciation.
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3. The existing taxes to which this Agreement shall apply are,
in particular:
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(a) in the case of Canada:
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the taxes imposed by the Government of Canada under the
Income Tax Act, (hereinafter referred to as ``Canadian tax'');
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(b) in the case of Kyrgyzstan:
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the taxes imposed by the Government of the Kyrgyz Republic
in accordance with the laws of the Kyrgyz Republic on the
taxation of income and of property (capital), (hereinafter
referred to as ``Kyrgyz tax'').
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4. This Agreement shall apply also to any similar taxes and to
taxes on capital which are imposed after the date of signature of
this 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 which have been made in
their respective taxation laws.
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1. For the purposes of this Agreement, unless the context
otherwise requires:
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(a) the term ``Canada'' used in a geographical sense, means the
territory of Canada, including:
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(i) any area beyond the territorial seas of Canada which, in
accordance with international law and the laws of Canada,
is an area within which Canada may exercise rights with
respect to the seabed and subsoil and their natural re
sources;
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(ii) the seas and airspace above every area referred to in
clause (i) in respect of any activity carried on in connection
with the exploration for or the exploitation of the natural
resources referred to therein;
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(b) the term ``Kyrgyzstan'' means the Kyrgyz Republic and,
when used in a geographical sense, means the territory upon
which the Kyrgyz Republic exercises its sovereign rights and
jurisdiction in accordance with international law and in which
the taxation legislation of the Kyrgyz Republic is applied;
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(c) the terms ``a Contracting State'' and ``the other Contracting
State'' mean, as the context requires, Canada or Kyrgyzstan;
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(d) the term ``person'' includes an individual, a company and
any other body of persons and, in the case of Canada it also
includes a trust;
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(e) the term ``company'' means any corporate entity or any
entity which is treated as a corporate entity for tax purposes;
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(f) 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;
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(g) the term ``competent authority'' means:
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(i) in the case of Canada, the Minister of National Revenue
or his authorized representative;
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(ii) in the case of Kyrgyzstan, the Ministry of Finance or its
plenipotentiary representative;
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(h) the term ``national'' means:
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(i) any individual possessing the citizenship of a Contract
ing State;
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(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting State;
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(i) the term ``international traffic'' with reference to an
enterprise of a Contracting State means any voyage of a ship
or aircraft to transport passengers or property except where the
principal purpose of the voyage is to transport passengers or
property between places within the other Contracting State.
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2. As regards the application of this Agreement by a
Contracting State at any time, any term not defined therein shall,
unless the context otherwise requires, have the meaning which it
has at that time under the law of that State concerning the taxes
to which this Agreement applies.
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1. For the purposes of this Agreement, the term ``resident of
a Contracting State'' means:
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(a) 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;
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(b) the Government of that State or a political or
administrative subdivi-sion or local authority thereof or any
agency or instrumentality of any such government,
subdivision or authority.
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But this term does not include any person who is liable to tax in
that State in respect only of income from that State.
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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:
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(a) he shall be deemed to be a resident only 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 only of the State with which his
personal and economic relations are closer (centre of vital
interests);
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(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 only of the State in which he has an habitual abode;
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(c) if he has an habitual abode in both States or in neither of
them, he shall be deemed to be a resident only of the State of
which he is a citizen;
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(d) if he is a citizen of both States or of neither of them, the
competent authorities of the Contracting States shall settle the
question by mutual agreement.
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3. Where by reason of the provisions of paragraph 1 a
company is a resident of both Contracting States, then its status
shall be determined as follows:
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(a) it shall be deemed to be a resident only of the State in which
it was incorporated or otherwise constituted;
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(b) if it was not incorporated or otherwise constituted in either
of the States, it shall be deemed to be a resident only of the
State in which its place of effective management is situated.
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4. Where by reason of the provisions of paragraph 1 a person
other than an individual or a company is a resident of both
Contracting States, the competent authorities of the Contracting
States shall by mutual agreement endeavour to settle the question
and to determine the mode of application of this Agreement to
such person.
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1. For the purposes of this Agreement, the term ``permanent
establishment'' means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
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2. The term ``permanent establishment'' includes especially:
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(a) a place of management;
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(f) a mine, an oil or gas well, a quarry or any other place
relating to the exploration for or the exploitation of natural
resources; and
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(g) an agricultural, pastoral or forestry property.
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3. A building site or construction or installation project
constitutes a permanent establishment only if it lasts for more
than twelve months.
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4. Notwithstanding the preceding provisions of this Article,
the term ``permanent establishment'' shall be deemed not to
include:
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(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to the
enterprise;
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(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage,
display or delivery;
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(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
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(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;
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(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;
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(f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs (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.
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5. Notwithstanding the provisions of paragraphs 1 and 2,
where a person - other than an agent of an independent status
to whom paragraph 6 applies - is acting on behalf of an
enterprise and has, and habitually exercises, in a Contracting
State an authority to conclude contracts on behalf of the
enterprise, that enterprise shall be deemed to have a permanent
establishment in that State in respect of any activities which that
person undertakes for the enterprise unless the activities of such
person are limited to those mentioned in paragraph 4 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.
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6. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it carries on
business in that 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.
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7. 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.
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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.
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2. For the purposes of this Agreement, the term ``immovable
property'' shall have the meaning which it has for the purposes
of the relevant taxation law of the Contracting State in which the
property in question is situated. The term shall in any case include
property accessory to immovable property, livestock and
equipment used in agriculture and forestry, rights to which the
provisions of general law respecting landed property apply,
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 natural resources;
ships and aircraft shall not be regarded as immovable property.
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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 and, in the case of Canada, shall also apply to income
from the alienation of such property.
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4. Where the ownership of shares or other corporate rights in
a company entitles the owner of such shares or corporate rights
to the enjoyment of immovable property held by the company,
the income from the direct use, letting, or use in any other form
of such right to enjoyment may be taxed in the Contracting State
in which the immovable property is situated.
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5. 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.
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1. The profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries 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
that permanent establishment.
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2. Subject to the provisions of paragraph 3, where an
enterprise of a Contracting State carries 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 establishment.
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3. In the determination of 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, whether incurred in the State in which the permanent
establishment is situated or elsewhere.
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4. Insofar as it has been customary in a Contracting State to
determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total profits
of the enterprise to its various parts, nothing in paragraph 2 shall
preclude that Contracting State from determining the profits to be
taxed by such an apportionment as may be customary; the
method of apportionment adopted shall, however, be such that
the result shall be in accordance with the principles contained in
this Article.
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5. 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.
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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.
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7. Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
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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.
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2. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.
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3. In this Article,
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(a) the term ``profits'' includes:
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(i) gross receipts and revenues derived directly from the
operation of ships or aircraft in international traffic, and
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(ii) interest on sums generated directly from the operation
of ships or aircraft in international traffic provided that such
interest is incidental to the operation;
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(b) the term ``operation of ships or aircraft in international
traffic'' by an enterprise, includes:
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(i) the charter or rental of ships or aircraft,
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(ii) the rental of containers and related equipment, and
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(iii) the alienation of ships, aircraft, containers and related
equipment,
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by that enterprise provided that such charter, rental or
alienation is incidental to the operation by that enterprise of
ships or aircraft in international traffic.
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1. Where
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(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
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(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,
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and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any income which would, but for those
conditions, have accrued to one of the enterprises, but, by reason
of those conditions, has not so accrued, may be included in the
income of that enterprise and taxed accordingly.
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2. Where a Contracting State includes in the income of an
enterprise of that State - and taxes accordingly - income on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the income so included is
income which would have accrued to the enterprise of 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 tax charged therein
on that income. In determining such adjustment, due regard shall
be had to the other provisions of this Agreement and the
competent authorities of the Contracting States shall if necessary
consult each other.
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3. A Contracting State shall not change the income of an
enterprise in the circumstances referred to in paragraph 1 after the
expiry of the time limits provided in its national laws and, in any
case, after five years from the end of the year in which the income
which would be subject to such change would, but for the
conditions referred to in paragraph 1, have accrued to that
enterprise.
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4. The provisions of paragraphs 2 and 3 shall not apply in the
case of fraud, wilful default or neglect.
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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.
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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 a resident
of the other Contracting State is the beneficial owner of the
dividends the tax so charged shall not exceed 15 per cent of the
gross amount of the dividends. The provisions of this paragraph
shall not affect the taxation of the company on the profits out of
which the dividends are paid.
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3. The term ``dividends'' as used in this Article means income
from shares, mining shares, founders' shares or other rights, not
being debt-claims, participating in profits, as well as income
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.
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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 business in the other Contracting
State of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
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.
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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 resident
of that other State or insofar as the holding in respect of which the
dividends are paid is effectively 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
undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income
arising in such other State.
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1. Interest arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State.
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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 a resident of the other Contracting State is the beneficial owner
of the interest the tax so charged shall not exceed 15 per cent of
the gross amount of the interest.
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3. Notwithstanding the provisions of paragraph 2:
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(a) interest arising in a Contracting State and paid in respect
of indebtedness of the government of that State or of a political
subdivision or local authority thereof shall, provided that the
interest is beneficially owned by a resident of the other
Contracting State, be taxable only in that other State;
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(b) interest arising in Kyrgyzstan and paid to a resident of
Canada shall be taxable only in Canada if it is paid in respect
of a loan made, guaranteed or insured, or a credit extended,
guaranteed or insured by the Export Development
Corporation; and
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(c) interest arising in Canada and paid to a resident of
Kyrgyzstan shall be taxable only in Kyrgyzstan if it is paid in
respect of a loan made, guaranteed or insured, or a credit
extended, guaranteed or insured by any organisation
established in Kyrgyzstan after the date of signature of this
Agreement and which is of a similar nature as the Canadian
Export Development Corporation (the competent authorities
of the Contracting States shall by mutual agreement determine
whether such organisations are of a similar nature).
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4. The term ``interest'' as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage, and in particular, income from government securities
and income from bonds or debentures, including premiums and
prizes attaching to such securities, bonds or debentures, as well
as income which is subjected to the same taxation treatment as
income from money lent by the laws of the State in which the
income arises. However, the term ``interest'' does not include
income dealt with in Article 8 or Article 10.
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5. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting
State, carries on business in the other Contracting State in which
the interest arises through a permanent establishment situated
therein, or performs 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.
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6. Interest shall be deemed to arise in a Contracting State when
the payer is a resident of that State. Where, however, the person
paying the interest, whether he is a resident of a Contracting State
or not, has in a Contracting State 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 situated.
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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 Agreement.
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1. Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that other
State.
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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 a resident of the other Contracting State is the
beneficial owner of the royalties the tax so charged shall not
exceed 10 per cent of the gross amount of the royalties.
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3. Notwithstanding the provisions of paragraph 2, royalties
arising in a Contracting State and paid to a resident of the other
Contracting State who is the beneficial owner of the royalties,
shall be taxable only in that other State if they are:
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(a) copyright royalties and other like payments in respect of
the production or reproduction of any literary, dramatic,
musical or artistic work (but not including royalties in respect
of motion picture films nor royalties in respect of works on
film or videotape or other means of reproduction for use in
connection with television broadcasting); or
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(b) where the payer and the beneficial owner of the royalties
are not associated persons within the meaning of
subparagraphs 1(a) or 1(b) of Article 9, royalties for the use of,
or the right to use, application software or any patent or for
information concerning industrial, commercial or scientific
experience (but not including any such information provided
in connection with a rental or franchise agreement).
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4. The term ``royalties'' as used in this Article means payments
of any kind received as a consideration for:
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(a) the use of, or the right to use, any copyright of literary,
artistic or scientific work, including software, patent, design
or model, plan, secret formula or process, trade mark or other
like property or right;
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(b) the use of, or the right to use, industrial, commercial or
scientific equipment;
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(c) the supply of scientific, technical, industrial or commercial
knowledge or information;
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(d) the supply of any assistance that is ancillary and subsidiary
to, and is furnished as a means of enabling the application or
enjoyment of, any such property or right as is mentioned in
subparagraph (a), any such equipment as is mentioned in
subparagraph (b) or any such knowledge or information as is
mentioned in subparagraph (c);
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(e) the use of, or the right to use:
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(i) motion picture films; or
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(ii) films or videotapes or other means of reproduction for
use in connection with television; or
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(iii) tapes for use in connection with radio broadcasting; or
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(f) total or partial forbearance in respect of the use or supply
of any property or right referred to in this paragraph.
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5. The provisions of paragraphs 1, 2 and 3 shall not apply if
the beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the royalties arise through a permanent
establishment situated therein, or performs 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.
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6. Royalties shall be deemed to arise in a Contracting State
when the payer is a resident of that State. Where, however, the
person paying the royalties, whether he is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
obligation 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 situated.
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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 royalties, having regard to the
use, right or information for which they are 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 Agreement.
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1. Gains derived by a resident of a Contracting State from the
alienation of immovable property situated in the other
Contracting State may be taxed in that other State.
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2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or 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 a
fixed base may be taxed in that other State.
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3. Gains derived by an enterprise 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 State.
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4. Gains derived by a resident of a Contracting State from the
alienation of:
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(a) shares (other than shares listed on an approved stock
exchange in the other Contracting State) forming part of a
substantial interest in the capital stock of a company which is
a resident of that other State the value of which shares is
derived principally from immovable property situated in that
other State; or
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(b) a substantial interest in a partnership or trust, established
under the law in the other Contracting State, the value of
which is derived principally from immovable property
situated in that other State,
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may be taxed in that other State. For the purposes of this
paragraph, the term ``immovable property'' includes the shares
of a company referred to in subparagraph (a) or an interest in a
partnership or trust referred to in subparagraph (b) but does not
include any property, other than rental property, in which the
business of the company, partnership or trust is carried on.
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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.
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6. The provisions of paragraph 5 shall not affect the right of a
Contracting State to levy, according to its law, a tax on gains from
the alienation of any property derived by an individual who is a
resident of the other Contracting State and has been a resident of
the first-mentioned State at any time during the six years
immediately preceding the alienation of the property.
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1. Income derived by an individual who is a resident of a
Contracting State in respect of professional or similar services of
an independent character shall be taxable only in that State unless
he has a fixed base regularly available to him in the other
Contracting State for the purpose of performing the services. If
he has or had such a fixed base, the income may be taxed in the
other State but only so much of it as is attributable to that fixed
base.
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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.
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1. Subject to the provisions of Articles 16, 18 and 19, salaries,
wages and other remuneration derived by a resident of a
Contracting State in respect of an employment shall be taxable
only in that State unless the employment is exercised in the other
Contracting State. If the employment is so exercised, such
remuneration as is derived therefrom may be taxed in that other
State.
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2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State if:
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(a) the recipient is present in the other State for a period or
periods not exceeding in the aggregate 183 days in any twelve
month period commencing or ending in the calendar year
concerned, and
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(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other State, and
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(c) the remuneration is not borne by a permanent
establishment or a fixed base which the employer has in the
other State.
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3. Notwithstanding the preceding provisions of this Article,
remuneration in respect of an employment exercised aboard a
ship or aircraft operated in international traffic by an enterprise
of a Contracting State, shall be taxable only in that State unless
the remuneration is derived by a resident of the other Contracting
State.
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Directors' fees and other similar payments derived by a
resident of a Contracting State in his capacity as a member of the
board of directors or a similar organ of a company which is a
resident of the other Contracting State, may be taxed in that other
State.
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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.
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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.
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3. The provisions of paragraph 2 shall not apply if it is
established that neither the entertainer or the sportsman nor
persons related thereto, participate directly or indirectly in the
profits of the person referred to in that paragraph.
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4. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities performed in a Contracting State
by a resident of the other Contracting State in the context of a visit
in the first-mentioned State of a non-profit organization of the
other State in the case of Canada or a public organization of the
other State in the case of Kyrgyzstan, provided the visit is
substantially supported by public funds.
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1. Pensions and annuities arising in a Contracting State and
paid to a resident of the other Contracting State may be taxed in
that other State.
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2. Pensions arising in a Contracting State and paid to a resident
of the other Contracting State may also be taxed in the State in
which they arise and according to the law of that State. However,
in the case of periodic pension payments other than social
security benefits, the tax so charged shall not exceed the lesser of:
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(a) 15 per cent of the gross amount of the payment; and
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(b) the rate determined by reference to the amount of tax that
the recipient of the payment would otherwise be required to
pay for the year on the total amount of the periodic pension
payments received by him in the year, if he were resident in the
Contracting State in which the payment arises.
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3. Annuities arising in a Contracting State and paid to a
resident of the other Contracting State may also be taxed in the
State in which they arise and according to the law of that State;
but the tax so charged shall not exceed 15 per cent of the portion
thereof that is subject to tax in that State. However, this limitation
does not apply to lump-sum payments arising on the surrender,
cancellation, redemption, sale or other alienation of an annuity,
or to payments of any kind under an annuity contract the cost of
which was deductible, in whole or in part, in computing the
income of any person who acquired the contract.
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4. Notwithstanding anything in this Agreement:
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(a) war pensions and similar allowances arising in a
Contracting State and paid to a resident of the other
Contracting State shall be exempt from tax in that other State
to the extent that they would be exempt from tax if received
by a resident of the first-mentioned State; and
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(b) alimony and other similar payments arising in a
Contracting State and paid to a resident of the other
Contracting State who is subject to tax therein in respect
thereof, shall be taxable only in that other State.
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5. For the purposes of this Article, 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.
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1. (a) Salaries, wages and similar remuneration, other than a
pension, paid by a Contracting State or a political or
administrative 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.
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(b) However, such salaries, wages or similar remuneration
shall be taxable only in the other Contracting State if the
services are rendered in that State and the individual is a
resident of that State who:
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(i) is a national of that State; or
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(ii) did not become a resident of that State solely for the
purpose of rendering the services.
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2. The provisions of paragraph 1 shall not apply to
remuneration in respect of services rendered in connection with
a business carried on by a Contracting State or a political or
administrative subdivision or a local authority thereof.
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Payments which a student 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 receives for the purpose of his
maintenance or education shall not be taxed in that State,
provided that such payments arise from sources outside that
State.
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1. Subject to the provisions of paragraph 2, items of income
of a resident of a Contracting State, wherever arising, not dealt
with in the foregoing Articles of this Agreement shall be taxable
only in that State.
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2. However, if such income is derived by a resident of a
Contracting State from sources in the other Contracting State,
such income may also be taxed in the State in which it arises, and
according to the law of that State. Where such income is income
from a trust, other than a trust to which contributions were
deductible, the tax so charged shall, provided that the income is
taxable in the Contracting State in which the beneficial owner is
a resident, not exceed 15 per cent of the gross amount of the
income.
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1. Capital represented by immovable property owned by a
resident of a Contracting State and situated in the other
Contracting State, may be taxed in that other State.
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2. Capital represented by movable property forming part of
the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or by 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,
may be taxed in that other State.
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3. Capital represented by ships and aircraft operated by an
enterprise of a Contracting State in international traffic and by
movable property pertaining to the operation of such ships and
aircraft, shall be taxable only in that State.
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4. All other elements of capital of a resident of a Contracting
State shall be taxable only in that State.
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1. In the case of Canada, double taxation shall be avoided as
follows:
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(a) subject to the existing provisions of the law of Canada
regarding the deduction from tax payable in Canada of tax
paid in a territory outside Canada and to any subsequent
modification of those provisions - which shall not affect the
general principle hereof - and unless a greater deduction or
relief is provided under the laws of Canada, tax payable in
Kyrgyzstan on profits, income or gains arising in Kyrgyzstan
shall be deducted from any Canadian tax payable in respect of
such profits, income or gains;
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(b) subject to the existing provisions of the law of Canada
regarding the taxation of income from a foreign affiliate and
to any subsequent modification of those provisions - which
shall not affect the general principle hereof - for the purpose
of computing Canadian tax, a company which is a resident of
Canada shall be allowed to deduct in computing its taxable
income any dividend received by it out of the exempt surplus
of a foreign affiliate which is a resident of Kyrgyzstan;
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(c) where in accordance with any provision of this Agreement
income or capital derived by a resident of Canada is exempt
from tax in Canada, Canada may nevertheless, in calculating
the amount of tax on other income or capital, take into account
the exempted income or capital.
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2. In the case of Kyrgyzstan, double taxation shall be avoided
as follows: where a resident of Kyrgyzstan derives income or
owns capital which, in accordance with the provisions of this
Agreement, may be taxed in Canada, Kyrgyzstan shall, subject
to the existing provisions of the law of Kyrgyzstan, allow:
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(a) as a deduction from the tax on the income of that resident,
an amount equal to the income tax paid in Canada;
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(b) as a deduction from the tax on the capital of that resident,
an amount equal to the capital tax paid in Canada.
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Such deduction in either case shall not, however, exceed that part
of the income tax or capital tax as computed before the deduction
is given, which is attributable, as the case may be, to the income
or the capital which may be taxed in Canada.
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Where in accordance with any provision of the Agreement
income derived or capital owned by a resident of Kyrgyzstan is
exempt from tax in Kyrgyzstan, Kyrgyzstan may nevertheless, in
calculating the amount of tax on the remaining income or capital
of such resident, take into account the exempted income or
capital.
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3. For the purposes of this Article, profits, income or gains of
a resident of a Contracting State which are taxed in the other
Contracting State in accordance with this Agreement shall be
deemed to arise from sources in that other State.
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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.
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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.
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3. Nothing in this Article shall be construed as obliging a
Contracting State to grant to residents of the other Contracting
State any personal allowances, reliefs and reductions for taxation
purposes on account of civil status or family responsibilities
which it grants to its own residents.
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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, the
capital of which is wholly or partly owned or controlled, directly
or indirectly, by one or more residents of a third State, are or may
be subjected.
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5. In this Article, the term ``taxation'' means taxes which are
the subject of this Agreement.
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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 Agreement, he may,
irrespective of the remedies provided by the domestic law of
those States, address to the competent authority of the
Contracting State of which he is a resident an application in
writing stating the grounds for claiming the revision of such
taxation. To be admissible, the said application must be
submitted within two years from the first notification of the
action which gives rise to taxation not in accordance with this
Agreement.
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2. The competent authority referred to in paragraph 1 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
not in accordance with this Agreement.
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3. A Contracting State shall not, after the expiry of the time
limits provided in its national laws and, in any case, after five
years from the end of the taxable period in which the income
concerned has accrued, increase the tax base of a resident of either
of the Contracting States by including therein items of income
which have also been charged to tax in the other Contracting
State. This paragraph shall not apply in the case of fraud, wilful
default or neglect.
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4. 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 this
Agreement.
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5. The competent authorities of the Contracting States may
consult together for the elimination of double taxation in cases
not provided for in this Agreement and may communicate with
each other directly for the purpose of applying this Agreement.
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1. The competent authorities of the Contracting States shall
exchange such information as is necessary for carrying out the
provisions of this Agreement or of the domestic laws in the
Contracting States concerning taxation insofar as such taxation
is not contrary to this Agreement. 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 in respect of, or the determination
of appeals in relation to taxes. 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.
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2. Nothing in paragraph 1 shall be construed so as to impose
on a Contracting State the obligation:
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(a) to carry out administrative measures at variance with the
laws and the administrative practice of that or of the other
Contracting State;
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(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;
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(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).
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3. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
endeavour to obtain the information to which the request relates
in the same way as if its own taxation were involved
notwithstanding the fact that the other State does not, at that time,
need such information. If specifically requested by the
competent authority of a Contracting State, the competent
authority of the other Contracting State shall endeavour to
provide information under this Article in the form requested,
such as depositions of witnesses and copies of unedited original
documents (including books, papers, statements, records,
accounts or writings), to the same extent such depositions and
documents can be obtained under the laws and administrative
practices of that other State with respect to its own taxes.
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1. Nothing in this Agreement shall affect the fiscal privileges
of members of diplomatic missions or consular posts under the
general rules of international law or under the provisions of
special agreements.
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2. Notwithstanding Article 4, an individual who is a member
of a diplomatic mission, consular post or permanent mission of
a Contracting State which is situated in the other Contracting
State or in a third State shall be deemed for the purposes of this
Agreement to be a resident of the sending State if he is liable in
the sending State to the same obligations in relation to tax on his
total income as are residents of that sending State.
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3. This Agreement shall not apply to international
organizations, to organs or officials thereof and to persons who
are members of a diplomatic mission, consular post or permanent
mission of a third State or group of States, being present in a
Contracting State and who are not liable in either Contracting
State to the same obligations in relation to tax on their total
income as are residents thereof.
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1. The provisions of this Agreement shall not be construed to
restrict in any manner any exemption, allowance, credit or other
deduction accorded:
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(a) by the laws of a Contracting State in the determination of
the tax imposed by that State; or
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(b) by any other agreement entered into by a Contracting
State.
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2. Nothing in this Agreement shall be construed as preventing
Canada from imposing a tax on amounts included in the income
of a resident of Canada with respect to a partnership, trust, or
controlled foreign affiliate, in which he has an interest.
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3. This Agreement shall not apply to any company, trust or
partnership that is a resident of a Contracting State and is
beneficially owned or controlled directly or indirectly by one or
more persons who are not residents of that State, if the amount of
the tax imposed on the income or capital of the company, trust or
partnership by that State is substantially lower than the amount
that would be imposed by that State if all of the shares of the
capital stock of the company or all of the interests in the trust or
partnership, as the case may be, were beneficially owned by one
or more individuals who were residents of that State.
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4. With respect to paragraph 3 of Article XXII of the General
Agreement on Trade in Services (GATS), the Contracting States
agree that, notwithstanding that paragraph, any dispute between
them as to whether a measure relating to a tax to which any
provision of this Agreement applies falls within the scope of this
Agreement may be brought before the Council for Trade in
Services, as provided by that paragraph, only with the consent of
both Contracting States.
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Each of the Contracting States shall take all measures
necessary to give this Agreement the force of law within its
jurisdiction and each shall notify the other of the completion of
such measures. This Agreement shall enter into force on the date
on which the later notification is made and shall thereupon have
effect:
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(a) in respect of tax withheld at the source on amounts paid or
credited to non-residents on or after the first day of the second
month next following the date on which this Agreement enters
into force; and
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(b) in respect of other taxes for taxation years beginning on or
after the first day of the second month next following the date
on which this Agreement enters into force.
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This Agreement shall continue in effect indefinitely but either
Contracting State may, on or before June 30 of any calendar year
after the year of the exchange of instruments of ratification, give
to the other Contracting State a notice of termination in writing
through diplomatic channels; in such event, this Agreement shall
cease to have effect:
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(a) in respect of tax withheld at the source on amounts paid or
credited to non-residents on or after the first day of January of
the next following calendar year; and
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(b) in respect of other taxes for taxation years beginning on or
after the first day of January of the next following calendar
year;
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IN WITNESS WHEREOF the undersigned, duly authorized
to that effect, have signed this Agreement.
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DONE in duplicate at Ottawa, this 4th day of June 1998, in the
English, French and Russian languages, each version being
equally authentic.
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FOR THE GOVERNMENT FOR THE
GOVERNMENT OF CANADA OF THE KYRGYZ REPUBLIC Lloyd Axworthy Muratbek Imanaliev
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At the moment of signing the Agreement for the avoidance of
double taxation and the prevention of fiscal evasion with respect
to taxes on income and on capital, this day concluded between
the Government of Canada and the Government of the Kyrgyz
Republic, the undersigned have agreed that the following
provisions shall form an integral part of the Agreement.
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1. With reference to Article 7, paragraph 3.
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It is understood that nothing contained therein shall require a
Contracting State to allow the deduction of any expenditure
which, by reason of its nature, is not generally allowed as a
deduction under the taxation law of that State.
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2. With reference to Article 8.
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Notwithstanding the provisions of paragraph 1 of that Article
and of Article 7, profits derived by an enterprise of Kyrgyzstan
from a voyage of a ship or aircraft where the principal purpose of
the voyage is to transport passengers or property between places
in Canada may be taxed in Canada.
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3. Nothing in the Agreement shall be construed as preventing
Canada from imposing on the earnings of a company attributable
to a permanent establishment in Canada, a tax in addition to the
tax which would be chargeable on the earnings of a company
which is a resident of Canada, provided that any additional tax so
imposed shall not exceed 15 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 provision, the
term ``earnings'' means the profits, including any gains,
attributable to a permanent establishment in Canada in a year and
previous years after deducting therefrom all taxes, other than the
additional tax referred to herein, imposed on such profits by
Canada.
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4. In the event that pursuant to an Agreement or Convention
concluded after the date of signature of this Agreement,
Kyrgyzstan agrees to a rate of tax on inter-company dividends or
on interest that is lower than 15 per cent, then such lower rate (but
not in any event a rate below 5 per cent in the case of
inter-company dividends or 10 per cent in the case of interest)
shall apply for the purpose of paragraph 2 of Article 10 and
paragraph 3 of this Protocol with respect to dividends received
by a company that is the beneficial owner of the dividends and
that controls directly or indirectly at least 10 per cent of the voting
power in the company paying the dividends or that holds at least
25 per cent of the capital of the company paying the dividends,
or of paragraph 2 of Article 11 with respect to interest, as the case
may be.
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IN WITNESS WHEREOF the undersigned, duly authorized
to that effect, have signed this Protocol.
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DONE in duplicate at Ottawa, this 4th day of June 1998, in the
English, French and Russian languages, each version being
equally authentic.
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FOR THE GOVERNMENT FOR THE
GOVERNMENT OF CANADA: OF THE KYRGYZ
REPUBLIC: Lloyd Axworthy Muratbek Imanaliev
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