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Ottawa, October 17, 1996
1996-073

Tax Convention Signed by Canada and the Republic of Kazakhstan

Related document:

• Convention between the Government of the Republic of Kazakhstan and the Government of Canada.

Finance Minister Paul Martin today announced that a Convention between Canada and the Republic of Kazakhstan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital was signed on September 25, 1996, at Almaty. The Convention was signed on behalf of Canada by the Chargé d'affaires Michael Vujnovich and on behalf of Kazakhstan by the Chief of the State Tax Committee, Majit Esenbaev.

The Convention is patterned to a large extent on the model double taxation convention prepared by the Organisation for Economic Co-operation and Development. Under the Convention, a general rate of withholding tax of 5 per cent will apply to dividends paid to a parent company and on branch profits and of 10 per cent on interest and royalties. The rate of withholding tax on other dividends is set at 15 per cent. The Convention also provides for a limited number of exemptions in the case of interest.

The Convention will enter into force on the date of the exchange of the instruments of ratification and its provisions will have effect, in the case of the withholding tax, from the first day of January 1996 and, in the case of other taxes, for taxation years beginning on or after the first day of January 1996.

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For further information:

Jean-Marc Déry
Tax Legislation Division
(613) 992-1862