Baku, Azerbaijan, Jan. 31
By Ali Mustafayev – Trend:
The Finance and Budget Committee of Kazakhstan’s Senate reviewed the draft law "On ratification of the Protocol between the Government of the Republic of Kazakhstan and the Government of the Republic of Azerbaijan on amendments and additions to the Convention on avoiding double taxation and preventing tax evasion on income and on property", during the meeting of the parliament, the press service of the Kazakh parliament said in a message.
The Protocol amends "Kazakhstan," "Azerbaijan" terms, and specifies the Kazakh and Azerbaijani types of taxes in accordance with the present legislation.
The new version of the law contains articles regulating the definition of residency in the contracting states and the procedure for the formation of a permanent establishment.
Amendments to the "Elimination of double taxation" and "Exchange of information" articles are aimed at bringing the document's norms into line with the OECD (Organization for Economic Cooperation and Development) Model Convention and expanding cooperation between the tax services of Kazakhstan and Azerbaijan.
The bilateral Convention also implements a new "Limitation of benefits" article, which will allow the application of domestic legislation, in case of detection of tax evasion and violations of established norms. The bill was submitted to the Chamber of Kazakhstan for consideration.