Article 24 - Elimination of Double Taxation - Kazakhstan (Kazakstan)

ARTICLE 24 ELIMINATION OF DOUBLE TAXATION 1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Convention. 2. In the case of Kazakstan, double taxation shall be avoided as follows:- (a) Where a resident of Kazakstan derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in India, Kazakstan shall allow:- (i) as a deduction from the tax on the income of that resident, an amount equal to the income-tax paid in India; (ii) as a deduction from the tax on capital of that resident, an amount equal to the tax on capital paid in India. The amount of the tax to be deducted pursuant to the above provision shall not exceed the tax which would have been charged on the same income in Kazakstan under the rates applicable thereon. 3. In the case of India, double taxation shall be avoided as follows:- (a) Where a resident of India derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Kazakstan, India shall allow:- (i) as a deduction from the tax on the income of that resident, an amount equal to the income-tax paid in Kazakstan; (ii) as a deduction from the tax on capital of that resident, an amount equal to the tax on capital paid in Kazakstan. The amount of the tax to be deducted pursuant to the above provision shall not exceed the tax which would have been charged on the same income in India under the rates applicable thereon. 4. Income or capital which, in accordance with the provisions of this Convention, is not to be subjected to tax in a Contracting State, may be taken into account for calculating the rate of tax to be imposed in that Contracting State. 5. The tax paid in a Contracting State shall be deemed to include the tax which would have been paid but for any exemption or reduction of tax granted under incentive provisions contained in the law of that Contracting State designed to promote economic development to the extent that such exemption or reduction is granted for profits from industrial or manufacturing activities or from agriculture, fishing or tourism (including restaurants and hotels), provided that the activities have been carried out within that Contracting State.