of April 6, 2004 No. NK-UMN-09-4-21/2695
The Tax Committee of the Ministry of Finance of the Republic of Kazakhstan, having considered the letter of closed joint stock company, concerning the taxation of the income of nonresidents, reports the following.
Follows from the letter that between closed joint stock company and the Russian company performing activities in the Republic of Kazakhstan without formation of permanent organization the agreement according to which the Russian company provides in lease of closed joint stock company the aircraft with crew for accomplishment of commercial air cargo carriages is signed. According to the registration certificate of the civil aircraft, this aircraft is entered in the State register of Civil aircrafts of the Russian Federation.
According to the subitem 10) of article 178 of the Code of the Republic of Kazakhstan "About taxes and other obligatory payments in the budget" (further - the Tax code) income gained from leasing of the property which is in the Republic of Kazakhstan is the income from sources in the Republic of Kazakhstan.
Thus, the income of the Russian company from leasing of the aircraft with crew of closed joint stock company is the income from sources in the Republic of Kazakhstan and according to article 179 of the Tax Code is subject to the taxation at payment source in the Republic of Kazakhstan.
At the same time considering that between the Republic of Kazakhstan and the Russian Federation the Convention on avoidance of double taxation and prevention of tax avoidance on the income and the capital is signed (further - the Tax convention), the nonresident has the right to apply provisions of such Tax convention.
According to article 8 of the Tax convention the income of resident of the Contracting State from leasing of vehicles, and also containers and the equipment for their operation relating to them in international carriages, is assessed with tax only in this State.
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions. This section provides answers to questions set by users.