PROTOCOL

At the signing today of the Convention between the Government of the Republic of Kazakhstan and the Government of Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital the undersigned have agreed upon the following provisions, which shall form an integral part of the Convention:

1. With regard to Article 12

If Kazakhstan agrees in a treaty with another country which at the time of signing the Convention is a member of the Organisation for Economic Cooperation and Development, to impose a lower rate on royalties than the rate specified in paragraph 2, both Contracting States shall apply that lower rate instead of the rate specified in paragraph 2 in regard of the following:

(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

(b) royalties for the use of, or the right to use, computer software; or

(c) where the payer and the beneficial owner of the royalties are not associated persons within the meaning of subparagraph a) or subparagraph b) of Article 9 (Associated Persons), royalties for the use of, or the right to use, any patent or any information concerning industrial, commercial or scientific experience (but not including any such information provided in connection with a rental or franchise agreement).

2. With regard to Article 22

The term "capital" for purposes of Article 22 (Capital) means movable and immovable property, and includes (but is not limited to) cash, stock or other evidences of ownership rights, notes, bonds or other evidences of indebtedness, and patents, trademarks, copyrights or other like right or property.

3. With regard to Article 28

The Contracting States agree that if and when the Republic of Kazakhstan joins the General Agreement on Trade in Services, and notwithstanding paragraph 3 of Article XXII of that Agreement, any dispute between them as to whether a measure relating to a tax to which any provision of this Convention applies falls within the scope of this Convention may be brought before the Council for Trade in Services, as provided by the paragraph 3 referred to herein, only with the consent of both Contracting States.

IN WITNESS WHEREOF the undersigned, being duly authorized by their respective Governments, have signed this Protocol.

DONE at Almaty this 25th day of September 1996, in the English, French, Kazakh and Russian languages, all texts being equally authentic.

 FOR THE GOVERNMENT OF THE        FOR THE GOVERNMENT OF CANADA REPUBLIC OF KAZAKHSTAN 

Majit Esenbaev Michael Vujnovich