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Routes network of Air Astana will expand due to convention with Ireland

26 December 2017 15:30 (UTC+04:00)
Routes network of Air Astana will expand due to convention with Ireland

By Kamila Aliyeva

Routes network of Kazakh air carrier Air Astana will expand due to the convention with Ireland on the avoidance of double taxation.

This was announced by the Kazakh Vice-Minister of Finance, Kanat Baedilov, at an expanded meeting of the Finance and Budget Committee of the Parliament’s Senate, Kazinform reported.

The draft law “On ratification of the Convention between the Government of the Republic of Kazakhstan and the Government of Ireland on avoiding double taxation and preventing tax evasion with respect to income taxes and the Protocol to it” was discussed at the meeting.

“Kazakhstan is trying to conclude tax conventions with all member countries of the Organization for Economic Cooperation and Development. Ireland is a member of the OECD and the European Union. In addition, the request of the national air carrier Air Astana, which plans to expand its routes network, as well as to increase the fleet of aircrafts, some of which will be acquired through leasing, was considered in connection with the request of the Kazakh President to establish direct air communication with major cities in the world within seven-hours-flight,” Baedilov said.

Ireland, the world aircraft leasing leader, a country with developed airspace, offers various options for renting modern European aircraft, according to the minister.

There are specialized centers for the training of flight personnel in Ireland, which provide training and opportunities for exchange of international experience for improving and developing airline business in Kazakhstan.

This will contribute to an increase in the number of flights to the EU countries and the expansion of the fleet of aircraft, the development of ground infrastructure and the material and technical base in Kazakhstan, he noted.

Baedilov stressed that the convention will provide an opportunity to avoid double taxation of the income of the Irish enterprise, which will provide aircraft for rent. For Air Astana, ratification of the convention will allow reducing the amount of tax paid when renting aircraft.

The vice minister also said that in 2018 it is planned to conclude similar conventions with Indonesia, Israel, and amend the convention with Great Britain and Northern Ireland from 2013, due to changes in the tax legislation of Kazakhstan.

The convention, first, gives an opportunity, by dividing the rights of taxation between the contracting states, to avoid double taxation of income of legal entities and individuals who are residents of states.

Secondly, by creating favorable conditions for investment, an opportunity for strengthening and expanding economic cooperation between Kazakhstan and Ireland opens up.

Thirdly, the exchange of information on tax issues between the authorized bodies of the two states will help prevent tax evasion.

Separate articles of the convention provide for the procedure for taxing the income of artists, athletes, public servants and students who carry out their activities in these states.

Kazakhstan has airports in Shimkent, Atbasar, Karaganda, Kyzyl-Orda, Balkhash, Burundai, Zaisan, Petropavlovsk, Semipalatinsk, Ust-kamenogorsk, Uralsk, Taldy-Kurgan, Kokshetau, Pavlodar, Zhezkazgan, Atyrau, Zhambyl, Zhairem, Ekibastuz, Almaty, Aktau, Kostanay, Aktyubinsk, Arkalyk, and Astana cities.

Kazakhstan's existing airlines are Air Astana, Air Company MEGA, Avia Jaynar, Bek Air, Berkut Air, Euro-Asia Air, Excellent Glide, Irtysh-Air, SCAT, Semeyavia, Zhetysu, and Zhezkazgan Air.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

Follow us on Twitter @AzerNewsAz

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