Below we can discuss the main developments in the tax assessment of Kazakhstan for non-residents.
Part 26 of the Tax Code of the Republic of Kazakstan (further referred as RK) allows full or partial discharge from the double tax assessment of the various types of profits of non-residents, which were obtained from the sources in RK under the condition of the existence of the agreement between RK and the country of residence of a non-resident in order to avoid double tax assessment.
This means that a non-resident of such a country has a possibility to pay taxes from Kazakhstan originated profits only in his own country, but only in case if he is able to prove the residency by providing Kazakhstan contractor apostilled certificate of residence from his country and the extract from the trade register or, alternatively, a passport copy.
Para 4 and 5 of section 219 of the Tax Code states that the documents approving the citizenship of a non-resident is an official document, which can be in a form of:
- an original of such a document;
- notary certified copy of such a document;
- from 2017 it is necessary to present in hard copy of electronic document that proves residency, located in the internet source of the competent body of the foreign country (Georgia, Spain, Moldova, Czech Republic etc.).
In accordance with para 4 section 212 of the Tax Code in a case when a non-resident provides services or completes works in the territory of RK in a specific time limits, which does not result into the permanent entity in RK, for the purpose of applying international agreement legal non-resident should present to the tax agent both documents proving residency and notary certified copies of the Certificate of Incorporation or extracts from the trade register mentioning incorporators (members) and shareholders of a legal non-resident.
The same documents are needed in order to get return of the income tax for non-resident from the budget or provisional bank deposit.
Additionally from 2017 in a case if the foreign country does not provide such documents (Certificate of Incorporation, extract from trade register) such a non-resident has to provide a document from the foreign country, which was used to become a non-resident, legality of which is proven by the appropriate official body within the foreign country.
International information exchange cooperation
In 2004 Kazakhstan ratified the Convention on Mutual Administrative Assistance in Tax Matters, which was signed by 103 countries including 19 offshore jurisdictions.
Convention provides exchange of information on the mutual basis between participating countries in order to prevent shadow economy, money laundering, including avoidance of tax payments.
Therefore, Kazakhstan continues further liberalisation of the tax regime in order to create a fruitful atmosphere for foreign investments and capital growth.
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