The Department of State Revenue of the Mangystau Region informs citizens of the Republic of Kazakhstan about the significance of international tax conventions.
The Republic of Kazakhstan has concluded 55 conventions (agreements) with foreign states on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital. These treaties are in force and are applied in accordance with the legislation of the Republic of Kazakhstan and the norms of international law.
The purpose of the conventions is to prevent a situation in which the same income of a citizen or an organization is taxed twice — both in Kazakhstan and in another country. The agreements determine in which state income is subject to taxation, in which cases reduced withholding tax rates apply, and how tax already paid abroad is credited.
The conventions concern not only large companies. They are also important for ordinary citizens if a person:
- works or provides services abroad;
- receives a salary, fee, pension, dividends, interest, or royalties from a foreign source;
- owns property or a business in another country;
- is a tax resident of Kazakhstan and has foreign income.
Tax residents of Kazakhstan are entitled to a credit for tax paid abroad, provided that supporting documents are submitted. As a rule, a legalized (apostilled) certificate of income received and taxes paid, issued or certified by the foreign tax authority, is required, together with a notarized translation into Kazakh or Russian. The documents must be available by the deadline for filing the annual tax return.
Application of treaty benefits usually requires confirmation of tax residency. A resident of a foreign state submits a certificate of residency to the tax agent in Kazakhstan.
Kazakhstan also participates in the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). For a number of agreements, consolidated (synthesized) texts incorporating the provisions of the MLI are in effect. In addition, the Republic of Kazakhstan has acceded to the Convention on Mutual Administrative Assistance in Tax Matters (the Strasbourg Convention), which strengthens the exchange of information between the tax authorities of the participating countries.
The official texts of the conventions, the consolidated texts reflecting the MLI, explanations, and up-to-date information are available on the website of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan: kgd.gov.kz (sections on international treaties and the taxation of non-residents).
The Department of State Revenue of the Mangystau Region reminds citizens that the application of a particular convention depends on the country of source of the income, the type of income, residency status, and the documents provided. If questions arise, citizens may contact the state revenue authorities at their place of residence, the contact center, or the electronic services of the tax authorities.
Compliance with international tax treaties protects the rights of citizens, reduces the risk of double taxation, and contributes to the transparency of international financial transactions.
