The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan informs on the procedure for applying the provisions of an international treaty on the avoidance of double taxation upon payment of income to non-resident.

      In accordance with paragraph 2 of Article 698 of the Tax Code of the Republic of Kazakhstan, the application of the provisions of an international treaty shall be carried out in the manner prescribed by the Tax Code and the relevant international treaty.

      The procedure for applying the international treaty regarding exemption from taxation or application of a reduced tax rate to the income of a non-resident, depending on the type of income, is defined in Articles 705, 706, 707, 712, 713, and 714 of the Tax Code.

      These articles also provide the tax agent with the right to independently apply the provisions of the international treaty.

      That one of the conditions for applying the provisions of the international treaty is the submission by the non-resident to the tax agent of a document confirming the non-resident’s tax residency, which meets the requirements established by Article 702 of the Tax Code.

      At the same time, pursuant to paragraph 3 of Article 705 of the Tax Code, the document confirming tax residency shall be submitted by the non-resident to the tax agent no later than the earliest of the following dates:

      1)    March 31 of the year following the tax period for corporate income tax in which the payment of income to the non-resident occurred, or the non-paid income of the non-resident was recorded as deductions;

     2)    No later than five working days prior to the completion of a tax audit regarding the fulfillment of income tax obligations withheld at source for the relevant tax period.

     Additionally, please be informed that if the partner state is a party to the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (The Hague, 5 October 1961) (hereinafter – the Hague Convention), legalization of official documents may be replaced by the formal procedure of affixing an apostille.

     In accordance with Article 5 of the Hague Convention, an apostille certifies the authenticity of the signature, the capacity in which the person signing the document has acted and, where appropriate, the authenticity of the seal or stamp with which the document is executed.

     Thus, the application of an international treaty shall be carried out in accordance with the procedure established by the Tax Code, provided that the non-resident submits to the tax agent a document confirming tax residency that complies with the requirements of Article 702 of the Tax Code and within the time limits established by paragraph 3 of Article 705 of the Tax Code.

Source : https://www.gov.kz/memleket/entities/kgd/press/news/details/1193656?lang=kk