Since 1 January 2026, the Republic of Kazakhstan has applied a procedure for refunding income tax withheld at the source of payment, established by Order No. 694 of the Minister of Finance of the Republic of Kazakhstan dated 12 November 2025, “On Certain Issues Related to Income Tax Withheld at the Source of Payment in the Republic of Kazakhstan.”

Tax Refund Based on an International Treaty

      One of the cases provided for is the refund of income tax previously withheld based on an international treaty of the Republic of Kazakhstan on the avoidance of double taxation. The right to apply the provisions of an international treaty is determined taking into account the specific type of income, the status of the income recipient, and the terms of the relevant international treaty. When considering an application submitted by a non-resident, the state revenue authority determines whether the legal grounds provided for by legislation for the tax refund are present.

      Confirmation of the non-resident’s tax residency is of particular importance. For this purpose, a document confirming the person’s residency in the relevant foreign state, prepared in accordance with the established requirements, must be submitted. When considering an application for a tax refund, the submitted documents and information are reviewed. In particular, the following are determined:

• the country of residence of the income recipient;

• the type and amount of income received from sources in the Republic of Kazakhstan;

• the existence of grounds for applying the relevant article of the international treaty;

• the fact that the income was paid to the non-resident;

• the amount of income tax withheld at the source of payment;

• the fact that the withheld tax was transferred to the budget;

• the amount claimed for refund;

• compliance of the submitted documents and information with tax accounting data and the information available to the state revenue authorities.

      Where necessary, contracts, acts of completed works or services rendered, payment documents, and other documents that make it possible to determine the actual nature of the income and the circumstances of its receipt are also analyzed. Particular attention is paid to the correct classification of income. Depending on its nature, an international treaty may establish different taxation rules for dividends, interest, royalties, income from the provision of services, and other types of income.

Submission of an Application and Decision-Making

      To obtain a tax refund based on an international treaty, a tax application must be submitted using the form approved by Order No. 694. Following consideration of the application, a decision is made either to refund the income tax or to refuse the refund. Where the grounds provided for by legislation are present, the tax amount is refunded in accordance with the procedure established by the Rules for the Provision of the State Service “Refund of Income Tax Withheld at the Source of Payment.”

      Therefore, previously withheld corporate income tax is not refunded automatically. It is necessary to confirm the existence of legal grounds for applying the international treaty and the compliance of the submitted documents with the established requirements. When making payments in favor of non-residents, tax agents are advised to verify in advance the grounds for applying the relevant international treaty, the availability of a document confirming tax residency, as well as the correct determination of the type of income and the applicable taxation procedure.

      If tax is withheld when income is paid to a non-resident, the possibility of subsequently refunding such tax is determined in accordance with the legislation of the Republic of Kazakhstan and the provisions of the relevant international treaty.

Taxpayers and non-residents are reminded of the need to submit a complete and accurate set of documents, as this is essential for an objective review of the application and the adoption of the appropriate decision.

      Order No. 694 also provides for the forms of documents used in the provision of the state service, including the application for a refund of income tax, decisions on refund or refusal to refund, as well as documents confirming the amounts of income and taxes withheld (paid).

Source : https://www.gov.kz/memleket/entities/kgd-atyrau/press/news/details/1296334?lang=ru