Tax declaration in Kazakhstan
March 31 is the deadline for filing individual income tax returns in Kazakhstan. How should foreign citizens report their taxes if they live and work in Kazakhstan? How to avoid double taxation? We recount it by examples.
Who is obliged to submit a tax return
According to the tax legislation of Kazakhstan, individual income tax declaration must be submitted by:
- Tax residents of the Republic of Kazakhstan (individuals/individual entrepreneurs).
|
We remind that according to Article 217 of the Republic of Kazakhstan Tax Code - individuals are recognized as Kazakh tax residents if they actually stayed in the country for more than 183 days during any 12 months (permanently residing in the Republic of Kazakhstan) or their vital interests center is located in Kazakhstan (not permanently residing in the Republic of Kazakhstan). Center of vital interests is recognized as being in Kazakhstan if the following conditions are simultaneously met:
|
Tax return filing procedure
You can submit a tax return:
- electronically (using the "SONO" application or on the "Taxpayer's Cabinet" portal);
- paper form by submitting it in person to the tax authority or sending it by post.
Information required to complete the declaration
- General information about the declarant (TPN, full name, tax reporting period);
- List of property and other income;
- Rights to tax credits/deductions (e.g. confirmation of tax payment at source in another country).
Foreign income subject to mandatory declaration
- sale of goods in a foreign country;
- work performance, rendering of services outside the Republic of Kazakhstan;
- income from the increase in the value of immovable property upon sale;
- income from the increase in the value of securities or shares in a non-resident legal entity upon sale;
- dividends received from a non-resident legal entity;
- royalties received from a non-resident legal entity;
- income from renting out immovable property located outside the Republic of Kazakhstan;
- income from rendering transportation services in international transportation received from a non-resident of the Republic of Kazakhstan;
- income from activities outside the Republic of Kazakhstan under a labor agreement (contract) concluded with a non-resident who is an employer;
- other income from entrepreneurial activity.
Double taxation arise
Example: If an individual is a tax resident of one country and at the same time rents out real estate in another country, then under the current rules of the IRRSA, depending on the content, tax liabilities may arise in one, the other or both countries for certain types of income. Bilateral agreements on avoidance of double taxation are in place to prevent double taxation.
How to apply double taxation avoidance rules
In order to apply double taxation avoidance rules and obtain the right to a tax credit, the following documents must be submitted to the tax inspectorate:
- Documents confirming the payment of tax in a foreign country;
- A copy of the tax return that was submitted to the tax authority of the foreign state.
After accepting the above documents and entering information about your tax residency status of another country into the database, the tax authorities of Kazakhstan will be able to apply double taxation avoidance rules.
If you have any questions related to income declaration, REVERA specialists are always ready to help.
Dear journalists, the use of materials from REVERA website in publications is possible only after our written permission.
For approval of materials please contact e-mail: i.antonova@revera.legal or Telegram: https://t.me/PR_revera