Tax NewsFlash - March 2022

Dear readers,

On 10 March 2022, the President signed a law¹ on the Ratification of the Intergovernmental Agreement between Kazakhstan and the USA to Improve International Tax Compliance. The Agreement² provides for automatic exchange of financial information between our countries to combat tax evasion.

The Agreement establishes criteria for reportable financial accounts and reporting financial institutions, determines the list of information to be obtained and exchanged, and regulates the timeline and procedures for the exchange of the information between our countries.

Kazakhstan selected a centralized model for collection of information. Consequently, the reporting financial institutions in Kazakhstan will collect the data to be exchanged and transfer it to the state revenue authorities. The Kazakh state revenue authorities will exchange the collected data on an annual basis with the competent US authorities.

Information to be exchanged includes personal data of account holders, account numbers, names of financial institutions and the account balance (or value) at the reporting date. With respect to depository, custodial or other accounts, the reportable information also includes amounts of interest, dividends and other income.

The Agreement will enter into force on the date of written notification from Kazakhstan to the USA on the completion of the necessary internal procedures for entry into force of the Agreement.