Tax NewsFlash - June 2022

Dear Readers,

The State Commission for the Modernization of the Economy of Kazakhstan adopted a decision on approach to calculating net income for the purpose of taxation of dividends paid to non-residents before 1 January 2021. The decision was reported in a press release¹ of the State Revenue Committee of the Ministry of Finance, dated 31 May 2022.

According to the decision, to apply the income tax benefits stipulated by Tax Code Articles 645 and 654, a tax agent should calculate net income distributable among participants (stake owners) and income payable on shares on the basis of the financial statements (not on the basis of the corporate income tax declaration).

The press release clarifies that resident tax agents who remitted income tax on dividends paid to non-residents and subject to the income tax exemption under Tax Code Articles 645 and 654 may amend their tax reports and credit the overpaid tax against the future tax payments or return it to a bank account.