Dear Readers,
The tax authorities are planning to amend the tax report on corporate income tax withheld at the source of payment from nonresident income (Form 101.04). The aim of these changes is to enhance the control over the tax incentives application and to eliminate the unlawful outflow of capital from Kazakhstan.
In the amended tax form, a tax agent will be required to disclose the amounts and types of all payments to nonresidents that are not regarded as Kazakh-source income according to paragraph 2 of Article 644 of the Tax Code.
Additionally, the updated form of the tax report includes a column itemizing the income types for the tax-exempt income.
To facilitate data reconciliation between information reflected on the tax reports and the actual currency movement under the underlying agreements with nonresidents, the amended form of the tax report reflects unique identification numbers assigned to the cross-border agreements under the currency control procedure.
If approved, the amended form of the tax report on corporate income tax withheld at the source of payment from nonresident income will apply to relationships arising from 1 January 2024.