Dear Readers,
Kazakhstan has ratified1 the Agreement for the Avoidance of Double Taxation and the accompanying Protocol with the Sultanate of Oman.
In Kazakhstan, the Agreement applies to corporate income tax, individual income tax, and tax on property of legal persons and individuals. In the Sultanate of Oman, it applies to income tax. The Agreement also covers any identical or substantially similar taxes that may be introduced in the future.
For dividends, interest, royalties, and fees for technical services, the Agreement provides for a reduced withholding tax rate of 10%, provided that the recipient is the beneficial owner of the relevant income. Technical services are defined as services of a technical, managerial, or consultancy nature, excluding employment services.
The Agreement also exempts from taxation dividends and interest paid to certain government bodies, central banks, government financial institutions, and pension funds.
The Agreement will enter into force on the date when Kazakhstan and Oman exchange the final written notification through diplomatic channels confirming the completion of their respective domestic procedures. The Agreement provisions will apply to withholding taxes and to other taxes on income and capital from 1 January of the calendar year following the year in which the Agreement enters into force.
The Agreement is concluded for an initial term of five years and will automatically renew for successive one-year periods unless either state notifies the other, in accordance with the prescribed procedure, of its intention to terminate the Agreement.