By the Law of the Republic of Kazakhstan dated 21.12.2022. No.165-VII "On Amendments and Additions to the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (Tax Code) and to the Law of the Republic of Kazakhstan "On the Enactment of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (Tax Code)" amendments have been made to paragraph 6 of Article 645 concerning the imposition of duties and responsibilities for calculating, withholding and transferring to the budget of the CPN at the source of payment to an individual – a resident who has paid the income specified in subparagraph 6) of part one of paragraph 1 of Article 644 of the Tax Code to a non–resident legal entity not registered with the tax authority as a taxpayer.
At the same time, a resident individual who has paid the income specified in subparagraph 6) of part one of paragraph 1 of Article 644 of the Tax Code is recognized as a tax agent, except in cases of transactions with securities on the stock exchange.
Subparagraph 6) of paragraph 1 of Article 644 of the Tax Code establishes that the income of a non-resident from sources in the Republic of Kazakhstan is recognized as income from value gains on sale:
- property located on the territory of the Republic of Kazakhstan, the rights to which or transactions on which are subject to state registration in accordance with the laws of the Republic of Kazakhstan;
- property located on the territory of the Republic of Kazakhstan, subject to state registration in accordance with the laws of the Republic of Kazakhstan;
- securities issued by a resident, as well as shares in the authorized capital of a resident legal entity, a consortium located in the Republic of Kazakhstan;
- shares issued by a non-resident, as well as participation shares in the authorized capital of a non-resident legal entity, consortium, if 50 or more percent of the value of such shares, participation shares or assets of a non-resident legal entity is property located in the Republic of Kazakhstan.
The calculation, withholding and transfer of corporate income tax at the source of payment to the budget from the income of a non–resident legal entity is carried out in accordance with the procedure established by Article 650 of the Tax Code.
According to clause 7 of Article 650, the person selling shares, participation shares, real estate is obliged to provide the buyer – the tax agent with a copy of the document confirming the cost of the acquisition (contribution).
In case of failure to provide the tax agent with a document confirming the cost of acquisition (contribution), the cost of sale is subject to income tax at the source of payment.
The duty and responsibility for calculating, withholding and transferring income tax at the source of payment to the budget are assigned to the tax agent paying income.
Income tax at the source of payment is withheld by the tax agent at the time of payment of income to a non-resident, regardless of the form and place of payment of income.
The transfer of the amount of income tax to the budget is carried out by a tax agent within the time limits established by Article 647 of this Code.
Tax reporting on income tax withheld at the source of payment from non-residents' income is submitted by a tax agent within the time limits established by Articles 648 and 657 of this Code to the tax authority at the place of its registration in the Republic of Kazakhstan.