One of the priority areas of activity of the state revenue authorities in the East Kazakhstan Region is monitoring the timely and full fulfillment of tax obligations related to the calculation and payment of corporate income tax (CIT) withheld at the source of payment from income earned by non-residents.
In accordance with paragraph 1 of Article 679 of the Tax Code of the Republic of Kazakhstan (new version), 39 types of income of non-residents are defined as income derived from sources in the Republic of Kazakhstan. The most common types include income from the sale of goods and services in the territory of the Republic of Kazakhstan, income from the performance of works and provision of services, including consulting, management, financial, engineering, marketing, audit and other services, as well as income in the form of dividends, remuneration, royalties, insurance premiums, income from international transportation and capital gains from the disposal of property.
Tax administration of non-residents is carried out through desk-based tax control of Tax Reporting Form 101.04, "Calculation of Corporate Income Tax Withheld at the Source of Payment from Income of a Non-Resident," including through the use of information provided by the National Bank of the Republic of Kazakhstan.
Desk-based tax control is conducted in the following areas:
-verification of the correctness of the calculation and withholding of CIT at the source of payment based on data from the National Bank of the Republic of Kazakhstan on foreign exchange transactions and information contained in Form 101.04;
-verification of the legality of applying tax exemptions and reduced tax rates under international treaties;
-identification of cases involving the unjustified application of a full exemption from withholding tax on income of non-resident legal entities;
-identification of violations in the calculation of value-added tax (VAT) payable in respect of non-residents.
The violations identified may result in an additional financial burden for taxpayers in the form of accrued penalties, which may adversely affect their financial and economic activities.
In this regard, taxpayers are advised to strictly comply with the requirements of tax legislation when calculating and paying CIT withheld at the source of payment.
The state revenue authorities continuously conduct measures aimed at identifying and collecting additional tax revenues in the area of non-resident taxation.