Taxation of income of non-pesident individuals

Taxation procedure at the source of payment

Article 644 of the Tax Code defines the list of non-resident income from sources in the Republic of Kazakhstan.

Income of a non-resident individual from sources in the Republic Kazakhstan is subject to individual income tax at the source of payment at rates from 5 to 20 percent, depending on the type of income, without tax deductions, unless otherwise established by the Tax Code.

At the same time , for the following types of income , individual income tax the tax is calculated at the rate of 10 percent:

that from activity in the Republic of Kazakhstan under an employment agreement (contract)concluded with a resident or non-resident that are employers;

that from activity in the Republic of Kazakhstan in the form of material benefits received from an employer;

director’s fees and (or) other payments to members of the management body (the board of directors or other body) received by these persons in connection with the performance of managerial duties imposed on them with respect to a resident, regardless of the place of actual performance of such duties;

allowances paid to him/her in connection with residing in the Republic of Kazakhstan by a resident or non-resident who are employers;

insurance payments to non-resident individuals under a pension annuity agreement;

pension payments made by a resident accumulation pension fund.

The duty and responsibility for calculating, withholding and transferring individual income tax at the source of payment to the budget are assigned to the persons paying income to a non-resident and recognized as tax agents (sole proprietor, branch and representative office of a legal entity- non-resident, permanent establishment of a non-resident, resident legal entity, etc.).

In this case, the declaration on individual income tax and social tax (form 200.00) is submitted by the tax agent to the tax authority at the place of tax payment quarterly, no later than the 15th of the second month following the quarter in which the reporting tax periods are included.

The procedure for taxation of income that is a tax agent

Article 658 of the Tax Code received from a person does not regulate the procedure for taxation of income of a non-resident individual received from sources in the Republic of Kazakhstan from a person who is not a tax agent.

Unless otherwise established by the Tax Code, the calculation of individual income tax on the income of a non-resident individual from a person who is not a tax agent is carried out by applying a rate of 20 percent to the accrued amount of income without tax deductions.

 

 

 

At the same time, non-resident labor immigrants calculate the amount of individual income tax at a rate of 10 percent.

Unless otherwise established by the Tax Code, payment of individual income tax

is made by a non-resident individual independently no later than ten calendar days after the deadline set for submitting the declaration on individual income tax for the tax period.

The declaration on individual income tax (form 240.00) is submitted to the tax authority at the place of stay (residence) a taxpayer no later than March 31 of the year following the reporting tax period on income subject to taxation by an individual independently.

In case of departure from the Republic of Kazakhstan during the current tax period without subsequent entry into the territory of the Republic Kazakhstan until March 31 of the year following the current tax period, a non-resident individual has the right to submit

an individual income tax declaration and pay individual income tax during the current tax period. At the same time, the declaration on the individual income tax is submitted for the period from the beginning of the current tax period until the date of departure of such a person outside the Republic Kazakhstan.

By non-resident labor immigrants, an individual income tax declaration (Form 240.00) is submitted if the amount of individual income tax calculated for the reporting tax period exceeds the amount of advance payments for individual income tax to the tax authority at the place of residence no later than March 31 of the year following the reporting tax period.

At the same time, in case of departure from the Republic of Kazakhstan of a non-resident labor immigrant, the declaration (declarations) on individual income tax is submitted (are submitted) before the date of departure of such persons outside the Republic of Kazakhstan.