On taxes and other obligatory payments to the budget (Tax Code)

Article 308. The order for calculating the corporate income tax withheld at the source of payment

1. A tax agent shall determine the amount of corporate income tax withheld at the source of payment by applying the rate established by paragraph 3 of Article 313 of this Code to the amount of the paid income taxed at the source of payment.

2. A tax agent is obliged to withhold the tax withheld at the source of payment when paying the income specified in Article 307 of this Code, except for the income provided for by subparagraph 2) of paragraph 1 of Article 307 of this Code, irrespective of the form and place of payment of income.

3. A legal entity has the right to issue a decision to recognize its structural unit as its tax agent for the corporate income tax withheld at the source of payment on income taxed at the source of payment, which is (to be) paid by such a structural unit.

Unless otherwise established by this article, the decision of a legal entity or its cancellation shall take effect on January 1 of a year following the year of adoption of such a decision.

If a newly created structural unit of a legal entity is recognized as a tax agent, the decision of a legal entity on such recognition shall take effect on the day of establishment of this structural unit or on January 1 of a year following the year of the establishment of this structural unit.

The provisions of this paragraph shall not apply to corporate income tax withheld at the source of income (to be) paid to a non-resident legal entity operating in the Republic of Kazakhstan without setting up a permanent establishment.
Article 309. The order fortaxation of income of non-resident legal entities operating without setting up a permanent establishment in the Republic of Kazakhstan

Calculation, withholding and transfer of corporate income tax on the income of non-resident legal entities that operate without setting up a permanent establishment in the Republic of Kazakhstan, provided for by subparagraph 2) of paragraph 1 of Article 307 of this Code, as well as the filing of tax returns are carried out in accordance with the procedure established by Chapter 72 of this Code.
Article 310. The order for the fulfillment of a tax obligation by a tax agent for income paid to a resident in the form of dividends on shares that are an underlying asset of depositary receipts, as well as in the form of refund of income tax withheld at the source of payment

1. When paying income in the form of dividends on shares, which are the underlying asset of depository receipts, to the final (actual) recipient (owner) of income - a resident through a nominee holder of depositary receipts, the tax agent has the right not to impose income tax on such income at the source of payment in the cases and procedure provided for by this Code, or apply to the income of a resident individual the income tax rate provided for in paragraph 1 of Article 320 of this Code, while simultaneously fulfilling the following conditions:

1) there is a list of holders of depositary receipts or a document confirming the ownership of depositary receipts indicating:

last names, first names, patronymics (if they are indicated in identity document) of individuals or the names of legal entities holding depository receipts;

information on the number and type of depositary receipts;

names and details of identity documents of individuals, or the numbers and dates of state registration of legal entities holding depository receipts;

2) there is a document confirming the residency of the Republic of Kazakhstan of a person that is the final (actual) recipient (owner) of dividends on shares that are the underlying asset of depositary receipts.

In this case, a document confirming the residency of the Republic of Kazakhstan is submitted to a tax agent on one of the

dates specified in paragraph 4 of Article 666 of this Code, whichever comes first.

The list of holders of depositary receipts specified in subparagraph 1) of part one of this paragraph shall be drawn up by an organization entitled to carry out depository activity on the securities market of the Republic of Kazakhstan or a foreign country if an agreement on recording and confirming the ownership of depository receipts is concluded between a resident issuer of shares, which are the underlying asset of depositary receipts, and such an organization.

A document confirming the ownership of the depositary receipts specified in subparagraph 1) of part one of this paragraph shall be issued by one of the following persons rendering nominee services in accordance with the laws of the Republic of Kazakhstan:

an organization entitled to carry out depository activity on the securities market of the Republic of Kazakhstan or a foreign state;

a professional participant in the securities market of the Republic of Kazakhstan that keeps record ofclients’ financial instruments and money and confirms the rights to them, holds clients’ financial instruments in custody assuming an obligation to ensure their safety;

another organization providing services for nominee holding of securities, and also keeping recordof and confirming the rights to securities and registering such holders’ transactions for securities.

2. When filing tax returns to a tax authority, a tax agent is obliged to indicate the amounts of assessed (paid) income and withheld taxes, taxes exempt from withholding in accordance with this Code, the income tax rates.

3. If a tax agent fails to apply the provisions of this Code when paying income in the form of dividends on shares that are the underlying asset of depositary receipts to a resident through a non-resident nominee holder of depositary receipts in accordance with the procedure specified in paragraph 1 of this article, the tax agent is obliged to withhold income tax at the source payment at the rate established by Article 646 of this Code.

The amount of withheld income tax shall be transferred within the period established by subparagraph 1) of paragraph 1 of Article 647 of this Code.

4. A resident final (actual) recipient of income has the right to claim refund of excess income tax withheld at the source of payment in accordance with this Code in case of the tax agent’s transfer of income tax levied on the income of such a resident to the state budget.

In this case, for the period in which the resident received income in the form of dividends, he/she/it is obliged to submit to a tax agent notarized copies of:

1) a document confirming the ownership of depositary receipts;

2) a document confirming the residency of the Republic of Kazakhstan;

3) a document confirming the receipt of income in the form of dividends on shares that are the underlying asset of depositary receipts.

The resident submits documents specified in this paragraph prior to the expiration of the limitation period, established by Article 48 of this Code, from the day of the latest transfer of income tax withheld at the source of payment to the state budget.

In this case, the income tax withheld in excess is refunded to the resident by the tax agent.

5. A tax agent has the right to submit to the tax authority at the place of his/her/its location additional calculation of the income tax withheld at the source of payment for the amount of reduction when applying the tax rate for residents or exemption from taxation for the taxable period in which income tax on the resident’s income in the form of dividends on shares that are the underlying asset of depositary receipts was withheld and transferred.

In this case, the overpaid amount of the income tax withheld at the source of payment is credited to the tax agent in the manner prescribed by Article 102 of this Code.

Footnote. Article 310 as amended by the Law of the Republic of Kazakhstan dated 11.07.2022 No. 135-VII (shall be enforced from 01.01.2023);