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

Article 652. The order for taxation of net income

1. The net income of a non-resident legal entity from activity in the Republic of Kazakhstan through a permanent establishment is subject to corporate income tax on net income at a rate of 15 percent.

The order for determining net income is as follows:

taxable income reduced by the amount of income and expenses provided for by Article 288 of this Code, and also by the amount of losses carried forward in accordance with Article 300 of this Code

minus

the corporate income tax amount calculated by multiplying the rate, established by paragraph 1 or paragraph 2 of Article 313 of this Code, and the taxable income, reduced by the amount of income and expenses provided for in Article 288 of this Code, and also by the amount of losses carried forward in accordance with Article 300 of this Code.

2. The calculated corporate income tax amount is indicated in a corporate income tax declaration.

3. A non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall pay corporate income tax on net income to the budget at the location of the permanent establishment within ten calendar days of the deadline set for submitting a corporate income tax declaration.
Article 653. Taxation of income in individual cases

1. A tax agent, paying income from performing works, rendering services in the territory of the Republic of Kazakhstan, and also income indicated in subparagraph 4) of part one of paragraph 2 and paragraph 3 of Article 651 of this Code, calculates, withholds and transfers corporate income tax on the specified income without deductions at a rate of 20 percent, provided all of the following requirements are met:

1) there is no contract concluded with a structural unit of a non-resident legal entity, a permanent establishment of a non-resident legal entity without opening a branch or representative office;

2) there is no invoice for sold goods, works, services issued by a branch, representative office of a non-resident legal entity, permanent establishment of a non-resident legal entity without opening a branch or representative office.

The corporate income tax at source of payment, withheld by a tax agent from the income of a non-resident legal entity, shall be applied against tax obligations of the permanent establishment of the specified non-resident legal entity.

At the same time, a non-resident legal entity operating in the Republic of Kazakhstan through its permanent establishment calculates corporate income tax retrospectively in accordance with Articles 651 and 652 of this Code, starting from the date of commencement of its entrepreneurial activity that resulted in the formation of its permanent establishment, and submits a corporate income tax declaration to the tax authority at the location of such a permanent establishment, including the said income.

The corporate income tax amount calculated by a non-resident legal entity operating in the Republic of Kazakhstan through its permanent establishment is reduced by the amount of corporate income tax withheld at source of payment from the income of such a non-resident legal entity in accordance with this paragraph. The reduction is allowed given documents confirming the withholding of the tax by the tax agent.

The positive difference between the amount of corporate income tax withheld at source of payment from the income of a non-resident legal entity in accordance with this paragraph and the amount of corporate income tax calculated by a non-resident legal entity operating in the Republic of Kazakhstan through its permanent establishment is carried forward to the coming ten taxable periods inclusive, and sequentially reduces the corporate income tax amounts, payable to the budget, for these taxable periods.

2. The income of a non-resident legal entity received from its activity in the Republic of Kazakhstan through its permanent establishment not registered with tax authorities as a taxpayer in violation of the requirements of Article 76 of this Code shall be subject to corporate income tax at source of payment without deductions at a rate of 20 percent.

A non-resident legal entity operating through its permanent establishment registered with the tax authorities as a taxpayer and failing to observe the time limits established by Article 76 of this Code is required to indicate, in its initial declarations for relevant types of taxes, taxable and tax-related items that have arisen retrospectively from the date of commencement of its entrepreneurial activity, which resulted in the formation of the permanent establishment, to calculate and fulfill the arisen tax obligations for the payment of taxes, except for the tax agent’s tax obligations.

At the same time, the corporate income tax amount, calculated by such a non-resident legal entity from the date of commencement of entrepreneurial activity until the date of its registration with the tax authority, is reduced by the amount of corporate income tax withheld at source of payment in accordance with this paragraph on the income of such a non-resident legal entity for the specified period.

The reduction is made given documents confirming the withholding of the tax by the tax agent.
Chapter 74. THE ORDER FOR TAXATION OF INCOME OF NON-RESIDENT INDIVIDUALS