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

Article 672. The order for submitting an application for the refund of paid income tax from the budget by a non-resident on the basis of an international treaty

1. When applying the provisions of an international treaty, a non-resident has the right to claim the refund of income tax in the manner specified in this article and Articles 673, 674 of this Code, in case of:

1) the tax agent’s withholding and transfer to the state budget of income tax on the non-resident’s income received from sources in the Republic of Kazakhstan, in accordance with the provisions of this Code;

2) the non-resident’s calculation and payment of income tax on income from its activity in the Republic of Kazakhstan through its structural unit not resulting in the formation of a permanent establishment in accordance with an international treaty;

3) the non-resident’s payment of income tax on income received from sources in the Republic of Kazakhstan to the state budget, in accordance with the provisions of this Code.

At the same time, a non-resident is obliged to submit to a tax authority a tax application for the refund of the paid income tax from the state budget (for the purposes of this article and Articles 673, 674 of this Code, hereinafter referred to as the application), along with the documents, specified in paragraphs 3 and 4 of this article.

2. A non-resident submits the application in two copies, in the form approved by the authorized body, to a tax authority superior to the tax authority at the tax agent’s location (residence, stay).

The date of the application’s submission to the tax authority is that of its receipt by the tax authority.

3. The following documents must be attached to the application:

1) copies of agreements (contracts) on (for) the performance of works, rendering of services or for other purposes;

2) a document confirming the residency of a non-resident;

3) copies of accounting or other documents confirming the amounts of income received and taxes withheld or paid;

4) in case of performing works, rendering services by a non-resident in the territory of the Republic of Kazakhstan through its employees or other staff hired by a non-resident for such purposes - copies of identity documents of such individuals and documents confirming the dates of their stay in the territory of the Republic of Kazakhstan;

5) additionally, in case of submission of the application by a legal entity:

notarized copies of constituent documents or

an extract from the commercial register (register of shareholders) or another similar document provided for by the legislation of the state of registration of a non-resident, indicating the founders (participants) and majority shareholders of the non-resident legal entity.

If the legislation of a foreign state does not require a non-resident to have constituent documents or an obligation to register in the commercial register (register of shareholders) or another similar document provided for by the legislation of the state of registration of a non-resident, such a non-resident submits to a tax agent:

a document (certificate) that underlay the formation of a non-resident, the legal force (validity) of which is confirmed by a relevant authority of the foreign state of registration of such a non-resident or

another document indicating the organizational structure of a consolidated group, to which the non-resident belongs, indicating the names of all of its participants and their geographical location (the names of the states (territories) where the members of the consolidated group are established (set up) and the state and tax registration numbers of all participants in the consolidated group;

6) additionally, in case of the application’s submission by an individual - a copy of his/her identity document.

The provisions of this paragraph shall not apply if the application is submitted in accordance with paragraph 4 of this article.

4. When a non-resident submits the application for the refund of income tax on income received from shares that are the underlying asset of depositary receipts, the following documents shall be attached to the application:

1) an account statement, received from the central depository, containing:

the name or the last name, first name, patronymic (if it is indicated in an identity document) of the non-resident;

information on the number and type of depositary receipts;

the name and details of the identity document of a non-resident (in respect of an individual), tax registration number in the country of incorporation of a non-resident or its equivalent (if any), the number and date of state registration of a non-resident (in respect of a legal entity);

2) the decision of the general meeting of shareholders of the issuer of shares, which are the underlying asset of depositary receipts, on the payment of dividends for a specified period, indicating the amount of dividend per share and the date of making the list of shareholders entitled to receive dividends;

3) a currency account statement on the received sum of dividends;

4) a document confirming the residency of a non-resident that is a final (actual) recipient (owner) of income on shares that are the underlying asset of depositary receipts.

5. If the documents, specified in paragraphs 3 and 4 of this article, are drawn up in a foreign language, a non-resident must attach their notarized Kazakh or Russian translation.

6. The application for the refund of the withheld income tax on income from the performance of works, rendering of services is submitted by a non-resident upon completion of works and services in the Republic of Kazakhstan.

Under long-term contracts, a non-resident has the right to submit the application to the tax authority after completing each stage of performance of works and rendering of services.

For the purposes of this Section, a long-term contract is a contract (agreement) for (on) the performance of works, rendering of services that has not been completed within a twelve-month period from the date of its conclusion.

7. A non-resident submits the application to a tax authority within the limitation period, established by Article 48 of this Code, unless otherwise provided for by an international treaty.

8. A tax authority refuses to consider the application in case:

1) of the application’s submission by a non-resident after the expiration of the period established by paragraph 7 of this article. In this case, a non-resident is not entitled to reapply;

2) a document confirming residency does not meet the requirements established by Article 675 of this Code;

3) of a failure to provide the documents, specified in paragraphs 3 and 4 of this article, by the non-resident;

4) of non-compliance with the provisions of paragraph 2 of this article by the non-resident.

5) when re-submitting an application for a previously reviewed (verified) period, following which the tax authority decided to refuse to refund income tax from the budget on one of the following grounds:

recognition as a permanent establishment (permanent place of business) of a non-resident in the Republic of Kazakhstan in accordance with Article 220 of this Code;

withholding and transfer to the budget by a tax agent of income tax on income of a non-resident received from sources in the Republic of Kazakhstan at his own expense in accordance with paragraph 5 of Article 645 of this Code.

In this case, the tax authority’s decision to refuse to consider the application is delivered to a non-resident against receipt or sent by registered mail with return receipt, together with the application and documents submitted, within ten business days of their receipt by the tax authority, indicating the reasons for refusal.

If a tax authority refuses to consider the application on the grounds provided for in subparagraphs 2), 3) and 4) of this paragraph, a non-resident has the right to reapply within the period, specified in paragraph 7 of this article, after elimination of committed violations.

Footnote. Article 672 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall come into effect from 01.01.2021).