The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan reminded taxpayers about the procedure for taxation of income earned by non-residents from sources in Kazakhstan.
According to paragraph 2 of Article 221 of the Tax Code of the Republic of Kazakhstan, non-residents are required to pay taxes on income derived from sources in Kazakhstan in accordance with the procedure established by tax legislation.
The list of non-resident income classified as income from sources in the Republic of Kazakhstan is defined by Article 679 of the Tax Code.
If the activities of a non-resident legal entity in Kazakhstan do not result in the creation of a permanent establishment, taxation of such income is carried out in accordance with the provisions of Chapter 72 of the Tax Code.
Pursuant to Article 683 of the Tax Code, such non-resident income is subject to corporate income tax (CIT) withholding at source without deductions.
The calculation, withholding, and remittance of tax are carried out by the tax agent through the application of the rates established by Article 682 of the Tax Code.
Tax withholding must be performed:
- no later than the date of income payment for accrued and actually paid income;
- no later than the deadline for filing the corporate income tax declaration for accrued but unpaid income attributed to deductions.
The tax agent is required to remit the withheld tax:
- for accrued and paid income – no later than 25 calendar days after the end of the month in which the payment was made;
- for accrued but unpaid income attributed to deductions – no later than 10 calendar days after the established deadline for filing the CIT declaration;
- in case of advance payment (prepayment) – no later than 25 calendar days after the end of the month in which the non-resident’s income was accrued within the amount of the advance payment;
- upon delivery of goods, performance of works, or provision of services – no later than 25 calendar days after the end of the month in which the non-resident’s income was accrued within the amount of the relevant obligations.
For certain types of income specified in subparagraph 39) of paragraph 1 of Article 679 of the Tax Code, special payment deadlines established by Article 684 of the Tax Code apply.
The tax agent must submit the calculation for CIT withheld at source from non-resident income within the following deadlines:
- for the I, II, and III quarters – no later than the 15th day of the second month following the reporting quarter;
- for the IV quarter – no later than March 31 of the year following the reporting tax period.
Non-residents carrying out activities in Kazakhstan through a structural subdivision that does not create a permanent establishment are required to submit a CIT declaration at the place of location within the deadlines established by Article 359 of the Tax Code.
Source: Uchet.kz
