Import

Contents

00:00 Start
01:17 Interaction with non-resident legal entities in Kazakhstan
01:58 Import/export of goods: practical aspects
02:10 Import
04:54 Goods Accompanying Note (GAN)
06:54 Export
08:10 List of exemptions
10:48 Document flow with non-residents
11:05 Corporate income tax
11:40 Corporate income tax rates
14:35 Mandatory documents required for applying the Convention on Avoidance of Double Taxation (DTA)
16:34 Step-by-step instruction for obtaining residency certificates
20:16 Conditions for applying the convention and minimizing tax risks
21:55 Transactions with related parties
24:25 Currency control in Kazakhstan
25:30 Currency transactions between residents and non-residents. General provisions
31:02 Capital movement operations
33:13 Registration of currency contracts with the National Bank of the Republic of Kazakhstan
35:59 Reporting on capital movement for the National Bank of the Republic of Kazakhstan
37:02 Responsibility for violations of currency control
38:30 Import-export currency control
39:26 Requirement to obtain identification numbers
42:00 Repatriation of national currency
43:00 Responsibility for violations of repatriation rules
43:51 Identification numbers for accounts in foreign banks
45:13 Reporting by legal entities on accounts in foreign banks outside the Republic of Kazakhstan
45:44 Responsibility for violations related to notifications and reports on accounts in foreign banks
46:35 Combating the legalization of income obtained through criminal means. AML. Financial monitoring
53:50 Q&A
54:05 Question about special conditions of an international financial center in Astana
56:10 Is it necessary to register an agreement when changing the subject of obligations if it involves capital movement?
56:54 If the contract amount initially did not meet monitoring requirements but does after changes, should it be registered?
57:26 Can agreements via Electronic Document Workflow be registered with the National Bank of Kazakhstan?
57:43 Do free trade zones in the UAE fall into the list of offshore zones?

Q&A

Please, tell me about legal entities based in the Astana International Financial Center (AIFC). Is it true that there is an offshore scheme where only 3% is paid on turnover and no other taxes, including payroll taxes and no royalties on the purchase of software? What are the limitations, if any? Are there any restrictions on operating within the territory of Kazakhstan?

About corporate income tax:

Participants of the Astana International Financial Center (AIFC) are exempt from paying Corporate Income Tax (CIT) on income derived from the provision of the following financial services within the AIFC territory until January 1, 2065:

• Islamic bank’s banking services;
• Reinsurance and insurance brokerage services;
• Services related to asset management of investment funds, their accounting, custody, as well as providing issuance, placement, circulation, repurchase, and redemption of investment fund securities;
• Brokerage and/or dealer, underwriting services;
• Other financial services determined by the joint act of the AIFC, the central authorized body for state planning, and the state body responsible for guiding tax revenue and other mandatory payments to the budget (currently, a list of 33 categories of financial services provided by AIFC participants is approved, and the income from these services is exempt from CIT).

Additionally, until January 1, 2065, the following ancillary services provided to the AIFC authorities and/or AIFC participants are exempt from CIT: legal, auditing, accounting, consulting services.

The aforementioned services provided by AIFC participants are also exempt from Value Added Tax (VAT). They are also exempt from property tax and land tax on properties located within the AIFC territory.

For the purposes of applying these benefits, AIFC participants maintain separate accounting for their income.

Regarding payroll taxes and mandatory payments:

Foreigners who are employees of the AIFC are exempt from paying Individual Income Tax (IIT) on income derived from activities within the AIFC based on an employment contract concluded with an AIFC participant providing specific financial services until January 1, 2065. Accordingly, citizens of Kazakhstan and foreigners working in the AIFC who do not fall under the aforementioned exemption are subject to paying IIT.

The AIFC regulations do not include any provisions regarding the procedure for pension contributions, social tax, social contributions, mandatory social medical insurance contributions, and other mandatory contributions and payments. Therefore, the procedure for payment of the above-mentioned taxes and other mandatory contributions and payments is regulated by the relevant laws and regulations of Kazakhstan.

Regarding royalties on the purchase of software: Tax exemption does not apply to income received by non-residents – suppliers of goods and services to AIFC participants, which are subject to withholding tax at the source of payment.

Is it only possible to register a contract with the National Bank on paper? Is there no electronic document exchange with the National Bank?

Yes, registration in electronic form is also possible through the National Bank portal – https://nbportal.nationalbank.kz/

Do the free trade zones (FTZs) in the UAE (excluding Dubai) fall into the list of offshore jurisdictions, or are they different concepts?

No, the free trade zones in the UAE are not considered as offshore zones in Kazakhstan.

Is Beliz an offshore jurisdiciton?

Yes, Belize is often considered as one of the offshore jurisdictions.