Procedure for payment of the income tax on income earned by nonresidents from activity in the Republic of Kazakhstan not leading to the creation of a permanent establishment. The procedure for payment of the income tax provided for under this statement shall apply to the income of a nonresident from activity in the Republic of Kazakhstan that does not lead to the creation of a permanent establishment in accordance with the provisions of an international agreement, with the exception of income referred to in Articles 199-202 of Tax Code Of RK, except as otherwise provided under said statements.
A nonresident mentioned above of this article that earns income from sources in the Republic of Kazakhstan shall have the right to apply the procedure for payment of the income tax provided for under this article.
In the event that the provisions of this article are not applied, a tax agent shall be required to withhold the income tax at the source of payment and transfer it to the state budget in accordance with the generally established procedure.
A nonresident earning income, a tax agent, and a resident bank referred to hereinafter as a bank identified by a tax agent, shall conclude a conditional bank deposit agreement following the form agreed upon by the parties to the agreement, taking into account the provisions of this article.
Within ten business days of the signing of a conditional bank deposit agreement, a tax agent shall be required to register the agreement with a tax authority, and a copy of the agreement, as well as a copy of the payment document confirming the transfer of income tax to a conditional bank deposit, shall be submitted to the tax authority.
The provisions of this article shall extend only to conditional bank deposit agreements that have been registered with a tax authority.
Conditional bank deposit agreements, the terms of which do not contradict the provisions of this article, shall be subject to registration.
At the time income is paid to a nonresident, a tax agent shall be required to withhold income tax at the source of payment at the rate specified under Article 180 of Tax Code, and to transfer the tax that has been withheld to the conditional bank deposit at a bank, in favor of the nonresident.
In the case of compliance with the terms of an international agreement, in order to obtain a refund of income tax that has previously been withheld, a nonresident shall file a request with the tax authority following the procedure and form established by the authorized government agency The tax authority shall review said request and the required documents, it shall make a decision regarding the request, and it shall notify the nonresident and the bank of the decision.
Upon receipt of a request for a refund of income tax that has been withheld, which has been certified by a tax authority, a bank shall grant the nonresident who submitted the request the right to dispose of funds placed in the conditional bank deposit, up to the amount indicated in the request, plus bank interest that has accrued.
In the event that a nonresident does not agree with a negative decision by the tax authority, the nonresident shall have the right within ten business days of the receipt of such a decision to file a request with the authorized government agency with the involvement of the competent authority of the nonresidents country of residence, if necessary, asking that the matter be reviewed again to determine the proper application of the provisions of the international agreement, and the tax authority shall be notified at the same time of the appeal of its decision. In the event that a negative decision is made regarding a request and if no notification of an appeal of the tax authoritys decision is received from a nonresident within the established deadline, within ten business days of the nonresidents receipt of the refusal to apply the provisions of an international agreement, the tax authority shall forward a collection order to the bank calling for transfer of the amount indicated in the request and placed in a conditional bank deposit, plus bank interest that has accrued, to the state budget, accompanied by a document confirming the refusal to exempt the nonresident from taxation.
A bank shall be required, within one business day of the receipt from the tax authority of documents referred above, to transfer the amount of income tax placed in the conditional bank deposit, plus bank interest that has accrued, to the state budget.
The amount of tax collected shall be credited against the nonresidents obligations to the state budget. Conditional bank deposits shall be opened in the national currency or in a foreign currency.
In the event that conditional bank deposits are opened in a foreign currency, the income tax and bank interest shall be transferred to the budget in the national currency, after being converted at the official rate of the National Bank of the Republic of Kazakhstan at the time the tax is paid. A nonresident and a tax agent shall not have the right to dispose of income tax placed in a conditional bank deposit until a decision of some kind is reached by the tax authority.
In the event that the terms of a conditional bank deposit agreement are violated and income tax that has been withheld is not transferred to the state budget in a timely manner, through the fault of the bank, the bank shall bear liability in accordance with legislative acts of the Republic of Kazakhstan.
If it is not possible for a bank to meet its obligations to transfer income tax placed in a conditional bank deposit to the state budget, the obligation to transfer income tax collected at the source of payment, bank interest, and fines for the late transfer of tax to the state budget shall be assigned to the tax agent.
Tax authorities shall be required to maintain a record of the amount of income tax 1 placed in conditional bank deposits 2 paid to nonresidents who have the right to apply the provisions of international agreements 3 transferred to the state budget. 2.7.4