Tax authorities of Almaty, based on results of in-house control of tax reporting forms submitted by the taxpayer for the year 2011, have identified 857 taxpayers illegally exempt from taxation of income of foreign companies received in Kazakhstan.

Source: http://nda.kz

Taxpayers, when paying income to foreign companies for services rendered applied the provisions of international treaties on avoidance of double taxation, on the basis of the documents which do not comply with international standards.

As a result of the work performed 857 taxpayers paid to the budget 690 million Tenge in addition.

To date, the Republic of Kazakhstan signed the Treaties “On avoidance of double taxation and prevention of tax evasion on income and capital” with 44 countries. These international treaties provide for the payment of tax in the country of residency for certain types of income. Taxation conventions are applied on the basis of documents confirming the residency issued by the competent foreign authorities and complying with the international standards.

According to the tax law, in case of unlawful application of the provisions of the international treaty that results in non-payment or underpayment of taxes to the budget, the taxpayer (tax agent) shall be liable in accordance with the laws of the Republic of Kazakhstan.

The work in this direction continues.

Source: http://nda.kz