The government in Kazakhstan on 20 February 2020 ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the multilateral instrument or “MLI”). After the MLI enters into force, the procedure for the application of Kazakhstan tax treaties will change.
The purpose of the MLI is to address tax treaty abuse triggering tax evasion or avoidance. The MLI:
The MLI will enter into force on the first day of the month following a three-month period beginning on the date that Kazakhstan deposits its ratification instrument with the OECD. Once in force, the provisions of the MLI will apply from 1 January of the year following its entry into force with respect to withholding taxes, and for all other taxes with respect to tax periods beginning on or after the expiration of a six-month period following the date of entry into force.
After the MLI enters into force, the tax treatment of a cross-border transaction will depend on the provisions of local tax legislation, an applicable tax treaty and the MLI (if the MLI positions of the contracting states match).
Read a March 2020 report [PDF 716 KB] prepared by the KPMG member firm in Kazakhstan
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.