The Kazakh Senate approved a law on ratification of the pending income tax treaty with Qatar, on January 15, 2015. This is the first income tax treaty between the two countries which was signed on January 19, 2014. Both countries apply the credit method to eliminate double taxation. It will enter into force 30 days after the exchange of ratification instruments, and its provisions will apply from January 1 of the year following its entry into force.
The treaty provides that dividends are taxable at a top rate of 5% if the beneficial owner is a resident of a contracting state and has a direct holding of at least 10% of the capital of the payer company.
In other cases, a 10% rate applies. Interest and royalties are taxable at a maximum rate of 10%.
