On 11 November 2022, the State Revenue Committee of Kazakhstan issued a press release regarding amendments to the taxation of dividends with effect from 1 January 2023. The amendments are made according to the Law No. 135-VII of 11 July 2022. The State Revenue Committee provides following amendments:
Resident Companies
The general corporate tax exemption of received dividends is withdrawn. However, the exemption of dividends on securities listed on the stock exchanges is applicable if these securities were actively traded on the stock exchange in Kazakhstan, and companies paying dividends are exempt from corporate income tax (reduced by 100%) regarding activities for which such a reduction is provided.
Non-Residents Companies
Dividends received by non-resident companies will be subject to 10% tax rate. The exemption of dividends on securities listed on the stock exchanges is applicable if these securities were actively traded on the stock exchange in Kazakhstan.
Resident individual
Dividends received by resident individuals will be taxed at 10% rather than 5%. The exemption of dividends on securities listed on the stock exchanges is also applicable if these securities were actively traded on the stock exchange in Kazakhstan. Also, the dividends received from a resident legal entity within the limit of 30,000 MCI (Monthly Calculated Index) during a calendar year are exempt from individual income tax.
