In view of the enforcement of new Tax Code of the Republic of Kazakhstan dated 25.12.2017 no. 120 - VI and Law of the Republic of Kazakhstan "On enforcement of the Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget” (Tax code)" dated December 25, 2017, no. 121-VI,
starting from January 01, 2018, the procedure of taxation of income in remuneration form, paid to the individuals for their deposits in banks, is changed:
· Remunerations, paid to the individuals-residents for their deposits in banks are excluded from the incomes of the individual, subject to taxation with individual income tax (item 1 Art.317, sub-item 5 Art.353 TC);
· Remunerations of individuals-non-residents from the sources in the Republic of Kazakhstan are subject to taxation with withholding tax at the rate of 15% (item 1 Art.646 TC). Remuneration of individuals–non-residents, registered in the state with preferential taxation, included in the list, approved by the authorized body*, is subject to taxation with withholding tax at the rate of 20% (item 2 Art.646 TC).
Based on the aforementioned, starting from January 01, 2018, Subsidiary of VTB Bank JSC (Kazakhstan) makes deduction of individual income tax from the non-resident’s income in the manner and time, established by the current tax legislation of RoK, at the time of income payment in the remuneration form for the deposits of individuals–non-residents.
* List of states with preferential taxation is approved by the order of the Minister of finance of the Republic of Kazakhstan dated December 29, 2014, no. 595.