The Deputies of the Senate of the Kazakhstan Parliament have passed the Law "On the Signing of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital and Protocol hereto".
Presenting the bill at the plenary session of the higher chamber of the Kazakh Parliament, Minister of Finance Alikhan Smailov pointed out that the Agreement was concluded based on the model convention of the Organization for Economic Cooperation and Development (OECD). Such international treaties act as a guarantee for foreign investors and also create the possibility for an equitable allocation of the right to taxation between the two states.
The agreement pursues the following objectives: firstly, to strengthen cooperation between the tax services of both countries, ensuring the exchange of information on all types of taxes in the future; secondly, to establish a procedure determining residency, which will be equally used in both states," said Alikhan Smailov.
Thirdly, according to him, the Agreement aim is to establish maximum rates for such passive incomes as dividends, interest, royalties; fourthly, to provide a legal framework for resolving tax disputes between the competent authorities of the two countries.
It should be mentioned that the trade turnover between Kazakhstan and Croatia has amounted to $1.4 billion over the past 10 years. In the past year, the value of mutual trade increased significantly, reaching $317 million - Kazakhstan exported goods for $304 million and imported for $13 million. The turnover increase is attributable to the growth in exports of Kazakhstan's oil products.
Source: Kazinform News Agency
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