WHT rates — domestic law

Under the Tax Code No. 214-VIII, the following WHT rates apply to payments to non-resident recipients: dividends — 15% general rate (5% for shareholders holding ≥25% on dividend amounts up to 230,000 MCI, approximately USD 1.9 million; 20% to offshore jurisdictions); interest — 10% (reduced from 15% under the new Tax Code No. 214-VIII); royalties — 15%; services income (where the service is deemed performed in Kazakhstan) — 20% (expanded scope under new Tax Code). Note: the interest WHT rate has been reduced from 15% to 10% under Tax Code No. 214-VIII — the domestic 10% rate now broadly aligns with the rate in most of Kazakhstan’s DTTs, reducing the practical need to rely on treaty benefits for interest payments. These domestic rates are reduced or eliminated by applicable double taxation treaties. Bond Stone advises on the applicable domestic WHT rate and available treaty relief for specific cross-border payment flows.

Kazakhstan DTT network — 50+ treaties

Kazakhstan has concluded double taxation treaties with over 50 states. Treaties with key investor states include: China (5% on dividends for 25%+ corporate shareholders); Germany (5–15% on dividends); Netherlands (5–15%); Russia (10%); UAE (no WHT on dividends); UK (5–15%); USA (5–15%). Rates vary by treaty and by the level of shareholding — Bond Stone advises on treaty-specific rates applicable to the investor’s structure.

Beneficial ownership — treaty access requirement

To access reduced DTT withholding tax rates, the recipient of the payment must be the beneficial owner of the income — not a mere conduit passing the payment to a third party. Kazakhstan’s tax authority actively applies beneficial ownership analysis on dividend, interest, and royalty payments to treaty partners. Conduit arrangements — where an intermediate holding company has no substantive economic activity and merely passes through payments — are at risk of treaty denial. Bond Stone advises on structuring holding arrangements to satisfy beneficial ownership requirements.

OECD Multilateral Instrument — MLI

Kazakhstan has signed and ratified the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). The MLI modifies Kazakhstan’s covered DTTs to implement: the Principal Purpose Test (PPT) — denying treaty benefits where obtaining the benefit was one of the principal purposes of an arrangement; the Simplified Limitation on Benefits (SLOB) provision; and hybrid mismatch anti-avoidance rules. Bond Stone advises on the MLI’s impact on existing Kazakhstan-related holding and financing structures.

Documentation — claiming reduced WHT rates

To apply a reduced DTT withholding tax rate at source, the Kazakhstani paying entity must obtain from the recipient: a tax residency certificate issued by the competent authority of the recipient’s home state (apostilled); and a declaration of beneficial ownership of the payment. The documentation must be obtained before the payment is made — retroactive treaty claims are procedurally complex. Bond Stone advises on the documentation package required for compliant treaty application.

AIFC — 0% WHT on dividends

Dividends paid by an AIFC participant entity to its shareholders are exempt from Kazakhstani WHT under the AIFC tax regime — regardless of the recipient’s treaty position. This is a significant advantage of structuring through an AIFC holding company for investors repatriating investment income from Kazakhstan. Bond Stone advises on AIFC participant eligibility and the WHT exemption scope as part of AIFC investment structuring mandates.

DTT Planning — Chinese Investor

WHT · Kazakhstan · China

Advising a Chinese corporate shareholder on applying the China-Kazakhstan DTT to reduce dividend WHT — 5% rate eligibility for 25%+ shareholders, beneficial ownership documentation, residency certificate requirements, and coordination with Chinese tax advisers.

UAE Holding — 0% WHT

WHT · Kazakhstan · UAE

Advising on structuring Kazakhstan investment income through a UAE holding entity — 0% WHT on dividends under the Kazakhstan-UAE DTT, beneficial ownership analysis, and UAE substance requirements to withstand PPT challenge under the MLI.

MLI Impact — European Holding

WHT · Kazakhstan · Europe

Advising a European investor on the impact of the MLI on its Kazakhstan holding structure — PPT analysis, whether the structure has sufficient business purpose beyond treaty benefit access, and restructuring options to reduce MLI risk.

Interest WHT — Intercompany Loan

WHT · Kazakhstan · Corporate

Advising on WHT applicable to interest payments on an intercompany loan from a Kazakhstani subsidiary to its foreign parent — applicable DTT rate, beneficial ownership, documentation, and interaction with thin capitalisation limits on deductibility.

Royalty WHT — Technology Licence

WHT · Kazakhstan · Technology

Advising on WHT applicable to royalty payments from a Kazakhstani licensee to a foreign licensor — applicable DTT rate, beneficial ownership, residency certificate, and transfer pricing compliance for the licence fee.

AIFC 0% WHT — Investment Structuring

WHT · AIFC · Investment

Advising on structuring investment income flows through an AIFC participant entity to access the 0% WHT exemption on dividends — AIFC participant registration, qualifying activity scope, and interaction with DTT network for onward distributions.