Since December 1998, Kazakhstan and Germany have been in force an agreement on the avoidance of double taxation with respect to taxes on income and property, El.kz reports with reference to the Ministry of Finance.
The agreement is aimed at strengthening, expanding economic cooperation, creating favorable conditions for investment between the countries by eliminating double taxation of income of residents of the two countries.
Today, there are more than 1,000 operating enterprises in our country with the participation of German capital, including: Linde AG, Heidelberg Cement, BASF, Knauf, Siemens, Wilo, Metro Cash and Carry, CLAAS, etc.
At the end of last year, within the framework of the application of the Agreement, income of more than 800 residents of Germany was paid from Kazakhstan in the amount of about 100 billion tenge, for which reduced tax rates and tax exemption were applied.
The Agreement provides for a mechanism for resolving tax disputes in the form of a procedure for mutual agreement between the tax services of the two countries.
Also, the Tax Code of the Republic of Kazakhstan provides for a similar procedure for mutual agreement. Persons shall have the right to apply to the state revenue authorities with an application for the procedure of mutual agreement with the competent authority of a foreign state to resolve disputes.
Kazakhstan plans to further develop cooperation between the tax authorities of the two countries in order to improve the business climate and investment attractiveness.