Mazhilis has approved a treaty btw Kazakhstan and Croatia on avoidance of double taxation

05 December, 2018, 13:27 297
Mazhilis has approved a treaty btw Kazakhstan and Croatia on avoidance of double taxation

The treaty will serve as a guarantee for foreign investors. 

The Mazhilis has approved a draft law of the Republic of Kazakhstan "On the ratification of a treaty between the Government of the Republic of Kazakhstan and the Government of the Republic of Croatia on the elimination of avoidance of taxes on income and the Protocol thereto," BNews.kz correspondent reports. 

According to Finance Minister Alikhan Smailov, the international treaty will be a guarantee for foreign investors, as well as will create the possibility to fairly disseminate taxing rights between the two states. 

"This treaty has such objectives, as, firstly, to strengthen cooperation of tax officials of both states, by ensuring an exchange of information on taxes in the future. Secondly, to establish order identifying residence that will use the same in two states," said Amailov. 

The treaty will also enable to set up the ceiling on such passive sources of income as dividends, shares, and royalties, and will present a legal basis to deal with tax disputes between the bodies of the two states.  

Note, over the last 10 years, the trade turnover between the two states was US $1.4 billion. The amount of mutual trade between Kazakhstan and Croatia considerably increased in 2017, and reached US $317 million, including exports - US $304 million and imports - US $13 million.