In brief
The Mazhilis approved the draft Law on ratification of the Treaty betw een the governments of Kazakhstan and the USA on improvement of international tax discipline dated 11 September 2017 (the “Treaty”). The draft Law has been sent to the Senate for further consideration. After ratification of the Treaty, Kazakh government w ill have access to information on accounts of Kazakh residents in the USA.
In details
The Treaty stipulates obligation of Kazakhstan to provide information on open accounts and money transfers of the US residents in Kazakhstan. In turn, the USA should provide the respective information on Kazakh residents’ accounts and money transfers to Kazakh authorities.
The Treaty affects activities of financial institutions, including credit institutions, insurance, brokerage and other similar companies. Kazakhstan has chosen a centralized model for collecting the information, w hich allow s the government to:
- maintain control over the financial system;
- receive similar information about citizens and residents of Kazakhstan from the United States;
- reduce administrative costs of financial institutions in Kazakhstan;
- mitigate the risks for the financial sector associated w ith the requirements of the Treaty.
Are you interested in this topic?
- We w ould be pleased to discuss w ith you the above amendments and how they can impact your business;
- We can analyze and implement possible steps to ensure compliance w ith the new requirements.
If you are interested in additional information, please contact Pw C specialists w orking as part of a group serving your company, or to any of the persons listed.
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