Kazakhstan legal entities should maintain accounts and produce financial statements in accordance with IFRS or national accounting standards (depending on the size of the company and other factors). In most cases, tax treatment follows the accounting treatment.
United States (US) Foreign Account Tax Compliance Act (FATCA)
On 11 September 2017, Kazakhstan and the United States signed an intergovernmental agreement (IGA) under Model I to improve international tax compliance with respect to the US FATCA, which will enable the automatic exchange of financial information on each country's resident taxpayers to support tax enforcement efforts.
The IGA will be in force after the parties notify each other in writing that all necessary internal procedures have been completed.
Multilateral Convention on Mutual Administrative Assistance in Tax Matters (Strasbourg Convention)
Kazakhstan is a signatory of the Strasbourg Convention (ratified in December 2014) for administrative co-operation with other states in the assessment and collection of taxes with a view to combating tax avoidance and evasion.
Kazakhstan did not join multilateral competent authority agreements on automatic exchange of information under the Strasbourg Convention.
The Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) project
Kazakhstan joined the Inclusive Framework on BEPS in January 2017. By joining the framework, Kazakhstan pledged to adopt and promote the implementation of the four minimum standards designed by the OECD in the BEPS project.
Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI)
On 25 June 2018, Kazakhstan signed the MLI. The MLI, which was developed as a result of the BEPS plan, envisages introduction of a number of supplements and amendments to existing DTTs.
Currently, Kazakhstan has expressed intention to extend some of the MLI provisions to all its DTTs conducted with the MLI member states.
The MLI is currently under consideration by the government and will enter into force after its ratification by Kazakhstan. On 20 February 2020, the President of Kazakhstan signed a law on Ratification of the MLI. On 24 June 2020, the OECD received document on ratification of the MLI by Kazakhstan. The MLI should enter into force on the first day of the month following the expiration of a period of three calendar months beginning on the date of the deposit by signatory of its instrument on ratification, acceptance, or approval. Therefore, the MLI should enter into force in Kazakhstan starting from 1 October 2020.
Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Financial Account Information
In June 2018, Kazakhstan signed the MCAA on Automatic Exchange of Financial Account Information, which envisages implementation of the common reporting standard for the automatic exchange of financial account information (CRS).
The CRS will allow the Kazakhstan tax authorities to automatically obtain financial information, such as remaining balances of bank accounts maintained by Kazakhstan taxpayers, from other CRS member states. Kazakhstan intends to perform the first automatic exchange of information in September 2020.