Tax free dividend allowance for Individuals

Published on 27 April 2024 at 00:59

Kazakhstan Tax Code (Article 341.1.8) provides for tax free dividend for individuals when received from a resident legal entity per a calendar year within 30,000 times the monthly calculation index (MCI) of the corresponding financial year, when distributed from

  • net income or part thereof payable on shares, including shares that are the underlying assets of depositary receipts;
  • net income or part thereof distributed by a resident legal entity between its founders and participants;
  • income from the distribution of property upon liquidation of a resident legal entity or upon reduction of the authorized capital, as well as upon the repurchase by a legal entity from the founder, participant of a share or part thereof in this resident legal entity and upon the repurchase by such a legal entity - issuer from a shareholder of shares issued by this issuer. 

Please note that dividend amount distributed in excess of the individual's share held in the capital is subject to WHT 10% (Answer of the Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated September 19, 2022 to the question dated August 12, 2022 No. 750646 ( “In the case of payment of income in the form of retained earnings to the founder in excess of his share in the authorized capital, such income is other income received from a tax agent, and is subject to personal income tax at the source of payment at a rate of 10%")

Note: 2024 tax free dividend allowance amounts to KZT 110,7 million, equivalent to USD 245 thousand.   

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