FYR Macedonia: Kazakhstan treaty ratified by Parliament

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

FYR Macedonia: Kazakhstan treaty ratified by Parliament

kostovska.jpg

Elena Kostovska

On December 4 2012, the FYR Macedonian Parliament ratified the income tax treaty signed with Kazakhstan. The ratification was published in the Official Gazette 154 on December 7 2012. The treaty, initially signed between the two countries on July 2 2012, covers the personal income tax and profit tax in FYR Macedonia and the corporate income tax and the individual income tax in Kazakhstan. As is usually the case, the treaty is mostly harmonised with the OECD model; however, certain specifics can be noted.

Building/construction sites as well as assembly or installation projects (including any related site activity of supervisory nature) lasting for more than six months will, according to the treaty, imply a permanent establishment (PE). Services, including consulting, provided via employees and related parties, in aggregate duration in excess of six months within a 12 month period are also considered PEs.

PEs are, in addition to the standard classifications, also deemed to include installations/structures for exploration of natural resources or related supervisory service, drilling rigs and natural resources exploration ships.

As far as withholding taxes are concerned, the treaty with Kazakhstan does not deviate significantly from the norm or offer any particular tax incentives at least from the FYR Macedonian perspective; dividends are taxed at the 5% or 15% rate (the preferential rate being applicable in cases with a minimum 25% capital participation). A standard 10% withholding tax rate on interest has been agreed on and the same rate is applicable to royalties.

Employment, pensions, and artists/sportsmen income articles of the treaty are fully harmonised with the OECD convention.

Regarding the elimination of double taxation, the treaty stipulates that both countries will allow deduction from taxes in the amount of tax paid on it in the other state.

Pending Kazakhstan's ratification, the treaty will enter into force as soon as the ratification is completed and will be applicable as of the beginning of the calendar year following the year of entry into force.

Elena Kostovska (elena.kostovska@eurofast.eu)

Eurofast Global, Skopje Office, FYR Macedonia

Tel: +389 2 2400225

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

ITR’s data has highlighted the US firm’s ambition to become America’s ‘premier’ tax player via a concerted partner recruitment strategy
Jaap Zwaan’s arrival continues a recent streak of A&M Tax investing in the region; in other news, the US and Japan struck a deal that significantly lowered tariff rates
In a world where international tax concepts rely on human activity, Leonard Wagenaar poses existential questions about the future of such ideas when AI is ever-present
France v Axa provides a practical illustration of how the burden of proof is applied in TP matters under French law, ITR also heard
In an exclusive interview with ITR, Ian Gary calls for a central public CbCR database and bemoans the US’s lack of involvement in international tax transparency
Reckitt Benckiser is to divest its Essential Home business, which includes more than 70 brands, to private equity firm Advent International
In the first of a new series of weekly opinion pieces, ITR Editor Tom Baker reflects on the OECD’s attempts to sanitise the US’s brazen pillar two negotiations
The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
Gift this article