We are an accredited translation company to the Embassy of Italy in Moscow
We are an accredited translation company to the Embassy of Spain in Moscow
Service for:
Italy Spain CIS

Kazakhstan’s Position on Legalization of Residence Certificates of Russia and some other Countries

We quote verbatim a Letter of the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan No. НК-13-ЮЛ-Е-883-НК-17 of 08/01/2014 addressed to the Association of Kazakhstan Taxpayers.

Having considered your letters No. 364-07/13 dated 30/07/2013 and No. 428-09/13 dated 03/09/2013, the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan informs as follows.

In accordance with Articles 212, 212-1, 212-2, 213, 214 and 215 of the Tax Code, a taxpayer (a tax agent) has the right to individually apply tax exemption or a reduced tax rate provided for by any related international treaty, provided that a non-resident is a final (actual) recipient of income and a resident of a country which signed such international treaty. The international treaty applies providing that a non-resident submits a document verifying the residence to the tax agent, which document complies with Article 219, para. 4 and 5 of the Tax Code.

Pursuant to Article 219, para. 4 and 5 of the Tax Code, a document verifying the non-resident’s residence is a public document confirming that such non-resident receiving income is a resident of a State which the Republic of Kazakhstan signed the international treaty with. The document verifying the non-resident’s residence is certified by the competent authority of a foreign State of which such non-resident receiving income is a resident.

Unless otherwise provided for by this clause or any international treaty to which the Republic of Kazakhstan is a party, the signature and the seal of the authority that has certified a document verifying the non-resident’s residence, as well as the signature and the seal affixed by a foreign notary in cases where copies of documents specified in subpara. 1), 2) and 4) of para.1 of the aforesaid Article are notarized, shall be subject to diplomatic or consular legalization as set out by the legislation of the Republic of Kazakhstan.

In this respect, a resident of any foreign State which is a party to the Convention abolishing the requirement for the legalization for foreign public documents (Hague, 5 October 1961) (the “Hague Convention”) shall have the right to apply the Hague Convention provisions in relation to the legalization of the signature and the seal of the foreign State’s competent authority which issued such document.

In accordance with Article 3 of the Hague Convention, the only formality that may be required in order to certify the authenticity of the signature, the capacity in which the person signing the document has acted and, where appropriate, the identity of the seal or stamp which it bears, is the addition of the Apostille described in Article 4 of the Hague Convention to be issued by the competent authority of the State from which the document emanates.

Pursuant to Article 5 of the Hague Convention, the Apostille certifies the authenticity of the signature, the capacity in which the person signing the document has acted and, where appropriate, the identity of the seal or stamp which it bears.

Whereas, provisions of the Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Cases signed by Member States in Chisinau on 07/10/2002 and ratified by the Republic of Kazakhstan Law No.531 dated 10 March 2004, and the Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Cases (Minsk, dated 22 January 1993) ratified by Ruling No. 2055-XII of the Supreme Court of the Republic of Kazakhstan dated 31 March 1993, provide that such Convention is concluded by the Contracting Parties based on the desire to provide to citizens of each Contracting Party and other persons residing on its territory legal defence of their personal, property and non-property rights on territories of all Contracting Parties, attaching great importance to the development of cooperation in the sphere of granting legal assistance in civil, family and criminal cases by judicial institutions.

Pursuant to Article 1, para. 3 of the Kishinev Convention, the term “civil cases” as used in the Convention also includes cases related to the settlement of economic disputes.

Article 12 of the Kishinev Convention and Article 13 of the Minsk Convention provide that documents which are issued or certified on the territory of any of the Contracting Parties by the competent authority or specially entrusted person within their competence, that conform to the proper form and are confirmed with the heraldic seal are accepted on the territories of all other Contracting Parties without any special authorization. Documents which are regarded as public documents on the territory of one of the Contracting Parties have the status of documents of probative value on other Contracting Parties’ territories.

Such position is also confirmed with the list (Article 5 of the Kishinev Convention) of central, territorial and any other bodies authorized to perform direct relations. In order to implement Article 5 of the Kishinev Convention, Decree of the Government of the Republic of Kazakhstan No.1453 of 31 December 2004 defined a list of central and other public authorities of the Republic of Kazakhstan authorized to give effect to provisions of the aforesaid Convention. For this purpose, such list includes: the Ministry of Justice of the Republic of Kazakhstan, the Ministry of Internal Affairs of the Republic of Kazakhstan, the Ministry of Defense of the Republic of Kazakhstan, the Ministry of Labour and Social Security of the Republic of Kazakhstan, the Ministry of Finance of the Republic of Kazakhstan, upon requests of public authorities and applications of citizens related to debt repayment by legal entities against which bankruptcy proceedings have been initiated; the Committee of Information and Archives of the Ministry of Culture and Information of the Republic of Kazakhstan, the General Prosecutor’s Office of the Republic of Kazakhstan, the National Security Committee of the Republic of Kazakhstan, and the Agency for Fighting Economic and Corruption Crimes (financial police) of the Republic of Kazakhstan.

In view of the foregoing, we consider that norms set out in the Kishinev (Minsk) Convention are applicable in cases where non-residents submit documents issued by competent authorities without diplomatic or consular legalization (apostilization) within the provision of legal assistance in civil, family and criminal cases, and do not apply to any tax legal matters.

Thus, a taxpayer (a tax agent) has no right to apply provisions of Articles 212 – 215 of the Tax Code by virtue of the residence certificate without the related legalization procedure as provided for by the legislation of the Republic of Kazakhstan.

In the event that, according to Article 219, para. 5 of the Tax Code, the authorized body and the competent authority of any foreign State mutually agree, within the international treaty, on any other manner in which documents verifying the residence are to be legalized, such other manner shall apply.

Based on the aforesaid Tax Code provision, the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan sent drafts Memorandums of Understanding as regards the application of the Convention for the avoidance of double taxation to Member States of the Commonwealth of Independent States to which the Hague Convention applies (the Russian Federation, the Republic of Belarus, the Republic of Azerbaijan, the Republic of Armenia, Georgia, the Kyrgyz Republic, the Republic of Uzbekistan and Ukraine) in August 2013 to simplify the application of the residence certificate. Such drafts Memorandums propose that the residence be recognized by virtue of the original or a copy of the document verifying the residence certified by a foreign notary without any legalization procedure for such document.

In response to such Letter of the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan, the Federal Tax Service of the Russian Federation has emphasized it maintains its stance that provisions of the Kishinev (Minsk) Convention shall not apply to any tax legal matters, and that the resolution of the issue by signing the Memorandum is unacceptable for the Russian Federation. In this respect, the Federal Tax Service of the Russian Federation proposed that the issue on the application of the residence certificate be resolved by executing a Protocol amending the Convention between the Government of the Republic of Kazakhstan and the Government of the Russian Federation for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and capital. The Ministry of Finance of the Republic of Kazakhstan is making arrangements for negotiations with the Ministry of Finance of the Russian Federation in order to amend the aforesaid Convention to mutually recognize the document verifying the residence in original or a copy notarized by a foreign notary without legalization of the signature and the seal of the authority which issued and certified such document.

Similarly, the Ministry for Taxes and Levies of the Republic of Belarus has emphasized that provisions of the Kishinev Convention shall not apply to any tax legal matters, and that it is necessary to resolve the issue by executing a Protocol amending the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Belarus for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income and capital. In this respect, in November of the current year, the first round of negotiations was held with the Republic of Belarus to amend the aforesaid Agreement during which it was agreed to include a norm in such Protocol to mutually recognize the document verifying the residence in original without legalization of the signature and the seal of the authority which had issued and certified such document. It should be noted that the Republic of Belarus applies only original documents verifying the residence for purposes of the application of the Agreement.

The text of the draft Memorandum with the Republic of Armenia has been approved at the national level in Armenia and is now under approval at the intradepartmental level in the Republic of Kazakhstan.

In Ukraine, the draft Memorandum is under approval by the Ukrainian Ministry of Justice.

Replies have been received from Tax Services of the Republic of Uzbekistan and the Republic of Azerbaijan with respect to the application of provisions of the Kishinev (Minsk) Convention to tax legal matters in these countries. In this respect, the Tax Committee of the Ministry of Finance of the Republic of Kazakhstan will continue working with tax services of the aforesaid States on the legalization of documents verifying the residence.

On 28 December of the current year, a reply was received from the Ministry of Economic Affairs of the Kyrgyz Republic expressing its readiness to execute the Memorandum. In this respect, the work will be continued with the Kyrgyz Republic in this area.

There has been no reply from Georgia’s tax service until now.

Deputy Chairperson

of the Tax Committee of the Ministry of Finance

of the Republic of Kazakhstan T. Botakanova

  • The Association’s comment

An interesting situation appears in this regard. Having taken this stance, the Tax Committee should technically demand taxpayers that have applied the conventions on documents without the Apostille recalculate and pay the rest of the tax for the last 5 years. It is very likely that this will trigger a wave of indignation from taxpayers. A good thing is that the work is taking place to abolish the legalization in future, but unfortunately the Letter mentions nothing about any further actions relating to the past. What should we expect?

1[1470:1466]in Belarus 1[1474:1466]in Kazakhstan 2[1478:1474]Kazakhstan’s Position on Legalization of Residence Certificates of Russia and some other Countries 1[1482:1466]in Kyrgyzia (Kyrgyzstan) 1[1486:1466]in Uzbekistan 1[1491:1466]in Ucraine
We provide services
to individuals and corporations.
We accept payments by:
VISA, MasterCard
E-Money
Cash Remittance
Non-Cash Payments
Cash Payments