A new DTT between Kazakhstan and Serbia provides for the following benefits and changes:
Article 10 / Dividends
- The tax rate applied will be 10%, if the recipient holds participation of at least 25% in the issuer paying the income
- The tax rate applied will be 15%, if the recipient holds participation of less than 25% in the issuer paying the income
Article 11 / Interest
- The tax rate applied will be 10%
Article 14 / Capital Gains Tax
- The tax rate applied will be 0%, if investors dispose of shares of an issuer, less than 50% of the total assets of which are located in Serbia
- The tax rate applied will be 20%, if investors dispose of shares of an issuer, more than 50% of the total assets of which are located in Serbia
The contracting states have to notify each other in writing, through diplomatic channels, that the procedures required by their domestic laws for the DTT to enter into force have been completed. The DTT will not enter into force before the date of the later of these notifications and will become effective on, or after, the first day of January in the calendar year following the year in which the DTT enters into force. Thus, the DTT is not expected to come into force before 1 January 2017.
Impact on investors: The DTT between Kazakhstan and Serbia is expected to create a more favorable tax environment for eligible investors from both countries.