(MENAFN - AzerNews) By Abdul Kerimkhanov
Kazakhstan and Croatia have approved a draft law to avoid double taxation and prevent tax evasion with respect to taxes on income.
The agreement was developed on the basis of the model concept of the Organization for Economic Cooperation and Development. Such international treaties give guarantees to foreign investors, provide an opportunity to fairly share the right to taxation between the two states.
Alikhan Smailov, KazakhMinister of Finance, introducing the bill said that this agreement has several objectives. First, to strengthen the cooperation of the tax services of both countries, ensuring in the future the exchange of information on all types of taxes. Secondly, to establish an order determining residency, which will be equally used in both states, added Smailov.
As he said, the agreement will allow setting marginal rates for such passive incomes as dividends, interest and royalties and provide the legal basis for resolving tax disputes between the two states.
The Minister noted that over the past 10 years, trade between the two countries amounted to $ 1.4 billion. The volume of mutual trade between Kazakhstan and Croatia in 2017 increased significantly, reaching $ 317 million, including exports - $ 304 million and imports - $ 13 million. The increase in turnover is due to the growth of Kazakhstan's exports of petroleum products. In 2016, the total turnover amounted to only $38.5 million.
The diplomatic relations between Kazakhstan and Croatia were established in 1992.
Export of Kazakh mineral products and energy products to Croatia accounts for about 90 percent of the trade turnover. Moreover, Kazakhstan exports chemical products, textiles and textile products to Croatia.
Croatia, in turn, exports products of animal and vegetable origin, food products, chemical products, shoes and clothing products, construction materials, metals and products, machinery and equipment to Kazakhstan.
October 20, 2017, marks the 25th anniversary of the establishment of diplomatic relations between the Republic of Kazakhstan and the Republic of Croatia.
Abdul Kerimkhanov is AzerNews' staff journalist, follow him on Twitter: @AbdulKerim94
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