Modification of Kazakhstani Tax Treaties by the Multilateral Convention

This article is devoted to the analysis of the impact of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) on Kazakhstan’s tax treaties. The author examines the provisions of the MLI aimed at countering tax avoidance. The covered articles are categorized into two categories: Mandatory provisions and optional provisions. The study addresses key issues such as dual residence, abuse of treaty benefits, artificial avoidance of permanent establishment status, and the shifting of dividends. Special attention is given to the fact that, under the MLI, the Republic of Kazakhstan has modified the preambles of 53 of its tax treaties, which bears significant practical importance. The new preamble notifies taxpayers and tax administrations that the main purposes which treaty partners have in mind when they conclude tax treaties are the provision of relief to taxpayers with regards to the burden of double taxation in both contracting states, and the elimination of double non-taxation or tax evasion. The article further explores artificial avoidance of permanent establishment through commissionaire arrangements and similar strategies. Amendments to the mutual agreement procedure (MAP) are examined in detail. The author concludes with an assessment of the degree of Kazakhstan’s alignment with the positions of other jurisdictions and discusses the potential legal implications for taxpayers.