LETTER OF THE TAX COMMITTEE OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of March 14, 2014 No. NK-13-YuL-E-260-NK-2077

"Concerning the taxation of the income of nonresidents when rendering services in technical support of software products"

The association of Taxpayers of Kazakhstan (further - ANC), in connection with the address of taxpayers asks to explain question concerning the taxation of the income of nonresidents when rendering services in technical support of software products.

The companies, being official distributors (further - OF) in the territory of the Republic of Kazakhstan (further - RK), render services in technical maintenance of software products for the Clients. At the same time rights to use on such software products are acquired directly by Clients. From the income in type of royalty of the Company hold KPN independently since OF have no relation as do not acquire right to use software product to payment of such income.

OF render only technical maintenance of software products.

At the same time services in technical support in working order of the equipment of computing systems, and to support of the software consist in the following:

- consultations on remote support of equipment maintenance of computing systems;

- updating and servicing of the systems of the software acquired earlier taxes according to the income in royalty form on which are already paid;

- providing with spare parts.

Attract to these purposes of the Company subcontractors, including nonresidents. They represent services of technical advisers. Rendering services is made as remotely, and by visit of the Client by subcontractor - the nonresident. At the same time, the period of time during which services in the territory of RK are rendered is not led to formation of permanent organization, according to provisions of international treaties.

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