A Kazakhstan resident pays tax on an apartment in Georgia with credit for the Georgian tax
Rental income and the gain on selling a foreign apartment are declared in Kazakhstan at 10% and 15%; for foreign property the holding period gives no exemption (art. 383). Georgian tax is credited up to the Kazakhstani tax (Tax Code art. 413, art. 24 of the 1997 treaty, in force since July 5, 2000; arts. 6 and 13 leave Georgia the right to tax property located there).
What this changes in the calculation
With the Georgian 5% on rent, a Kazakhstan resident pays an extra 5% (up to 10%); on a sale the top-up is 10% of the gain, and after 2 years in Georgia there is no credit, so the full Kazakhstani rate is paid.
- Source
- pavlodar.com
- Status
- verified
- Published