I had a little time. I looked through the translated document. And I found something. Honestly, did your accountant go to school?
While you are sleeping, I have digged further to help you. The finding I got from Ernst Young's website is consistent with what found from the other big 4 accounting firms: Only capital gains are subject to taxation. Here is the link to E&Y's document: https://assets.ey.com/content/dam/ey-sites/ey-com/fi_fi/pdf/ey-doing-business-in-kazakhstan-2023.pdf The below is from page no. 32 of that document. I hope our findings will help you get rid of the nightmare of paying taxes on the whole proceeds of stock sales.
You did a good gob. Thanks for trying to help. But if you go below to section 8 you will see that it's taxed 10% at selling amount if it's from certain countries. And it's a little ambiguous about what it means there, but the head of tax administration in a different place clarified that if the company is registered in these countries then it's taxed from the selling amount and not from profit
Thanks. But in this case it's not a mistake. It's how they constructed the tax law. Here's the Google translated version of the law. Spoiler: Law Article 332. Income of an individual from the sale of property received from sources outside the Republic of Kazakhstan 1. Unless otherwise established by this article and Article 331 of this Code, the income of an individual when selling property received from sources outside the Republic of Kazakhstan is the cost of selling the property. See: Answer of the Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated May 1, 2022 to the question dated April 14, 2022 No. 735323 (dialog.egov.kz) “On tax obligations for the purchase/sale of cryptocurrency” 2. The income of an individual when selling property, received from sources outside the Republic of Kazakhstan, is defined as the positive difference between the cost of selling the property and the cost of its acquisition when selling the following property: 1) located outside the Republic of Kazakhstan, for which rights and (or) transactions are subject to state or other registration with the competent authority of a foreign state in accordance with the legislation of the foreign state; 2) located outside the Republic of Kazakhstan, subject to state or other registration with the competent authority of a foreign state in accordance with the legislation of the foreign state. See: Answer of the Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated April 19, 2018 to the question dated April 12, 2018 No. 491085 (dialog.egov.kz) “The provisions of the international treaty on the avoidance of double taxation on income from sources outside the Republic of Kazakhstan are applied in the case of submitting a document confirming the residence of a non-resident" 3. In cases of sale of property legalized in the manner established by the Law of the Republic of Kazakhstan “On the amnesty of citizens of the Republic of Kazakhstan, candidates and persons having a residence permit in the Republic of Kazakhstan, in connection with the legalization of property by them,” the person who legalized it, for which there is no price (cost) of the acquisition and the obligation to pay the fee for legalization has been fulfilled, income from the increase in value is the positive difference between the price (cost) of the sale of the property and the estimated value determined in tenge for calculating the fee for legalization of the property being sold. See: Letter of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated December 15, 2020 No. KGD-07-2-8-KG/ZhT-N-2074 “Submission of a declaration on personal income tax (form 240.00) and payment of personal income tax when selling legalized property” Clause 4 is set out in the wording of the Law of the Republic of Kazakhstan dated December 21, 2022 No. 165-VII (entered into force on January 1, 2024) ( see previous edition ) 4. The income of an individual from the sale of a digital asset, securities, with the exception of debt securities, received from sources outside the Republic of Kazakhstan is defined as the positive difference between the sale price and the acquisition cost. See: Answer of the Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated January 23, 2020 to the question dated January 8, 2020 No. 588604 (dialog.egov.kz) “On determining income subject to personal income tax when selling securities received from sources outside the Republic of Kazakhstan ", Answer of the Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated July 22, 2020 to the question dated July 6, 2020 No. 626965 (dialog.egov.kz) "On income from the increase in value when an individual sells shares of an enterprise registered in the United States, whose shares are traded on the American stock exchange, the governing bodies of which are located in the United States and the property of which is also located in the United States" 5. The income of an individual from the sale of debt securities received from sources outside the Republic of Kazakhstan is defined as the positive difference, excluding coupons, between the sale price and the acquisition cost, taking into account the amortization of the discount and (or) premium on the date of sale. See: Answer of the Chairman of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan dated March 27, 2019 to the question dated February 14, 2019 No. 535406/1 (dialog.egov.kz) “Concerning the determination of the income of an individual when selling debt securities received from sources outside the Republic of Kazakhstan » 6. The income of an individual upon the sale of a participation interest, received from sources outside the Republic of Kazakhstan, is defined as the positive difference between the cost of sale and the cost of acquisition (contribution). 7. The provision of paragraph 2 of this article does not apply in the following cases: 1) real estate is located on the territory of a state with preferential taxation ; 2) rights to movable property or transactions on movable property are registered with the competent authority of the state with preferential taxation. 8. The provisions of paragraphs 4, 5 and 6 of this article do not apply if the income specified in paragraphs 4, 5 and 6 of this article is received from sources in a state with preferential taxation . Basically, first you need to read section 1, then section 4 then section 8.
I know for most people it is unbelievable. But if you read the tax carefully then you will understand why Kazakhstan is a poor country, despite being resource rich. People in the government are not smart. They don't care how their laws can affect The people
Even knowing how dumb my country laws can be, I didn't believe in the beginning. That's why I went to a big4 tax consultant. And unfortunately they said that it's true. Then again most people don't know about it. And when they fail the taxes they do it usual way. And sometimes tax officials get them and they have to pay 300% of the initial amount. I.e. if i try to hide it, and later they find out somehow, then I will need to oay 750k
Initially, I agreed. Then I said, what about the hugely successful people who trade in competitions like the World Cup, garner recognition, then sell subscriptions to their systems in a leader-follower model? And I disagreed. Then, remembered the people who are in my inner circle and the idea of six degrees of separation, then I finally agreed. Yes, keep that big trap shut! LOL.
I am a little baffled that you didn't plan for this. I'm nowhere as successful as you. However, I do think frequently about which countries have NO CAPITAL GAINS TAX. Any one with a modicum of success thinks about this.