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Volume XII, Number 138

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Luxembourg Has Been Removed from the Kazakhstan Tax Blacklist

The change will be retroactive starting 1 January 2015.

The Kazakhstan tax blacklist is a list of now 60 jurisdictions that Kazakhstan considers to be countries with privileged tax regimes.

Business relations of Kazakhstan entities with entities in blacklist jurisdictions have various tax disadvantages, including higher withholding taxes on payments to such jurisdictions and increased transfer pricing adjustments/scrutiny. In addition, there can be other adverse legal consequences, including prohibitions in the banking law to provide loans to entities in blacklist jurisdictions and unavailability of statutory exemptions from the state priority right when transferring subsoil use assets.

Luxembourg has long been recognised as a favourable jurisdiction for international holding companies. Its removal from the blacklist means that Luxembourg may now offer a useful entry point into Kazakhstan, offering an alternative to some of the other jurisdictions regularly used for investments into Kazakhstan, such as the Netherlands.

Copyright © 2022 by Morgan, Lewis & Bockius LLP. All Rights Reserved.National Law Review, Volume V, Number 40
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About this Author

E.S. Kate Habershon, Morgan Lewis, Tax Lawyer
Partner

Kate Habershon advises corporations and funds on corporate taxation. Her focuses include tax and structuring issues related to international tax planning, mergers and acquisitions, corporate finance, private equity, executive compensation, internal group restructurings, and financial products. Before joining Morgan Lewis, Kate was tax counsel in the London office of another international law firm, a solicitor on the international and energy tax teams of a Magic Circle firm, and a lawyer in the tax department of the Sydney, Australia, office of another international law...

44 020 3201 5560
Bakhytzhan O. Kadyrov, corporate lawyer, Morgan Lewis
Partner

Kazakh and international companies turn to Bakhytzhan Kadyrov for advice on a range of corporate matters, including mergers, acquisitions, and tax. His client base spans industries and encompasses luxury hotel developers, mining companies, oil producers, and grain traders. He has advised on a sale of a large confectionary company in Kazakhstan. Bakhytzhan has also provided counsel on complex Kazakh legal issues to a major Kazakhstan real estate developer.

727 250 7575
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