New condition for dividends tax exemption in respect of securities traded on KASE and AIX

On 25 December 2024 the Resolution of the Government of the Republic of Kazakhstan No. 1096 dated 21 December 2024 ‘On amendments to the Resolution of the Government of the Republic of Kazakhstan No. 911 ‘On criteria for trading of securities on stock exchanges’ (the ‘Resolution’).

The Resolution introduces an additional condition for dividends tax exemption in respect of securities traded on KASE and AIX[1], namely:

• The placement of securities through an IPO/SPO constitutes at least 10% of the total number of issued securities, excluding those repurchased by the issuer.

or

• The number of securities in free circulation constitutes at least 10% of the total number of issued securities, excluding those repurchased by the issuer.

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[1] Please note that as of today there is no corresponding amendment to the Joint order ‘On determining the criteria for securities trading on stock exchange of Astana International Financial Centre’ which calls into question the application of this criterion to securities traded on AIX until the above corresponding change is made.