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.
When calculating the number of securities in free circulation, the following are excluded:
- securities owned by the state;
- securities owned by the issuer's officials and their close relatives;
- securities owned by legal entities in which the issuer's officials and their close relatives are major shareholders, hold a significant stake in assets, and/or serve as officials;
- securities owned by legal entities in which the issuer's major shareholders and their close relatives are major shareholders, hold a significant stake in assets, and/or serve as officials;
- securities owned by the issuer's subsidiaries and subsidiaries of the issuer's major shareholders;
- securities owned by individuals, each of whom holds 10% or more of the total issued securities of the issuer, excluding those repurchased by the issuer.
The Resolution comes into effect on 05 January 2025.
Footnote
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.
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