🇰🇿 Kazakhstan Tax Guide — Income, Corporate & VAT Rates

The tax rates in Kazakhstan range from 5% to 20% for personal income tax, with a corporate tax rate of 20%, a standard VAT rate of 12%, and a capital gains tax that is included in the income tax system, making it essential for expats and businesses to understand the tax laws and regulations to navigate the system effectively.

Tax System Overview

Kazakhstan has a territorial taxation system, which means that tax is levied on income earned within the country, regardless of the taxpayer's residency status. However, individuals who are considered tax residents of Kazakhstan are subject to taxation on their worldwide income, including income earned abroad. To be considered a tax resident, an individual must have a permanent home in Kazakhstan, be present in the country for at least 183 days in a calendar year, or have a spouse or minor children who are tax residents of Kazakhstan.

The tax system in Kazakhstan is administered by the State Revenue Committee, which is responsible for collecting taxes, enforcing tax laws, and providing tax services to taxpayers. The tax year in Kazakhstan runs from January 1 to December 31, and taxpayers are required to file their tax returns and pay any taxes due by April 31 of the following year. Kazakhstan has a network of double taxation treaties with 55 countries, which helps to prevent double taxation and fiscal evasion.

Personal Income Tax

Corporate & Business Tax

• The corporate tax rate in Kazakhstan is 20%, which applies to the taxable income of companies, including branches of foreign companies.
• Small businesses with annual turnover of less than KZT 150 million are eligible for a reduced tax rate of 10%.
• Kazakhstan has several free economic zones, which offer tax incentives and other benefits to companies that operate within these zones.
• Companies must register with the tax authorities within 10 days of commencement of business and obtain a tax identification number.
• Companies are required to file their tax returns and pay any taxes due by the deadline to avoid penalties and interest.

VAT / Sales Tax

• The standard VAT rate in Kazakhstan is 12%, which applies to most goods and services.
• A reduced VAT rate of 8% applies to certain goods and services, such as foodstuffs, children's clothing, and educational services.
• Certain goods and services, such as healthcare and education services, are exempt from VAT.
• Kazakhstan has a tourist refund scheme, which allows foreign tourists to claim a refund of VAT paid on certain goods and services.

For Expats & Foreign Workers

• Tax residency rules apply to expats and foreign workers who are present in Kazakhstan for at least 183 days in a calendar year.
• Kazakhstan has double taxation treaties with 55 countries, which helps to prevent double taxation and fiscal evasion.
• Expats and foreign workers are required to register with the tax authorities and obtain a tax identification number.
• Expats and foreign workers may be eligible for social security benefits, including pension and healthcare benefits.
• Expats and foreign workers are required to comply with remittance rules, which regulate the transfer of funds out of Kazakhstan.
• Expats and foreign workers may be subject to withholding tax on certain types of income, such as dividends and interest.

Crypto & Investment Income

• Investment income, including dividends, interest, and capital gains, is subject to taxation in Kazakhstan.
• Cryptocurrency is considered a financial instrument and is subject to taxation, including VAT and income tax.
• Dividends paid to non-resident shareholders are subject to a withholding tax of 15%.
• Capital gains from the sale of securities and other financial instruments are subject to taxation, including income tax and VAT.