Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Kazakhstan
New tax reform: No specific information
New tax treaties:
- Tax treaty between Kazakhstan and Slovenia enters into force.
- Tax treaty between Kazakhstan and Serbia enters into force.
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
The definition of Permanent Establishment follows the wording of article 5 of the OECD Model:
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except is the activity is limited to purchase of goods);
- Building site, construction, assembly or installation and any related supervisory activity.
Resident companies are taxed on their worldwide income. However, non-resident companies are only taxed on their revenues derived from Kazakhstan sources.
The definition of resident company for tax purposes, corresponds to the definition of the OECD Model Convention. As per article 4 of the OECD Model Tax Convention, a person is treated as resident of a contracting state if he is liable to tax in such a country by virtue of his domicile, residence or place of management or any other similar criterion.
Entities are considered to be resident for tax purposes in Kazakhstan if their place of management & control is in Kazakhstan.
Note: the definitions of Permanent Establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 20%.
Non-taxable income includes the following:
- Dividends (participation exemption)
- Interests derived from a financial lease of fixed assests, and investment in real estate
- Certain capital gains derived from securities under specific conditions
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
- Interest in excess of the thin-capitalization threshold
- Fines and penalties
Carry forward: Yes 10 years, but some restrictions may apply
Carry back: No
Companies should submit the tax return annually before the 31 March of the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay monthly advance payments on before the 25th of each month.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Kazakhstan are the following, subject to the provisions of an applicable double tax treaty, if any.
There is a 15% WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 15% (20% if non-residents are established in low tax jurisdiction).
Note: the WHT is reduced to 0% if the foreign company held the resident company for at least 3 years.
The general rate of WHT on interest is 15% (20% if non-residents are established in low tax jurisdiction).
The general rate of WHT on Royalties is 15% (20% if non-residents are established in low tax jurisdiction).
The general rate of WHT on management fees is 20%.
The general rate of WHT on technical services is 20%.
Capital gains are taxed as general income under the regular CIT.
Note: in certain cases capital gains are not taxable (i.e. disposal of shares for at least 3 years; or capital gains derived from the sale of bonds, … ).
Standard VAT tax rate is 12%
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
- International transport services;
Exempt supplies include, subject to certain conditions:
- Sale or rent of certain residential buildings;
- Certain financial services ;
- Training and education
The VAT refund mechanism does not apply to foreign companies not registered in Kazakhstan for VAT purpose.
No other specific information of VAT in Kazakhstan.
The general statute of limitation is 5 years.
There is no foreign exchange control in Kazakhstan. Income and capital can be freely repatriated.
There are thin capitalization rules in Kazakhstan. The interests derived from loans between related parties may not be deductible in case where interest exceeds some ratios.
Do not hesitate to share your experience in Kazakhstan with us in the comments below. Any comments are welcome !