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Tax rates in Kazakhstan

Tax Rates

Consumption Taxes

Nature of the Tax
Value added tax (VAT) - Қосылған құн салығы (ҚҚС)
Tax Rate
12%
Reduced Tax Rate
Several goods and services are VAT exempt, including turnover associated with land and residential buildings; specified financial services; services rendered by non-commercial organizations; services in the areas of culture, science and education; goods and services related to medical and veterinary activities; import of certain assets (a list is issued by the government); goods imported by individuals not for entrepreneurial purposes (subject to certain limitations); turnovers related to international transportation services; import of goods from the territory of a Eurasian Economic Union member country within the same legal entity (e.g., intra-entity transaction).
Zero-rated items include export sales of goods, except for those that are exempt from VAT; international transportation services; sale of oil and lubricants by airports when fuelling aircraft of a foreign air carrier performing international flights; sale of fine gold; sale of goods to the territory of Special Economic Zones.
Other Consumption Taxes
Excise duties on all types of spirits, alcohol (up to KZT 11,000 per litre) and tobacco products, petrol (except for aircraft), diesel fuel oil, and certain motor vehicles.

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Corporate Taxes

Company Tax
20%
Tax Rate For Foreign Companies
Non-residents are only taxed on Kazakhstan-source income. Kazakhstan offers investment incentives in free-trade zones in the form of total exemption from corporation tax and social tax as well as zero-rated property taxation. These incentives have specific expiry dates depending on the free trade area (between 2027 and 2043).
Non-residents without a permanent establishment in the country that receive income from sources in Kazakhstan are generally subject to income tax withheld at source of payment on Kazakhstan-sourced income.
Net income of a non-resident legal entity’s branch is subject to the 20% standard CIT rate and to a branch profits tax at a rate of 15% (bringing the effective rate to 32%; which may be reduced under a tax treaty).
Capital Gains Taxation
Capital gains are treated as normal income and taxed at the standard corporate tax rate of 20%. Capital gains realised from the sale of shares and participation interests in Kazakhstan that do not derive their value from subsurface use property and are held for more than three years may be exempt.
Main Allowable Deductions and Tax Credits
Documented expenses incurred to generate income are generally deductible.
Depreciation of tangible and intangible assets is tax-deductible (at rates ranging from 10% to 40%); however, the Kazakh Tax Code does not provide any arrangements for the amortisation of goodwill. Start-up costs, although not explicitly defined by the Kazakh Tax Code, are generally deductible.

Interest, receivables not recovered after a three-year deadline, fines (except those that go directly to the state budget) and taxes (except corporation tax, excess profits tax and taxes paid in jurisdictions with preferential tax treatment) are all tax-deductible. Donations to charitable organisations give rise to a reduction of the tax base, up to 4% of annual taxable income (3% for large taxpayers subject to monitoring). Payments to foreign affiliates are also deductible if they allow the company to earn income in Kazakhstan.

Tax losses can be carried forward for up to 10 years. The carryback of losses is not permitted.

Kazakhstan also offers investment incentives in free-trade zones in the form of total exemption from corporation tax and social tax as well as zero-rated property taxation. These incentives have specific expiry dates depending on the free trade area (between 2027 and 2043).
Other Corporate Taxes
Oil and gas companies are subject to excess profits tax at rates ranging from 10% to 60%. The tax base is the portion of net income that exceeds 25% of the deductions for this tax.
Employers are required to pay a social tax equal to 9.5% of the employee's gross salary (the monthly minimum base is 14 times the minimum calculation index - KZT 42,882 for 2022 -  and there is no maximum).
Furthermore, the employer pays a surcharge equal to 5% of the gross wage when the employee is engaged in a hazardous activity). Contributions paid by the employer to the Social Security Fund are at an effective rate of 3.5% (capped at KZT 420,000) while those paid to the Health Insurance Fund amount to 3% (the monthly base is capped at KZT 600,000).

A property tax is levied at rates varying between 0.1% and 1.5% (the most common rate) of the average net book value of the immovable property, depending on the taxpayer's activity.
A land tax is also levied at varying rates according to the size, quality and use of land.

There is no stamp duty, however, the Kazakh authorities reserve the right to impose a levy on the distribution of certain legal documents by public institutions.
A mineral extraction tax applies to the monetary value of the extracted volume of crude oil, gas condensate, natural gas, minerals, and groundwater. Rates for crude oil and gas condensate range from 5% to 18% (with a 50% reduction for hydrocarbons supplied to domestic refineries); that for natural gas is set at 10% (reduced to 0.5%-1.5% for domestic sales); and those for coal and minerals that have undergone initial processing are between 0% and 18.5%.
Other Domestic Resources
Consult the Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Kazakhstan Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 10.0 13.9 10.6 9.0
Time Taken For Administrative Formalities (Hours) 186.0 226.2 175.0 218.0
Total Share of Taxes (% of Profit) 28.4 36.5 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Individual employment income is taxed at a flat rate 10%
 Kazakh-source dividends (residents) 5% (or 15% if from foreign sources)
Allowable Deductions and Tax Credits
A lump-sum deduction based on the minimum monthly applies to all Kazakh tax residents.
Obligatory and voluntary pension contributions are deductible.
Insurance premiums paid by employees are deductible. Expenses for medical services are also deductible (capped at 94 times the monthly calculation index - KZT 3.180 as of April 2022). Repayment of interest on housing is deductible.
Business expenses are only deductible for taxpayers that are registered as entrepreneurs.
From April 2022, the minimum calculated indexes are as follows:
- minimum salary (MS): KZT 60,000
- rate of state basic pension payment: KZT 20,191
- minimum pension rate: KZT 48,032
- minimum subsistence level for the calculation of basic social payments rates: KZT 37,389.
Special Expatriate Tax Regime
Non-residents are generally subject to the same tax liabilities as residents, but only on their Kazakhstan-source income. Residents are taxed on their worldwide income. Non-residents are taxed at 5% on insurance premiums under contracts of risk reinsurance and income from international transportation services; 10% on employment income; 15% on insurance premiums under contracts of risk insurance, dividends, interest, royalties, and capital gains. In all other cases, the rate is 20%.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of countries that have signed a Double Taxation Agreement with Kazakhstan.
Withholding Taxes
Dividends: 0 (resident companies)/5% (resident individuals)/15% (non-residents without a PE)/20% (dividends paid to entities registered in tax havens), Interest: 15% (resident companies)/10% (resident individuals)/20% (tax haven), Royalties: 0 (resident companies)/10% (resident individuals)/15% (non-residents without a PE)/20% (tax haven).
Bilateral Agreement
The United Kingdom and Kazakhstan are bound by a double taxation treaty.

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Latest Update: November 2022

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