a provision for microfinance institutions not to accrue and pay PIT on cease of obligations on microloans for individuals under certain circumstances;
in order to support socially vulnerable groups from 1 January 2017 the limit of income exempt from taxation is increased from 55 to 75 times the minimum wage, and the list of individuals eligible for such exemption is clarified;
an income tax exemption for socially vulnerable groups in the calendar year when such exemption right is initiated or terminated.
a reduction of tax rates on landing strips, airport buildings and terminals, except for Astana and Almaty;
recognition of assets built during preparation of units for uranium extraction using the method of underground leaching as taxable for property tax. The amendment is effective from 1 January 2009;
the taxable base for property tax should be determined based on valuation (in case of valuation) but not less than its average annual book value determined in accordance with IFRS. The amendment is effective from 1 January 2017;
recognition of the following buildings and constructions as taxable for property tax:
that are actually used by legal entities and
individual entrepreneurs without registration of
that are recognised as assets and became the property of a second-tier banks as a result of foreclosure on collateral.
a new format for electronic waybills;
new mandatory tax registers for major taxes for large taxpayers subject to monitoring. Tax registers will be submitted on an annual and quarterly basis;
introduction of large taxpayers monito procedures;
extension of the appeal period for 15 business days if a taxpayer submits addendums to the appeal;
a maximum size of the state duty when appealing tax audit results to the court:
500 MCI for individual entrepreneurs and farmers
20 000 MCI for legal entities.
a beneficial CIT treatment for: − taxpayers transporting cargo using sea vehicles registered in Kazakhstan's international sea vehicles register;
taxpayers performing activity under investment strategic projects;
a clarification of para 4 of Article 57 of the Tax Code to avoid controversial interpretations regarding the deduction of unrealised foreign exchange losses (effective from 1 January 2009);
a clarification of Article 110 of the Tax Code regarding tax accounting of employees income included into cost of goods sold (effective from 1 January 2013);
a provision giving the tax authorities the right to adjust advance payments for the first quarter in case of understatement by a taxpayer.
a gradual introduction of obligatory electronic invoices:
during 2016 for certain types of taxpayers, from 2017 for all VAT payers. Violation of electronic invoicing requirements could result in an administrative fine for large taxpayers up to 80% of the VAT stated in the invoices hard copy (but not less than 40 MCI, approximately KZT 85 thousand);
transfer of goods from KZ to another member state of the Customs Union (CU) within the same legal entity shall be non VAT-able turnover. Similarly goods, imported from another member state of the CU within the same legal entity shall not be subject to import VAT;
new provisions on VAT refunds for taxpayers who have excess VAT receivable accumulated during the period of geological exploration and field development;
a clarification on turnovers, which are not turnovers of commissioner under agency and commission contracts, as well as clarification on the order of invoicing under a commission contract;
a cancellation of voluntary VAT registration from 2017;
a reduction of the annual turnover threshold for mandatory VAT registration up to 3 234 MCI (about KZT 7 mln);
new requirements for VAT registration;
a transition to electronic VAT registration certificate from 1 April 2016;
prolongation of import VAT payment by offset mechanism on import of certain goods till 2022
an exclusion of income from airport activities from the list of income from Kazakhstan sources of non-residents registered in countries with preferential taxation;
extension of the deadline for submission of a tax residency certificates of a non-resident from 31 December to 31 March of the following year (effective from 1 January 2015);
extension of the deadline for submission of a tax residency certificate copy for up to five calendar days from the date of submission of withholding tax return for the fourth quarter.
Kazakhstan Income Tax Rate for Individual Tax Payers
The income tax rate applicable to residents on all types of income except dividend income is 10 percent; dividend income is subject to tax at 5 percent.
The income tax rate applicable to non-residents on employment income is 10 percent. Kazakh-source income other than employment income is taxable at rates ranging from 5 to 20 percent.
Kazakhstan Corporate (Company) Tax Rates
The corporate tax rate is 20%. Branches of foreign companies operating in Kazakhstan are subject to an additional branch profits tax of 15% of their after-tax income, resulting in an overall tax rate of 32% for branch offices. Income tax treaties may reduce the branch profits tax.
Kazakhstan Capital Gain Taxes
A gain realized on
a sale of immovable property owned for less than one year is
regarded as property income. A gain realized on such property
held more than 1 year is not taxable.
Resident individuals should self-assess and pay income tax on property income at a rate of 10 percent. Non-residents should self-assess and pay income tax on such gains at a rate of 15 percent.
Kazakhstan tax legislation does not provide a tax deduction for a loss incurred on a sale of immovable property.
Kazakhstan tax legislation does not address deductions for capital losses for personal income taxation purposes.
Kazakhstan tax legislation does not provide a tax deduction for the cost of personal use items.
Any in-kind benefit provided by an employer to an individual is taxable in Kazakhstan. The value of property received in the form of gifts from other individuals is exempt from taxation.
Kazakhstan Dates of filing Returns / Reporting and Payment
Tax returns due date 31 March.
The tax year-end 31 December.
Compliance requirements for tax returns in Kazakhstan
Personal income tax withheld at source is due by the 25th day of the month following the month in which income is paid. Employer payroll tax reports are due quarterly by the 15th day of the second month following the calendar quarter.
Resident individuals must file a personal income tax declaration by 31 March of the year following the reporting year if they receive income which is not subject to Kazakh income tax withholding or if they have a foreign bank account outside of Kazakhstan. These individuals are required to remit tax to the state by 10 April.
Personal income tax withheld at the source of payment to non-resident individuals is due by the 25th day of the month following the month in which the income is paid. Employer payroll tax reports are due quarterly by the 15th day of the second month following the calendar quarter.
Non-resident individuals receiving Kazakh-source income which is subject to income tax withholding at the source of payment in Kazakhstan are not required to file tax returns.