Income tax in Kazakhstan

Who is liable to pay income tax?

Income tax in Kazakhstan

Kazakhstan residents are required to pay income tax based on their worldwide income, but non-residents are only taxed on their Kazakhstan income so if you’re an expat with your fingers in a lot of pies, this can be a great place to do business.  

What defines you as a resident of Kazakhstan?

As the amount of personal tax you pay depends on your residency status, you’re defined as a resident if you spend 183 or more days in the country, in a period of twelve consecutive months which ends in that tax year. Residents are obligated to pay tax on their total income, no matter where it is sourced from whereas non-residents are only taxed on their income earned in Kazakhstan.

Expats who spend less than 183 days in the country and work for a foreign legal entity with no permanent residence are not obligated to pay any form of income tax.

Foreigners who enter the country and receive an income which is subject to taxation need to register with the tax authorities within 30 days from the moment they first receive income or the start of their economic activity. The time spent in Kazakhstan before employment officially begins also counts towards tax residency. An individual does not have to pay tax on any other resources during this period, however, as long it isn’t a Kazakh-sourced income.

How much tax do I have to pay?

All residents’ income is taxed at a flat rate of 10%, while dividend income is taxed at 5% unless specially exempted. You will be responsible for filing tax returns and making payments if your income isn’t taxed at the source.

What happens when you leave?

If you’re registered with the tax authorities Kazakhstan, you are required to unregister as a taxpayer when you leave. You must do this by submitting a form indicating the reason for deregistering to the tax office.

Although your residency status is terminated the day following your departure from the country, if you return to work in Kazakhstan at a later date, any extra days that you have spent in Kazakhstan in the previous twelve months will be counted for tax residency purposes.

Further reading

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