Taxation in Kazakhstan is based on where a taxpayer resides. Persons who live within the country have to pay specific types of taxes on their income earned while working or carrying out business activities. Taxes accrued in the country are used to provide citizens, with quality health care, social amenities, and a good standard of living. Paying taxes is mandatory according to the tax act of Kazakhstan. Residents who are employed here are charged a 10 percent tax rate for all personal income, while ex-pats pay up to 15 percent.
If you are looking to learn more about taxes here, this is a guide that provides comprehensive information about the taxation policy in Kazakhstan, types of taxes, and tax rates.
Persons required to pay tax
Everyone who lives here and earns an income has to pay taxes. Since the taxation policy is residency-based, this means that as long as an income owner resides within the territory, all income he or she accrues is levied for taxes. Corporations have to pay taxes too on all revenues generated while conducting business here. However, foreign firms with dormant branches do not have to file tax returns.
Types of Tax
There are three main types of taxes namely; corporate income tax, personal income tax, and Value added tax (an indirect tax).
Corporate income tax
This type of tax applies to corporations, firms, establishments, etc. The tax rate of 20% is charged on all income or profits made by such entities. According to the tax act, both resident entities and non-residents have to pay this levy provide they operate in Kazakhstan through a registered permanent address.
Personal income tax
It applies to individuals, working and earning either salary or wages. It has a tax rate of 10 percent for residents and 15 percent for legally employed non-residents.
Value-added tax (VAT)
A rate of 12% applies to sales turnover and imports of goods and services. Taxpayers can pay up to KZT 38,190,000 or approximately EUR 195,000 as VAT. For exports, a 0% value-added tax rate is applicable.
Other types of Tax
There are several types of minor taxes such as taxes on gambling businesses. Different kinds of levies on registration, licensing, environmental pollution, the use of water resources, forests, etc. also exist. Common kinds of taxes are;
Social tax
This is levied on income made by legal entities. The tax rate is 11% of the salary of a taxpayer.
Branch profit tax
A branch profit tax rate of 15% is charged on the total income after corporate income tax. This only applies to branches of foreign legal organizations carrying out business here.
Income tax withheld at the source of payment
This may be levied on the income of non-residents with Kazakhstani origins. It has a standard rate of 15%. Residents of “tax havens” pay 20%, while 5% applies to income from insurance premiums.
Property tax
With a tax rate of 1.5%, this levy applies only to buildings of legal establishments.
Excise tax
It applies to certain goods produced or shipped into the nation. They include alcohol, liquors, (depending on the liter), tobacco, gasoline, crude oil, gas condensate, vehicles with engine volume, etc.
Rental tax on exports
The rental tax is taxed on income earned from the export of crude oil, gas condensate, and coal. The tax rate depends on the market price of crude oil and gas condensate.
Vehicle tax
The vehicle tax is charged based on engine volume, vehicle weight, or quantity of seats.
Land tax
Land tax is imposed on authorized businesses having ownership of plots of land and the right to use them.
