Accounting Outsourcing and
Tax compliance in Kazakhstan

Kazakhstan – Accounting Outsourcing and Tax Compliance

Global Expansion Plus provides accounting outsourcing and tax compliance in Kazakhstan. We provide services with support of our local accountants and tax specialists. We will perform bookkeeping, accounting and filling tax return on your behalf bearing all associated compliance risks.

A tax, by any state, is revenue on its part. It requires such to help cater for the government expenditure and finance development public projects. By that, tax laws in Kazakhstan are set in such a way as to cover a huge tax base. This way, everyone will take part in contributing to the national cake.

Kazakhstan in facts

  • Location: Central Asia
  • Territory: 2,724,902 square kilometers
  • Capital: Nursultan
  • Official language: Kazakh and Russian
  • Currency: Tenge (KZT)
  • Population: 18, 65 million

Corporate income tax (CIT)

A 20% CIT rate applies to all corporate entities operating in Kazakhstan. However, a much reduced rate of 6% is subjected to entities involved in agricultural production. Both residents and non-residents will have their incomes taxed at the rate of 20%. For the latter, only the incomes generated in Kazakhstan will apply to this rate. Resident corporates have all their incomes, local and abroad, subject to the normal CIT rate.

Value-added Tax (VAT)

12% is the general applicable rate for vatable goods and services, including imports. Transport services, of international stature, and exports are zero-rated. VAT does not apply to all the goods and services. Some of those are except and they include:
  • Advocacy services:
  • Loan services;
  • Finance lease consulting;
  • Services provided by financial institutions:
  • Investment in gold:
The government of Kazakhstan introduced electronic invoicing for about 1500 of their products. As such traders, or tax payers have an obligation to issue e-invoices for those specific products as listed by the ministry of finance. This was set as a measure to reduce custom duty. For this, a virtual warehouse module is available where traders, dealing in those products, are required to register those goods with the module.
VAT control accounts came up to relate VAT refund option with the new Tax Code. As such, traders can opt to use the new control accounts for VAT, as opposed to VAT refund from the government. Reporting by traders for VAT is on a quarterly basis, for every calendar year.
In the year 2020, businesses with monthly estimates (ME) of 30,000 can register for VAT; where 1ME=2,525 KZT. However, traders who benefit from the special tax have theirs at 114,184 MCL, as a requirement to register for VAT.

Personal Income tax (PIT)

10% is the normal rate when it comes to PIT. However, special cases, depending on the source of income may apply a higher rate of 20%.

Withholding tax

The payer of the services rendered or any monies whatsoever has an obligation to deduct a proportion of the gross amount. It is taxed at source and the payer remits the same to the state. Dividends from Kazakhstan entities will attract a 5% WHT rate. However, incomes due to service provision by non-residents will be subject to a 20% rate. Some of the services include; legal services, auditing, consulting, management and marketing among others.

Payroll related taxation

Any salaried individual in Kazakhstan is liable to pay taxes. Their salaries are subject to a WHT based on what one earns. The rate is 10%.
Social taxes fall in the category of individuals on a payroll. Employers have the obligation to pay, on behalf of the employees, the social tax, at the rate of 9.5%. It is tax at source which features both the salaries and other benefits owing to the employee.
The different of social contributions, employers have obligations to, include:
  • Social insurance – Payable at a rate of 3.5%, which is deductible from social tax for minimum wage earners of up to USD 4 per month.
  • Pension – Set at the rate of 10% for employees earning a monthly income of up to USD 5,500.
  • Social medical insurance – From 1st January, 2020 to 31st December, 2021, the rate is 2% of the salary the employee earns and 3% thereafter.
Not all employee incomes will be acceptable for the deductions and social contributions. The monthly income has to be at most 10 times the minimum wage. Before the year 2019, the acceptable monthly income was 15 times the minimum wage.

Import/ Export related taxation

Custom duty

All imported goods have to go through clearance before they are allowed to move freely in the local market. This takes place at the point of entry into Kazakhstan. A duty is paid for those goods to be certified and will vary depending on the value or nature of the goods. The duty ranges from 0% to 40%.

Excise taxes

The tax is subject to all items manufactured locally, imports and other products. Mostly harmful, products fall in this category as excisable products. They include; cigarettes and tobacco products, alcohol and alcoholic products. Others include diesel, gas, crude oil and other petroleum products. To account for all these statutory tax measures, a tax consultant, who understands Kazakhstani tax laws, will come in handy.
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