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Kazakhstan

Taxes

Want to setup a company? This will tell you about tax laws in Kazakhstan for a LLP, which is the most common legal entity in Kazakhstan.

Kazakhstan taxes legal entities on their worldwide income. The predominant tax rate for income earned abroad, from our research, and this is not personal tax advice, is 20%. Kazakhstan may not have exemptions to transfer in foreign earned profits. Corporate Income effective tax rate is 20%. This ranks Kazakhstan as 70th when compared to corp. taxation rate internationally.

The valued added tax rate in KZ is 12.00%, that ranks Kazakhstan as 62nd overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 16% to the equivalent of a social security fund and an employee will contribute 10%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 70hours. Contributing to this is the number of yearly labor tax payments, which is 34 in KZ.

Thin capitalization mandates are in effect. Thin capitalisation refers to any type of restrictions on a business and the debt-to-asset ratios. Dividends received by a domestic company are not taxable, except dividends paid by certain types of investment funds. Dividends received from foreign entities are usually included in taxable income. Dividends are distributions of a company's earnings, established by the board of directors, to a particular class of shareholders. Dividends can be either stock, cash, or property. Capital Gains are subject to corporate income tax standard rates. There may be exemptions on capital gains from the sale of shares and participation interests in Kazakhstan legal entities or consortiums that are not engaged in subsurface activities and are held for more than three years. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 15%. This means that the taxman expects companies to withhold 15% of payments abroad on interests. The dividends withholding tax rate is 15%. This should be interpreted that usually the taxman expects legal entities to automatically withhold 15% of dividends paid to non-residents. The royalties withholding tax rate is 15%. This should be interpreted that usually the relevant tax authorities expects legal entities to pay tax on at least 15% of royalties remitted abroad. An increased withholding tax rate of 20% applies to payments on dividends, interests and royalties made to residents of low tax jurisdictions.
There is no known tax on wealth in Kazakhstan. There are no known inheritance and transfer taxes in KZ. There is a real property tax. We are not aware of any commonly used credits for innovation spend that include tax incentives in this country.

The above is not tax or legal advice for your company particular tax obligations. Incorporations.io can to refer you to an accountant in Kazakhstan who can give you the proper advice and help you need. Want to work together? Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Kazakhstan
KZT
Astana
Asia
kk, Russian
15,340,000

Tax treaties

Country Type Date Signed
Turkmenistan DTC  1997-02-27
Armenia DTC  2006-11-06
Hungary DTC  1994-12-07
Ukraine DTC  1996-07-09
Tajikistan DTC  1999-12-16
Italy DTC  1994-09-22
Finland DTC  2009-03-24
Switzerland DTC  1999-10-21
Estonia DTC  1999-03-01
Azerbaijan DTC  1996-09-16
Greece DTC  2002-03-27
Pakistan DTC  1995-08-23
Kyrgyzstan DTC  1997-04-08
Mongolia DTC  1998-03-12
Portugal DTC  2001-06-19
Sweden DTC  1997-03-19
Spain DTC  2009-02-07
United Kingdom DTC  1994-03-21
Albania DTC  2008-02-21
Denmark DTC  1993-12-10
Iran DTC  1995-01-15
Lithuania DTC  1997-03-07
Moldova, Republic of DTC  1999-07-15
Slovenia DTC  2002-04-17
Bulgaria DTC  1997-11-13
Norway DTC  2001-04-03
Ireland DTC  1997-11-13
Qatar DTC  2014-01-19
Austria DTC  2004-09-10
Iceland DTC  1994-10-19
Former Yugoslav Republic of Macedonia DTC  2012-07-02
Croatia DTC  2000-05-19
Saudi Arabia DTC  2011-06-07
Czech Republic DTC  1998-04-09
Belarus DTC  1997-04-11
Slovakia DTC  2007-03-21
Georgia DTC  1997-11-11
Montenegro DTC  2005-11-22
France DTC  1998-03-03
Latvia DTC  2001-09-06
Russian Federation DTC  1996-10-18
Turkey DTC  1995-08-15
Morocco DTC  2008-07-24
Canada DTC  1996-09-25
Uzbekistan DTC  1996-06-12
Luxembourg DTC  2008-06-26
Romania DTC  1998-09-21
Japan DTC  2008-12-19
United States DTC  1993-10-24
China DTC  2001-09-12
Germany DTC  1997-11-26
Belgium DTC  1998-04-16
Malaysia DTC  2006-06-26
United Arab Emirates DTC  2008-12-22
Poland DTC  1994-09-21
Singapore DTC  2006-09-19
Netherlands DTC  1996-04-24
Korea, Republic of DTC  1997-01-18
India DTC  1996-12-09

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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