Who is affected
Kazakhstan companies paying income to foreign legal entities and individuals, acting as tax agents. Branches and representative offices of foreign legal entities, permanent establishments of non-residents, companies with foreign personnel and with intracorporate transfers, payers of royalties and license payments.
What changes
A new Tax Code has been in effect since January 1, 2026, completely renewing the taxation system. The features of non-residents' taxation have changed significantly: new withholding tax rates have been introduced, a progressive scale for certain types of individuals' income and a new approach to the taxation of royalties. The withholding obligation rests with the Kazakhstan counterparty, therefore the risk of incorrect calculation is borne by it, rather than by the non-resident.
List of changes
- Taxation of income of non-resident legal entities whose activities do not lead to the formation of a permanent establishment is regulated by Articles 683–687 of the Tax Code
- New rates on non-residents' income at the source of payment have been introduced
- A progressive scale has been introduced for the income of a non-resident employee and for the income of foreign citizens and stateless persons seconded by a non-resident not registered as a taxpayer of the Republic of Kazakhstan: ten percent on the amount up to eight thousand five hundred monthly calculation indices and fifteen percent on the excess
- The progressive scale is applied under Articles 692 and 693 of the Tax Code
- Incomes of non-resident individuals at the source of payment under civil law contracts and other incomes, with the exception of employees' incomes, are taxed under the former rules
- The procedure for calculating and withholding corporate income tax at the source of payment when taxing income in the form of royalties has been amended
- Amounts of income for maintenance and technical support services are not taxed as royalties if specified in the contract separately from the amount of royalties
- In the absence of such separation, the entire amount of the non-resident's income is taxed as royalties
- The tax agent submits the calculation for corporate income tax withheld at the source of payment from the non-resident's income to the state revenue body at its location under Article 685 of the Tax Code
Effective date
From January 1, 2026 — the new Tax Code has been enacted. Certain provisions have their own enactment dates.
Details and status
For further details and to check the status, please contact us. This material is for information only and does not constitute legal advice.