Ведение бизнеса в Алматы

In Kazakhstan, there are 50 Conventions concluded with foreign states on

avoidance of double taxation and prevention of evasion of taxes on income

and capital. Avoidance of double taxation is a procedure where each

Contracting Government provides the taxpayer the opportunity to pay the tax

only once – in one of the Contracting Governments.

The complete list:

www.kgd.gov.kz

 

NATIONAL LEGISLATION

The tax legislation of the   is based on the Constitution of the  , the

  ‘‘On taxes and other obligatory payments to the budget’’ (Tax  ) of

the  , as well as other normative legal acts.

The Tax   governs the power relations to establish, impose and order

of calculation and payment of taxes and other obligatory payments to the

budget, as well as relations between the Government and the taxpayer (tax

agent) associated with the fulfillment of tax obligation.

Read more:

www.kgd.gov.kz/en/content/tax- -rk-2015

 

TAXATION OF RESIDENT AND NON-RESIDENT INCOMES

Taxation of income of non-residents depends on the existence of a permanent

establishment of the non-resident in Kazakhstan. Permanent establishments

of non-resident recognized the permanent place of business through which

the non-resident is fully or partially conducts business, including the activity

carried out through an authorized person.

The criteria for creation of permanent establishment from the terms

prospective is the provision of services (carrying-out the works) by a nonresident

deploying the personnel for more than 183 calendar days within

any consecutive 12-month period from the date of commencement of

business activity within a project or related projects.

The branch or representative office of foreign companies is also recognized

as permanent non-resident agencies. The subsidiary of non-resident legal

entity is recognized as a permanent establishment if it meets the criteria of

a dependent agent.

The individual person is recognized as a permanent resident in Kazakhstan

for the current tax period, if he/she resides in Kazakhstan at least for 183

calendar days in any consecutive twelve-month period ending in the

current tax period.

 

INVESTOR’S GUIDE

TYPES OF TAXES

 

1. Corporate Income Tax (CIT)

Payers of the CIT – Kazakhstan legal entities, as well as foreign companies

operating in Kazakhstan through a permanent establishment, or receiving

income from sources in the  . The CIT general rate is 20% of the amount

of taxable income.

Objects of the CIT taxation:

1. taxable Income;

2. income taxable at the source of payment;

3. net income of foreign company carrying out activities through a permanent

establishment in Kazakhstan.

In addition to the CIT, the net income of foreign companies working in

Kazakhstan through a permanent establishment is taxable at the rate of 15%.

The CIT for taxable income of foreign companies operating without formation

of a permanent establishment in Kazakhstan is deducted at the source of

payment by tax agent (the person paying income).

Foreign companies’ incomes from sources in the  , not related to a

permanent establishment are tax deductible according to the established rates

of 5 to 20%. Order of payment and the rates of the CIT, subject to withholding

at the source of payment depends on the existence of international double

taxation agreements between Kazakhstan and corresponding country.

 

2. Personal Income Tax (PIT)

Payers – individuals.

Objects of taxation:

1. income taxable at the source of payment:

– employee’s income

– individual person’s income from the tax agent, etc.

2. income taxable at the source of payment:

– the property tax

– income of private entrepreneur, etc.

Income subject to the PIT at the rate of 10%, except for the income in the form

of dividends, taxable at the rate of 5%. Calculation, withholding and payment of

tax on income, taxable at the source of payment, is made by tax agents.

 

3. Value Added Tax (VAT)

The payers:

1. Persons, which made statement on the registration account for VAT in the

Republic of Kazakhstan:

• individual entrepreneurs;

• resident legal entities, except for government agencies;

• non-residents operating in the   through a branch, representative

office;

• trust managers, engaged in the turnover of sales of goods, works and

services under trust agreements with the trustors or with beneficiaries in

other cases of occurrence of asset management.

 

2. persons importing goods into the territory of the   in accordance with

the customs legislation of EAEU and (or) the customs legislation of the  .

Objects of taxation:

Taxable turnover of goods (works and services) and taxable import. The VAT

is charged in the case, if the minimum turnover exceeds 30 000 MCI a year.

The VAT rate is 12%.

The Tax   of the   set a list of goods (services), turnover and import of

which is an exempt from the VAT.

 

4. Excise taxes

Payers of excise duty: Individuals and legal entities who:

1. produce and import excisable goods on the territory of the  ;

2. carry out wholesale, retailing of petrol (except aviation petrol) and diesel

fuel on the territory of the  ;

3. carry out sale of confiscated, ownerless, moved as per the right of

inheritance to the Government and donated to the Government on the

territory of the   of excisable goods if previously tax was not paid in

accordance with the legislation of the  ;

4. carry out sale of excisable goods property if for specified goods the excise

tax on the territory of the   has not been previously paid in accordance

with the legislation of the  ;

5. assemble (furnish) excisable goods under subparagraph 5 of the following

list.

List of excisable goods and rates for calculation of the amount of excise duty

indicated in Articles 279–280 of the Tax  .

 

5. Rent tax

Taxpayers: individuals and legal entities who export:

1. crude oil and crude oil products, except:

– subsoil users exporting crude oil and gas condensate obtained in the

framework of contracts;

– legal entities, the list whereof shall be determined by theauthorized

body in the field of oil and gas, using the customs procedure

to export crude oil in quantities, defined by the authorized body

in the field of oil and gas, and previously placed under the

customs procedure of processing outside the customs territory.

2. coal.

Object of taxation:

The exported crude oil and crude petroleum products, coal.

 

6. Taxation of subsoil users

Special payments and taxes of subsoil users include:

1. special fees (subscription bonus, bonus commercial detection, payment

for refundable historical costs;

2. mineral extraction tax;

3. excess profit tax.

Subscription bonus

A single-time fixed payment by a subsoil user to acquire the right of subsoil

use in the contract area, as well as paid while expanding the contract area.

 

Commercial discovery bonus

Payable by a subsoil user within the frameworks of the production contracts

and (or) combined exploration & production for every commercial discovery

on the territory of the contract area, including the discovery, made as a result

of the additional exploration of fields.

Payment to reimburse historical costs

A fixed payment of the subsoil users to recover the total cost, incurred by

the Government for the Geological Survey and exploration of the contract

territory prior to conclusion of the subsoil use contract.

Mineral Extraction Tax

Paid separately for each type of subsoil minerals, oil, subsoil water and

therapeutic mud produced on the territory of the  .

Excess profit tax

Excess profit tax is calculated for the tax period for each individual subsoil

use contract under which a subsoil user is a payer of the excess profit tax in

accordance with Article 347-1 of the TC.

 

7. Social Tax

Payers:

1. individual entrepreneurs;

2. private notaries, private bailiffs, lawyers, professional mediators;

3. legal entities-residents of the  ;

4. non-resident legal entities carrying out activities in the   through the

permanent establishments;

5. non-resident legal entities carrying out activities through a branch or

representative office that does not lead to the formation of permanent

establishment in accordance with an international treaty on avoidance of

double taxation.

Object of taxation:

The cost of employer paid employees (residents and non-residents), as well

as income of foreign personnel. General rate of social tax is 11%.

 

8. Compulsory assignments to the Social Health Insurance Fund

Payers of assignments

Employers, including foreign legal entities performing activities in Kazakhstan

through a permanent establishment, as well as branches, representative

offices of foreign legal entities, calculating (deducting) and transferring

assignments and contributions to the Fund in the manner prescribed by

Chapter 6 of the Law “On compulsory social health insurance”.

Read more

www.adilet.zan.kz/rus/docs/Z1500000405

Rates of assignments:

from July 1, 2017 – 2% of object to calculation of assignments;

from January 1, 2018 – 3% of object to calculation of assignments;

from January 1, 2019 – 4% of object to calculation of assignments;

from January 1, 2020 – 5% of object to calculation of assignments.

Object of calculation of assignments:

Expenses paid by the employer to the employee in the form of income.

DOING BUSINESS IN KAZAKHSTAN

 

9. Tax on property of legal entities and

individual entrepreneurs

Payers:

1. legal persons having object of taxation on the property right, economic

conducting or operative management on the territory of the  ;

2. individual entrepreneurs having object of taxation on the property right on

the territory of the  ;

3. the concessionaire who has the right to own, use object of taxation,

which is the object of the concession in accordance with the contract of

concession;

4. persons referred to in Article 395 of the Tax   of the  .

The total tax rate is 1.5% of the average annual cost of objects of taxation,

but the tax   of the   provides for other rates, depending on the status

and activity of the taxpayer.

10. Land Tax

Taxpayers – individuals and legal entities who

have the taxation objects:

1. on the right of ownership;

2. on the right of permanent use of land;

3. on the right of the primary grant temporary land use.

Taxable Item:

Land property (with share ownership to the land plot – land share). The tax

rates are established in Articles 378–386 of the TC of the   depending on

purpose of land, their location, etc.

Comparison of underlying tax rates in Kazakhstan, Russia and China

Taxes Kazakhstan Russia China

Corporate Income Tax (CIT) 20% 20% 25%

Value Added Tax (VAT) 12% 18% 17%

The Land Tax $0.03-$0.16/1 м2 0.3%, 1.5% –

The property tax 1.5% 2.2% 1.2%*, 12%**

*appraised value, **rental property

Source: The Ministry of Finance of the  , Federal Tax Service of Russia, State

Administration of Taxation of the People’s Republic of China

 

TAXATION OF AN ORGANIZATION IMPLEMENTING AN

INVESTMENT PRIORITY PROJECT

 

The organization that implements the investment priority project and is not

subject to a special tax regime:

1. Reduces the CIT by 100% up to 10 consecutive years, which shall be

calculated starting from January 1 of the year following the year in which

the signed an investment contract on realization of the investment priority

project.

 

2. When calculating land tax on the parcels used for implementation of priority

investment project, to the corresponding land tax applies coefficient 0 to

10 consecutive years, which shall be calculated starting from January 1 of

the year following the year in which the signed an investment contract on

implementation of the investment priority project.

 

3. For the projects, which entered into service for the first time on the territory

of   shall calculate the property tax according to the rate of 0% of the

tax base up to 8 consecutive years, which shall be calculated starting from

January 1 of the year following the year in which the first asset is included

in the composition of the fixed assets in accordance with international

financial reporting standards and requirements of the legislation of the

on accounting and financial reporting.

 

VAT EXEMPTION FOR IMPORTED RAW MATERIALS AND (OR) MATERIALS

In the framework of investment contract, the investor shall be exempt from

VAT imports of raw materials and (or) materials, while at the same time under

the following conditions:

• raw materials and (or) material included in the list of raw materials and

(or) materials import of which is exempt from VAT under an investment

contract;

• import of raw material and (or) material according to furnished documents

stipulated by the customs legislation of the Customs Union and (or) the

customs legislation of the  ;

• VAT payer presented a commitment to the Customs authorities on the use

of imported raw materials and (or) material within the limitation period

solely in carrying out activities within the framework of the investment

contract.

Exemption from VAT imports of raw materials and (or) material within the

framework of the investment contract is available to legal entities of the

for a period for 5 consecutive years, starting with 1 day of the month in which

the fixed assets were put into operation, provided for in the work program,

which is annexed to the investment contract. If the work program provides

for input 2 or more fixed assets, the term of the exemption from VAT for

imports of raw materials and (or) materials produced since 1 month, which

commissioned the first fixed asset on the work program.

 

TAXATION OF ORGANIZATIONS OPERATING IN THE SEZ

Tax benefits:

1. exemption from the CIT;

2. exemption from the land tax;

3. exemption from the property tax;

4. exemption from the value added tax (VAT) for the sale of products inside

the SEZ that are entirely used in production.

5. exemption from social tax for 5 years provided that labor costs account

for at least 50% of the annual income and 90% of these costs is spent on

residents of the   participants of ‘‘Park of information technologies’’

(‘‘PIT’’) SEZ;

6. organization registered in Kazakhstan and outside the ‘‘PIT’’ SEZ before

January 1, 2018 is considered a member of ‘‘PIT’’ SEZ if:

1) the organization has no structural subdivisions;

2) at least 70% of the total annual income comprise incomes, receivable

(received) from the sale of goods of own production, works and services

from the following activities:

• design, development, implementation and production of databases

and hardware units, development, implementation and production of

software (including prototypes);

• services on information storage and processing in electronic form

using the server info-communication equipment (data-center services);

• carrying out research engineering and research & development

works on the creation and implementation of information technology

projects).

Conditions for obtaining tax incentives:

1. register as a taxpayer on the territory of the SEZ;

2. register as a member of the SEZ;

3. absence of structural subdivisions outside the SEZ;

4. gains from the sale of goods produced in the priority activities of the SEZ –

not less than 90% of the total annual income (for the ‘‘PIT’’ SEZ – 70%).