Kazakhstan

Generally, Kazakhstan incorporated companies or other legal entities that have their place of effective management located in Kazakhstan are treated as Kazakhstan tax residents.

Permanent establishment (PE)

Non-resident legal entities having business activities in Kazakhstan may create a PE in the following cases:

• 'Fixed place PE': A non-resident enterprise carries on business activities in Kazakhstan through a fixed place, including, but not limited to, through a place of management.
• 'Services PE': A non-resident enterprise renders services in Kazakhstan through employees or other personnel engaged by the non-resident for such purposes, provided that these activities continue for more than 183 days within any consecutive 12-month period for the same or connected projects.

         Projects are considered connected if they fall under any of the following categories:

• • Interconnected projects: where the non-resident provides identical or similar services to the same customer, and the gap between contracts does not exceed 12 months.
  • Interdependent projects: where the performance under one contract affects the performance under another contract.
  • Similar projects: where the services have similar nature or purpose, similar scope or content, are performed using the same technology or infrastructure, or rely on the same resources (equipment, personnel, etc.).

• 'Agency PE': A non-resident enterprise carries on business activities in Kazakhstan through a dependent agent. A dependent agent is an individual or a legal entity that meets all of the following criteria simultaneously:

• • Has the contractual authority to represent the non-resident’s interests in Kazakhstan and makes use of this authority by acting and signing (negotiating) contracts on behalf of the non-resident (i.e. conclusion of a contract for provision of services or playing a principal role in concluding of such contract or having the ownership right [right to use] for property belonging to the non-resident).
  • The business is carried on outside the activity of either a customs broker or a professional participant of the securities market or other brokerage type of business (except for activity of an insurance broker).
  • Activities ensuring the safety of stocks of goods in Kazakhstan and (or) regularly delivery such goods on its own behalf or on behalf of a non-resident.
  • Carries on activities that are not limited to those of a preparatory and auxiliary nature.
• 'Joint activity PE': A non-resident enterprise carries out activities on the basis of a joint activity agreement in Kazakhstan. Carrying out activities on the basis of a joint activity agreement in Kazakhstan is recognized in the following cases:
  • activities are directly implemented in Kazakhstan;
  • a customer of goods, works, or services is located in Kazakhstan.