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.
- 'Construction PE': A construction site, for instance, a shop or an assembly facility, performance of projecting work form a PE, notwithstanding the timing of performing such operations.
- '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).
- Carries on activities that are not limited to those of a preparatory and auxiliary nature.