Kazakhstan

Employment income

Employee income (irrespective of one’s residency status) subject to taxation in Kazakhstan is any kind of income received by an employee from an employer in cash or in kind (e.g. accommodation provided by an employer, benefits, compensation, personal use of company provided car, reimbursable business trip expenses in excess of statutory limits).

Equity compensation

No taxable income is recognised at either the grant date or date of exercise for equity compensation, as the difference between the actual cost and fair market value is specifically excluded from taxation.

Business income

The taxable income of an individual entrepreneur shall be determined in a manner similar to that of corporations (see Income determination in the Corporate tax summary).

Capital gains

Capital gains are subject to income tax at the rate of  10% (for annual income up to 36,762,500 KZT) and 15% (for annual income above 36,762,500 KZT).

However, capital gains associated with the disposal of the following securities may be exempt from taxation in Kazakhstan:

• Government securities.
• Agency bonds.
• Units of open-end and interval mutual investment funds.
• Shares, participation interests in a resident legal entity or consortium established in the Republic of Kazakhstan. 
• Debt securities issued by a resident legal entity, with the exception of income of a person who is a resident of a state with preferential taxation. 
• If all of the following conditions are met:
  • On the date of sale, taxpayer owns shares for more than three years.
  • Company whose shares are sold is not regarded as a subsurface user.
  • More than 50% of company whose shares are sold is not owned by subsurface user(s).

• When selling securities listed on the official list of a stock exchange operating in the Republic of Kazakhstan through open trading on the day of the sale.

• When selling digital assets for which the income is determined to have been derived from digital mining activities.

Dividend income

Dividend income taxed for the calendar year is subject to the following progressive rate scale:

Up to 230,000 MCI (inclusive): 5%
Over 230,000 MCI: the tax amount is 230,000 MCI plus 15% of the amount exceeding 230,000 MCI

Interest income

Interest income of individuals is subject to PIT at the rate of  10% (for annual income up to 36,762,500 KZT) and 15% (for annual income above 36,762,500 KZT).

Rental income

When calculating taxable income associated with renting out or leasing a property, the taxpayer can exclude maintenance and repair costs or reimbursement of such costs associated with leasing of this property.

Income adjustments

The following types of income shall be exempted from taxation/adjusted tax basis:

• Alimony received on children and dependents.
• The income of a person engaged in a personal subsidiary farm, as well as his adult family members, recorded in the household accounting book as a member of a personal subsidiary farm - for the year within the limits of 282 MCI in effect on January 1 of the corresponding financial year.
• Payments for the funeral of an individual within the limits of 94 MCI.
• Social payments from the State Social Insurance Fund
• Income of an individual received in the form of expenses of a non-profit organization, other than those registered in accordance with the civil legislation of the Republic of Kazakhstan in the form of a joint-stock company, institution, or consumer cooperative, within the framework of achieving the statutory goals and objectives for travel, accommodation, and meals of an individual who is not employed by such organization and/or has not entered into a contract for the provision of services or performance of work.
• Net income from the trust management of the founder of the trust management, received from an individual entrepreneur who is the trustee.
• The unclaimed amount of the guarantee compensation, recorded in the individual pension account for recording voluntary pension contributions in accordance with the terms of the pension provision agreement through voluntary pension contributions in accordance with the legislation of the Republic of Kazakhstan on social protection.
• Payments from grant funds (except for payments in the form of wages).
• Compensation for harm caused to the life and health of an individual, in accordance with the legislation of the Republic of Kazakhstan, with the exception of moral damages.
• Amounts of compensation for material damages awarded under a final and binding court decision, as well as legal costs.
• The cost of vouchers to children's camps for children under sixteen years of age.
• Winnings from a single lottery up to 6 MCI in effect as of January 1 of the relevant financial year.

• Dividends on securities that are, on the date of accrual of such dividends, listed on the official list of stock exchanges operating in the territory of the Republic of Kazakhstan.