Tax residents are defined as individuals who permanently reside in Kazakhstan or have their centre of vital interests in Kazakhstan even if they do not permanently reside in Kazakhstan during the reporting year.
Kazakhstan tax residents
For the 2020 tax year, a Kazakhstan tax resident will be an individual who has spent 183 or more days in Kazakhstan within any 12-month rolling period ending in 2020 (including days of arrival and departure) or who has spent less than 183 calendar days in any 12-month rolling period but whose centre of vital interest is located in Kazakhstan during 2020.
The centre of vital interest is deemed as located in Kazakhstan if the following criteria are simultaneously met during the reporting year:
- An individual held Kazakhstan citizenship or a residence permit.
- An individual’s family and (or) close relatives lived in Kazakhstan.
- An individual and (or) one's family members owned real estate in Kazakhstan that was available for the individual's and (or) one's family members at any time.
Kazakhstan tax residents are required to file the annual individual income tax return:
- reporting worldwide income received during the 2020 tax year (i.e. income received for the activity[ies] in other countries)
- reporting funds on bank account(s) located outside of Kazakhstan if the total balance exceeds 141-times the minimal monthly index (2,917 Kazakhstan tenge [KZT] from 1 January 2021) as at the end of the reporting year (applies to Kazakhstan nationals and individuals with permanent residence permit only)
- reporting information on real estate/securities/participation shares owned or registered outside of Kazakhstan (applies to Kazakhstan nationals and individuals with permanent residence permit only)
- reporting Kazakhstan-source income that was not subject to taxation at source of payment during the reporting year (e.g. capital gain, dividend, interest, property income, rental income), and
- based on other applicable criteria stipulated by Kazakhstan tax legislation.
Kazakhstan tax non-residents
A Kazakhstan tax non-resident is:
- an individual who does not fall under the definition of a 'Kazakhstan tax resident' (please refer to the above listed criteria), or
- a foreign citizen or individual without citizenship recognised as non-resident in accordance with an effective double tax treaty (DTT). Under the Tax Code requirements, a certificate of foreign tax residency should be provided by the tax return filing deadline (i.e. 31 March of the year following the reporting one). It should be properly legalised (apostilled) and a notarised translation into Russian/Kazakh should be enclosed.
Kazakhstan tax non-residents are required to file the annual individual income tax return reporting Kazakhstan-source income that was not subject to taxation at source of payment during the reporting year, (e.g. capital gain, dividend, interest, property income, rental income).
Please note that there may be exceptions to these general statements and a Kazakhstan tax filing obligation may arise under other given circumstances.