Kazakhstan Cross-Border Tax Guide

Transfer Pricing — OECD-Aligned Rules

Kazakhstan's transfer pricing rules are governed by the Tax Code and follow the OECD Transfer Pricing Guidelines. All related-party transactions and cross-border transactions with independent parties in certain circumstances must be conducted at arm's length. Key requirements include:

• Documentation threshold: Mandatory transfer pricing documentation required for transactions exceeding KZT 500 million (approximately USD 1.1 million) annually with related parties
• Master and local file: Kazakhstan requires both a master file and a local file consistent with OECD BEPS Action 13
• Country-by-Country (CbC) reporting: Required for multinational groups with consolidated revenue of EUR 750 million+
• Advance Pricing Agreements (APAs): The State Revenue Committee offers both unilateral and bilateral APAs for taxpayers seeking certainty on transfer pricing methodology
• Penalties: Transfer pricing adjustments attract penalties of up to 30% of the additional tax assessed plus interest

Thin Capitalisation Rules

Kazakhstan has thin capitalisation rules limiting the deductibility of interest on related-party borrowings. The rules apply where the debt-to-equity ratio exceeds 7:1 for banks and 4:1 for all other entities. Interest on debt exceeding these ratios is non-deductible. Additionally, interest on related-party loans must be at arm's length rates. Third-party debt is generally not subject to thin cap rules unless guaranteed by a related party. Disallowed interest cannot be carried forward.

Withholding Tax on Outbound Payments

Payments to non-residents are subject to withholding tax at the following standard rates (subject to DTA reductions):

• Dividends: 15% (5% for residents)
• Interest: 15%
• Royalties: 15%
• Management and consultancy fees: 15%
• Insurance premiums: 10%
• Rental income: 15%
• Income from international transport: 5%

The withholding tax is deducted by the Kazakh payer and remitted to the State Revenue Committee through E-Salyq by the 25th of the following month. A withholding tax certificate must be issued to the non-resident recipient. Treaty relief requires the non-resident to provide a certificate of tax residence from their home tax authority.

Double Tax Treaty Network — Over 55 Treaties

Kazakhstan has one of the most extensive DTA networks in Central Asia, with over 55 treaties in force. Key treaty partners include the UK, Germany, France, Netherlands, Italy, UAE, China, Russia, South Korea, Japan, Turkey, Switzerland, United States, Canada, Austria, Belgium, Hungary, Poland, Czech Republic, Romania, Bulgaria, and many others. Typical treaty reductions for outbound payments include:

• Dividends: Reduced to 5-10% (or 0% for certain significant shareholdings of 10-25%+)
• Interest: Reduced to 10%
• Royalties: Reduced to 10%
• Management fees: Reduced to 10-15%

Kazakhstan also participates in the BEPS Inclusive Framework and has signed the Multilateral Instrument (MLI) to prevent treaty abuse. Tax Information Exchange Agreements (TIEAs) are in place with several jurisdictions, and Kazakhstan is a signatory to the Multilateral Competent Authority Agreement (MCAA) for automatic exchange of financial account information (CRS).

Controlled Foreign Corporation (CFC) Rules

Kazakhstan's CFC rules target passive income accumulated in low-tax jurisdictions by controlled foreign corporations. A foreign company is a CFC if it is controlled by Kazakh residents and is subject to an effective tax rate of less than 10% in its country of residence. Kazakh shareholders with a 25%+ interest in a CFC must include their share of the CFC's passive income (interest, dividends, royalties, rents) in their Kazakh taxable income. Active business income is generally excluded. Exemptions apply for CFCs in jurisdictions with a comprehensive DTA with Kazakhstan.

EAEU Coordination

As a member of the Eurasian Economic Union (EAEU), Kazakhstan coordinates certain aspects of tax policy with Russia, Belarus, Kyrgyzstan, and Armenia. Key EAEU tax coordination features include:

• Indirect tax harmonisation: VAT on trade between EAEU members is collected by the importing country (destination principle), with zero-rating for exports within the EAEU
• Exchange of information: Enhanced tax information exchange between EAEU member tax authorities
• Mutual assistance: Mutual administrative assistance in tax collection and recovery

Foreign Tax Credit

Kazakhstan provides a unilateral foreign tax credit for taxes paid abroad on foreign-source income. The credit is limited to the lower of the foreign tax paid and the Kazakh tax attributable to that income (per-country limitation). Excess foreign tax credits cannot be carried forward or backward. Where a DTA exists, treaty provisions for relief from double taxation apply. Kazakh residents receiving foreign income with foreign tax withheld must claim the credit in their annual return via E-Salyq.

FAQs

Do I need to register for tax in Kazakhstan if I am a non-resident earning Kazakh-source income?

Yes, non-residents earning income from Kazakh sources (dividends, interest, royalties, rental income, or business income through a permanent establishment) must obtain a Kazakh TIN (БИН for companies, ИИН for individuals) and file tax returns on that income.

How can a non-resident claim treaty benefits?

The non-resident must provide a certificate of tax residence from their home tax authority to the Kazakh payer. The payer then applies the reduced treaty withholding rate. If tax has been withheld at the standard rate, the non-resident may claim a refund from the State Revenue Committee.

Does Kazakhstan have exit tax for companies emigrating?

Yes, if a Kazakh-resident company migrates its place of effective management abroad, certain assets may be deemed to be disposed of immediately before migration, triggering CIT and potential VAT recapture. Individuals are not subject to exit tax upon emigration.

Disclaimer

This guide provides general information about Kazakhstan cross-border taxation for the 2026 tax year. Tax laws and treaty rates may change. Always consult with a qualified Kazakh tax advisor or the State Revenue Committee for advice specific to your situation. InvestmentKit does not provide tax advice.