Kazakhstan Investment Income Guide 2026

Dividend Taxation

Dividends paid by Kazakh companies are subject to withholding tax at the following rates:

• Resident individuals: 5% WHT (final tax — dividends are not included in the annual IIT return)
• Resident companies: Dividends received from Kazakh subsidiaries may be subject to CIT at 20%, with a credit for WHT already paid
• Non-residents: 15% WHT (or reduced rate under applicable DTA — typically 5-10%)
• KASE-listed shares: Dividends from shares traded on the Kazakhstan Stock Exchange may qualify for preferential treatment

For example, a resident individual receiving KZT 1,000,000 in dividends from a Kazakh company receives KZT 950,000 net, with KZT 50,000 remitted to the tax authority as final tax.

Interest Taxation

Interest income is subject to withholding tax as follows:

• Resident individuals: Interest from bank deposits is subject to 15% WHT (final tax). Interest on government securities is exempt.
• Resident companies: Interest income is included in taxable income at 20% CIT. A credit is available for WHT suffered.
• Non-residents: 15% WHT on interest from Kazakh sources (subject to DTA reduction, typically 10%)
• Government bonds: Interest on Kazakh government securities and bonds issued by the National Bank is exempt from income tax for all holders.

Capital Gains on Securities

Capital gains from the sale of securities are treated as ordinary income and taxed at applicable rates. Key points include:

• Individuals — shares held >3 years: Exempt from IIT
• Individuals — shares held <3 years: Taxed at 10% IIT on net gains
• Corporate holders: Taxed at 20% CIT on net gains, with loss carryforward available for 10 years
• KASE trading: Gains from trading on the Kazakhstan Stock Exchange may qualify for reduced treatment

Kazakhstan Stock Exchange (KASE)

The Kazakhstan Stock Exchange (KASE / Қазақстан қор биржасы) is the principal securities exchange in Kazakhstan. Investors trading on KASE benefit from the 3-year holding exemption on IIT for shares. Dividends on KASE-listed shares are subject to standard WHT rates. There is no securities transaction tax or stamp duty on KASE trades, reducing transaction costs for investors. KASE offers equities, corporate bonds, government securities, and derivative instruments across various sectors including energy, mining, banking, and telecommunications.

Double Tax Treaties — Over 55 DTTs

Kazakhstan has one of the most extensive double tax treaty 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, and the United States. Typical treaty reductions for outbound payments include:

• Dividends: Reduced to 5-10% (0% for certain significant shareholdings)
• Interest: Reduced to 10%
• Royalties: Reduced to 10%

Taxpayers claiming treaty benefits must provide a certificate of tax residence from the treaty partner's tax authority. Kazakhstan also participates in the BEPS Inclusive Framework and has signed the Multilateral Instrument (MLI) to prevent treaty abuse.

FAQs

Is rental income considered investment income?

No, rental income is classified as property income and is subject to standard IIT/CIT rates with allowable deductions (see the rental income guide for details).

Are foreign dividends taxable in Kazakhstan?

Yes, Kazakh tax residents must declare foreign dividend income in their annual return. A foreign tax credit may be available for taxes paid in the source country, limited to the Kazakh tax attributable to that income.

What is the AIFC's role in investment taxation?

The Astana International Financial Centre (AIFC) offers a special legal and tax regime for financial services and investment activities within its jurisdiction. AIFC participants benefit from tax exemptions on certain types of income for a defined period, including exemptions on dividends, interest, and capital gains from AIFC-based activities.

Disclaimer

This guide provides general information about Kazakhstan investment income 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.