Page 26 - Mazars Central and Eastern European tax guide 2023

Kazakhstan 4) heated tobacco products, nicotine-containing liquids Personal income tax / Social security system
for use in electronic cigarettes
5) gasoline (except for jet fuel), diesel fuel ethanol mix A resident of the Republic of Kazakhstan shall
be recognised as an individual staying at least 183 calendar
petrol (gasohol), benzanol, nephras, mixed light days in any consecutive 12-month period ending in the
hydrocarbons, ecological fuel
6) motor vehicle current tax period (calendar year) or one who while not
Mazars LLP 7) crude oil, gas condensate permanently residing in the Republic of Kazakhstan,
34, Abish Kekilbaiuly st, 8) alcohol-containing medical products registered whose centre of vital interests is within the Republic
Business Center Capital Tower in accordance with the legislation of the Republic of Kazakhstan.
Almaty, Kazakhstan of Kazakhstan as medicinal products. Sellers of fuel and Income from employment is taxed at the rate of 10%
Phone: +7 778 873 7159 diesel are also liable for Excise Tax. regardless tax residency status of an individual. For other
E-mail: infoca@mazars.kz
type of incomes, the rate depends on type of income and
VAT options in tax residency status of an individual.
Kazakhstan Applicable / limits Social Tax and Social Contributions are paid at the expense
of an employer. Mandatory Pension Fund Contributions,
Distance selling No
Corporate taxes and other direct taxes sponsorship fees. Also, thin capitalization rule is applied Mandatory Social Health Insurance Contributions are
to interest on related party loans. The list is not exhaustive. Call-off stock No withheld from employment income by an employer.
In general, the concept resembles the CIT concept Depreciation expenses on fixed assets differ from IFRS
in developed countries worldwide. Taxable income principles and are calculated on a group basis based on tax VAT group registration No
is calculated as annual income minus expenses. book value as of the reporting date. Loss carry forward can Cash accounting – yearly No
It is possible to deduct expenses linked to incomes be done within the following 10 calendar years inclusively, amount in EUR (approx.)
recognized for CIT purpooses provided that such the rule on carry forward of the losses does not apply Import VAT deferment No
expenses are properly documented. Dividends and capital to losses generated from sale of securities, etc. There are Local reverse charge
gains are not excluded from taxable income by default, Controlled Foreign Company rules (CFCs). ü
it is necessary to analyse who is beneficiary etc. to identify Option for taxation
its taxation regime. There are certain limits on deductibility WHT applies to incomes paid to non-residents who are letting of real estate No
of expenses such as: up to 3% of taxable profit for certain not registered for tax purposes in Kazakhstan. The taxable
fees paid to related parties, up to 4% of taxable profit for incomes are listed in the Tax Code. Kazakhstan has signed supply of used real estate No
55 Treaties on Avoidance of Double Taxation. The treaty VAT registration 69 mKZT (approx. 145 kEUR)
rates prevail over the Tax Code; however, it is important threshold
Transfer pricing in Kazakhstan to have a duly issued tax residency certificate for any
non-resident in order to apply the treaty. The Multilateral
Average wage
Arm's length principle ü Since 2009 instrument (MLI) entered into force in Kazakhstan from Wage related taxes in Kazakhstan Minimum wage in private sector
Documentation liability ü Since 2009 October 2020; however it is important to check the MLI
APA ü Since 2009 accession documents signed with each country because Exchange rate KZT/EUR 473.8 in EUR in KZT in EUR in KZT
Country-by-Country Since 2016 some of them have not signed/ratified the MLI or ratified 148 70,000 700 331,660
under certain conditions.
liability ü Total wage cost 165 111.36% 780 111.36%
Master file-local file Small and medium businesses may enjoy a special tax
(OECD BEPS 13) ü Since 2019 regime according to which the Unified Tax on income Employer's social security and other contributions 17 11.36% 80 11.36%
applicable
is paid. Such tax replaces CIT. Gross salary 148 100.00% 700 100.00%
Penalty Personal income tax 4 2.67% 53 7.51%
VAT and other indirect taxes
lack of documentation ü From EUR 730 to EUR 7.300. Employees' contributions 18 12.00% 84 12.00%
The VAT concept is quite similar to the concept applied Net salary 126 85.33% 563 80.49%
tax shortage ü From 20% up to 300% in developed countries worldwide. The VAT applicable
of tax shortage
turnover is in general the total value of sales (Output VAT).
TP rules apply to all cross- VAT paid to suppliers (input VAT) is offset against from
border transactions even Output VAT. Input VAT cannot be offset if goods, works,
if the parties are unrelated. and services purchased are not related to taxable turnover,
The transfer pricing law defines
related parties as individuals a VAT-invoice is not issued by a supplier or issued with the
or legal entities whose special violation of the legal requirements, the supplier is declared
mutual relations may allow
Related parties the economic results of the by court to be inactive entity, etc. The VAT rate for export
transactions to be influenced. goods is 0% and there is a certain procedure for refund
In consequence, the Kazakh of the related input VAT. Special VAT procedures apply
authorities can treat any to export/import of goods to/from the countries belonging
transaction as a related-party
transaction based on their set to the Eurasian Economic Unit such as Russia, Belarus,
of market prices. Kyrgyzstan and Armenia.
10% deviation is allowed Excise Tax is paid by importers or sellers of Ludmila Dyakonova
Safe harbours No only for producers Partner
of agricultural products. 1) all types of alcohol Phone: +7 778 873 7159
Level of attention paid by Tax 2) alcoholic products E-mail: ludmila.dyakonova@mazars.kz
Authority 8/10 3) tobacco products

26 Mazars Central and Eastern European tax guide 2023 Central and Eastern European tax guide 2023 Mazars 27