The main sources of international tax law in Kazakhstan are the Constitution, the Tax Code, ratified international treaties, and other laws governing the conclusion, operation and application of international treaties. Normative resolutions of the Constitutional Court and the Supreme Court are also significant, as they form part of the applicable law and shape the courts’ approach to the application of tax legislation and international treaties.

Although established judicial practice is taken into account in practice, judicial precedent is not formally recognised as an independent source of law in Kazakhstan. Tax administrative guidance remains limited: there are currently no specific tax authority instructions providing a comprehensive framework for the application of tax treaties, and individual clarifications issued by the tax authorities are not legally binding and may be reconsidered.

Kazakhstan has a relatively broad treaty network consisting primarily of 55 bilateral double tax treaties on income and capital gains with major jurisdictions across Europe, the CIS, Asia, the Middle East and North America. Kazakhstan is also a party to the Multilateral Instrument (MLI) and has listed 41 treaties as Covered Tax Agreements for MLI purposes.

In addition, as a member of the Eurasian Economic Union, Kazakhstan applies the Treaty on the Eurasian Economic Union, which includes rules on indirect taxes in mutual trade between member states.

The current Constitution and the Tax Code establish the principle that ratified international treaties prevail over domestic legislation in the event of a conflict.

However, it should be noted that a new Constitution was adopted by nationwide referendum on 15 March 2026 and will enter into force on 1 July 2026. This principle is not expressly reflected in the new Constitution. The entry into force of the new Constitution is expected to result in corresponding amendments to various codes and other legislative acts of the Republic of Kazakhstan.

Kazakhstan’s jurisdiction does not strictly follow a single model. Tax treaties are generally based on the OECD Model Tax Convention, while incorporating certain elements of the UN Model.

Kazakhstan signed the MLI on 25 June 2018 and ratified it on 20 February 2020.

Kazakhstan applies the principle of worldwide taxation to its tax residents, under which residents are taxed on their global income. Non-residents, in contrast, are subject to tax only on income derived from sources in Kazakhstan.

An individual is generally recognised as a tax resident of Kazakhstan if either of the following tests is met:

• Physical presence test: the individual is present in Kazakhstan for 183 calendar days or more in any consecutive 12-month period ending in the relevant tax period; or
• Centre of vital interests test: the individual’s centre of vital interests is deemed to be in Kazakhstan where the relevant statutory conditions are met, including the individual’s citizenship or residence status, the residence in Kazakhstan of the individual’s spouse and/or close relatives, and the availability of residential property in Kazakhstan for the individual or such family members.

Tax-resident individuals in Kazakhstan are generally subject to personal income tax on their worldwide income, ie, income derived both from sources in Kazakhstan and from foreign sources. Personal income tax is generally imposed at the standard rate of 10% for most categories of individual income.

To mitigate double taxation of foreign-source income, Kazakhstan provides relief through a foreign tax credit mechanism, subject to the conditions and limitations set out in the Tax Code.

Individuals who are not tax resident in Kazakhstan are generally taxed only on Kazakhstan-source income. Such income is typically taxed by withholding at source through a Kazakh tax agent, although in certain cases the non-resident individual may be required to report and pay the tax directly.

Kazakhstan-source income of non-resident individuals includes employment income, directors’ fees, income from independent personal services, artists’ and sportspersons’ income, dividends, interest, royalties, capital gains from Kazakhstan immovable property and shares or participation interests, rental and other property-related income, pension and insurance-related payments, material benefits, and other income treated as Kazakhstan-source under the Tax Code.

A legal entity is generally recognised as a tax resident of Kazakhstan if it is either incorporated under the laws of Kazakhstan or incorporated under the laws of a foreign state but has its place of effective management in Kazakhstan.

The place of effective management is generally understood as the place where the actual governing body (such as the board of directors or a similar body) meets and where key management, control and strategic business decisions are made.

In addition, the Astana International Financial Centre (AIFC) legal framework allows foreign legal entities to redomicile to the AIFC in Kazakhstan. Following such continuation, these entities are generally treated as Kazakhstan tax residents, subject to the requirements of the Tax Code.

In Kazakhstan, a permanent establishment (PE) is defined broadly under the Tax Code and may arise through a fixed place of business, the provision of services or performance of works through personnel, a dependent agent, or participation in joint activities. The domestic definition is generally broader than the PE definitions in Kazakhstan’s tax treaties, particularly in relation to service-based activities. In addition, where a non-resident has a registered PE in Kazakhstan, Kazakhstan-source income may generally be treated as attributable to that PE unless the non-resident proves otherwise to the tax authorities, reflecting a broad domestic “force of attraction” approach.

Kazakhstan’s treaty PE provisions are generally based on the OECD Model Tax Convention, although many treaties also include UN Model features, especially in relation to service PE clauses and construction-related activities.

The tax treatment of income from immovable property differs depending on whether the seller is a resident or a non-resident. For resident legal entities, proceeds from the disposal of immovable property are generally taken into account under the Tax Code rules governing fixed assets, with the resulting amount forming part of taxable business income subject to corporate income tax at 20%. For non-residents, gains derived from the disposal of immovable property situated in Kazakhstan are generally treated as Kazakhstan-source capital gain income and taxed in Kazakhstan, through withholding income tax at source at 15%, subject to any applicable double tax treaty.

For non-resident legal entities operating in Kazakhstan through a PE, taxable business income is generally determined as gross annual income less deductible business expenses and other statutory adjustments. Such income is generally subject to corporate income tax at 20%, and the net income of the PE is also subject to branch profits tax at 15%. For non-residents that do not operate through a PE, the taxable base is generally the gross amount of Kazakhstan-source income. Depending on the nature of the income, such income may be subject to withholding tax at rates ranging from 5% to 20% under the Tax Code. These tax implications may be reduced or exempted under an applicable double tax treaty.

Dividends, interest and royalties derived by non-residents from Kazakhstan sources are generally subject to withholding tax at a rate of 15%. This rate may be reduced, typically to 10% or 5%, under an applicable double tax treaty.

Non-residents are generally subject to withholding tax at a rate of 15% on capital gains derived from sources in Kazakhstan. This includes, in particular, gains from the disposal of property located in Kazakhstan that is subject to state registration, securities issued by Kazakhstan residents, and participation interests in resident legal entities or consortia, as well as shares or participation interests in non-resident entities, where 50% or more of the value of such shares, interests or assets is derived from property located in Kazakhstan.

Kazakhstan-source employment income is generally subject to personal income tax at 10% on annual income up to 8,500 monthly calculation indices (MCI) and 15% on the excess. In 2026, one MCI is equal to KZT4,325. Employment income may also give rise to social tax at a general rate of 6%. Short-term assignments are not subject to a separate domestic tax regime as such, although relief may be available under an applicable double tax treaty. Remote working is not specifically regulated in the Tax Code as a standalone category, and the tax consequences are therefore assessed under the general rules.

Overall, the categories of Kazakhstan-source income derived by non-residents are broadly consistent with internationally recognised source-based taxation principles and generally follow the structure of the OECD Model Tax Convention. A notable exception is Kazakhstan’s extraterritorial approach to taxing capital gains derived by a non-resident from the disposal of shares or participation interests in a non-resident entity where 50% or more of the value is derived from the property of a Kazakhstan subsoil user.

Kazakhstan has not taken steps to implement Pillar One Amount B.

Kazakhstan has not implemented Pillar One Amount A.

Kazakhstan has not implemented the global minimum tax under Pillar Two.

Kazakhstan has not implemented the global minimum tax under Pillar Two.

Kazakhstan has not introduced a separate digital services tax or any other standalone tax specifically targeting digital products or streaming services. Income derived from digital assets may, depending on the circumstances, be taxed under the general corporate income tax rules, but this does not amount to a separate tax on digital products as such. Instead, Kazakhstan applies a 16% VAT to certain digital services supplied by foreign companies to individuals in Kazakhstan, with foreign suppliers generally required to register for VAT once they start receiving payments from local individuals. Kazakhstan also imposes a specific digital mining fee, although this is better characterised as a sector-specific levy rather than a digital services tax.

Kazakhstan law does not contain a single legal definition of tax avoidance or abusive tax arrangements. Instead, such situations are assessed through a combination of specific legal mechanisms, including anti-abuse provisions of international tax treaties, transfer pricing rules, mechanisms for challenging fictitious transactions, and others.

Tax evasion is treated as unlawful non-compliance with tax obligations and may give rise to administrative or criminal liability for a tax agent in cases of failure to withhold or partial withholding of tax from non-resident income. Tax fraud does not have a separate unified definition and is usually addressed through general liability mechanisms applicable to unlawful evasion and fictitious transactions.

In cross-border situations, the main indicators of abuse typically include treaty shopping, lack of beneficial ownership and non-compliance with the arm’s length principle.

Kazakhstan combats tax fraud, evasion and abusive practices through the following mechanisms:

• transfer pricing control over related-party and certain cross-border transactions;
• controlled foreign corporation (CFC) rules;
• thin capitalisation rules limiting interest deductibility in transactions between affiliated parties;
• beneficial ownership and principal purpose test requirements for access to double tax treaty benefits;
• restrictions on deductions for transactions lacking business purpose;
• increased tax exposure on transactions with low-tax jurisdictions; and
• challenging fictitious transactions.

Kazakhstan maintains an official list of jurisdictions with preferential taxation (often referred to as “low-tax” or “offshore” jurisdictions).

If Kazakh taxpayers interact with entities or individuals registered in such jurisdictions, the tax consequences may include:

• limitations on deductions;
• withholding tax implications (an increased withholding tax rate compared to the same type of income received by a foreign entity or individual not registered in a preferential jurisdiction); and
• increased scrutiny by the Kazakh tax authorities.

In Kazakhstan, the key reporting obligations to detect and prevent tax fraud, tax evasion and/or tax avoidance include:

• tax returns and financial statements;
• transfer pricing documentation for controlled transactions;
• CFC reporting by residents; and
• country-by-country reporting (CbCR) for qualifying multinational groups.

Kazakh tax authorities have broad investigatory powers in relation to tax non-compliance. These include desk and field tax audits; the power to request accounting, banking and transactional records; access to taxpayer premises during audits; and information exchange with domestic and foreign authorities. They may also bring taxpayers or tax agents to administrative liability within their competence, while cases involving indications of tax crime may be referred to law enforcement authorities. Unannounced visits, searches and raids are generally conducted only in the context of criminal proceedings, with the involvement of law enforcement bodies rather than the tax authorities acting alone.

Penalties relating to cross-border transactions in Kazakhstan are governed mainly by the Tax Code, the Code on Administrative Offences, the Criminal Code and, where relevant, customs legislation and transfer pricing rules. Administrative sanctions are generally imposed and enforced by the state revenue authorities, ie, tax and customs authorities, while cases involving possible tax crimes are referred to law enforcement authorities.

Criminal liability applies in cases of large-scale tax evasion, including:

• substantial fines;
• restriction or deprivation of liberty;
• confiscation of property in certain cases; and
• a ban on holding certain positions in the future.

Where the state revenue authorities, including the tax and customs authorities, identify indications of a tax-related criminal offence, they are required to refer the relevant materials to the competent law enforcement authorities for further investigation. In practice, referral is made to the Economic Investigation Service rather than directly to the public prosecutor. Co-ordination is then ensured through the criminal procedure framework: the state revenue authorities provide audit materials and may be involved further by assisting with additional tax or customs reviews, or by participating as witnesses or specialists, while the investigative authorities and, ultimately, the courts handle the subsequent procedural stages.

Administrative co-operation in tax matters in Kazakhstan is based primarily on international instruments. The main instruments are the Convention on Mutual Administrative Assistance in Tax Matters, the related multilateral competent authority agreements on automatic exchange of information (including the Common Reporting Standard (CRS) and CbCR), and Kazakhstan’s network of bilateral double tax treaties, which typically contain exchange-of-information and mutual agreement procedure (MAP) provisions.

Kazakhstan exchanges tax information on request and automatically, and its legal framework also contemplates spontaneous exchange. Automatic exchange takes place through the relevant multilateral competent authority agreements, including the CRS and CbCR.

Kazakhstan does not participate in the OECD’s International Compliance Assurance Programme, joint audits or other multilateral arrangements other than MAPs.

Kazakhstan has a MAP framework based on its network of double tax treaties.

In Kazakhstan, the deadline for submitting a MAP request depends on the relevant double tax treaty. Generally, this period is three years from the first notification of the action resulting in taxation not in accordance with the applicable treaty.

In Kazakhstan, mandatory binding arbitration is available only under a limited number of double tax treaties, namely those concluded with Canada, France, Italy, the Netherlands, Pakistan, Switzerland, Tajikistan and the United States.

Kazakhstan has an advance pricing agreement programme. The legal basis for the programme is the Kazakh Law on Transfer Pricing.

Kazakhstan does not have a broad binding ruling or co-operative compliance system for international tax matters comparable to those available in some OECD jurisdictions. Tax certainty in treaty matters is available primarily through the MAP under the applicable double tax treaties. In addition, taxpayers participating in the horizontal monitoring regime may obtain preliminary explanations from the tax authorities on the application of tax legislation, including tax treaties. More generally, the tax authorities may issue individual written explanations; however, these are advisory only and are not legally binding.