From 2026, Kazakhstan has introduced changes to the taxation of certain types of income earned by non-residents. In particular, withholding tax rates have been revised, a progressive individual income tax (IIT) scale has been introduced for non-resident employees, and requirements for tax agents making payments to non-residents have been clarified.
The changes affect income earned by non-resident employees and labour immigrants, income from sources in Kazakhstan, payments to foreign companies, and the application of international tax treaties for the avoidance of double taxation.
Withholding tax rates
In 2026, new withholding tax rates apply to certain types of income earned by non-residents.
Dividends paid to a person who directly or indirectly owns at least 25% of the capital of a resident legal entity are taxed at 5% on income up to 230,000 MCI and at 15% on the excess amount.
The following rates apply to other types of income:
- interest on loans, borrowings and debt securities — 10%;
- winnings from gambling and betting — 10%.
For other types of non-resident income, the applicable tax rate depends on the nature and type of income and is determined in accordance with the Tax Code.
Progressive IIT scale for non-resident employees
One of the key changes introduced in 2026 is the progressive IIT scale for income earned by non-resident employees.
The annual threshold is 8,500 MCI. With the MCI set at KZT 4,325, this amounts to KZT 36,762,500.
Income within the threshold is taxed at 10%, while the 15% rate applies only to the excess amount.
For example, if a non-resident employee earns KZT 40 million during the year, KZT 36,762,500 is taxed at 10%, while the remaining amount is subject to the 15% rate.
The same progressive scale applies to income earned by foreigners and stateless persons assigned to Kazakhstan by a non-resident legal entity that is not registered as a taxpayer in Kazakhstan.
Taxation of labour immigrants
A special procedure for determining taxable income and calculating IIT applies to non-resident labour immigrants.
Tax liabilities are calculated taking into account actual income received, tax deductions provided by law and the minimum taxable income.
The minimum taxable income is 40 MCI for each month of performing work or providing services.
Therefore, when making payments to labour immigrants, it is important to take into account their tax status and the specific IIT calculation rules established by the Tax Code.
Which income is considered income from sources in Kazakhstan?
The first step in determining tax liabilities is to establish whether the non-resident’s income is considered income from sources in Kazakhstan.
Such income includes, among other things, income from work performed and services provided in Kazakhstan, dividends, interest, royalties, capital gains and other types of income specified by the Tax Code.
When making a payment to a non-resident, it is necessary to determine the type of income, the place where the work is performed or services are provided, and other circumstances that may affect the applicable tax treatment.
Permanent establishment and international tax treaties
When a foreign company carries out activities in Kazakhstan, it is necessary to determine whether it has a permanent establishment in Kazakhstan.
Where a permanent establishment exists, the non-resident’s income is taxed taking into account the relevant provisions of the Tax Code. Therefore, when entering into agreements with foreign companies, it is important to analyse not only the terms and amount of the agreement, but also the actual nature of the non-resident’s activities in Kazakhstan.
International tax treaties for the avoidance of double taxation are also relevant. Where provided for by law, treaty provisions may be applied if the required supporting documents are available.
The main document required for applying the provisions of an international tax treaty is a certificate of tax residence confirming the recipient’s tax residency.
The tax agent must verify that the conditions for applying the treaty are met and that the requirements of the Tax Code have been complied with.
What should a tax agent check?
Before making a payment to a non-resident, the tax agent should determine:
- the recipient’s tax status;
- the type and nature of the income being paid;
- whether the income is considered income from sources in Kazakhstan;
- the place where the work is performed or services are provided;
- whether the non-resident has a permanent establishment in Kazakhstan;
- whether an international tax treaty for the avoidance of double taxation can be applied;
- the applicable tax rate;
- whether withholding tax must be withheld;
- the procedure and deadlines for remitting the tax to the budget.
Payments to non-residents for consulting, management, technical and engineering services require particular attention. Each payment should be analysed based on the nature of the activities and the specific terms of the transaction, taking into account the requirements of the current Tax Code.
Source: Uchet.kz
