Accounting and legal

Accounting and tax

    legal regulations in Kazakhstan
  1. Corporate tax rate is levied at a flat rate of 20% on all net income in Kazakhstan. The deadline for filing of tax returns is 31st March of the subsequent year;
  2. Branches pay corporate tax at the rate of 20% plus an additional 15% tax on net after-tax income, unless this rate is reduced under a tax treaty. Such tax is applied regardless of whether net profits are remitted to the parent company or not;
  3. The standard VAT rate levied on provision of goods and services in Kazakhstan, as well as all imports, is 12%. Registration is compulsory for companies whose turnover exceeds US$242,000 per annum. VAT returns must be submitted no later than 45 days after the end of each quarter;
  4. Capital gains are treated as ordinary income and taxed at the standard corporate tax rate of 18%;
  5. Withholding tax is levied at a standard rate of 15% on dividends, interest, royalties and technical services paid to non-residents. This rate is increased to 20% for payments made to tax haven jurisdictions;
  6. Real property tax in Kazakhstan is levied on immovable property at rates of up to 1.5%, depending on taxpayer’s activities;
  7. Tax losses can be carried forward for a period of up to 10 years following the year the loss was incurred;
  8. Employers must remit social tax at the rate of 11% of an employee’s gross salary and contribute an additional 5% of each employee’s gross salary into a pension fund;
  9. Kazakhstan has concluded withholding tax treaties with more than 40 countries including Belgium, Canada, France, Germany, Japan, China, Singapore, USA and Sweden;
  10. Healy Consultants’ Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
  11. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

  1. The minimum amount of paid up capital to be invested in a foreign-owned company is US$800. This share capital, termed charter capital, must be deposited in a local bank before company incorporation. There must be at least one shareholder and one director;
  2. All business entities must submit annual audited financial statements by March 31st of each year;
  3. A company secretary is not required for Kazakhstan company incorporation, however we recommend one be appointed to ensure compliance with the Corporation Act;
  4. The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants’ fee to project manage company de-registration is US$1450. During this 6 month period it is mandatory to maintain a legal registered office.

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Contact us

For additional information on our accounting and legal services in Kazakhstan, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Olivia Stanciu, directly:
client relationship officer - Olivia