Doing a Business

Attraction of foreign labour force

Foreign Labour Quote

Pursuant to Article 32 of the Law of the Republic of Kazakhstan "On Employment of Population” , in order to protect the internal labor market, the authorized employment body establishes a quota for attracting foreign labor to work in the territory of the Republic of Kazakhstan..

Work permits

In order to attract foreign labour force,  the employers should obtain work permit for attraction of foreign labor force which are  issued by the local executive bodies.

Local executive bodies (Akimats) in the territory of the relevant administrative-territorial unit issue or extend permits or refuse to issue or extend permits to employers to attract foreign labor to carry out labor activities as per the quota established by the authorized employment body, as well as suspend and revoke these permits.

A permit issued by a local executive body to attract foreign labor cannot be given to other employers, as it is valid only in the territory of the specified administrative-territorial units, except for the business trip of foreign personnel, attracted under work permits, into organizations in other administrative-territorial units for a period of not more than ninety calendar days in total during one calendar year.

State fee for the issuance of work permits

Work permits for  foreign labor  force are issued or extended pursuant to the procedure and on the terms established by the authorized employment body subject to payment of a state fee in accordance with the tax laws of the Republic of Kazakhstan.

Issuance and (or) extension of a work permit is  charged with a tax fee as per established  fee rates for the issuance and (or) extension of work permits attract foreign labor force by virtue of the Decree of the Government of the Republic of Kazakhstan dated April 3, 2018 No. 157 "On fee rates for the issuance and (or) extension of work permits for foreign labor ".

The provision of this paragraph on payment of a state fee for the issuance or extension of work permits for foreign labor force does not apply to foreigners and stateless persons working as part of an intra-corporate transfer.

Exemption from quote and work permits

The requirements established by the legislation regarding quotas and obtaining permits to attract foreign labor do not apply to foreigners and stateless persons: 

  1. employed by the autonomous educational organizations, their organizations, as well as in the "Nazarbayev Foundation" as managers and specialists with higher education;
  2. employed by the state bodies with confirmed documents in accordance with the procedure established by the Government of the Republic of Kazakhstan;
  3. employed by the organizations of the Republic of Kazakhstan that have signed investment contracts for an investment priority project in accordance with the laws of the Republic of Kazakhstan on investments, as well as working in organizations engaged by these legal entities (or their contractors) as a general contractor, contractor, subcontractor or services provider in the field of architectural, urban planning and construction activities (including survey and design activities, engineering services), for a period up to one year after the commissioning of the object of investment activity as managers and specialists with higher education, as well as qualified workers according to the list of professions and the number determined in investment contracts for the implementation of the investment priority project;
  4. employed by the legal entities registered as participants of special economic zones, with projects worth more than one million monthly assessment indices (KZT 3063), as well as in organizations engaged by these participants of special economic zones (or their contractors) as a general contractor, contractor, subcontractor or service provider during the period of construction and installation works on the territory of special economic zones and before the expiration of one year after the commissioning of the object (objects) according to the list of categories and the number of, determined by the commission from representatives of the authorized body for employment of the population, interested central state bodies in the manner approved by a joint decision of the authorized body for employment of the population and the central executive body carrying out state regulation in the field of creation, functioning and abolition of special economic and industrial zones;
  5. those who arrived for self-employment in professions against the list of demands in priority sectors of the economy (types of economic activity);
  6. permanent residents in the Republic of Kazakhstan;
  7. employed as the first heads of branches or representative offices of foreign legal entities;
  8. employed as per the list of employees established by the Government of the Republic of Kazakhstan, to be employed without work permits for foreign labour force from the local executive bodies to carry out labor activities (Decree No.802);
  9. employed in the Astana Hub International Technology Park or with participants of the Astana Hub International Technology Park as managers and specialists with higher education.

Follow up point 8 of the above list, the Government issued  the Decree of the Government of the Republic of Kazakhstan dated December 15, 2016 No. 802, having established the list of foreign employees and stateless persons employed without work permits from the local the executive bodies and exempt from quotas requirements, (https://adilet.zan.kz/rus/docs/P1600000802),:

1) Candace;

2) Business immigrants (self-employed private entrepreneurs) who arrived to carry out business activities;

3) Having status of a refugee or an asylum seeker;

4) Immigrants arriving for humanitarian reasons, in accordance with the Law of the Republic of Kazakhstan dated July 22, 2011 "On migration of the population";

5) Convicted by the sentences of the courts of the Republic of Kazakhstan to imprisonment, probation, to punishments not related to isolation from society;

6) Victims of human trafficking during the period of the proceedings on a specific criminal case related to human trafficking, until the court verdict comes into force;

7) Arriving to the Republic of Kazakhstan to reunify with family, provided that they reached the age of majority,  have been married to citizen of the Republic of Kazakhstan not less than three years and their marriage recognized by the laws of the Republic of Kazakhstan;

8) Full-time students and simultaneously employed by the educational institutions of the Republic of Kazakhstan in their free time in accordance with the labor legislation of the Republic of Kazakhstan;

9) Citizens of the states-parties to the Treaty on the Eurasian Economic Union of May 29, 2014;

10) Members of the crews of sea and river vessels, air and rail transport;

11) Working as artists, directors, conductors, choirmasters, choreographers, athletes and coaches;

12) Attracted by the participants and bodies of the Astana International Financial Center;

13) Experts attracted for the creation of a space rocket complex and the operation of ground-based space infrastructure facilities, involved in the framework of international agreements of the Republic of Kazakhstan on cooperation in the field of aerospace activities;

14) Carrying out pedagogical activities under the international agreements of the Republic of Kazakhstan on cooperation in the field of education in organizations of secondary, technical and vocational, post-secondary and higher education of the Republic of Kazakhstan, but making up no more than 25 percent, and for implementing international integrated educational curricula - no more than 50 percent of the staff of the organization;

15) Personnel staff  - teachers of higher educational institutions that have been assigned a special status in accordance with the laws of the Republic of Kazakhstan, as well as those working in higher educational institutions as managers and teachers with higher education with confirmed documents in accordance with the procedure established by the legislation of the Republic of Kazakhstan, and training personnel for economic sectors.

16) Employed as the first heads of branches or representative offices of foreign legal entities, as well as the first heads of Kazakh legal entities and their deputies with a one hundred percent share of foreign participation in their authorized capital.

17) Being on a business trip for business purposes for the period of  one hundred and twenty calendar days during one calendar year.

18) Employed as the first heads of organizations that have concluded contracts with the Government of the Republic of Kazakhstan for the amount of investments in the monetary equivalent of more than 50 million US dollars, and the first heads of legal entities of the Republic of Kazakhstan that carry out investment activities in priority activities and have concluded a contract with the authorized investment authority.

19) Employed by the national management holding in positions not lower than heads of structural divisions with higher education with confirmed documents in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

20) Attracted to work as members of the board of directors of the national management holding.

Rates of customs duties and taxes for calculation (Article 53 of the Customs Code of the EAEU)

To calculate import customs duties, the rates of the Common Customs Tariff of the Eurasian Economic Union are applied, except for the cases provided for in accordance with the Treaty on the Union, as well as when, in accordance with international treaties within the Eurasian Economic Union or international treaties of the Eurasian Economic Union with a third party, for calculation import customs duties are applied at rates different from the rates of the Unified Customs Tariff of the Eurasian Economic Union.

If the conditions for granting tariff preferences are not met for calculating import customs duties, the rates of the Unified Customs Tariff of the Eurasian Economic Union are applied, unless otherwise provided by the Treaty on the Union.

To calculate export customs duties payable in the Republic of Kazakhstan, the rates established by the authorized body in the field of regulation of trade activities are applied, unless otherwise established by international treaties within the framework of the Eurasian Economic Union and (or) bilateral international treaties of the Republic of Kazakhstan.

For the calculation of taxes payable in the Republic of Kazakhstan, the rates established by the tax legislation of the Republic of Kazakhstan are applied.

The Commission forms a general list of tax rates applicable to goods in the member states of the Eurasian Economic Union, based on information provided by authorized state bodies of the member states of the Eurasian Economic Union, and posts it on the official website of the Eurasian Economic Union.

The format of the general list of tax rates applied to goods in the member states of the Eurasian Economic Union, the procedure for its formation, maintenance and use of information from it, as well as the procedure and technical conditions, including the structure and format, submission of information about such rates are determined by the Commission ...

TN VED coding (Article 19 of the Customs Code of the EAEU)

The Unified Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union is a system for describing and coding goods that is used to classify goods in order to apply customs -tariff regulation, export customs duties, prohibitions and restrictions, measures to protect the internal market, customs statistics.

The commodity nomenclature of foreign economic activity can be used for the purposes of taxation of goods and for other purposes stipulated by the customs legislation of the Eurasian Economic Union and (or) the Republic of Kazakhstan, as well as other legislation of the Republic of Kazakhstan.

The international basis of the Commodity Nomenclature of Foreign Economic Activity is the Harmonized System of Description and Coding of Goods of the World Customs Organization and the unified Commodity Nomenclature of Foreign Economic Activity of the Commonwealth of Independent States.

The commodity nomenclature of foreign economic activity is approved by the EAEU Commission.

Explanations to the Commodity Nomenclature of Foreign Economic Activity are adopted by the EAEU Commission.

The classification of goods is understood as the gradual assignment of the goods under consideration to specific headings, subheadings and subheadings on the Commodity Nomenclature of Foreign Economic Activity.

The classification of goods is carried out based on the main criteria:

  • the function that the product performs;
  • the material from which the product is made.
At the same time, the principle of unambiguous assignment of goods, taking into account the degree of their processing to commodity subheadings, is observed on the basis of the application of the Basic Rules for the Interpretation of the Commodity Nomenclature of Foreign Economic Activity and notes to sections, groups (including notes to commodity items, subheadings), as well as additional notes that explain specific classification questions.

The declarant and other persons carry out the classification of goods in accordance with the Commodity Nomenclature of Foreign Economic Activity during customs declaration and in other cases when, in accordance with the customs legislation of the Eurasian Economic Union and (or) the Republic of Kazakhstan, the customs authority is declared a product code in accordance with the Commodity Nomenclature of Foreign Economic Activity.

At the request of persons, the customs authorities may classify goods prior to their customs declaration by making preliminary decisions on the classification of goods in accordance with the Commodity Nomenclature for Foreign Economic Activity and decisions on the classification of goods transported across the customs border of the Eurasian Economic Union in an unassembled or disassembled form, including incomplete or incomplete form.

Customs documents (Article 9 of the Labor Code of the Republic of Kazakhstan)

Customs documents are filled out in Kazakh or Russian, unless otherwise provided by the Customs Code.

Customs documents filled in on the territory of one member state of the Eurasian Economic Union and subject to submission to the customs authorities of another member state of the Eurasian Economic Union when performing customs operations are filled out in Russian

Customs duties

Customs duties are obligatory payments levied for the performance by customs authorities of customs operations related to the release of goods, customs escort of vehicles, as well as for the commission of other actions established by this Code.

The rates of customs duties are established by the Government (Resolution of the Government of the Republic of Kazakhstan dated April 5, 2018 No. 171 "On approval of the rates of customs duties levied by state revenue authorities").

The amount of customs fees cannot exceed the approximate cost of the costs of customs authorities for actions in connection with which customs fees have been established.

Payers of customs fees, types, terms and procedure for payment of customs fees, collection and offset (return), benefits for payment of customs fees, as well as cases when customs fees are not paid are established by this Code.

Types of rates of customs duties (Article 75 of the Labor Code of the Republic of Kazakhstan)

Customs duty rates are subdivided into the following types:

  • ad valorem, established as a percentage of the customs value of taxable goods;
  • specific, established depending on physical characteristics in kind (quantity, mass, volume or other characteristics);
  • combined, combining the types specified in subparagraphs 1) and 2) of this article.

Customs payments and taxes (Article 74 of the Labor Code of the Republic of Kazakhstan)

Customs payments and taxes include:

  1. import customs duty;
  2. export customs duty;
  3. value added tax levied on the import of goods into the customs territory of the Eurasian Economic Union;
  4. excise (excise) levied (levied) upon the import of goods into the customs territory of the Eurasian Economic Union;
  5. customs duties.
2. Payers, the procedure for calculating and terms of payment, offset (return) and collection, accrual, as well as benefits for payment are determined:
  1. with regard to customs duties - the Treaty on the Union, the customs legislation of the Eurasian Economic Union and (or) the Republic of Kazakhstan (https://adilet.zan.kz/eng/docs/Z1400000240;
  2. in relation to value added tax and excise taxes levied by customs authorities when goods are moved across the customs border of the Eurasian Economic Union - this Code and the tax legislation of the Republic of Kazakhstan.
Customs duties and taxes are calculated by the payer of customs duties and taxes, and in cases stipulated by the Customs, by the customs authority.

Declarant (Article 149 of the Labor Code)

1. Declarants of goods placed under customs procedures may be:

1) a person of a member state of the Eurasian Economic Union:

being a party to a transaction with a foreign person, on the basis of which goods are moved across the customs border of the Eurasian Economic Union;

on behalf of and (or) on whose behalf the transaction is concluded, specified in paragraph two of this sub-clause;

having the right to own, use and (or) dispose of goods - if goods are moved across the customs border of the Eurasian Economic Union not within the framework of a transaction, one of the parties to which is a foreign person;

being a party to a transaction concluded with a foreign person or with a person of a member state of the Eurasian Economic Union in relation to foreign goods located in the customs territory of the Eurasian Economic Union;

being a forwarder - when declaring the customs procedure for customs transit;

being a party to a transaction concluded between persons of one member state of the Eurasian Economic Union, on the basis of which goods are exported from the customs territory of the Eurasian Economic Union;

2) foreign person:

which is an organization that has a representative office, a branch, created and (or) registered in the territory of a member state of the Eurasian Economic Union in the prescribed manner, - when customs procedures are declared only in relation to goods moved for the own needs of such a representative office or branch;

being the owner of the goods, if the goods are moved across the customs border of the Eurasian Economic Union not within the framework of a transaction between a foreign person and a person of a member state of the Eurasian Economic Union;

having the right to own and use goods, if goods are moved across the customs border of the Eurasian Economic Union not within the framework of a transaction between a foreign person and a person of a member state of the Eurasian Economic Union, - upon declaration of the customs procedure of a customs warehouse, customs procedure for temporary import (admission), customs procedure re-export, special customs procedure;

3) diplomatic missions, consular offices, representations of states to international organizations, international organizations or their representations, other organizations or their representations located in the customs territory of the Eurasian Economic Union;

4) a carrier, including a customs carrier, - upon declaration of the customs procedure for customs transit;

5) a foreign person who has received, in accordance with an international treaty of a member state of the Eurasian Economic Union with a third party, a document provided for by such an international treaty, granting such a person the right to export goods from the customs territory of the Eurasian Economic Union, located in the customs territory of the Eurasian Economic Union, - when declaring the customs procedure of a customs warehouse, customs procedure for re-export, customs procedure for export;

6) a foreign person with a branch registered in the Republic of Kazakhstan as a taxpayer in accordance with the tax legislation of the Republic of Kazakhstan.

Customs procedures (Article 207 of the Labor Code of the Republic of Kazakhstan)

Depending on the purposes of finding and using goods in the customs territory of the Eurasian Economic Union, their export from the customs territory of the Eurasian Economic Union and (or) finding and using them outside the customs territory of the Eurasian Economic Union, the following 17 customs procedures are applied to goods:

  1. output for domestic consumption;
  2. export;
  3. customs transit;
  4. bonded warehouse;
  5. processing in the customs territory;
  6. processing outside the customs territory;
  7. processing for domestic consumption;
  8. free customs zone;
  9. free warehouse;
  10. temporary import (admission);
  11. temporary export;
  12. re-import;
  13. re-export;
  14. free trade;
  15. destruction;
  16. refusal in favor of the state;
  17. special customs procedure.
Goods placed under the customs procedure may be placed under other customs procedures or the same customs procedure:
  1. to complete the customs procedure under which the goods are placed;
  2. to suspend the customs procedure under which the goods are placed;
  3. for transportation (transportation) of goods through the customs territory of the Eurasian Economic Union and (or) for transportation from one part of the customs territory of the Eurasian Economic Union to another part of the customs territory of the Eurasian Economic Union through the territories of states that are not members of the Eurasian Economic Union and (or) by sea in accordance with this Code.

Customs administration

EAEU website: www.eaeunion.org

EEC website: eec.eaeunion.org

Customs Regulation Code https://adilet.zan.kz/eng/docs/K1700000123

New Customs Codes of the Eurasian Economic Union and the Republic of Kazakhstan (Code of the Republic of Kazakhstan dated December 26, 2017 No. 123-VI ЗРК "On customs regulation in the Republic of Kazakhstan") entered into force on January 1, 2018.

On April 11, 2017, the stage of signing the Treaty on the Customs Code of the EAEU, which was ratified in the EAEU member states, was completed. The new EAEU Customs Code entered into force after the Eurasian Economic Commission received notifications of ratification of the Treaty from all five EAEU member states (the Russian Federation, the Republic of Kazakhstan, the Republic of Belarus, the Republic of Armenia and the Kyrgyz Republic).

The Code of the Republic of Kazakhstan "On Customs Regulation in the Republic of Kazakhstan" The Code of the Republic of Kazakhstan "On Customs Regulation" (Customs Code) entered into force on January 1, 2018 and includes the norms of the Customs Code of the EAEU, and also establishes legal relations that are within the competence of national legislation. The main difference between the two codes from the previous legislation is a fundamentally new approach to customs regulation. The Customs Code of the Republic of Kazakhstan and the Customs Code of the EAEU entered into force on January 1, 2018.

The new provisions of the Customs Code stipulate that all uncertainties and unresolved issues of customs legislation are accepted in favor of the person who appealed the notification of the results of the customs inspection and notification of the elimination of the violation.

Taxation on the territory of the SEZ

  1. An organization or an individual entrepreneur operating in the territory of a special economic zone, when determining the amount of land tax, property tax and payment for the use of land plots to be paid to the budget, according to taxation objects (taxable objects) located on the territory of the special economic zone and used in the implementation of priority activities, reduce the amount of the calculated tax and (or) fees by 100 percent.

An organization operating in the territory of a special economic zone, when determining the amount of corporate income tax payable to the budget, reduces the amount of the calculated corporate income tax by 100 percent on income received from the sale of goods, works, services resulting from the implementation of priority activities.

An organization or an individual entrepreneur operating on the territory of a special economic zone shall keep separate tax records of taxable items and (or) tax-related items in order to calculate tax liabilities for the corresponding priority type of activity and other types of activity.

In the event of termination by the management company of a special economic zone of an agreement on the implementation of activities as a participant in a special economic zone in accordance with the legislation of the Republic of Kazakhstan on special economic and industrial zones, preferences in taxes and fees are canceled from the date of the beginning of the tax period in which the violation was committed, which is the reason for termination of the contract.

The management company of the special economic zone, no later than thirty calendar days from the date of termination of the contract, submits information about the participants of the special economic zone with whom the contracts were terminated, indicating the date of the violation that was the reason for the termination of the contract, to the tax authorities at the location of such participants.

In this case, the taxpayer is obliged, no later than thirty calendar days from the date of termination of the contract, to submit additional tax reports for the tax period in which the violation was committed, which was the reason for the termination of the contract.

For the purposes of applying the provisions of the Tax Code, an organization operating in the territory of a special economic zone is also recognized as a legal entity that simultaneously meets the following conditions:

  1. is a member of the special economic zone "Park of innovative technologies" in accordance with the legislation of the Republic of Kazakhstan on special economic and industrial zones;
  2. registered as a taxpayer at the location;
  3. does not have branches and other separate structural divisions, with the exception of representative offices;
  4. carries out a priority type of activity corresponding to the goals of creating a special economic zone "Park of innovative technologies".
Organizations and individual entrepreneurs operating in the territories of special economic zones do not include:
  1. subsoil users;
  2. organizations that produce excisable goods, with the exception of organizations that manufacture, assemble (complete) excisable goods, provided for in subparagraph 6) of Article 462 of the Tax Code;
  3. organizations and individual entrepreneurs applying special tax regimes;
  4. organizations applying (applied) investment tax preferences - under contracts concluded with the authorized state investment body before January 1, 2009;
  5. organizations implementing (having implemented) an investment priority project or an investment strategic project in accordance with the legislation of the Republic of Kazakhstan on investments;
  6. organizations operating in the gambling business.

VAT exemption As part of the implementation of investment and special investment projects

Exemption from VAT on imports of raw materials and (or) materials

According to subparagraph 14 of paragraph 1 of Article 399 of the Tax Code, the import of raw materials and (or) materials within the framework of an investment contract is exempted from value added tax, while simultaneously meeting the following conditions:

  • raw materials and (or) materials are included in the list of raw materials and (or) materials, the import of which is exempt from value added tax under the investment contract, approved by the authorized state investment body in agreement with the central authorized body for state planning and the authorized body;
  • the import of raw materials and (or) materials is formalized by documents provided for by the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan;
  • imported raw materials and (or) materials will be used by the payer of value added tax within the limitation period only when carrying out activities under the investment contract.
Exemption from value added tax on the import of raw materials and (or) materials within the framework of an investment contract is provided to legal entities of the Republic of Kazakhstan for a period of five consecutive years, starting from the 1st day of the month in which fixed assets are put into operation, provided for in the work program, which is an annex to an investment contract concluded in accordance with the legislation of the Republic of Kazakhstan in the field of investments. If the work program provides for the introduction of two or more fixed assets, the calculation of the period for exemption from VAT on the import of raw materials and (or) materials under the investment contract is carried out starting from the 1st day of the month in which the first fixed asset was put into operation. according to the work program.

In case of violation within five years from the date of release of goods for free circulation or domestic consumption in the territory of the Republic of Kazakhstan of the requirements established by this subparagraph, value added tax on imported raw materials and (or) materials shall be paid with a penalty from the period established for payment value added tax on imported goods upon their import, in the manner and amount determined by the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan.

The list of raw materials and materials, the import of which is exempt from value added tax under the investment contract, was approved by Order of the Minister for Investment and Development of the Republic of Kazakhstan dated February 27, 2018 No. 140.

Special investment project

In accordance with subparagraph 15 of paragraph 1 of Article 399 of the Tax Code, the import of raw materials and (or) materials as part of vehicles and (or) agricultural machinery, as well as their components placed under the customs procedure of a free warehouse or free customs zone, is exempted from value added tax of the special economic zone "Qyzyljar" within the framework of a special investment contract concluded with an authorized body for the conclusion of special investment contracts by a legal entity that is:
  • a vehicle manufacturer that has entered into an agreement on the industrial assembly of motor vehicles with an authorized body in the field of state support for industrial and innovative activities;
  • a manufacturer of agricultural machinery that has entered into an agreement on the industrial assembly of agricultural machinery with an authorized body in the field of state support for industrial and innovative activities.
In accordance with paragraph 3 of Article 399 of the Tax Code, a legal entity that has entered into a special investment contract with an authorized investment body has the right to apply exemption from payment of value added tax when importing goods as part of finished products produced in the territory of a special economic zone or free warehouse, if compliance with the following conditions:
  • goods are placed under the customs procedure of a free customs zone or free warehouse;
  • the customs procedure of a free customs zone or a free warehouse ends with a customs procedure for release for domestic consumption;
  • identification of goods as part of finished products was carried out in accordance with the customs legislation of the Republic of Kazakhstan.

CIT

An organization implementing an investment priority project for the creation of new production facilities and (or) for the expansion, renewal of existing production facilities:

  1. reduces corporate income tax on income received from the implementation of priority activities specified in the investment contract by 100 percent.
The income of an organization implementing an investment priority project from the implementation of other types of activities not related to priority ones is subject to corporate income tax in accordance with the generally established procedure.

An organization implementing an investment priority project keeps separate tax records of taxable objects and (or) objects related to taxation in order to calculate tax liabilities for a priority type of activity under an investment contract.

The deadline for the application of this clause under investment contracts for the implementation of an investment priority project:

1) to create new production facilities:
  • it begins on January 1 of the year in which the investment contract for the implementation of the investment priority project is concluded;
  • ends no later than ten consecutive years, which are calculated starting from January 1 of the year following the year in which the investment contract for the implementation of the investment priority project was concluded;
2) to expand and (or) update existing production facilities, except for the cases specified in subparagraph 3) of this paragraph:
  • it begins on January 1 of the year following the year in which the last fixed asset producing products was put into operation under the investment contract for the implementation of an investment priority project;
  • it ends no later than three consecutive years, which are calculated starting from January 1 of the year following the year in which the last fixed asset producing products was commissioned under the investment contract for the implementation of an investment priority project;
3) to expand and (or) upgrade existing production facilities with the phased introduction of fixed assets producing products provided for in the investment contract for the implementation of the investment priority project:
  • it begins on January 1 of the year following the year in which the fixed asset producing products was put into operation under the investment contract;
  • it ends no later than three consecutive years, which are calculated starting from January 1 of the year following the year in which the fixed asset producing products put into operation under the investment contract was commissioned.
Land tax

An organization implementing an investment priority project for the creation of new production facilities, when calculating land tax on land plots used for the implementation of an investment priority project, applies a coefficient of 0 to the corresponding land tax rates.

The deadline for the application of part one of this paragraph:
  1. it begins on the 1st day of the month in which an investment contract for the implementation of an investment priority project for the creation of new production facilities is concluded;
  2. it ends no later than ten consecutive years, which are calculated starting from January 1 of the year following the year in which the investment contract for the implementation of the investment priority project for the creation of new production facilities was concluded.
These provisions do not apply in cases of property leasing (leasing), for use on other grounds of a land plot used for the implementation of an investment priority project, or its part (together with buildings, structures, structures located on it or without them).

Property tax

An organization implementing an investment priority project for the creation of new production facilities, for facilities first put into operation on the territory of the Republic of Kazakhstan, calculates property tax at a rate of 0 percent to the tax base.

The deadline for the application of this provision:
  1. it begins on the 1st day of the month in which the first asset is accounted for as part of fixed assets in accordance with international financial reporting standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;
  2. ends no later than eight consecutive years, which are calculated starting from January 1 of the year following the year in which the first asset is accounted for as part of fixed assets in accordance with international financial reporting standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
These provisions do not apply in cases of transfer of taxable objects for use, trust management or lease.

The provisions of Article 712 of the Tax Code apply if an investment contract for the implementation of an investment priority project for the creation of new production facilities provides for the application of:
  • reduction of corporate income tax calculated in accordance with Article 302 of the Tax Code by 100 percent;
  • coefficient 0 to land tax rates;
  • the rates of 0 percent to the tax base when calculating property tax.

Taxation of organizations implementing a priority investment project

An organization implementing an investment priority project is a legal entity that simultaneously meets the following conditions:

  1. has entered into an investment contract in accordance with the Entrepreneurial Code of the Republic of Kazakhstan, providing for the implementation of an investment priority project and the provision of tax preferences;
  2. carries out activities corresponding to the list of priority activities identified for the implementation of the investment priority project;
  3. does not apply special tax regimes.

Tax

1. Corporate income tax (CIT)

The general CIT rate is 20% of the taxable income. Payers of corporate income tax are legal entities-residents of the Republic of Kazakhstan, with the exception of state institutions and state educational institutions of secondary education, as well as non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment or receiving income from sources in the Republic of Kazakhstan.

The objects of corporate income tax are:

  1. taxable income;
  2. income taxable at the source of payment;
  3. net income of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment.

In accordance with the current Tax Code, the list of taxable income has been supplemented, which also includes the total profit of controlled foreign companies and permanent establishments of controlled foreign companies, determined in accordance with the Tax Law.

Controlled foreign companies (CFCs)

Nowadays, more and more states are adopting in their tax legislation rules for controlled foreign companies, aimed at counteracting tax evasion. Kazakhstan is also no exception.

From January 1, 2018, the income of a resident legal entity or individual includes the profit of its controlled foreign company (CFC).

A controlled foreign company is a person who meets the following conditions at the same time:

1) such person is one of the following persons:

  • a non-resident legal entity;
  • another foreign form of organizing entrepreneurial activity without forming a legal entity (hereinafter - another form of organization);

2) as of December 31 of the reporting period, such a person meets one of the following conditions:

  • 25 and more percent of the participation interest (voting shares) represented directly or indirectly, or constructively belong to a legal entity or individual who is a resident of the Republic of Kazakhstan (hereinafter for the purposes of this chapter - a resident);
  • the person is associated with the resident through control (in the event that the resident has direct or indirect, or constructive control over the person);

3) such person meets one of the following conditions:

  • the effective income tax rate of a non-resident legal entity or other form of organization, determined in accordance with subparagraph 2) of paragraph 4 of this article, is less than 10 percent;
  • a non-resident legal entity or other form of organization is registered or the constituent document (document of creation) of which is registered, or the participant who is entrusted with keeping records of income and expenses or managing assets in this other form of organization is registered in a state with preferential taxation.

These changes are driven in part by global tax reforms related to the development of the OECD Base Erosion and Profit Shifting Project and the OECD Final Report on Developing Effective Rules for Controlled Foreign Companies (OECD BEPS Action 3: 2015 Final Report “Designing effective controlled foreign company rules”).

The list of states with preferential taxation was approved by order of the Minister of Finance of the Republic of Kazakhstan.

According to Article 645, income from sources in the Republic of Kazakhstan of a non-resident legal entity, whose activities do not lead to the formation of a permanent establishment in the Republic of Kazakhstan, are subject to corporate income tax at the source of payment without deductions. Calculation and withholding of corporate income tax on income taxed at the source of payment is carried out by the tax agent:

  1. not later than the day of payment of income to a non-resident - according to accrued and paid income;
  2. no later than the deadline paragraph 1 of article 315 Of the Tax Code for filing a corporate income tax return - for accrued and unpaid income that is deducted.

At the same time, CIT at the source of payment is withheld by the tax agent regardless of the form and place of payment of income to a non-resident.

at the following rates:

  1. insurance premiums under risk insurance contracts - 15 percent;
  2. insurance premiums under risk reinsurance contracts - 5 percent;
  3. income from the provision of international transportation services - 5 percent;
  4. gains in value, dividends, remuneration, royalty - 15 percent;
  5. all other types of income - 20 percent.

Income of a person registered in a state with preferential taxation included in the approved scroll are subject to taxation at the source of payment at the rate of 20 percent.

2. Individual income tax (IIT)

Income is subject to PIT at a rate of 10%, except for income in the form of dividends, which is taxed at a rate of 5%. Calculation, withholding and payment of tax on income taxed at the source of payment are made by tax agents.

3. Social tax

Payers of social tax are: individual entrepreneurs, private practitioners, legal entities-residents of the Republic of Kazakhstan, unless otherwise provided by the Tax Code, non-resident legal entities operating in the Republic of Kazakhstan through permanent establishments, non-resident legal entities operating through a structural unit that does not lead to the formation of a permanent establishment.

Social tax is calculated at the rate:

from January 1, 2018 - 9.5 percent;

from January 1, 2025 - 11 percent.

4. Value Added Tax (VAT)

The value added tax rate is 12 percent and is applied to the amount of taxable turnover and taxable imports.

Mandatory staging

Legal entities-residents, non-residents operating in the Republic of Kazakhstan through a branch, representative office, individual entrepreneurs, persons engaged in private practice are subject to mandatory registration for value added tax, if the amount of turnover for the purpose of registration for VAT exceeds during a calendar year 30,000 times the size monthly calculation indexestablished by the law on the republican budget and effective as of January 1 of the corresponding financial year ( 2,917 tenge from January 1, 2021 ).  

These persons are required to submit to the tax authority at the location tax statement on registration accounting for value added tax.

A tax application is submitted no later than ten business days from the end of the month in which the excess of the turnover over the minimum turnover occurred in one of the following ways:

  1. on paper, without prior notice;
  2. in electronic form.

Registration as a taxpayer carrying out certain types of activities shall be subject to taxpayers carrying out the following activities:

  1. production of gasoline (except for aviation), diesel fuel;
  2. wholesale and (or) retail sale of gasoline (except for aviation), diesel fuel;
  3. production of ethyl alcohol and (or) alcoholic beverages;
  4. wholesale and (or) retail sale of alcoholic beverages;
  5. production and (or) wholesale of tobacco products;
  6. gambling business;
  7. production, assembly (complete set) excisable goodsforeseen subparagraph 6) of the first part of Article 462 of this Code;
  8. electronic trade in goods.

Voluntary staging

Persons not listed above, i.e. not subject to mandatory registration for VAT in accordance with the Tax Code, have the right to register for value added tax by filing tax statement on registration accounting for value added tax in one of the following ways:

  1. on paper, without prior notice;
  2. in electronic form;
  3. upon state registration of a resident legal entity in the National Register of Business Identification Numbers.

Are not entitled to voluntary registration for value added tax:

  • individuals who are not individual entrepreneurs, persons engaged in private practice;
  • government agencies;
  • non-residents who do not carry out activities in the Republic of Kazakhstan through a branch, representative office;
  • structural divisions of resident legal entities;
  • casinos, slot machine halls, sweepstakes, bookmakers., according to activities subject to gambling tax.

The Tax Code of the Republic of Kazakhstan establishes a list of goods (services), the turnover and import of which are exempt from VAT.

5. Excise taxes

The list of excisable goods, as well as the rates for calculating the amount of excise taxes, are specified in Articles 462-463 of the Tax Code of the Republic of Kazakhstan.

Objects produced on the territory of the Republic of Kazakhstan and imported into the territory:

1) all types of alcohol;

2) alcoholic beverages;

3) tobacco products;

4) products with heated tobacco, nicotine-containing liquids for use in electronic cigarettes;

5) gasoline (except for aviation), diesel fuel;

6) motor vehicles designed to carry 10 or more people with an engine capacity of more than 3000 cubic centimeters, with the exception of minibuses, buses and trolleybuses;

passenger cars and other motor vehicles intended for the transport of people with an engine capacity of more than 3000 cubic centimeters (except for cars with manual control or a manual control adapter specially designed for disabled people);

motor vehicles on the chassis of a passenger car with a platform for goods and a driver's cab, separated from the cargo compartment by a rigid stationary partition, with an engine capacity of more than 3000 cubic centimeters (except for cars with manual control or a manual control adapter specially designed for disabled people);

7) crude oil, gas condensate;

8) alcohol-containing medical products registered in accordance with the legislation of the Republic of Kazakhstan as a medicine.

Excise rates are set in absolute amounts per unit of measurement in kind. For example: 600 tenge / liter.

6. Rent tax

Payers: individuals and legal entities selling crude oil and crude oil products for export , with the exception of :

  • subsoil users exporting volumes of crude oil, gas condensate produced under the contracts specified in paragraph 1 of Article 722 of the Tax Code of the Republic of Kazakhstan;
  • subsoil users under contracts for the production or exploration and production of hydrocarbons at a field (fields) located (located) in the Kazakhstan sector of the Caspian Sea, and (or) fields with the depth of the upper point of hydrocarbon deposits specified in a mining allotment or a production or exploration contract and production of hydrocarbons in the absence of a mining allotment, not higher than 4500 meters and the lowest point of hydrocarbon deposits specified in a mining allotment or a contract for the production or exploration and production of hydrocarbons in the absence of a mining allotment, 5000 meters and below, who are payers of the alternative subsoil use tax.

Crude oil and refined petroleum products are goods classified in subheading 2709 00 unified nomenclature of goods subject to foreign trade of the EAEU...

When exporting crude oil and crude petroleum products, the export rental tax is calculated based on the world price per barrel of crude oil as a percentage. For example: up to $ 20 per barrel - 0%; up to $ 200 per barrel - 32%.

7. Taxation of subsoil users

Special payments and taxes of subsoil users include:

  1. signature bonus;
  2. payment for reimbursement of historical costs;
  3. alternative subsoil use tax;
  4. royalty;
  5. share of the Republic of Kazakhstan in production sharing;
  6. mineral extraction tax;
  7. excess profits tax.

Order assignment of a deposit (a group of deposits, a part of a deposit) to the category of low-profit, high-viscosity, watered, marginal and depleted, their scroll and order taxation in terms of mineral extraction tax are determined by the Government of the Republic of Kazakhstan.

8. Tax on property of legal entities and individual entrepreneurs

Property tax payers are:

  1. legal entities that have an object of taxation on the basis of the right of ownership, economic management or operational management in the territory of the Republic of Kazakhstan;
  2. individual entrepreneurs who have an object of taxation on the basis of ownership in the territory of the Republic of Kazakhstan;
  3. a concessionaire who has on the right of ownership, use an object of taxation, which is an object of a concession in accordance with a concession agreement;
  4. persons listed in article 518 of the Tax Code.

A legal entity, by its decision, has the right to recognize its structural unit as an independent property tax payer.

The general tax rate is 1.5% of the average annual value of taxable items, however, the Tax Code of the Republic of Kazakhstan provides for other rates depending on the status and type of activity of the taxpayer.

Property tax at a rate of 0.5 percent to the tax base is calculated by the following payers:

  1. individual entrepreneurs;
  2. legal entities applying a special tax regime based on a simplified declaration.

Property tax of individuals, the tax base for which is determined in accordance with with article 529 of the Tax Code, calculated depending on the value of taxable items at the rates specified in article 531 of the Tax Code.

9. Land tax

Payers - individuals and legal entities with taxable objects:

  1. on the right of ownership;
  2. on the right of permanent land use;
  3. on the right of primary free temporary land use.

The object of taxation is a land plot (with a common share ownership of a land plot - a land share). Tax rates are established in Articles 503-510 of the Tax Code of the Republic of Kazakhstan, depending on the purpose of lands, their location, etc.

Types of taxes and payments to the budget

 In the Republic of Kazakhstan, there are:

Tax

Payments

  1. corporate income tax;
  2. individual income tax;
  3. value added tax;
  4. excise taxes;
  5. rental tax on exports;
  6. special payments and taxes of subsoil users;
  7. social tax;
  8. vehicle tax;
  9. land tax;
  10. property tax;
  11. gambling business tax;
  12. single land tax;

  1. government duty;
  2. fees;
  3. payment for:

  • use of licenses to engage in certain types of activities;
  • use of land plots;
  • use of surface water resources;
  • emissions into the environment;
  • use of the animal world;
  • forest use;
  • use of specially protected natural areas;
  • use of the radio frequency spectrum;
  • provision of long-distance and (or) international telephone communications, as well as cellular communications;
  • placement of outdoor (visual) advertising.

For the purposes of applying international treaties, indirect taxes are value added tax and excise taxes.

Taxation of income of residents and non-residents

A resident of the Republic of Kazakhstan for tax purposes is:

1) an individual:

  • permanently residing in the Republic of Kazakhstan;
  • not permanently staying in the Republic of Kazakhstan, but whose center of vital interests is in the Republic of Kazakhstan;

2) legal entity:

  • created in accordance with the legislation of the Republic of Kazakhstan;
  • created in accordance with the legislation of a foreign state, the place of effective management (location of the actual governing body) of which is located in the Republic of Kazakhstan. The place of effective management (location of the actual management body) is the location of the actual management body in the Republic of Kazakhstan, determined by the meeting of the board of directors or a similar management body, declared during registration as a taxpayer with the tax authority and specified in the relevant minutes of the management body

An individual is recognized as permanently residing in the Republic of Kazakhstan for the current tax period if he is in the Republic of Kazakhstan for at least one hundred and eighty three calendar days (including days of arrival and departure) in any consecutive twelve month period ending in the current tax period. The center of vital interests of an individual is recognized as located in the Republic of Kazakhstan if the following conditions are met simultaneously:

  1. an individual has citizenship of the Republic of Kazakhstan or a residence permit in the Republic of Kazakhstan (residence permit);
  2. spouse and (or) close relatives an individual living in the Republic of Kazakhstan;
  3. the presence in the Republic of Kazakhstan of immovable property owned or otherwise owned by an individual and (or) spouse and (or) his close relativesavailable at any time for his residence and (or) for the residence of his spouse and (or) his close relatives.

Residents of the Republic of Kazakhstan pay taxes in the Republic of Kazakhstan in accordance with the provisions of the Tax Code on income from sources in the Republic of Kazakhstan and abroad. Non-residents pay taxes in the Republic of Kazakhstan on income from sources in the Republic of Kazakhstan in accordance with tax legislation. Non-residents carrying out entrepreneurial activities in the Republic of Kazakhstan through a permanent establishment shall also pay taxes in the Republic of Kazakhstan in accordance with tax legislation on income from sources outside the Republic of Kazakhstan associated with the activities of such a permanent establishment.

Permanent establishment of a non-resident

In accordance with the Tax Code, unless otherwise established by an international treaty, a permanent establishment of a non-resident in the Republic of Kazakhstan is recognized as one of the following places of business through which a non-resident carries out business activities in the territory of the Republic of Kazakhstan, regardless of the timing of such activities:

I. PLACE:

  1. any place where the production, processing, assembly, packing, packaging and (or) delivery of goods are carried out;
  2. any place of management;
  3. any place of geological study of subsoil, exploration, preparatory work for the extraction of minerals and (or) the extraction of minerals and (or) the performance of work, the provision of services for the control and (or) supervision of the exploration and (or) production of minerals;
  4. any place of implementation of activities (including control or observation) related to the pipeline;
  5. any place of implementation of activities related to the installation, adjustment and operation of gaming machines (including consoles), computer networks and communication channels, attractions, as well as related to transport or other infrastructure;
  6. the place of sale of goods on the territory of the Republic of Kazakhstan, except for cases of sale of goods at exhibitions and fairs, unless otherwise provided by paragraph 5 of Article 220 of the Tax Code;
  7. any place where construction activities and (or) construction and installation works are carried out, as well as the provision of services for monitoring the implementation of these works;
  8. location of the structural unit of a non-resident legal entity, with the exception of a representative office carrying out activities specified in paragraph 6 of Article 220 of the Tax Code;
  9. location of a person carrying out intermediary activities in the Republic of Kazakhstan on behalf of a non-resident in accordance with the Law of the Republic of Kazakhstan "On insurance activities";
  10. location of a resident-participant of a joint activity agreement concluded with a non-resident in accordance with the legislation of a foreign state or the Republic of Kazakhstan, if such joint activity is carried out on the territory of the Republic of Kazakhstan.

If the place of provision of services or work is not indicated in one of the above-mentioned points, then the place of provision of services, performance of work in the territory of the Republic of Kazakhstan, through employees or other personnel hired by a non-resident for such purposes, is recognized as a permanent establishment of a non-resident, if activities of this nature continue in the territory Of the Republic of Kazakhstan more than one hundred and eighty three calendar days within any consecutive twelve month period from the date of commencement of entrepreneurial activity within the framework of one project or related projects.

If a non-resident carries out activities through a structural unit that does not lead to the formation of a permanent establishment in accordance with an international treaty governing the avoidance of double taxation and prevention of tax evasion, then the provisions of the Tax Code provided for a permanent non-resident institutions. At the same time, such a structural unit has the right to apply the provisions of an international treaty regulating issues of avoidance of double taxation and prevention of tax evasion.

Dependent agent

If a non-resident carries out business activities on the territory of the Republic of Kazakhstan through a dependent agent, then such a non-resident will be considered as having a permanent establishment in connection with any activity that the dependent agent carries out for this non-resident, regardless of the timing of such activities.

A dependent agent is an individual or legal entity who, on the basis of contractual relations , is authorized to represent the interests of a non-resident in the Republic of Kazakhstan, to act and (or) perform certain legal actions on behalf and at the expense of a non-resident, including concluding an agreement for the provision of services for a fee or playing a major role in concluding such an agreement or transferring ownership (right to use) property belonging to a non-resident on the basis of ownership (right to use), except when such activity is carried out by him within the framework of the customs a representative, a professional participant in the securities market and other brokerage activities, with the exception of the activities of an insurance broker and cases when such an agent acts exclusively or primarily on behalf of a non-resident.

II. The activities of a non-resident carried out in the territory of the Republic of Kazakhstan through a subsidiary established in accordance with the legislation of the Republic of Kazakhstan, leads to the formation of a permanent establishment of a non-resident, if the subsidiary is recognized as a dependent agent in accordance withparagraph 3 of Article 220 of the Tax Code of the Republic of Kazakhstan.

III. A non-resident forms a permanent establishment in the Republic of Kazakhstan when selling goods at exhibitions and fairs held on the territory of the Republic of Kazakhstan, if such sale lasts more than ten calendar days.

IV. The following types of non-resident's activities, which are exclusively preparatory or auxiliary in nature, are not part of the main types of business activities of a non-resident and last no more than three years, do not lead to the formation of a permanent establishment of a non-resident in the Republic of Kazakhstan:

  1. use of any place solely for the purpose of storing and (or) displaying goods belonging to a non-resident, without selling it;
  2. maintaining a permanent place of business solely for the purpose of purchasing goods for a non-resident without selling them;
  3. the maintenance of a permanent place of business solely for the collection, processing and (or) dissemination of information, advertising or market research for goods, works, services sold by a non-resident.
Taxation

Kazakhstan has one of the most competitive tax regimes in the region.

Comparison of the main tax rates in Kazakhstan, Russia and China

Tax

Kazakhstan

Russia

China

CIT

twenty%

twenty%

25%

VAT

12%

twenty%

thirteen%

Land tax

$ 0.03- $ 0.16 / 1 m 2

0.3%, 1.5%

-

Property tax

1.5%

2.2%

1.2% *, 12% **


*assessed value, **rental property

Source: Ministry of Finance of the Republic of Kazakhstan, Federal Tax Service of Russia, State Administration of Taxation of the People's Republic of China

Currently, the Republic of Kazakhstan has 55 Conventions for the avoidance of double taxation and the prevention of tax evasion on income and capital, concluded with foreign states. Elimination of double taxation is a procedure when each of the contracting states provides the taxpayer with the opportunity to pay tax only once - in one of the contracting states. A complete list of Conventions is available on the official website of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan.

More details: https://kgd.gov.kz/en/content/conventions-avoidance-double-taxation-and-prevention-fiscal-evasion-respect-taxes-income-and

National legislation

The tax legislation of the Republic of Kazakhstan is based on The Constitution Of the Republic of Kazakhstan, consists of the Law of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code), as well as regulatory legal acts, the adoption of which is provided for by the Tax Code.

On December 25, 2017, the President of the Republic of Kazakhstan signed and put into effect the New Tax Code, which was developed within the framework of the President's Address “Kazakhstan in a new global reality: growth, reforms, development” and the Plan of the Nation “100 Concrete Steps” to implement five institutional reforms. The most significant change is that the interpretation of all uncertainties and unresolved issues of tax legislation will be in favor of taxpayers. Also, the New Tax Code provides for the stimulation of the taxation regime for subsoil users and other sectors, an increase in the time for taxpayers to study the changes introduced to legislation during the year, and also simplified tax administration.

More details: https://kgd.gov.kz/en/content/tax-code-rk-2015

General procedure for making payments and transfers for foreign exchange transactions

At the moment, when making a payment and (or) transferring money for a currency transaction, a resident or non-resident submits the following documents to the bank:

1) an identity document with an IIN in cases provided for by the laws of the Republic of Kazakhstan (for an individual);

2) a document confirming the right of permanent residence in the Republic of Kazakhstan (if any) (for an individual - a foreigner or stateless person);

3) a license of the National Bank to conduct banking and other operations (if any);

4) copies of documents confirming the fulfillment or on the basis of which it is necessary to fulfill obligations under foreign exchange contracts for export or import;

5) foreign exchange agreement or its copy. A foreign exchange agreement or a copy thereof, which is subject to the requirement to obtain an account number, is submitted with a mark on the assignment of an account number ( for a foreign exchange contract to which an account number was assigned after the entry into force of the Rules of March 30, 2019 No. 40 );

6) a registration certificate or a notification certificate - for foreign exchange agreements on the movement of capital or accounts with foreign banks subject to registration, for which a registration certificate or a notification certificate was received before the entry into force of the Rules and an account number was not assigned.

Submission of a foreign exchange agreement is not required in the following cases:

  • if the transfer of money for a currency transaction is carried out between resident individuals or between non-resident individuals within the Republic of Kazakhstan and is free of charge;
  • if the payment and (or) transfer of money for a foreign exchange operation is carried out in an amount not exceeding the equivalent of ten thousand US dollars, and the sender or beneficiary of the payment and (or) transfer of money is an individual, branch and (or) representative office of a foreign legal entity or non-resident -entity;
  • if the payment and (or) transfer of money for a foreign exchange operation is carried out in an amount not exceeding the equivalent of ten thousand US dollars, and a resident legal entity (sender and (or) beneficiary of the payment and (or) transfer of money) made or confirmed a record that that such a payment and (or) money transfer is not related to the execution of a foreign exchange agreement, according to which the assignment of an account number is required;
  • if the payment and (or) transfer of money for a foreign exchange operation is carried out by an individual to his own bank account (from his own bank account) in a foreign bank.

Payment and (or) money transfer for a foreign exchange transaction carried out by a resident-third party through an authorized bank on account of the fulfillment of the obligations of a resident and (or) a non-resident is allowed subject to the submission of an agreement defining the nature of mutual obligations between the resident-third party and the person for which payment and (or) money transfer is made, if it does not follow from the foreign exchange agreement on the basis of which such payment and (or) money transfer is made. If any of the foreign exchange contracts is subject to the requirement to obtain an account number, then a copy of the foreign exchange contract with a mark on the assignment of the account number, or a copy of the registration certificate, or a copy of the notification certificate is submitted.

If the payment and (or) transfer of money for a foreign exchange transaction is carried out by a resident individual in order to fulfill the obligations of a spouse or close relative, then a document confirming that the sender of the money is a spouse or close relative of a natural person is submitted as a foreign exchange agreement. a person, on account of whose obligations the payment and (or) transfer of money is made.

Mandatory notification of a foreign bank account and payment card transfer

Foreign bank account

A resident legal entity (with the exception of a bank and a branch (representative office) of a foreign organization) notifies the National Bank of the Republic of Kazakhstan about opening an account in a foreign bank by applying for the assignment of an account number to such an account before carrying out operations using such an account.

A resident legal entity (except for a bank and a branch (representative office) of a foreign organization) submits to the National Bank of the Republic of Kazakhstan information on transactions using an account opened in a foreign bank, indicating the account number.

To assign an account number to an account in a foreign bank, a resident legal entity (except for a bank and a branch (representative office) of a foreign organization) submits an application indicating the business identification number and a copy of the document of the foreign bank with the specified account details.

In cases of changing details or closing an account in a foreign bank to which an account number was assigned, a resident legal entity (except for a bank and a branch (representative office) of a foreign organization) notifies the National Bank of the Republic of Kazakhstan about this within the prescribed time frame.

Resident individuals do not notify the National Bank of the Republic of Kazakhstan about accounts with foreign banks. Individuals' money transfers from their own accounts (to their own accounts) in foreign banks are notified by the authorized bank that carries out such money transfers.

Transfer by payment card

If the payment and (or) transfer of money for a foreign exchange operation of a resident or non-resident using a payment card of the operation is carried out for an amount equal to fifty thousand US dollars in equivalent or more, then the resident or non-resident submits information at the request of an authorized bank.

When making a payment and (or) transfer of money in an amount equal to fifty thousand US dollars in the equivalent and above, a resident submits information about a currency transaction in the prescribed form, including indicating:

1) the country of registration of the sender of money and the beneficiary under the payment document, if these data do not coincide with those specified in the payment document;

2) a sign of an intracorporate money transfer;

3) the code of the currency operation for which the payment and (or) money transfer is carried out;

4) information about the sender and (or) the recipient of money under the foreign exchange agreement, in case of discrepancy with the sender of money and the beneficiary of the payment document;

5) the country of registration of the sender of money and the recipient of money under the foreign exchange agreement, in case of discrepancy with the sender of money and the beneficiary of the payment document;

6) details of the foreign exchange agreement and the account number of the foreign exchange agreement (if any).

For the purpose of indicating the currency operation code and other information provided for by this paragraph, at the request of the authorized bank, the resident legal entity submits constituent documents.

When making a payment and (or) transfer of money in an amount equal to fifty thousand US dollars in equivalent and above, a non-resident submits to the authorized bank the following information about a currency transaction in the prescribed form:

1) the country of registration of the sender of money and the beneficiary under the payment document, if these data do not coincide with those specified in the payment document;

2) the code of the currency operation for which the payment and (or) money transfer is made;

3) a sign of an intracorporate money transfer.

If the payment and (or) money transfer is made using a corporate payment card by a resident legal entity or resident branch (representative office) of a foreign non-financial organization for an amount equal to fifty thousand US dollars in the equivalent and above, then such a resident within thirty working days from on the day of such payment and (or) money transfer, submits to the authorized bank a foreign exchange agreement or a copy thereof.

Mandatory registration of foreign exchange agreements on capital flow and export / import

Capital flow operations

In accordance with the Law on Currency Regulation, capital flow transactions are transactions related to the transfer of ownership and other rights to currency values, carried out between residents of the Republic of Kazakhstan and non-residents of the Republic of Kazakhstan, providing for:

  • financial loans;
  • participation in capital;
  • transactions with securities, participation interests and derivative financial instruments;
  • acquisition of ownership of real estate, with the exception of movable things, equated or referred to real estate by the laws of the Republic of Kazakhstan;
  • acquisition of completely exclusive rights to intellectual property objects;
  • transfer of money and other property in fulfillment of the obligations of a participant in joint activities, as well as in trust, trust;
  • transfer of money and financial instruments to professional participants in the securities market, carrying out foreign exchange operations on behalf of clients, to accounts for accounting and storage of money belonging to clients;
  • gratuitous transfer of money and other currency values;

A resident (with the exception of an authorized bank and a branch (representative office) of a foreign organization) who is a party to a foreign exchange agreement on the movement of capital applies to the National Bank of the Republic of Kazakhstan for the assignment of an account number to a foreign exchange agreement on capital movement prior to the commencement of fulfillment of obligations under such a foreign exchange agreement by any of its parties.

If the fulfillment by a resident of obligations under a foreign exchange agreement on the movement of capital is preceded by the transfer of property (receipt of money) from a non-resident in favor of a resident, then the application for the assignment of an account number to a foreign exchange agreement on the movement of capital is carried out before the transfer of property (receipt of money) at the disposal of the resident and (or) crediting money received to the resident's bank accounts with authorized banks.

Under the foreign exchange agreements on the movement of capital subject to record registration, payments and (or) money transfers through bank accounts in authorized banks are carried out only if there is an account number.

Export and import

In accordance with the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated March 30, 2019 No. 42 "On approval of the Rules for the implementation of export-import currency control in the Republic of Kazakhstan", a foreign exchange agreement on export or import is subject to record registration if the amount of such an agreement exceeds 50,000 (fifty thousand) United States dollars   in equivalent.

If the amount of the contract is not indicated in the foreign exchange agreement on export or import as of the date of its conclusion, then such an agreement is considered as an agreement subject to record registration.

An exporter or importer applies for an account number prior to the commencement of the fulfillment of obligations under a foreign exchange agreement for the export or import of any of its parties. If the first fulfillment of obligations under a foreign exchange agreement for export or import begins its non-resident participant, and such performance is associated with the transfer of property (receipt of money) in favor of the resident exporter or importer, then such a resident applies for registration before receiving the property (money) in your order.

If a non-resident participant is the first to start fulfilling in the territory of a foreign state obligations under a foreign exchange agreement for the import of works (services), one of the parties to which is a resident legal entity holding a certificate of an operator of civil aircraft, then the resident applies for registration of the foreign exchange agreement within 90 (ninety) calendar days after the fulfillment of obligations by a non-resident, but not later than the date of commencement of the fulfillment of obligations by a resident.

An exporter or importer who has accepted the right of claim against a non-resident or has accepted a debt to a non-resident as a result of assignment of a claim or transfer of debt shall apply for registration no later than 30 (thirty) calendar days from the date of acceptance of such a right of claim or debt, but before the commencement of fulfillment of obligations under the assigned claim (transferred debt) of any of its parties.

Accounting registration is carried out:

1) in an authorized bank (its branch), which serves the bank account of the exporter or importer, - if all payments and (or) money transfers are made using the account of the exporter or importer in the authorized bank (its branch);

2) in an authorized bank (its branch), which serves the bank account of the exporter or importer - if payments and (or) money transfers are made using accounts opened both in the authorized bank (its branch) and in a foreign bank;

3) in the territorial branch of the National Bank at the place of permanent residence or location of the exporter or importer - if all payments and (or) money transfers are made using the exporter's or importer's account in a foreign bank specified in subparagraph 1) of paragraph 3 of Article 9 The Law on Foreign Exchange Regulation and Foreign Exchange Control.

Install the application:
1) Open the website in Safari
2) Click save
3) Add to home screen