Tax Guide for Foreign Companies in Kazakhstan: What You Need to Know in 2026

For a foreign company entering Kazakhstan, taxation should be considered before the business starts operating, not after the first invoice is issued. The tax treatment can depend on how the company enters the market, whether it establishes a Kazakhstan legal entity, opens a branch or representative office, or continues operating through a foreign company.

The key question is not simply “What tax rate will my company pay?” It is first necessary to determine where the income is considered to arise, whether the foreign company has a permanent establishment in Kazakhstan, which entity receives the income, and whether a tax treaty applies.

This guide explains the main principles of tax foreign companies Kazakhstan should consider in 2026, including corporate income tax, VAT, withholding tax, payroll-related taxes and the practical difference between operating through a Kazakhstan company and remaining a non-resident.

Important: Kazakhstan introduced a new Tax Code from 1 January 2026, so tax rules applicable to foreign companies should be checked against the current legislation before a transaction or business structure is implemented.

1. How Are Foreign Companies Taxed in Kazakhstan?

A foreign company does not automatically become subject to exactly the same taxation as a Kazakhstan company.

The first distinction is between:

• a Kazakhstan resident legal entity, such as an LLP;
• a non-resident company operating in Kazakhstan through a permanent establishment;
• a foreign company receiving Kazakhstan-source income without a permanent establishment;
• a branch or representative office of a foreign company.

These structures can have different tax consequences. A Kazakhstan resident company is generally subject to corporate income tax on its taxable income under the Kazakhstan Tax Code. A non-resident may instead be taxed on income attributable to a permanent establishment or through withholding at source, depending on the type of income.

Before entering Kazakhstan, it is useful to review:

• where management will be located;
• where employees will work;
• where contracts will be negotiated and performed;
• where customers are located;
• whether the company will maintain an office or other fixed place of business;
• whether local representatives have authority to act for the company;
• what type of income the foreign company will receive from Kazakhstan;
• whether a tax treaty applies.

The distinction between company registration and tax presence is particularly important. A foreign business may have Kazakhstan tax obligations even when it has not incorporated a separate Kazakhstan company.

2. Corporate Income Tax for Foreign Companies

Corporate income tax (CIT) is one of the main taxes to consider when establishing a business presence in Kazakhstan.

For 2026, the general CIT rate is 20% for taxable income from activities not subject to a special rate. Certain sectors have different rates. For example, banking activities, except business lending, and gambling businesses are subject to a 25% rate, while certain social-sector activities are taxed at 5% in 2026.

Revenue – deductible expenses = taxable income → CIT

The calculation is more complicated in practice because the Tax Code determines which expenses are deductible and how different types of income and expenses should be treated.

What foreign companies should review

• whether the company is considered a tax resident of Kazakhstan;
• whether a permanent establishment may arise;
• which income is taxable in Kazakhstan;
• which expenses can be deducted;
• whether the business falls under a special tax regime or rate;
• whether international tax treaty provisions can change the domestic result.

3. VAT in Kazakhstan

Value Added Tax is another major issue for foreign companies doing business in Kazakhstan.

From 1 January 2026, the standard VAT rate in Kazakhstan is 16%, increased from the previous 12%. The standard rate applies to taxable turnover and taxable imports, subject to specific reduced rates and exemptions provided by law.

The mandatory VAT registration threshold for 2026 is 10,000 MCI, which equals 43,250,000 KZT based on the 2026 MCI of 4,325 KZT.

Foreign businesses should examine whether they carry out taxable turnover in Kazakhstan, import goods, operate through a local presence, provide services to Kazakhstan customers, or fall under special rules for services supplied by a non-resident.

The fact that a foreign supplier performs services outside Kazakhstan does not necessarily mean the payment is outside the Kazakhstan tax system. The 2026 rules expanded the list of certain non-resident income categories treated as Kazakhstan-source income, including a number of professional and business services.

For this reason, cross-border service contracts should be reviewed before payment is made.

4. Withholding Tax on Payments to Foreign Companies

A Kazakhstan company paying certain types of income to a foreign company may have an obligation to withhold tax at source.

This can become relevant for dividends, interest, royalties, capital gains, and certain services and other Kazakhstan-source income.

The applicable rate depends on the type of income, the status of the recipient and, where relevant, the applicable tax treaty.

Under the 2026 rules, certain non-resident income is subject to a 15% rate, while other categories have different rates. The 2026 rules also introduced specific treatment for dividends paid to a non-resident individual who directly or indirectly owns at least 25% of the capital of the Kazakhstan resident paying the dividend.

The important practical point is that the payer in Kazakhstan may be responsible for calculating and withholding the tax.

Tax treaties should be reviewed before payments are made. Treaty benefits may depend on residence, the type of income, beneficial ownership and supporting documentation.

5. Permanent Establishment: Why It Matters

For many international businesses, one of the most important questions is whether their activities in Kazakhstan create a permanent establishment (PE). A permanent establishment can create Kazakhstan tax obligations for a foreign company even if the company itself remains incorporated abroad.

Potential risk factors may include:

• maintaining a fixed place of business in Kazakhstan;
• operating an office or other business location;
• employees or representatives conducting business in Kazakhstan;
• activities that go beyond merely supporting the foreign company;
• contractual arrangements and the authority of local representatives;
• the duration and nature of activities in Kazakhstan.

The exact test should be reviewed based on the company’s facts rather than assumed from the formal structure.

Why PE analysis should happen early

A foreign IT company that sends employees to Kazakhstan, maintains a local office and regularly negotiates and performs contracts from Kazakhstan should assess its potential Kazakhstan tax presence before establishing the local operating model.

This is particularly important for IT companies, consulting firms, engineering businesses, construction companies, international trading businesses and companies relocating employees to Kazakhstan.

6. Foreign Company, Kazakhstan LLP, Branch or Representative Office?

A foreign investor generally has several ways to structure its presence in Kazakhstan. The appropriate option depends on the actual business model rather than on one universal “best” structure.

Structure	Typical use	Main tax consideration	Practical point
Kazakhstan LLP	Local operating business	Kazakhstan resident taxation, including CIT and VAT where applicable	Often practical for local operations
Branch of foreign company	Direct Kazakhstan presence	Taxation of the non-resident through the Kazakhstan presence	Requires careful PE and branch analysis
Representative office	Market presence, liaison and supporting activities	Depends on activities and applicable rules	Usually not designed as a full operating business
Foreign company without local entity	Cross-border sales or services	Kazakhstan-source income and withholding/PE rules may apply	Requires transaction-by-transaction analysis
AIFC company	International, investment or cross-border structures	Kazakhstan tax rules plus any applicable AIFC exemptions	Useful for certain international structures

For many businesses operating mainly inside Kazakhstan, a local LLP may be the most straightforward option. An AIFC structure can be attractive for certain internationally oriented, investment or cross-border businesses. However, AIFC registration does not mean that the company is automatically tax-free. AIFC companies remain Kazakhstan tax residents, while specific exemptions depend on the activity and legal conditions.

The right structure should therefore be selected after reviewing the company’s operations, ownership, employees, customers, financing and tax profile.

7. Tax Compliance: What Foreign Businesses Need to Organise

Tax registration is only the beginning. Once a foreign company starts operating in Kazakhstan, it may need to manage:

• tax registration;
• accounting;
• tax reporting;
• VAT reporting where applicable;
• payroll taxes and employee-related payments;
• withholding tax;
• corporate income tax;
• invoices and supporting documents;
• cross-border payments;
• tax documentation for treaty benefits;
• banking documentation;
• responses to tax authority requests.

Employment also creates a separate layer of tax obligations. From 2026, Kazakhstan’s general social tax rate is 6%, with special rates for certain categories. Employer pension contributions and other payroll-related obligations should also be included when calculating the total cost of employing people in Kazakhstan.

A practical pre-entry checklist

1. What legal structure will be used?

2. Will the company have a permanent establishment?

3. Which income will be considered Kazakhstan-source income?

4. Will VAT registration be required?

5. Which payments to non-residents may trigger withholding tax?

6. Does a tax treaty apply?

7. Where will employees work and where will payroll taxes be paid?

8. Who will prepare accounting and tax reports?

9. Which documents must be maintained to support deductions and treaty benefits?

10. Are there licensing or immigration requirements connected with the planned activity?

FAQ: Tax Foreign Companies Kazakhstan

1. Does a foreign company have to pay tax in Kazakhstan?

Not every foreign company is taxed in the same way. Kazakhstan tax obligations can arise from a permanent establishment, Kazakhstan-source income, VATable transactions or other circumstances. The exact treatment depends on the company’s structure and activities.

2. What is the corporate income tax rate in Kazakhstan in 2026?

The general CIT rate is 20%. Different rates apply to certain activities, including specified banking, gambling and certain social-sector activities.

3. What is the VAT rate in Kazakhstan in 2026?

The standard VAT rate is 16% from 1 January 2026. The mandatory VAT registration threshold is 10,000 MCI, or 43.25 million KZT based on the 2026 MCI. Certain goods and services may be subject to reduced rates or exemptions.

4. Can Kazakhstan withhold tax when paying a foreign company?

Yes. Certain Kazakhstan-source payments to non-residents may be subject to withholding tax. The applicable rate depends on the type of income and, where applicable, the relevant tax treaty.

5. Should a foreign company open a Kazakhstan LLP to do business?

Not necessarily. Depending on the business model, a foreign company may use a Kazakhstan LLP, branch, representative office or continue certain activities cross-border. The correct structure depends on operations, tax exposure, employees, customers and planned presence.

Get a Tax Structure Review Before Entering Kazakhstan

Tax planning for an international business should begin before the first transaction, not after a tax issue appears.

Matias helps foreign businesses assess their Kazakhstan market-entry structure, review corporate and tax implications, prepare the necessary documentation and coordinate the establishment of a local presence.

Meldir Erbulekova, Managing Partner at Matias, advises international clients on Kazakhstan corporate and market-entry matters.

Book a free initial consultation.

We can review your business model, ownership structure, planned activities and cross-border transactions and help determine the most practical approach for entering the Kazakhstan market.

This article is provided for general information only and does not constitute individual legal, tax, investment or immigration advice. Tax treatment depends on the particular business, transactions, structure, applicable legislation and, where relevant, international tax treaties.