Kazakhstan Country Profile taxation trade issues

Kazakhstan

TAXES - ACCOUNTING

Corporate tax

Tax rate for resident companies	30%

Tax rate on long-term capital gains	In Kazakhstan, capital gains are taxed at the rate of 30%.

System governing groups of companies and dividends paid by subsidiaries to their parent companies	Dividends are imposed by retain at the source at the rate of 15% for the payment to an individual (no deduction of responsibility allowed).

Tax rate on branches	Adding to the 30% corporate income tax, permanent representations are also subject to a 15% tax on their profits after deduction of the corporate profits tax.

Income tax

Fiscal year

The fiscal year begins on January 1-st and ends on December 31 of the same year.

Income tax rate

The progressive income tax rates vary between 5% and 40%.

From 0 to 69 600 Tenge	5%
From 69 600 to 139 200 Tenge	10%
From 139 200 to 208 800 Tenge	15%
From 208 800 to 278 400 Tenge	20%
From 278 400 to 348 000 Tenge	30%
Beyond 348 000 Tenge	40%

VAT rates

Standard rates	14%. A reduction is planed to 13% en 2008 and 12% in 2009.

Reduced rates	There are some VAT exemptions (e.g. medicine).

Other important taxes

Name of tax	Rate
Wealth tax	1%
Property tax	Up to 1%
Tax on vehicles	1% to 8%

Accounting

Introduction
The accounting principles in Kazakhstan were developed by the "Statute Concerning Accounting and reporting in the Republic of Kazakhstan". Additive precisions are published by the Ministry of Finance. The Russian influence on accounting practices in Kazakhstan is important.

General accounting principles
The balance sheet is presented into accounts with liabilities composed of constant capital and debts, because a distinction is made between long and short-term debts.
The profit and loss account gives priority to the repository of the global production and lets the choice of the cost - classification by function.

Obligations and publications
The law concerning companies in the Republic of Kazakhstan forces companies to keep up to date operational accounts. Accounts must be established in the national currency in accordance with new Russian accounting plan introduced in January, 1992. Accounting must be kept in accordance with the current standards but companies have no obligations concerning annual reports, only for fiscal purposes.

Certification and auditing
There is no formal obligation for the audit, except for the daily activity recording. However, rights, obligations and qualification of the auditors tend to be more and more precise and subjected to laws and regulations.

Professionals and representative organizations
The "Ministry of Finance".

Useful links

For further information, please contact the International Tax and Investment Center (ITlC) or download the ITIC Special Report on the Taxation Systems and Economic Development in Select Countries of Eurasia, June 2002 (PDF file).

Last modified in 2006 - ongoing update