Taxation of Non-Resident Income in Kazakhstan: 20% or Not?

06.08.2025

If a foreign company provides services or performs work in the territory of Kazakhstan, it is important to determine whether it has a Permanent Establishment (PE). The applicable tax regime depends on this status.

If there is no Permanent Establishment

Income of a non-resident from sources in Kazakhstan (for example, for holding a one-off event) is subject to withholding tax at the rate of 20% on the gross amount without deduction of expenses (Articles 644 and 646 of the Tax Code of the Republic of Kazakhstan).

The tax is withheld and remitted by the Kazakh counterparty. The non-resident has no obligation to file a tax return — the withholding is considered final.

If an international treaty applies

Kazakhstan has concluded numerous Double Tax Treaties (DTTs). Under such treaties, income of a non-resident who does not have a PE in Kazakhstan may be taxable only in the country of their residence.

In such cases, the 20% withholding is not applied. To benefit from the treaty relief, the non-resident must confirm their tax residency and provide the required documents (e.g. a certificate of tax residence and constitutional documents).

This approach is possible, for example, where services are provided by a company from a state with which Kazakhstan has an applicable treaty.

If there is a Permanent Establishment

If the non-resident’s activities are carried out on a regular or long-term basis (for example, more than six months within a twelve-month period), or if there is an office or personnel in Kazakhstan, a PE arises.

In this case:

• The non-resident must register with the tax authorities and obtain a Business Identification Number (BIN);
• Corporate Income Tax (CIT) at the rate of 20% is paid on taxable profits (Article 313 of the Tax Code of the Republic of Kazakhstan);
• Additionally, a Branch Profits Tax at the rate of 15% is payable (Article 652 of the Tax Code).
• Income attributable to a PE is not subject to withholding tax at source.

Registration of a Permanent Establishment

Within 30 calendar days from the start of activities through a PE, the non-resident must submit an application for tax registration (Articles 220 and 76 of the Tax Code of the Republic of Kazakhstan). The non-resident must then file returns and pay taxes on the same basis as Kazakh legal entities.

Conclusion

One-off provision of services may be carried out without registration, but subject to 20% withholding tax at source. Where there is a Double Tax Treaty and all formal requirements are met, the withholding may not apply. If the activity meets the criteria of a Permanent Establishment, the non-resident must register for tax purposes and pay taxes on a general basis.

Author: Zhanture Tashkarayev

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