September 7, 2022
Business relocation to Kazakhstan (brief overview on key points)
- FORMS OF BUSINESS ORGANIZATION
1.1. Permanent establishment, representative office/branch, subsidiary.
1.2. The main pros and cons of the forms of presence of a foreign company in Kazakhstan
1.3. Contract mode of subsoil use
1.4. The concept of SPV
1.5. Termination of registration in the former jurisdiction and creation of a new registration in the new jurisdiction
1.6. The concept of a controlled foreign company
1.7. Registration in the SEZ
1.8 Astana International Financial Center – AIFC
1.9. Astana Hub
- LABOR ISSUES
2.1. remote work
2.2. Labor import regulation
2.3. Visas and permits for imported workers
III. TAX ISSUES
3.1. TIN, BIN
3.2. Special tax regimes
3.3. Activity taxes
3.4. The procedure for taxation of payments to employees
III. CUSTOMS PROCEDURES AND DUTIES
I. FORMS OF BUSINESS ORGANIZATION.
1.1. Permanent establishment, representative office/branch, subsidiary.
Today in Kazakhstan there are a lot of mechanisms for doing business, ranging from an independent company, ending with permanent establishments (hereinafter referred to as “PU”), representative offices, branches and subsidiaries of business partnerships (hereinafter referred to as “DP”). The first and most significant difference between a PE and a representative office is that a representative office does not carry out an economic or other commercial activity, while a SP involves the conduct of commercial activities by a foreign enterprise. Namely, foreign enterprises open a representative office for the purpose of representing, marketing and protecting their interests in the territory of Kazakhstan. As soon as a foreign enterprise begins to carry out commercial activities through a representative office, it will be re-qualified as a PE with all the ensuing consequences. A branch is vested with broader powers than a representative office. Thus, a branch has the right to carry out any activity regulated by the regulations on the branch, but without going beyond the activities of a legal entity. In turn, the DP, unlike the aforementioned structures, is a legal entity. However, a common feature of all three corporate structures is that they are to some extent dependent on another (foreign) enterprise.
1.1.1. permanent establishment
PU by its legal nature is a tax status and was created specifically for the purpose of resolving issues of taxation of foreign legal entities. PE is not an organizational and legal form in accordance with the legislation of Kazakhstan, and, accordingly, is not an independent subject of civil circulation.
A permanent establishment of a non-resident in the Republic of Kazakhstan is one of the following places of activity through which a non-resident carries out entrepreneurial activities, regardless of the timing of such activities:
1) any place of production, processing, assembly, packaging, packaging and (or) delivery of goods;
2) any place of management;
3) any place of geological study of subsoil, exploration, preparatory work for the extraction of minerals and (or) extraction of minerals and (or) performance of work, provision of services for the control and (or) supervision of exploration and (or) extraction of minerals;
4) any place of carrying out activities (including control or observation) related to the pipeline;
5) any place of carrying out activities related to the installation, adjustment and operation of slot machines (including set-top boxes), 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;
7) any place of construction activities and (or) construction and installation works, as well as the provision of services for monitoring the performance of these works;
8) the location of the structural subdivision of a non-resident legal entity, with the exception of a representative office carrying out the activities specified in paragraph;
9) the 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) the location of a resident party to an agreement on joint activities concluded with a non-resident in accordance with the legislation of a foreign state or the Republic of Kazakhstan, if such joint activities are carried out on the territory of the Republic of Kazakhstan.
In addition, a permanent establishment of a non-resident is a place for the provision of services, performance of work in the territory of the Republic of Kazakhstan, with the exception of the above places, through employees or other personnel hired by a non-resident for such purposes, if activities of this nature continue in the territory of the Republic of Kazakhstan for more than one hundred and eighty-three calendar days from the date of commencement of business activities within the framework of one project or related projects.
A non-resident legal entity operating through a permanent establishment without opening a branch, representative office, in order to register as a taxpayer, must, within thirty calendar days from the date of commencement of activities in the Republic of Kazakhstan, submit to the tax authority a tax application for registration with the application of notarized copies of documents.
PU is registered at the place of activity. Registration of PU is carried out in the following order:
Stage 1: The representative of the PI within thirty calendar days submits the necessary documents to the tax authority.
Stage 2: Within 3 working days, the tax authority, having studied all the documents, registers the EA, and in case of inconsistency of the documents, the applicant is notified about this.
Stage 3: The tax authority issues to a foreign legal entity operating through a PE a certificate of registration with the tax authority.
The following types of activities of a non-resident, which are exclusively preparatory or auxiliary in nature, are not part of the main types of business activities of a non-resident and do not last more than three years, do not lead to the formation of a permanent establishment of a non-resident in the Republic of Kazakhstan:
1) the use of any place solely for the purposes of storage and (or) demonstration of goods belonging to a non-resident, without its sale;
2) maintenance of a permanent place of business solely for the purpose of purchasing goods for a non-resident without selling them;
3) maintenance of a permanent place of business solely for the collection, processing and (or) dissemination of information, advertising or market research of goods, works, services sold by a non-resident.
At the same time, activities of a preparatory and auxiliary nature should be carried out for the non-resident himself, and not for third parties.
1.1.2. Branches and representative offices:
– are not legal entities, but represent a separate subdivision of a legal entity located outside its location;
– activity and powers are regulated in the provisions approved by the legal entity;
– managers are appointed by the authorized body of the legal entity and act on the basis of its power of attorney;
– endowed with property by the legal entity that created them.
A distinctive feature of two seemingly identical divisions of a legal entity lies in the vested powers or functionality.
A branch is a separate subdivision of a legal entity located outside its location and performing all or part of its functions, including the functions of a representative office.
A representative office is a separate subdivision of a legal entity located outside its location and protecting and representing the interests of a legal entity, making transactions and other legal actions on its behalf, except for cases provided for by legislative acts of the Republic of Kazakhstan.
It follows from this that the branch is endowed with broader powers than a representative office. Thus, a branch has the right to carry out any activity regulated by the regulations on the branch, but without going beyond the activities of a legal entity. In addition, on the basis of a power of attorney issued by a legal entity that has established a branch, the branch has the right not only to conclude contracts and other transactions on behalf of the legal entity, to represent its interests in court and other state and non-state bodies, but also to negotiate with potential clients of the legal entity. In other words, a legal entity, together with its branch, pursues a single goal – making a profit.
A representative office, in comparison with a branch, is endowed with the exclusive authority to represent and protect the interests of the legal entity that has established the representative office. Thus, a representative office is not entitled to engage in production or other commercial activities. Logistics is provided directly by the head office.
1.1.3. Resident companies
Another form of presence of a foreign company in Kazakhstan may be the establishment of a legal entity. Below we provide a brief description of popular possible forms of legal entity.
Joint stock companies (JSC)
A joint stock company is a legal entity that issues shares in order to raise funds for its activities. Shareholders’ risks are limited by the value of their shares.
The minimum authorized capital of a JSC is 50,000 times the monthly calculation index established by the law of the Republic of Kazakhstan on the republican budget for the corresponding financial year (approximately $350,000). To form the authorized capital, the JSC issues shares and their state registration with the Agency for Regulation and Supervision of the Financial Market and Financial Organizations.
In all joint-stock companies, a three-level system of governing bodies is mandatory:
– General meeting of shareholders / Sole shareholder (supreme body);
– Board of Directors (a body that carries out general management, for example, determining the priority areas of the company’s activities and the company’s development strategy or approving the company’s development plan). In order to consider the most important issues and prepare recommendations for the board of directors, committees of the board of directors should be created in the company;
– Sole or collegial executive body (the body that manages the current activities of the JSC).
The JSC provides for reporting and notification of any significant actions and (or) the occurrence of important events (financial statements, reporting on the placement of shares, notifications of corporate events that have occurred, etc.). The financial statements of JSCs are subject to mandatory external audit, among other things, this is a prerequisite for the payment of dividends to shareholders.
The legislation of the Republic of Kazakhstan provides for cases when a legal entity can be created only in a certain organizational and legal form. So, for example, banks, insurance organizations, investment funds, airlines, voluntary pension funds are created only in the form of joint-stock companies.
Limited Liability Partnership (LLP)
LLP is the most common form of legal entity in Kazakhstan (more than 95% of the total number of all legal entities). State registration, corporate matters, and transaction approval procedures are less complicated in an LLP than in a JSC.
LLP is a legal entity founded by one or more individuals (individuals) or legal entities (companies) whose authorized capital is divided into shares. The shares of all participants in the authorized capital and, accordingly, their shares in the value of the property of the LLP (share in property) are proportional to their contributions to the authorized capital, unless otherwise provided by the constituent documents. The obligations of the participants and the LLP are separated from each other: the LLP is not liable for the obligations of its participants, and the participants are liable for the obligations of the LLP only to the extent of the value of their contribution to the authorized capital.
The minimum authorized capital of an LLP may be zero if the LLP is a small business entity. In other cases, the minimum authorized capital is 100 monthly calculation indices – about 700 US dollars.
When selling a share in the charter capital of an LLP to third parties, participants must take into account the preemptive right to purchase their share by other participants. The founding documents of the LLP may establish restrictions or conditions for the alienation of a share in the LLP to persons who are not its participants.
The founders of an LLP can be both resident individuals and legal entities, and non-resident individuals and legal entities.
In an LLP, in contrast to a joint-stock company, a two-level system of governing bodies is necessarily created:
– General meeting of participants / Sole participant (supreme body);
– Sole and/or collegial executive body (the body that manages the current activities of the LLP).
The charter of an LLP may provide for the establishment of a supervisory board and (or) an audit commission (auditor).
Based on our experience, in the vast majority of cases, a company that is just starting its activities in Kazakhstan creates a subsidiary in the form of an LLP or opens branches or representative offices.
But unlike branches and representative offices, LLP has certain advantages in terms of liability and tax legislation. Thus, in the case of a branch/representative office, the parent company is liable for the obligations of the branch/representative office, unlike an LLP. Also in terms of taxation, subject to certain conditions, for example, a participant owns a stake in an LLP for more than 3 years, a resident LLP does not have the status of a subsoil user; the property of a subsoil user participant in the value of the company’s assets does not exceed 50% as of the date of payment of dividends, tax on dividends is not subject to payment.
It should be noted that the LLP is quite flexible and is not burdened by the need to perform a large number of control measures. And if the law does not strictly require the creation of a JSC, then LLP is the most convenient business organization in Kazakhstan.
1.2. The main pros and cons of the forms of presence of a foreign company in Kazakhstan
| pros | Minuses | ||
| one. | Representation | 1. Does not pay corporate taxes (income tax) (but pays only payroll taxes on the salaries of employees of the representative office, property tax applicable to property that the representative office has for operation in the territory of Kazakhstan, and may also pay taxes on purchase transactions -sales made in the course of administrative activity (business activity is not allowed).
2. Non-resident employees, if duly registered, may enjoy the same rights as local citizens: purchase and sell real estate, use and manage bank accounts in foreign and local currencies in local banks. 3. All funds held in the bank account of the representative office must be funds provided and deposited by the parent legal entity. Such funds, if not used up, can easily be transferred back to the parent company. 4. May import equipment and goods for the needs of the representative office (cars, furniture, consumables, etc.), but not for sale. 5. Can hire foreign and local staff. |
1. May not engage in any type of economic activity other than the one specified below.
2. Any activity carried out through a representative office may result in the creation of a permanent establishment for the purposes of taxation of a non-resident legal entity. 3. Cannot generate income. 4. The only way to use the funds received from the parent company is the administrative needs of the representative office itself (plus marketing). 5. The only permitted activity is marketing (collection, processing and dissemination of marketing and market data and materials related to the activities of the parent company). |
| 2. | permanent establishment | 1. No need to pay all kinds of corporate taxes, but only income tax and customs duties.
2. Uses simplified tax reporting. 3. Can make payments in foreign currency from an account abroad and, therefore, needs to convert Kazakhstan tenge. 4. Has the ability to make payments outside of Kazakhstan. 5. Can be easily liquidated (without liquidation procedure). |
1. There may be difficulties in importing labor (usually only residents can do this).
2. Difficulties may arise with the importation of equipment (usually, importation can be carried out exclusively by residents). |
| 3. | Resident Company (Limited Liability Partnership (LLP)) | 1. The company must have a legal status similar to a local (resident) legal entity, regardless of the country of residence of the parent organization, the regulatory regime is the same.
2. May engage in any type of economic activity not prohibited by the KZ legislation. 3. The company may employ foreign personnel (subject to obtaining the necessary permits) |
1. The company pays the same local taxes as any other local resident legal entity (subject to certain tax benefits and preferences).
2. Investors are guaranteed free transfer of funds in foreign currency to and from the Republic of Kazakhstan without any restrictions, subject to payment of taxes and payments, including currency conversion for repatriation. 3. Currency transactions between residents of the Republic of Kazakhstan are prohibited. |
1.3. Contract mode of subsoil use
An investor wishing to carry out activities for the search, exploration of deposits and extraction of minerals in Kazakhstan may conclude a Subsoil Use Contract. At the same time, the parties to such an agreement will be the Republic of Kazakhstan represented by the competent authority and the investor investing its own, borrowed or borrowed funds (property and (or) property rights) in the search, exploration of deposits and extraction of minerals. A subsoil use contract is concluded for the exploration and production or extraction of hydrocarbons, as well as for the extraction of uranium. At the same time, the investor, for the purposes of organizing the performance of work, create or determine a legal entity acting as a representative of the subsoil user in the conduct of subsoil use operations – an operator under a subsoil use contract, licenses for exploration or production of solid minerals. A person who is a subsoil user under the relevant contract cannot be appointed as an operator. Relations between the operator and the subsoil user are governed by an agreement between them concluded in a simple written form for a period not exceeding the term of the contract or license for subsoil use. The subsoil user notifies the competent authority in writing of the appointment of an operator in the field of subsoil use. Such notice shall be accompanied by a notarized copy of the agreement between the operator and the subsoil user. not exceeding the term of the contract or license for subsoil use. The subsoil user notifies the competent authority in writing of the appointment of an operator in the field of subsoil use. Such notice shall be accompanied by a notarized copy of the agreement between the operator and the subsoil user. not exceeding the term of the contract or license for subsoil use. The subsoil user notifies the competent authority in writing of the appointment of an operator in the field of subsoil use. Such notice shall be accompanied by a notarized copy of the agreement between the operator and the subsoil user.
1.4. The concept of SPV
The project company, or as it is called abroad Special Purpose Vehicle (“SPV”), in practice, is created only as part of investment activities when concluding agreements with the state. Namely, in the PPP law there is a concept of a special project company, namely, it is “a legal entity whose sole purpose is to implement a public-private partnership project, established jointly by a public partner and a private partner, or an operating legal entity, the only participants of which are the public partner and (or) private partner.
A public-private partnership company operates in the organizational and legal form of a joint-stock company or a limited liability partnership, in which the public partner and the private partner together own one hundred percent of voting shares (participatory interests in the authorized capital).
If the public partner and the private partner intend to create a public-private partnership company in the organizational and legal form of a limited liability partnership, then they have the right to conclude a public-private partnership agreement within the framework of the founding agreement of a limited liability partnership.
If the public partner and the private partner assume the creation of a public-private partnership company in the organizational and legal form of a joint-stock company, the relationship between the public partner and the private partner is governed by a public-private partnership agreement.
1.5. Termination of registration in the former jurisdiction and creation of a new registration in the new jurisdiction
As mentioned above, in Kazakhstan there is no mechanism for redomiciliation (migration) of business, which, in turn, exists in many Western jurisdictions. Namely, the investor will not be able to transfer an existing company from one jurisdiction to Kazakhstan. Thus, he only has the following ways to quasi transfer business:
— liquidation of a business in another jurisdiction and the opening of a new company in Kazakhstan;
— continued operation of the business in another jurisdiction and its expansion into the territory of Kazakhstan by registering a permanent establishment or opening a representative office, branch, as well as by doing business on a cross-border basis.
1.5.1. The concept of a nominee company
As a general rule, Kazakhstan does not allow a nominal (virtual) address. The address of the legal entity must be real. Can be used as a non-residential premises (office) and residential premises (apartment). However, when providing an apartment or other residential premises for use as a legal address, there must be a notarized consent of the owner of the residential premises.
And there are also a number of restrictions for VAT payers regarding the legal address. For the purposes of registering legal entities as a VAT payer, the following cases, among others, constitute a high level of tax risk:
- the taxpayer is absent at the state registration address;
- in the absence of own real estate, there is no leased or gratuitously used real estate;
- the taxpayer’s address is the same as the address of the nominal location. At the same time, the address is recognized as nominal in the case when one legal entity, on the basis of ownership or lease or gratuitous use, has an area (office) on average less than eighteen square meters used for administrative purposes.
The above criteria are not the basis for a ban on entrepreneurial activity, but only serve as an indicator of compliance with the status of a VAT payer.
The concepts of “nominal director” and “nominal founder” are not provided for by the legislation.
1.6. The concept of a controlled foreign company
For tax purposes, a controlled foreign company is a foreign legal entity that simultaneously falls under the following conditions:
1) such person is one of the following persons:
a non-resident legal entity;
another foreign form of organization of entrepreneurial activity without forming a legal entity (hereinafter referred to as another form of organization);
with the exception of a non-resident legal entity and (or) another form of organization registered or incorporated or otherwise established in a foreign state with which an international treaty has entered into force governing the avoidance of double taxation and the prevention of tax evasion, provided that the nominal the income tax rate in such a foreign state is more than 75 percent of the corporate income tax rate in the Republic of Kazakhstan.
2) as of December 31 of the reporting period, such person meets one of the following conditions:
25 percent or more of the participation interest (voting shares) in a person is directly or indirectly, or constructively owned by a legal or natural person who is a resident of the Republic of Kazakhstan;
the person is related to the resident through control (if the resident has direct or indirect or constructive control over the person);
3) such person meets one of the following conditions:
the effective tax rate on the income of a non-resident legal entity or other form of organization is less than 10 percent;
a non-resident legal entity or other form of organization is registered or the founding document (deed of creation) of which is registered, or a participant entrusted with keeping records of income and expenses or managing assets under such other form of organization is registered in a state with preferential taxation.
1.7. Registration in the SEZ
A special economic zone (hereinafter referred to as the “SEZ”) is understood to be a part of the territory of the Republic of Kazakhstan with clearly defined borders, on which a special legal regime of a special economic zone operates for the implementation of priority activities.
To become a SEZ participant, an investor must prepare a number of documents and go through the procedures established by law. The activity of the participant of the special economic zone is carried out in accordance with the agreement on the implementation of activities. Below is a step-by-step instruction for obtaining the status of a SEZ participant.
Stage 1. Preparation and submission of an investment application
The FEZ participant must fill out an application and attach a list of documents established by law.
The application is submitted to the management company and registered in the prescribed manner.
If the legal entity at the time of submission of documents is not a resident of the Republic of Kazakhstan and is not registered as a taxpayer of the Republic of Kazakhstan, then a copy of the certificate of the absence of state registration as a taxpayer in the state revenue bodies is submitted.
Foreign legal entities submit a legalized extract from the trade register or other legalized document certifying that the foreign legal entity is a legal entity under the laws of a foreign state, with a notarized translation into Kazakh and Russian.
Stage 2. Consideration of the Application
The management company of the special economic zone checks the completeness of the package of submitted documents.
When selecting projects of applicants for the implementation of activities as a participant in the SEZ, applicants that meet the main criteria and at least one of the additional criteria provided for by law have an advantage in concluding an agreement on the implementation of activities.
Stage 3. Signing the contract
The management company of the special economic zone, within ten working days from the date of filing an application for the implementation of activities as a participant in the special economic zone, signs an agreement on the implementation of activities.
Stage 4. Informing the relevant government agencies
The management company of the special economic zone no later than the next working day from the moment of conclusion of the agreement on the implementation of activities sends a copy of the agreement on the implementation of activities to the unified coordination center and state revenue authorities and places information on the conclusion of the agreement on the implementation of activities on the Internet resource of the unified coordination center.
1.8 Astana International Financial Center – AIFC
AIFC is a territory within the city of Nur-Sultan with clearly defined boundaries determined by the President of the Republic of Kazakhstan, in which a special legal regime operates in the financial sector
The AIFC has its own jurisdiction based on English law (there are analogues of the AIFC in Hong Kong, Singapore and Dubai) and has the task of creating a financial and economic center that would be as open to the outside world as possible, act according to internationally accepted and highly respected norms and principles, and thus attracted investment. On the territory of the AIFC, there is a court and an arbitration center that make their decisions based on English law.
Registration is the creation of a legal entity, in accordance with the current legislation of the AIFC, or the process of recognizing other legal entities (opening a branch) in the AIFC. This process takes place completely online on the e-Residence portal.
The tax regime in the territory of the AIFC is established by the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code), with the exception of exemptions provided for in Article 6 of the Constitutional Law of the Republic of Kazakhstan “On the Astana International Financial Center”. Under Article 6, regulated activities (“Regulated Activities”), market activities (“Market Activities”) and ancillary services (“Ancillary Services”) are exempt from CIT, property taxes and land tax.
Additionally, individuals and legal entities are exempted from paying individual and corporate income taxes on income:
- from the increase in value from the sale of shares of participants or shares in the authorized capital of companies registered in the AIFC;
- in the form of dividends on shares or on shares in the authorized capital of companies registered in the AIFC.
Other benefits of the AIFC:
- no requirements for the minimum amount of authorized capital for private companies;
- flexible accounting of rights to shares of companies (the ability to maintain a register of shareholders of private companies independently);
- the possibility of companies issuing shares of different classes;
- lack of the right to pre-emptive purchase of company shares (determined by shareholders independently), the possibility of concluding a shareholder agreement;
- the lack of strict regulation of the approval of transactions, which allows the company to consider these issues independently (reflecting the conditions in the charter);
- flexibility in the approach to the powers of the management bodies of private companies (open list, freedom to define them in the charter);
- AIFC legislation on foundations, trusts and private foundations is also in line with generally recognized principles;
- Possibility to redomicile to the AIFC territory from any jurisdiction (where there are also provisions on redomiciliation);
- There is no minimum investment requirement in the AIFC;
- Shareholders cannot be held liable for the debts and obligations of a Private Company in the AIFC. The liability of the shareholder does not exceed the level of the invested share capital
1.9. Astana Hub
Astana Hub is an international technology park for IT start-ups. Conditions are created here for the free development of Kazakhstani and foreign technology companies.
Companies that carry out activities within the framework of the List of Priority Activities approved by the Order of the Minister of Digital Development, Defense and Aerospace Industry of the Republic of Kazakhstan dated April 11, 2019 No. 37/НҚ can become Astana Hub participants.
Requirements for the applicant:
– the applicant must be a legal entity, namely an LLP or a PC (registered in the AIFC), registered in the territory of Kazakhstan.
– the company applied for registration must carry out activities and receive income only within the List of Priority Activities
Being registered as Astana Hub participants, companies receive:
* tax incentives;
* Simplified procedure for attracting foreign workers;
* useful networking with the IT community (more than 700 participating companies), PR support, the possibility of attracting investments and entering the international market, participation in educational and business programs, renting jobs in the Technopark pavilions under the Hub Space program.
According to the principle of extraterritoriality, a participating company can be located in any city of Kazakhstan, there is no link to Nur-Sultan or the Technopark.
The Technopark participant has a counter obligation to pay fees to the Technopark in the amount of 1% of the quarterly income (revenue) received for the previous quarter from the sale of goods, performance of work or provision of services. This obligation arises from the date of registration as a participant.
An application for registration as a member of the Technopark is submitted online in electronic format on the Astana Hub portal (https://astanahub.com/l/registration) with the attachment of the necessary documents (title documents for the company + business plan).
Particular attention should be paid to the business plan, as it is the main document of the application. Based on it, the Commission will make a decision on registration as a participant in the Technopark.
The business plan is drawn up in an arbitrary format (presentation or document), which, in addition to describing the project itself, must contain 15 points, according to the list of information required for the description in the business plan of the project.
The registration period is directly related to the project implementation period, so it must be reflected in the business plan. The project implementation period must coincide with the selected registration period. In the absence of this information in the business plan, the Members of the Board for the selection of participants can only determine the minimum registration period (1 year).
Application consideration period: from 10 to 15 working days (3 weeks).
- 5 days: checking for completeness of information by Technopark employees;
If there are comments, the application will be sent for revision;
- 10 days: consideration and decision on registration by the Commission for the selection of participants.
A decision by the Commission is taken by voting and is considered adopted if the majority of votes from the total number of members of the Commission is in favor of it.
II. LABOR ISSUES
2.1. remote work
According to the current labor code, at the initiative of an employee or employer, by agreement of the parties, remote work or combined remote work can be established.
The employer, the host party shall provide the employee with the equipment necessary for the performance of labor duties, informatization objects in accordance with the legislation of the Republic of Kazakhstan on informatization, communication services and other means. The employer bears the costs of their installation and maintenance.
In the event that an employee uses his own equipment, informatization objects in accordance with the legislation of the Republic of Kazakhstan on informatization and other means to perform labor duties, and also bears the costs of paying for communication services, the employer pays compensation, the amount, procedure and term of payment of which are established by agreement with an employee.
By agreement of the parties, an employee engaged in remote work may also be reimbursed for other reasonable expenses, including the cost of electricity, related to the performance of work for the employer, the host party.
For employees engaged in remote work, a fixed accounting of working hours is established subject to restrictions on the daily length of working hours, the features of control over which are determined in the employment contract or in the act of the employer. The employee within working hours must be available to communicate with the employer, the host.
When working remotely, when the performance of work cannot be fixed by the employer, the host party with a specific time, the working time is noted in the document on recording working hours as the fulfillment of the scope of work established by the employment contract, the act of the employer.
By agreement of the parties to an employment contract, a flexible working time regime may be established for employees engaged in remote work.
Under the flexible working time regime, the following are established:
1) fixed working hours;
2) flexible (variable) working hours, during which the employee has the right to perform labor duties at his own discretion;
3) accounting period.
The accounting period for flexible working hours is the period within which the average working hours established for this category of employees must be observed.
The accounting period for flexible working hours cannot exceed six months.
2.2. Labor import regulation
In general, there are no restrictions on the import of foreign labor, especially for senior-level specialists.
Immigrants temporarily staying in the Republic of Kazakhstan are not allowed to work without appropriate permits.
Immigrants arriving for the purpose of employment are divided into the following categories:
1) foreign workers – immigrants:
arrived for self-employment in professions in demand in priority sectors of the economy (types of economic activity);
attracted by employers to carry out labor activities on the territory of the Republic of Kazakhstan, including those who arrived as part of an intra-corporate transfer;
2) business immigrants – immigrants who arrived for the purpose of carrying out entrepreneurial activities in accordance with the legislation of the Republic of Kazakhstan;
3) seasonal foreign workers – immigrants recruited by employers for a period of not more than one year to perform seasonal work, which, due to climatic or other natural conditions, are performed during a certain period (season), according to the list of professions approved by the authorized body on migration issues the population in agreement with the authorized state bodies that manage the relevant area of public administration;
4) labor immigrants – immigrants who arrived in the Republic of Kazakhstan as domestic workers in order to perform work (render services) for employers – individuals in the household on the basis of a permit for a labor immigrant.
The attraction of foreign labor force, as well as the implementation of labor activities by immigrants temporarily staying in the Republic of Kazakhstan, are carried out on the basis of the permission of the local executive body within the quota.
Migrant workers from the member states of the Eurasian Economic Union and members of their families enter the Republic of Kazakhstan without visas, and also stay and leave the Republic of Kazakhstan without visas within ninety calendar days from the date of crossing the State border of the Republic of Kazakhstan.
The attraction of foreign labor force, as well as the implementation of labor activities by immigrants temporarily residing in the Republic of Kazakhstan, are carried out on the basis of the permission of the local executive body within the quota established by the authorized body on population migration, unless otherwise provided by the legislation of the Republic of Kazakhstan in the field of population migration and / or international treaties of the Republic of Kazakhstan ratified by the Republic of Kazakhstan.
2.3. Visas and permits for imported workers
2.3.1. Notification procedure
Immigrants enter the Republic of Kazakhstan and leave the Republic of Kazakhstan through checkpoints on the State Border of the Republic of Kazakhstan, open for international and passenger traffic, using passports or equivalent documents.
Hosts (for example, hotels, landlords, apartment owners) inform the internal affairs authorities about immigrants staying with them within three working days from the date of their arrival. Such notification can be made through the electronic portal egov.kz.https://vmp.gov.kz/ru/services/notice-service.
The permitted period of stay of immigrants in the Republic of Kazakhstan ends for citizens of the member states of the Eurasian Economic Union – after ninety calendar days from the date of crossing the State Border of the Republic of Kazakhstan, for immigrants who arrived in the Republic of Kazakhstan in a manner that does not require a visa – after thirty calendar days days, for immigrants who have issued a temporary residence permit – after the expiration of this permit, for immigrants who arrived on the basis of a visa to enter the Republic of Kazakhstan – after the expiration of the visa.
It should be remembered that for non-compliance with the above requirements, administrative liability is provided under the legislation of the Republic of Kazakhstan.
2.3.2. Permissions
Temporary residence permit(TRP) is issued for the purpose of staying in the Republic of Kazakhstan for more than the permitted period of stay of immigrants and is issued on the basis of applications:
1) individuals to whom immigrants arrived for the purpose of family reunification;
2) individuals and legal entities that have concluded an employment contract with an immigrant in accordance with the procedure established by law;
3) educational organizations that implement educational programs of general secondary, technical and vocational, post-secondary, higher and postgraduate education, including organized exchange programs for students and passage of preparatory courses that enrolled immigrants for full-time education;
4) healthcare organizations in which immigrants are hospitalized;
5) religious organizations in which immigrants carry out missionary activities in accordance with the procedure established by law;
6) local executive bodies – to immigrants who arrived for the purpose of carrying out entrepreneurial activities in accordance with the legislation of the Republic of Kazakhstan (business immigrants).
To obtain a TRP, you must contact the Foreign Immigration Department of the Migration Police Department with a list of required documents.
For example, for those who have concluded an employment contract, the following documents must be submitted:
1) Application-questionnaire;
2) certificate of state registration of a legal entity;
3) Employment contract (if there is no employment contract with the manager, then an order);
4) IIN;
5) A housing lease agreement or a notarized consent of the owner of the housing for accommodation;
6) Passport (original);
7) Power of attorney for a representative, if the documents are submitted by a representative.
2.3.3. Visas (obtaining)
Depending on the purpose of stay of foreign citizens in Kazakhstan, there are several categories of visas: for the purpose of returning to their historical homeland; for the purpose of family reunification; for the purpose of obtaining education; for the purpose of carrying out labor activity; for humanitarian and political reasons.
For entrepreneurial activities, the relevant categories of visas are investor, business and work visas. These visas can be issued for both single and multiple trips.
Investor visas
An investor visa is issued to heads and/or deputy heads and/or heads of structural subdivisions of legal entities carrying out investment activities in the territory of the Republic of Kazakhstan.
Investor’s family members have the right to enter the territory of Kazakhstan, also on the basis of an investor visa.
Multiple-entry investor visas (A5) are issued for up to 5 years and allow you to stay in Kazakhstan during the entire period of the visa. Single-entry investor visas (A5) are issued for up to 90 days and allow you to stay in Kazakhstan during the entire period of the visa.
Visa is issued:
foreign institutions of the Republic of Kazakhstan, the Ministry of Foreign Affairs of the Republic of Kazakhstan on the basis of an invitation; or
Ministry of Internal Affairs of the Republic of Kazakhstan – based on the request of the inviting party, if there is a request from the authorized body of the Republic of Kazakhstan for investments.
Business visas
Business visas are issued to foreign citizens for the following business purposes:
participation in conferences, symposiums, forums, exhibitions, concerts, cultural, scientific, sports and other events, participation in meetings, organization of round tables, exhibitions, meetings, accompanying humanitarian aid, lecturing and conducting classes in educational institutions, as well as participation in youth, student and school exchange programs, with the exception of training in educational institutions of the Republic of Kazakhstan (B1);
installation, repair and maintenance of equipment and provision of consulting or auditing services (B2);
negotiating, concluding contracts, the founders or the board of directors (B3);
implementation of international road transport (B4);
crew members of regular and charter flights who do not have an appropriate certificate from the International Civil Aviation Organization (ICAO), who are members of train crews, who are crew members of sea and river vessels (B5).
Issuance of a business visa is subject to the invitation of the host and the instructions of the Ministry of Internal Affairs. A business visa can also be obtained in a simplified manner – a written request from a foreign citizen is sufficient.
Visa is issued:
foreign institutions of the Ministry of Foreign Affairs; or
in Kazakhstan – by the Ministry of Foreign Affairs for up to 1 year, and, as a rule, they are allowed to stay in Kazakhstan for up to 30 days (at each entry).
Work visas
A work visa is issued to business immigrants and foreign citizens arriving in Kazakhstan for the purpose of carrying out labor activities.
In order for a foreign citizen to obtain a work visa, the inviting party (employer) must have a permit to attract foreign labor or the foreigner himself must have a work permit.
The exception is certain categories of foreigners and stateless persons (the list is established by the legislation of the Republic of Kazakhstan), for the implementation of labor activities of which in the territory of Kazakhstan, obtaining such a permit is not required. In particular, they include persons working as chief executive officers of branches or representative offices of foreign legal entities, as well as chief executive officers of Kazakhstani legal entities and their deputies with a 100% foreign participation in the authorized capital.
A visa is issued by foreign institutions of the Ministry of Foreign Affairs (and in the absence of such, by specially authorized representatives of the Republic of Kazakhstan) for a period of up to 1 year or for the period of validity of a permit to attract foreign labor with the right to subsequent extension (extension is carried out by issuing a new visa by internal affairs bodies).
The visa is issued on the basis of an invitation.
An invitation to enter the Republic of Kazakhstan on private matters shall be submitted no earlier than 1 year and no later than 5 working days before the expected date of entry of the recipient of visas into the Republic of Kazakhstan.
An application or a verbal note is submitted no earlier than 90 calendar days and no later than 5 working days before the expected date of entry of the visa recipient into the Republic of Kazakhstan.
The term for consideration of the invitation is no more than 3 working days when the service is provided in electronic form and no more than 5 working days – in paper form – from the date of filing the application.
The processing time for visas does not exceed 5 working days. When contacting through the portal – 30 minutes.
Consular fees paid are non-refundable.
After 5 working days, a visa of the Republic of Kazakhstan is issued to a foreigner at the consular office of the Republic of Kazakhstan. In cases stipulated by the legislation of the Republic of Kazakhstan, a foreigner may be denied a visa of the Republic of Kazakhstan.
The documents:
A visa application form for a visa with a color or black and white photograph measuring 3.5 x 4.5 centimeters;
When applying for a visa at a foreign institution of the Republic of Kazakhstan or an international airport of the Republic of Kazakhstan, the number, date of the invitation registered with the Ministry of Internal Affairs of the Republic of Kazakhstan or the Ministry of Foreign Affairs of the Republic of Kazakhstan (the number and date of issue of the invitation to the recipient of the visa is reported by the inviting party), or the application of the recipient of the category of visas provided for in paragraph 25 of the Rules;
A valid diplomatic, official, foreign passport of a foreign state, or other identity document;
Original payment documents confirming the payment of the consular fee or state duty;
Additional documents required for obtaining a visa in accordance with Annex 1 toRules.
e-visa
An electronic visa (business, tourist and medical treatment) is issued on the basis of a valid invitation from the Kazakh side, issued in the divisions of the Migration Service of the Ministry of Internal Affairs of the Republic of Kazakhstan in the prescribed manner.
Foreigners can arrive/departure to/from the territory of the Republic of Kazakhstan using a valid e-visa only through the checkpoints of international airports of the Republic of Kazakhstan.
Electronic visas are issued to citizens109 states.
The e-visa is valid only for the recipient of the visa and does not apply to accompanying persons.
The passport provided by the visa recipient must meet the following criteria:
1) not raise doubts about the authenticity and belonging to its owner, contain renewal marks, reservations, entries, erasures and corrections, torn or embroidered pages;
2) have at least 2 blank pages;
3) its validity expires no earlier than 3 months from the expiration date of the requested visa;
4) must not have marks of renewal.
Receiving persons inform the migration service authorities about foreign citizens staying with them within three working days from the date of their arrival.
Procedure for applying for an e-visa
to obtain an electronic visa, you must register on the website of the Visa and Migration Portal (www.vmp.gov.kz);
after registration, familiarize yourself with the requirements for obtaining an electronic visa;
enter the invitation number (the invitation number is sent by the inviting party in the Republic of Kazakhstan) and fill in the required passport data;
pay the consular fee;
print an electronic visa (a visa is generated in your personal account);
present a printed electronic visa when passing through passport control at the international airports of the cities of Nur-Sultan and Almaty.
III. TAX ISSUES
3.1. TIN, BIN
When registering with the tax authorities (if tax obligations arise), each taxpayer is assigned a single taxpayer identification number throughout the territory of the Republic of Kazakhstan, and his/her credentials are entered in the Unified Register of Taxpayers of the Republic of Kazakhstan. An identification number is assigned by submitting documents through the PSC (public service centers) directly by a non-resident or by a notarized power of attorney by a representative.
IIN (individual identification number) – a unique number generated for an individual, including an individual entrepreneur, carrying out activities in the form of personal entrepreneurship.
BIN (Business Identification Number) – a unique number generated for a legal entity (branch and representative office) and an individual entrepreneur operating in the form of a joint venture.
3.2. Special tax regimes
In Kazakhstan, along with the generally established tax regime, the following types of special tax regime for business operate:
Special tax regimes for small businesses, including:
1) a special tax regime based on a patent;
2) a special tax regime based on a simplified declaration;
3) a special tax regime using a fixed deduction;
The patent-based special tax regime applies under the following conditions:
the labor of hired workers is not used;
annual income does not exceed 3,528 times the MCI. (about $20,600).
The IIT rate is 1% on the income received for the tax period. It is possible to provide tax reporting from one month to a year.
The simplified declaration applies under the following conditions:
the average number of employees for the six months does not exceed 30 people;
half-year income does not exceed 24,038 times the MCI (about $150,000).
The IIT rate is 3% of income (excluding expenses). Tax reporting is provided once every six months.
The simplified declaration reflects the amounts of individual income tax payable to the budget on income, and also reflects the individual income tax on income taxed at the source of payment, and social payments, both for the individual entrepreneur himself and from employees.
At the same time, the income does not include income within the limits of 70,048 times the MCI (about 420,000 US dollars) received by IP through non-cash payments with the mandatory use of a three-component integrated system.
The use of a fixed deduction is possible subject to the following conditions:
the average number of employees per year does not exceed 50 people;
income for the year does not exceed 144,184 times the MCI (about $880,000).
An additional fixed deduction of 30% of the total annual income is provided, without supporting documents (subject to certain conditions), and, in addition to the deduction for labor costs, a reduction in taxable income by 100% of the wage fund is provided.
3.3. Activity taxes
3.3.1. VAT
Payers of value added tax are:
1) persons for whom registration has been made for value added tax in the Republic of Kazakhstan:
individual entrepreneurs, persons engaged in private practice;
resident legal entities, with the exception of state institutions and state educational institutions of secondary education;
non-residents operating in the Republic of Kazakhstan through structural subdivisions;
2) persons importing goods into the territory of the Republic of Kazakhstan in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan;
3) foreign companies, when they carry out electronic trade in goods, provide services in electronic form to individuals.
The value added tax rate is 12 percent and is applied to the amount of taxable turnover and taxable imports.
The minimum threshold for mandatory VAT registration is 61,260,000 tenge (approximately $134,000).
VAT on import of goods
Taxable imports are goods imported or imported into the territory of the EAEU member states (with the exception of those exempted from value added tax in accordance with Article 399 of the Tax Code of the Republic of Kazakhstan), subject to declaration in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan .
In accordance with the tax legislation, if import into the territory of Kazakhstan is made from the territory of the EAEU countries, it is subject to VAT at the standard rate of 12%.
At the same time, it does not matter whether the importer is registered as a VAT payer or not – in this case, the obligation to pay tax arises by default. The exception is goods exempt from VAT. Thus, the import of certain goods provided for by tax legislation is exempt from value added tax (for example, banknotes and coins of national and foreign currencies, goods imported as humanitarian aid, imported as part of the warranty service provided for by an agreement (contract), medicines subject to conditions, etc.).
Also exempt from VAT is 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 of the special economic zone “Qyzyljar” by a legal entity within the framework of a concluded special investment contract with the authorized body for the conclusion of special investment contracts. A legal entity that has concluded a special investment contract with an authorized body has the right to apply an exemption from paying value added tax when importing goods as part of finished products produced in the territory of a special economic zone or free warehouse.
Exemption from VAT on the import of goods subject to customs declaration in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan, with placement under the customs procedure providing for exemption from taxes, is carried out in the manner established by the customs legislation of the Republic of Kazakhstan. For example, goods placed under the customs procedure of customs transit, customs warehouse, processing in the customs territory, free customs zone, free warehouse.
As for the import of services, VAT is paid only by taxpayers registered for VAT and only if the place of provision of these services is the territory of the Republic of Kazakhstan.
VAT on export of goods
Regarding VAT on the export of goods from Kazakhstan, a zero value added tax may be applied if the exporter confirms the relevant right by submitting the relevant documents to the fiscal authority within 180 calendar days from the date of shipment (transfer) of the goods.
To confirm the validity of the application of the zero VAT rate and (or) exemption from excises by the taxpayer of the Member State of the Customs Union from whose territory the goods were exported, the following documents (copies thereof) shall be submitted to the tax authority simultaneously with the tax declaration:
1) agreements (contracts) on the basis of which goods are exported; agreements (contracts) of leasing, agreements (contracts) of commodity credit (commodity loan, loan in the form of things); agreements (contracts) for the manufacture of goods; agreements (contracts) for the processing of customer-supplied raw materials;
2) a bank statement confirming the actual receipt of proceeds from the sale of exported goods to the account of the taxpayer-exporter;
3) an application for the import of goods and payment of indirect taxes, drawn up in the form of Appendix 1 to the Protocol on the exchange of information in electronic form between the tax authorities of the member states of the customs union on the paid amounts of indirect taxes, with a mark of the tax authority of the member state of the customs union, into the territory which goods are imported, on payment of indirect taxes (exemption or other procedure for fulfilling tax obligations);
4) transport (shipping) documents confirming the movement of goods from the territory of one member state of the customs union to the territory of another member state of the customs union. These documents are not submitted if for certain types of movement of goods the execution of such documents is not provided for by the legislation of a member state of the customs union;
5) other documents confirming the validity of the application of the zero VAT rate, provided for by the legislation of the state – a member of the customs union, from whose territory the goods were exported.
3.3.2. Corporate income tax
Corporate income tax payers are:
resident legal entities of the Republic of Kazakhstan, with the exception of state institutions and state educational institutions of secondary education;
non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment or receiving income from sources in the Republic of Kazakhstan.
In accordance with paragraph 1 of Article 5 of the Convention for the Elimination of Double Taxation, the term “permanent establishment” means a place of business through which the business of an enterprise is wholly or partly carried on.
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;
4) taxable income of controlled foreign companies and permanent establishments of controlled foreign companies, with the exception of those registered in states with preferential taxation;
5) taxable income of controlled foreign companies and permanent establishments of controlled foreign companies registered in states with preferential taxation.
The basic rate is 20%.
At a rate of 10%, the income of legal entities producing agricultural products, aquaculture products (fish farming) is taxed;
At a rate of 15%, taxable income is taxed at the source of payment, with the exception of income of non-residents from sources in the Republic of Kazakhstan
A non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment also pays corporate income tax on net income to the budget at the location of the permanent establishment.
Net income of a non-resident legal entity from activities in the Republic of Kazakhstan through a permanent establishment is subject to corporate income tax on net income at a rate of 15%.
The following types of income are excluded from the income of an individual subject to taxation
dividends, subject to the following conditions:
on the date of accrual of dividends, the taxpayer has held shares or participation interests on which dividends are paid for more than three years;
a resident legal entity paying dividends is not a subsoil user during the period for which dividends are paid;
the property of persons (persons) who are (are) subsoil users (subsoil user) in the value of the assets of a resident legal entity paying dividends, as of the date of payment of dividends, is no more than 50 percent.
3.3.3. Property tax
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 right of ownership in the territory of the Republic of Kazakhstan;
3) a concessionaire who has the right of possession, use of the object of taxation, which is the object of the concession in accordance with the concession agreement;
4) persons specified in Article 518 of the Tax Code of the Republic of Kazakhstan.
Legal entities calculate property tax at a rate of 1.5 percent of the tax base. The tax base is the average annual book value of objects of taxation, determined according to accounting data.
Property tax at a rate of 0.5 percent of the tax base is calculated by the following payers:
1) individual entrepreneurs;
2) legal entities applying a special tax regime based on
3) subjects of social entrepreneurship.
3.4. The procedure for taxation of payments to employees
Income of employees of the company is subject to taxation at the source of payment. Types of payments and taxes: mandatory pension contributions, individual income tax, contributions and deductions for compulsory social health insurance, social contributions and social tax. Part of these payments is withheld from payments to the employee, the other part is paid by the employer at his own expense.
Types of payments and taxes on employees:
- Mandatory pension contributions (OPC, rate – 10%)
- Individual income tax (IPT, rate -10%, deductions are provided)
- Contributions for compulsory social health insurance (MSHI, rate 2%)
- Deductions for compulsory social health insurance (OSHI, rate 3%)
- Social tax (rate 9%, deductions are provided)
- Social contributions (rate 3.5%, deductions are provided)
III. CUSTOMS PROCEDURES AND DUTIES
Within the framework of the Eurasian Economic Union, its members (Kazakhstan, Russia, Belarus, Armenia and Kyrgyzstan) are provided with the freedom of movement of goods, services, capital and labor. The territories of these countries within the union constitute a single customs territory, on which uniform customs rules operate, the main aspects of which are provided for by the Treaty on the Eurasian Economic Union and the Customs Code of the Eurasian Economic Union. The Code of the Republic of Kazakhstan “On Customs Regulation in the Republic of Kazakhstan” (hereinafter – the Code) was adopted on the basis of the Customs Code of the EAEU.
There are 17 customs procedures applied in Kazakhstan:
1) release for domestic consumption;
2) export;
3) customs transit;
4) customs 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 importation (admission);
11) temporary export;
12) re-import;
13) re-export;
14) duty-free trade;
15) destruction;
16) refusal in favor of the state;
17) special customs procedure.
Customs payments and taxes include:
1) import customs duty;
2) export customs duty;
3) value added tax levied on the importation of goods into the customs territory of the EAEU;
4) excise tax (excises) levied (levied) when goods are imported into the customs territory of the EAEU;
5) customs fees.
Customs fees include:
1) customs fee for the customs declaration of goods, which is 20,000 tenge per declaration, regardless of the number of goods declared;
2) customs fee for customs escort. The collection rate is from 4,000 tenge to 321,000 tenge, depending on the distance;
3) customs fee for making a preliminary decision, which is 32,000 tenge.
During customs clearance of goods in the Republic of Kazakhstan, the following customs payments are subject to payment:
- import customs duties when importing goods. The basis for calculating customs duties depending on the type of goods and applicable types of rates is the customs value of goods and (or) their physical characteristics in kind (quantity, weight, volume or other characteristics);
- export customs duties when exporting goods. Export customs duties are set only for a small list of goods (oil and some oil products, ferrous scrap, wool, raw sheep skins, and others);
- value added tax (VAT) on imports. The VAT rate on imports in Kazakhstan is 12%. In some cases, exemption from VAT on imports is granted.
The amount of imports subject to VAT includes the customs value of imported goods, taking into account transfer pricing legislation, as well as the amount of taxes and customs payments payable to the budget when importing goods into the Republic of Kazakhstan, except for VAT on imports;
- excises on certain goods. Excisable goods are alcohol, alcoholic products, tobacco products, products with heated tobacco, nicotine-containing liquids for use in electronic cigarettes, gasoline (except for aviation), diesel fuel, crude oil, gas condensate, certain vehicles, medicines in the form of alcohol-containing products medical supplies and other products. Excise rates are established by the Tax Code of the Republic of Kazakhstan or the Government of the Republic of Kazakhstan (depending on the type of goods).
Export of goods from Kazakhstan is subject to VAT at a zero rate, subject to confirmation of the fact of export of goods.
