New PIT Rates for Non-Residents in Kazakhstan in 2026 - FCHAIN

New PIT Rates for Non-Residents in Kazakhstan in 2026

Starting from 2026, the taxation of non-resident income in Kazakhstan has changed. The changes affect withholding income tax rates, the taxation of non-resident employees and labor immigrants, as well as the rules for determining Kazakhstan-source income and applying international double taxation treaties. For companies that employ foreign nationals, make payments to non-residents, or work with foreign counterparties, it is important to correctly determine the recipient’s tax status and the applicable taxation procedure.

 

Withholding Income Tax Rates

In 2026, new withholding income tax rates apply to certain types of income received by non-residents. The applicable tax rate depends on the type and nature of the income received by the non-resident. Dividends paid to a person who directly or indirectly owns at least 25% of the capital of a resident legal entity are taxed at a rate of 5% on income up to 230,000 MCI and at a rate of 15% on the amount exceeding this threshold. Therefore, when paying dividends, it is necessary to consider not only the amount of income but also the recipient’s ownership interest in the capital of the resident legal entity. Interest on credits, loans, and debt securities is taxed at a rate of 10%. The same rate applies to winnings from gambling and betting. For other types of non-resident income, the applicable rate is determined based on the type and nature of the income in accordance with the Tax Code. Therefore, before making a payment to a non-resident, it is necessary to correctly determine the type of income and the corresponding taxation procedure.

 

Progressive Individual Income Tax Scale for Non-Resident Employees

One of the important changes introduced in 2026 is the application of a progressive personal income tax (PIT) scale to the income of non-resident employees. The threshold is set at 8,500 MCI per calendar year. With the MCI set at KZT 4,325, this threshold amounts to KZT 36,762,500. Income within the established threshold is taxed at a rate of 10%. If annual income exceeds 8,500 MCI, the 15% rate applies only to the amount exceeding the threshold. For example, if the annual income of a non-resident employee is KZT 40 million, the amount up to KZT 36,762,500 is taxed at 10%, while the remaining amount is taxed at 15%. The same procedure applies to foreign nationals and stateless persons assigned to work in Kazakhstan by a non-resident legal entity that is not registered as a taxpayer in Kazakhstan.

 

Taxation of Labor Immigrants

A separate procedure for determining income and calculating PIT applies to non-resident labor immigrants. Tax liabilities are calculated taking into account the minimum taxable income for each month of work, the income actually received, and deductions provided for under tax legislation. Therefore, the calculation of PIT takes into account not only the income actually received by the labor immigrant but also the established minimum taxable income. The minimum taxable income is set at 40 MCI for each month in which work is performed or services are provided. The calculation takes into account each month during which the labor immigrant performs work or provides services. Therefore, when employing foreign workers, it is necessary to consider their tax status and the applicable procedure for calculating tax liabilities. Correct determination of these conditions is important for the proper calculation of PIT in accordance with the established procedure.

 

Kazakhstan-Source Income of Non-Residents

Before calculating tax liabilities, it is necessary to determine whether the income paid to a non-resident qualifies as Kazakhstan-source income. Such income includes, in particular, income from work performed and services provided in Kazakhstan, dividends, interest, royalties, capital gains, and other types of income stipulated by the Tax Code. Starting from 2026, Kazakhstan-source income of non-residents also includes income from certain types of services provided outside the Republic of Kazakhstan. These include information processing, management, financial, consulting, engineering, marketing, auditing, design, advertising, and certain legal services. When making a payment, it is necessary to consider not only the type of income but also the place where the work is performed or the services are provided, as well as other circumstances that may affect the taxation procedure. Therefore, the fact that services are provided outside Kazakhstan does not in all cases mean that the income received by a non-resident is not considered Kazakhstan-source income. When determining tax liabilities, the specific type of service and the relevant provisions of the Tax Code must be taken into account.

 

Permanent Establishment and International Treaties

When working with a foreign company, it is also necessary to determine whether it creates a permanent establishment in Kazakhstan. If a permanent establishment exists, the non-resident’s income is taxed in accordance with the relevant provisions of the Tax Code. Therefore, when entering into agreements with foreign companies, the terms of the agreement, the amount of payments, and the actual nature of the non-resident’s activities in Kazakhstan are relevant. The application of international double taxation treaties also requires particular attention. Where the grounds provided for by law exist and the required supporting documents are available, the provisions of the relevant international treaty may apply. The primary supporting document is a tax residency certificate confirming the recipient’s tax residency. The tax agent must ensure that there are grounds for applying the international treaty and that the requirements of tax legislation are met.

 

What Should Be Checked Before Making a Payment to a Non-Resident

Before each payment of income to a non-resident, the tax agent must determine the recipient’s tax status, the type and source of income, the place where the work is performed or the services are provided, the existence of a permanent establishment, and whether an international double taxation treaty may be applied. It is also necessary to determine the applicable tax rate, whether tax must be withheld at source, and to comply with the established procedure and deadlines for tax payment. If an international double taxation treaty is to be applied, the tax agent must ensure that the relevant grounds and supporting documents are available. To confirm the non-resident’s tax residency, a document confirming such residency and meeting the requirements of the Tax Code is required. Particular attention should be paid to payments to non-residents for consulting, management, technical, and engineering services. Such transactions must be analyzed taking into account their nature and the applicable requirements of the Tax Code. Therefore, the taxation procedure for a payment is determined based on the specific circumstances of the transaction and the nature of the non-resident’s income.

 

Comprehensive FChain Services for Business

Correct taxation of payments to non-residents requires consideration of the recipient’s tax status, the nature of the transaction, and the applicable legal requirements. FChain provides comprehensive accounting, tax, legal, and HR support to companies in Kazakhstan, including businesses working with foreign employees and counterparties.

• Accounting and tax services – accounting and tax record-keeping for companies, including the recording of transactions and payments arising from ongoing business activities.
• Payroll services — payroll calculation and calculation of related tax liabilities for employees.
• Legal support for business — consultations on Kazakhstan legislation and legal support for companies working with foreign counterparties.
• Drafting contracts — preparation and legal support of contractual documentation in accordance with Kazakhstan legislation.
• Employer of Records — employment and workforce administration within the applicable service model.
• Migration Services — support with migration procedures for foreign employees working in Kazakhstan.

FChain’s comprehensive services enable companies to systematically organize their accounting, tax, legal, and HR processes when working with non-residents and foreign professionals.

 

Digital Services for Businesses in Kazakhstan

Prepared by: Anel Kosmaganbetova

Assistant to the Director

FChain Kazakhstan

 📩almaty@f-chain.com
WhatsApp: +7 771 214 1820