Income tax in Kazakhstan
Taxation Researcher | August 05, 2020
Residents are taxed on their worldwide income. Married couples are taxed separately.
Taxable income includes (1) employment income, (2) business income and income from a profession, and (3) investment income.
Residents earning rental income is taxed at a flat rate of 10%.
Capital gains are treated as ordinary income and taxed at the standard income tax rate of 10% for residents. Taxable capital gains are calculated as the difference between the sales price or market value of the property and acquisition costs.
Capital gains tax is levied on all sales of properties which are connected with business activities.
Capital gains tax is levied on sales of properties not connected with business activities if these properties were sold after less than one year of ownership. Otherwise, sales of properties not connected with business activities are not subject to capital gains tax.
Property tax is generally levied at a flat rate of 1% on buildings and real properties in Kazakhstan. The tax base is the market value of the property.
Individual entrepreneurs and legal entities applying the simplified regime are subject to the rate of 0.50%. Not-for-profit organizations and organizations operating in the social sector are subject to a rate of 0.10%.
Land tax is a local tax levied on all land in Kazakhstan. Land tax base rates are determined by the tax code but the local authorities may adjust the tax rates within prescribed limits.
Income and capital gains earned by companies are generally taxed at a flat rate of 20%. Income-generating expenses are deductible from gross profits when calculating the taxable income.