Tax on property income in Kazakhstan
Taxation Researcher | August 05, 2020
Effective Tax Rate on Rental Income
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Global Property Guide research
Nonresidents are taxed on their Kazakhstan-sourced income. Married couples are taxed separately.
Nonresidents are taxed at flat special tax rates, depending on the source of income. Income earned by nonresidents is generally taxed at a flat rate of 10%. Dividends, capital gains earned by nonresidents are taxed at a flat rate of 15%. Other income earned by nonresidents is taxed at a flat rate of 20%.
Nonresidents earning rental income is taxed at a flat rate of 20%.
Nonresidents earning capital gains are taxed at a flat rate of 15%. 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.