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Kazakhstan - Special considerations for short-term assignments

Kazakhstan - Special considerations for short-term...

Taxation of international executives

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Residency rules
Payroll considerations
Taxable income
Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.

Residency rules

Are there special residency considerations for short-term assignments?

Kazakh tax law does not provide a definition of a short-term assignment for personal taxation purposes. Expatriates in Kazakhstan are classified either as resident or non-resident taxpayers. Individuals are regarded as tax residents of Kazakhstan if they spend more than 183 days in Kazakhstan in any period of 12 consecutive months. Resident taxpayers are subject to tax on their worldwide income, whilst non-resident taxpayers are subject to tax only on income derived from sources in Kazakhstan.

Payroll considerations

Are there special payroll considerations for short-term assignments?

No.

Taxable income

What income will be taxed during short-term assignments?

Non-resident taxpayers are subject to tax only on income derived from sources in Kazakhstan. Kazakh-source income with respect to employment income includes all income, whether received in cash or in-kind, for work performed in Kazakhstan, regardless of where such income is paid. As a rule, all types of compensation and benefits that an employee receives for employment services constitute taxable income, including cost-of-living allowances, housing allowances, free meals, reimbursement of an employee's expenses, and other benefits.

Additional considerations

Are there any additional considerations that should be considered before initiating a short- term assignment in Kazakhstan?

No.

Disclaimer

All information contained in this publication is summarized by KPMG Tax and Advisory LLC, a company incorporated under the Laws of the Republic of Kazakhstan, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Code of the Republic of Kazakhstan «On taxes and other obligatory payments to the budget (Tax Code)» dated 25 December 2017 № 120-VI, has been amended by the 2019); Labor Code of Kazakhstan dated 23 November 2015 № 414-V (with amendments as of 1 January 2019); The Law of the Republic of Kazakhstan «On Pensions in the Republic of Kazakhstan» dated 21 June 2013 No. 105-V; The Law of the Republic of Kazakhstan «On obligatory social insurance» dated 25 April 2003 No. 405-II (with amendments as of January 8, 2019), the Rules for Documentation of Invitations, Approval of Invitations for Entrance of the Foreign Nationals and Individuals Without Citizenship to the Republic of Kazakhstan, and Issuance, Cancellation, Recovery of Visas of the Republic of Kazakhstan, as well as Extension and Reduction of Their Validity Term approved by the Joint Order of the Acting Minister of Foreign Affairs of the Republic of Kazakhstan No.11-1-2/555 dated 24 November 2016 and the Minister of Internal Affairs of the Republic of Kazakhstan No.1100 dated 28 November 2016 (with amendments and additions as of 31 January 2019); the Rules for the Entrance and Stay of Immigrants in the Republic of Kazakhstan, as well as Their Departure from the Republic of Kazakhstan approved by the Order No. 148 of the Government of the Republic of Kazakhstan dated 21 January 2012 (with amendments and additions as of 29 December 2018); the Web site (Visa and Migration Portal of the Republic of Kazakhstan); the Code on Administrative Offences of the Republic of Kazakhstan adopted by Law No. 156-II of the Republic of Kazakhstan dated 30 January 2001 (with amendments and additions as of 1 July 2019); Labor Code of the Republic of Kazakhstan No. 414-V dated 23 November 2015 (with amendments and additions as of 1 January 2019).

© 2021 KPMG Tax and Advisory LLC, company incorporated under the Laws of the Republic of Kazakhstan, subsidiary of KPMG Europe LL P, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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