Taxation

Taxation in Kazakhstan 
Basic taxes 
Entrepreneurial activity of a foreign investor is usually subject to the following taxes and duties:
• Corporate income tax (CIT);
• Individual income tax (IIT);
• Mineral extraction tax (MET);
• Tax on excess profit;
• Value added tax (VAT);
• Land tax from legal entities;
• Property tax from legal entities and individual entrepreneurs;
• Vehicle tax from legal entities;
• Pension taxes, social deductions

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Foreign Taxation
Foreign individuals shall be registered in Kazakhstan taxation authorities in the following cases: opening of the accounts in banks being tax residents of Kazakhstan acquisition of income from Kazakhstan source non-taxable from source of payment in Kazakhstan acquisition of tax resident status.
Tax registration is usually performed at the residential address indicated in foreigners’ migration card. Registration: of department of non-resident entity is performed based upon data of national registers of identification numbers, i.e. automatically after registration in justice authorities; of non-resident entity conducting its business in Kazakhstan through permanent agency without opening a branch, representative office – in taxation authorities by the place of location of permanent agency.
The residents are subject to taxation with regard to income earned both in Kazakhstan and abroad.
The non-residents are subject to taxation with regard to income from Kazakhstan sources only, irrespective of the place of payment.
As a rule, income is considered earned from Kazakhstan source if it is paid for works (services) performed (rendered) in Kazakhstan or income earned from a resident or non-resident acting in Kazakhstan through permanent agency. Kazakhstan source income includes interest, dividend and royalty return among other things. Foreign individuals are deemed to be residents if they stay in the country for at least 183 days in any 12-month period which ends in the current tax period. An individual is considered as non-resident for a period following the last day of its stay in Kazakhstan if a person does not become a resident in a year following the year when a stay of that person in Kazakhstan expired.
Double taxation treaties may indicate different rules to define resident status. Source: Tax Code of the Republic of Kazakhstan 


Special Tax Regimes
A special tax regime on the basis of patent is applied by individual entrepreneurs that do not have employees, operate in the form of private entrepreneurship and which income does not exceed 300-fold minimum wage. Read more, please click here

Double Taxation Treaties concluded between Kazakhstan and other states

Summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes  
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Taxation in Tajikistan 
On 1 January 2013, the Government adopted a new version of the
Tax Code, which lists all taxes and levies, and the general tax principles established in Tajikistan, whether as national or local taxes.
Under the new Tax Code, the main taxes applicable to investment activities are as follows:
• Corporate income tax;
• Value added tax;
• Road tax;
• Payroll taxes;
• Land tax;
• Property tax;
• Mining taxes;
• Tax withheld at the source of payment from non-residents’ income

All Tajik legal entities are subject to corporate income tax (CIT) in Tajikistan. Tajik residents are taxed on their worldwide income. Non-residents are subject to CIT in Tajikistan only on Tajikistan-source income. Non-residents operating through a permanent establishment (PE) are generally subject to the same CIT provisions.
From 1 January 2015, CIT is computed by applying the statutory 24% rate to taxable income (14% for enterprises producing goods), which is calculated based on gross income decreased by allowed deductions and losses carried forward from previous periods. CIT liability may not be less than 1% of aggregate income.
The gradual reduction of CIT rates is expected to reach 23% (13% for enterprises producing goods) in 2017.
Simplified tax system
The simplified tax system for small business entities (hereinafter ‘tax under the simplified system’) is a special tax regime, under which income tax for small business legal entities or income tax for individual entrepreneurs shall be paid under the simplified procedure. The simplified tax regime is applied by the small businesses until aggregate annual income does not exceed 500,000 Tajikistan somoni (TJS).
Taxpayers who pay the tax under the simplified system are not liable for: Income tax, except for withholding tax (WHT). Road tax. Income tax from revenues of the individual entrepreneur, functioning according to the certificate, except for WHT. Value-added tax (VAT), except for the import VAT and reverse-charge VAT. The tax base for applying tax under the simplified system is the aggregate income. For activities related to production of goods, the tax rate is 5%; for other activities, the tax rate is 6%. Local income taxes There are no local income taxes in Tajikistan.

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Source: Pwc

Tax rates
VAT in Tajikistan is charged at 0%, 5% and 18%. Exports from Tajikistan are subject to 0% VAT, except for exports of raw cotton, ginned cotton, cotton yarn, initial aluminium, precious stones and jewellery and goods manufactured in Free Economic Zones, which are exempt from VAT.
To be eligible for the 0% rate, taxpayers should provide supporting documentation to the tax authorities as prescribed in the Tax Code.
The 5% rate applies to taxable supplies (except imports) made by catering, wholesale and retail trade companies, sales and supply agencies, educational institutions and construction firms. Companies subject to 5% VAT may not offset input VAT.
The 5% rate is effective until 1 January 2016. The 18% rate applies to all other taxable sales of goods, work and services in Tajikistan.
Tax rates From 1 January 2015, road tax rates are: • 0.25% — for entities involved in trade and procurement, supply and sales activities; • 1% — for other activities.
Road tax will be abolished from 1 January 2017.
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Summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes