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In this page: Accounting Rules | Tax Rates | Intellectual Property | Legal Framework | Standards | Business Practices

 

Accounting Rules

Tax Year
The financial year starts from 1st January and ends on 31st December of the same year.
Accounting Standards
According to the new Law, large business entities and organizations of public interests must prepare financial reports in accordance with IFRS. Other legal entities and individual entrepreneurs, at their discretion, may prepare financial reports in accordance with either IFRS or the National Accounting Standards, which generally refer to IFRS.
Accounting Regulation Bodies
Ministry of Finance
Accounting Reports
The accounting balance sheet is presented with shareholder capital and debts as liability, the latter will be broken down into long term and short term debts.
The income statement gives the priority to the referential of total production and classification of expenses per function.
(Russian model).
Publication Requirements
The law pertaining to companies in the Republic of Kazakhstan encourages companies to post up the operational accounts. The accounts should be established in national currency according to the new Russian accounting plan introduced in January 1992. Accounting should be held as per the standards in force but the companies do not have any obligations for the annual reports, except for financial reports.
Professional Accountancy Bodies
Chamber of Auditors of the Republic of Kazakhstan
Ministry of Finance gives a list of audit bodies
Certification and Auditing
There is no formal obligation for the audit, except for registration of daily activity. However, the rights, obligations and qualifications of auditors tend to be more and more specific and subjected to laws and regulations.  Certain companies must undergo an annual statutory audit (banks, insurance companies, pension funds, and other financial institutions, joint stock companies, and companies operating under an investment contract concluded with the State). An audit company of their choice can perform this audit. Sometimes, however, it may be required that a statutory audit is performed by a Big 4 audit firm.
You can contact an external auditor: Deloitte (en anglais), Ernst & Young, PricewaterhouseCoopers, KPMG.
Accounting News
IAS Plus
Website of the Ministry of Finance
Information portal on accounting sector

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Tax Rates

Consumption Taxes

Nature of the Tax
Value added tax (VAT) - Nalog na dobavlennuyu stoimost (NDS)
Tax Rate
12%
Reduced Tax Rate
There are VAT exemptions, particularly for medical products, exports and financial transactions, international transportation services
Other Consumption Taxes
Excise duties on all types of spirits, alcohols and tobacco products, petrol (except for aircraft), diesel fuel oil, and certain motor vehicles.

Learn more about Service Providers in Kazakhstan on Globaltrade.net, the Directory for International Trade Service Providers.

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Corporate Taxes

Company Tax
20%
Capital Gains Taxation
Capital gains are treated as normal income and taxed at the standard corporate tax rate of 20%.
Main Allowable Deductions and Tax Credits
Allowable deductions generally include expenses associated with activities designed to generate income. Deductions for depreciation and depletion, net operating losses, payment to foreign associates, and certain taxes.
Other Corporate Taxes
Taxes on export of certain products (hides and skins, certain oil products,...), taxes on import of some products, real property tax, social security contributions, land tax, vehicle tax.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Kazakhstan Eastern Europe & Central Asia United States Germany
Number of Payments of Taxes per Year 7.0 28.0 11.0 9.0
Time Taken For Administrative Formalities (Hours) 188.0 260.0 175.0 207.0
Total Share of Taxes (% of Profit) 28.6 40.5 46.7 46.8

Source: Doing Business - Last Available Data.

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Individual Taxes

Tax Rate

Individual income is taxed at a flat rate 10%
Allowable Deductions and Tax Credits
A list of possible individual tax deductions is available on the Tax Committee website.
Special Expatriate Tax Regime
A non-resident having a trading activity in Kazakhstan is liable to pay income tax on Kazakh at source after deduction at a rate of 30%.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of countries having a Double Taxation Agreement with Kazakhstan.
Withholding Taxes
Dividends: 15%/20%, Interest: 15%/20%, Royalties: 15%/20%.

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Sources of Fiscal Information

Tax Authorities
Customs
Tax Committee
Information portal on taxes
Other Domestic Resources
Information portal on taxes

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Learn more about Taxes and Accounting in Kazakhstan on Globaltrade.net, the Directory for International Trade Service Providers.

Intellectual Property

National Organizations
In the area of intellectual property, Kazakhstan adheres to the following international agreements: the Convention instituting World Intellectual Property Organization, the Paris Convention for protection of industrial property, the Madrid Agreement concerning the international registration of trademarks, the Patent Cooperation Treaty (PCT) and the Eurasian Convention on patents. The last three agreements enable to obtain the protection for trademarks or patents in Kazakhstan by registration of requests in Paris or in Geneva.

Kazakhstan has a National Institute of Intellectual Property and a Committee on Intellectual Property Rights which can be consulted in English.

Regional Organizations
Kazakhstan is member of Eurasian Patent Organization.
 

National Regulation and International Agreements

 
Type of property and law Validity International Agreements Signed
Patent
 
Patent Law of 1999
Patents: 20 years, renewable over a period not exceeding 5 years
Trademark
 
Law on trademarks and services and on origin manes, No456-I LRK dated 26 July 1999
10 years, renewable for consecutive periods of 10 years Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
Design
 
Patent Law, No. 428-I LRK dated 16 July 1999
10 years, renewable over a period not exceeding 5 years  
Copyright
 
WIPO Copyright Treaty

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Legal Framework

Independence of Justice
The Constitution of Kazakhstan restricts the independent power of the judiciary significantly, which is subordinate to the executive.
Equal Treatment of Nationals and Foreigners
Foreign nationals are not guaranteed the benefit of an impartial process regarding legal issues.
The Language of Justice
Two legal languages are used in the country: Kazakh and Russian.
Recourse to an Interpreter
Sources of the Law and Legal Similarities
The main source of the law is the new Constitution, adopted during the national referendum held in August 1995. The judicial system of the country is based on a system of civil law. The Constitution is available on-line on the Parliament website .
Checking National Laws Online
Website of the Parliament

Learn more about Lawyers and Legal in Kazakhstan on Globaltrade.net, the Directory for International Trade Service Providers.

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Standards

National Standards Organizations
Kazakh Institute of Standardization and Certification, (part of Committee for Technical Regulation and Metrology).
KAZMEMST, Committee for Technical Regulation and Metrology.
Kazakh Institute of Metrology, (part of Committee for Technical Regulation and Metrology).
NCA, National Centre of Accreditation
Integration in the International Standards Network
KAZMEMST is a committee member of the International Organization of Standardization (ISO), a member of the Euro-Asian Council for Standardization, Metrology and Certification (EASC), and the National Centre of Accreditation is associated with the International Laboratory Accreditation Cooperation (ILAC).
Classification of Standards
The standards of Kazakhstan are the ST RK.
Online Consultation of Standards
See the website of Kazmemst.
Certification Organizations
Kazakhstan Institute for Standardization and Certification

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Business Practices

General Information
Bisnis, The Business Information Services for Newly Independent States
Chamber of Commerce and Industry of Astana city
Chamber of Commerce and Industry of Kazakhstan
Opening Hours and Days
The public agencies and most of the companies and banks are open from 0900 hrs or 1000 hrs to 1700 hrs or 1800 hrs with one hour lunch break between 1200 hrs and 1500 hrs for banks and between 1200 hrs and 1400 hrs for administrations. Some offices are open only in the morning.

Food stores and bakeries are open every day (including Sundays) from 0900 to 2000h with a break at noon. Supermarkets are open 24 /24 hrs and 7/7 days.

 

Public Holidays

New year 1 and 2 January
Women's day 8 March
Naouruz (Festival marking beginning of spring) 22 March
Solidarity day among Kazakh people 1 May
Victory of 1945 9 May
Constitution day 30 August
Republic day 25 October
Independence day 16 December
 
 

Periods When Companies Usually Close

 

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Last Updates: January 2015