Article 690. The procedure for taxation of income of a non–resident legal entity in the Republic of Kazakhstan in the presence of a permanent establishment registered in the Republic of Kazakhstan Tax Code of the Republic of Kazakhstan

    1. The tax agent calculates, withholds and transfers corporate income tax at a rate of 20 percent without deductions when paying the following income to a non–resident legal entity:  

    1) from performing works and rendering services in the territory of the Republic of Kazakhstan;  

    2) received by a non–resident legal entity, including income received by its structural divisions in other states when carrying out activities in the Republic of Kazakhstan that are identical or similar to those carried out through the permanent establishment of this non–resident legal entity in the Republic of Kazakhstan;

    3) from carrying out business activities in the Republic of Kazakhstan and abroad jointly with its permanent establishment in the Republic of Kazakhstan within the framework of one project and (or) related projects.  

    The provision of the first part of this paragraph applies if the following conditions are fulfilled simultaneously:  

    1)absence of a contract concluded with a structural subdivision of a non–resident legal entity or its permanent establishment without opening a branch or representative office;

    2)the absence of an invoice for goods, works, or services sold issued by a branch or representative office of a non-resident legal entity or its permanent establishment without opening a branch or representative office.

    2. A non–resident legal entity operating in the Republic of Kazakhstan through a permanent establishment:

    1) include in a retrospective manner in the total annual income of a permanent establishment in the Republic of Kazakhstan the income specified in paragraph 1 of this Article, if such income is related to the activities of a permanent establishment;

    2) calculates the corporate income tax in accordance with Articles 688 and 689 of this Code;  

    3) submit a corporate income tax return to the tax authority at the location of such permanent establishment, including the specified income;

    4) reduces (offsets) the amount of tax calculated by a permanent establishment by the amount of corporate income tax withheld at the source of payment from the income of such non–resident legal entity in accordance with this paragraph. Corporate income tax is reduced if there are documents confirming the withholding of tax by the tax agent.

    The positive difference between the amount of corporate income tax withheld by the tax agent and the amount of corporate income tax calculated by the permanent establishment of a non–resident legal entity in the Republic of Kazakhstan is carried over to subsequent tax periods within the limitation period.  

    3. If the incomes specified in paragraph 1 of this article are not related to the activities of a permanent establishment, a non-resident has the right to apply the provision of an international agreement regarding the refund of withheld corporate income tax from the budget in accordance with the procedure established by this Code.  

The Code of the Republic of Kazakhstan dated July 18, 2025 No. 214-VIII SAM.

President    

Republic of Kazakhstan     

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From January 1, 2026, to invalidate the Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory payments to the Budget" (Tax Code) in connection with the entry into force of the Tax Code dated July 18, 2025 No. 214-VIII SAM.

Article 690. The object of taxation of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

     1. The object of taxation for a taxpayer applying a special tax regime using a fixed deduction is taxable income, defined as the difference between income, taking into account the adjustments provided for in paragraph 4 of Article 691 of this Code, and the deductions provided for in this paragraph.  

     2. The income of a legal entity or individual entrepreneur consists of the income to be received (received) by these persons in the Republic of Kazakhstan and abroad during the tax period.

     3. For the purposes of this paragraph, income is not considered:

     1) the value of the property received as a contribution to the authorized capital;

     2) the value of the property received (received) by the shareholder, including that received (received) in return for the previously contributed, in the distribution of property in the event of liquidation of a legal entity or in the event of a reduction in the authorized capital, in the amount of the paid-up authorized capital, attributable to the number of shares, in proportion to which the distribution of property is carried out;

     3) the value of the property received (received) by the participant, founder, including received (received) in return for the previously contributed, in the distribution of property in the event of liquidation of a legal entity or in the event of a reduction in the authorized capital, as well as in the return to the founder, participant of the participation share or part thereof in the legal entity, in the amount of the paid-up authorized capital, for the share of participation, in proportion to which the distribution of property is carried out, but not more than the amount of the cost of its acquisition and (or) payment of contributions to the authorized capital made by the participant, in whose favor the distribution of property is carried out;

     4) the value of the property received by the issuer from the placement of its issued shares;

     5) for the taxpayer transferring the property, the value of the property transferred free of charge;

     6) the amount of penalties and fines written off in accordance with the tax legislation of the Republic of Kazakhstan;

     7) the cost of goods received free of charge for advertising purposes (including in the form of a gift), if the unit price of such goods does not exceed 5 times the monthly calculation index established for the relevant financial year by the law on the republican budget and effective on the date of such receipt.;

     8) the amount of reduction of the amount of the tax liability in the cases provided for by this Code;  

     9) unless otherwise provided for in Section 7 of this Code, income arising from changes in the value of assets and (or) liabilities is recognized as income in accounting in accordance with international financial reporting standards and (or) requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for income to be received (received) from another person;

     10) increase in retained earnings by reducing reserves for revaluation of assets in accordance with international financial reporting standards and (or) requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

     11) income arising from the recognition of an obligation in accounting in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, in the form of a positive difference between the amount of the obligation actually to be fulfilled and the value of this obligation recognized in accounting;

     12) the value of property, including works and services received in accordance with paragraph 8 of Article 243 of this Code;

     13) excess of the amount of the positive exchange rate difference over the amount of the negative exchange rate difference;

     14) income from write-off of obligations;

     15) income on doubtful obligations;

     16) the following expenses incurred by an individual tenant who is not an individual entrepreneur in the case of property rental (lease) of a dwelling, residential premises (apartment), if these expenses are not included in the rent for:

     maintenance of the common property of the condominium facility in accordance with the housing legislation of the Republic of Kazakhstan;

     payment for utilities provided for by the Law of the Republic of Kazakhstan "On Housing Relations";

     renovation of a dwelling, living space (apartment);

     17) income from the disposal of fixed assets.

     At the same time, a taxpayer applying a special tax regime using a fixed deduction does not keep records of fixed assets.  

     4. For the purposes of this paragraph, income received by an individual entrepreneur in the form of:

     1) dividends, rewards, and winnings previously subject to individual income tax at the source of payment, if there are documents confirming the withholding of such tax at the source of payment.;

     2) targeted social assistance, allowances and compensations paid from the budget, in the amounts established by the legislation of the Republic of Kazakhstan;

     3) scholarships;

     4) charitable assistance;

     5) the value of property received in the form of humanitarian aid;

     6) property income;

     7) employee's income;

     8) the amounts of compensation for material damage awarded by a court decision.

     The footnote. Article 690 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2018).