Kazakhstan’s Ministry of National Economy has updated the draft of its new tax code, introducing several amendments, on 24 July 2024.
Key amendments
Sector-specific corporate tax rates
The draft proposes new sector-specific corporate tax rates, maintaining a standard 20% rate for general taxpayers. Under the new plan, banks and gambling operations will be taxed at 25%, manufacturing companies will face a 10% rate, and agricultural producers will benefit from a reduced rate ranging between 3% and 6%.
Revised withholding tax rates for non-residents:
The updated Tax Code draft introduces several changes to non-resident withholding tax regulations. It includes a new 5% withholding tax on dividends paid to non-resident investors who hold at least 25% of the shares in resident companies.
Additionally, the draft removes the 10% withholding tax exemption previously available for dividends on shares held for over three years, as well as exemptions on dividends and interest from securities traded on the Kazakhstan Stock Exchange. It also eliminates exemptions on capital gains from shares held for more than three years.
Super deduction
A 300% super deduction will be introduced for expenses related to research and development.
