Kazakhstan - Special considerations for short-term assignments

Kazakhstan - Special considerations for short-term...

Taxation of international executives

Related content

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 one 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 twelve 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.

© 2016 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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