Company formation in Kazakhstan is gaining weightage as it is emerging as one of the strongest economies of the CIS. Its metal reserves, oil and minerals make it one of the largest economies in Central Asia. It has easy access to the huge Russian and Chinese markets, excellent trade relations with France, Italy and Netherlands and It is counted as one of the leading exporters of uranium and hydrocarbon.
Liability Limited Partnership (LLP):
- minimum share capital is USD 1
- minimum one Shareholder is required of any nationality and residence
- minimum one director is required of any nationality but work permit is mandatory
- local registered office address is required
Joint Stock Company (JSC):
- Minimum share capital is USD 483.000, paid up upon incorporation
- At least one director of any nationality and residence
- At least one shareholder of any nationality and residence
- Submission of annual financial statements is required
- Corporate income tax is 20%
- Dividends received are effectively exempt from income taxation
- Dividends paid to nonresidents are taxed with withholding tax of 15%
- Dividends paid to nonresidents registered in a tax haven jurisdiction are taxed with 20%. The tax rate may be reduced in line with tax treaty in force with Kazakhstan.
- Capital gains are treated as normal income and taxed at the standard tax rate
- Royalties paid to nonresidents are subject to a 15% withholding tax. A 20% rate applies to royalties paid to nonresidents registered in a tax haven. The tax rate may be reduced in line with the corresponding provisions of an applicable tax treaty in force with Kazakhstan.
- VAT rate is 12%
- Losses can be carried forward for up to 10 years