Withholding Corporate Income Tax

One of the significant sources of budget revenue is the corporate income tax (CIT) withheld from the income of non-residents without a permanent establishment in the Republic of Kazakhstan.

According to the Tax Code, tax agents are responsible for calculating and withholding CIT when paying income to non-residents. The tax rates are as follows:

• 20% – on active income and income of companies in offshore jurisdictions;
• 15% – on dividends, remuneration, royalties, and insurance premiums from risk insurance contracts;
• 5% – on reinsurance contracts and international transportation.

The withheld tax goes to the budget:

• on paid income - no later than 25 calendar days after the end of the month in which the payment was made.
• on accrued but unpaid income - no later than 10 days after the deadline for submitting the personal income tax declaration.
• ​on prepayment - no later than 25 days after the end of the month in which the income was accrued.

Tax agents submit the CIT calculation at the source of payment quarterly: by the 15th of the second month for the first three quarters and by the 31st of March of the following year for the fourth quarter.