According to the Tax Code of the Republic of Kazakhstan, income derived from sources in Kazakhstan by non-resident legal entities whose activities do not create a permanent establishment in the Republic of Kazakhstan is subject to withholding tax at the source of payment.

       Types of Income Subject to Withholding

Income of a non-resident derived from sources in Kazakhstan is subject to corporate income tax withheld at the source of payment. The tax is withheld without applying any deductions and is calculated at the rates established by Article 682 of the Tax Code.

Tax must be withheld regardless of the form and location of payment, as well as regardless of whether the non-resident disposes of the income independently or in favor of third parties, including structural subdivisions located outside Kazakhstan.

If the tax agent pays the tax at their own expense (without actual withholding from the income), the obligation to withhold and remit the tax is considered fulfilled.

       Contracts Involving Works and Services Inside and Outside Kazakhstan

If a contract with a non-resident provides for the performance of works or services both within Kazakhstan and abroad, the income amount must be reasonably allocated between these parts.

If such allocation is absent, or if it is made unreasonably and results in understatement of the taxable amount, tax is calculated on the full amount of income under the contract, regardless of where the works or services were actually performed.

        Who Is Considered a Tax Agent

The obligation to calculate, withhold, and remit corporate income tax rests on the following persons paying income to a non-resident:

1. Individual entrepreneurs;
2. Non-resident legal entities operating through a structural subdivision;
3. Non-resident legal entities operating through a permanent establishment without opening a subdivision;
4. Resident legal entities, including issuers of depositary receipts;
5. Persons paying income from capital gains (excluding transactions with securities on the stock exchange);
6. A resident legal entity acting as a servicing company for receivable assets assigned (transferred) under banking and microfinance legislation;
7. An individual entrepreneur or resident legal entity in respect of assets whose rights (claims) have been assigned (transferred) under banking and microfinance legislation, where no trust management agreement exists between the non-resident and the servicing company.

       Procedure and Deadlines for Tax Payment

Corporate income tax is calculated and withheld by the tax agent:

- On the day the income is paid to the non-resident — for accrued and paid income;

- By the deadline for filing the tax return — for accrued but unpaid income if such income is deducted for tax purposes.

Tax must be remitted to the budget by the tax agent at their place of registration within the deadlines established by Article 684 of the Tax Code.

Reporting

Tax agents must submit a corporate income tax calculation to the tax authorities:

- For the 1st, 2nd, and 3rd quarters — by the 15th day of the second month following the quarter in which income was paid;

- For the 4th quarter — no later than March 31 of the year following the tax period in which income was paid to the non-resident and/or in which accrued but unpaid income was deducted.

A non-resident operating through a structural subdivision but not creating a permanent establishment in Kazakhstan must submit a corporate income tax declaration within the deadlines established by law.

Source : https://www.gov.kz/memleket/entities/kgd-akmola/press/news/details/1127385?lang=kk