KAZAKHSTAN Law and Practice Contributed by: Assel Ilyassova, Lyazzat Zhilkibagarova and Makhabbat Mukhidinkyzy, GRATA International
1. Sources and Principles 1.1 Domestic Sources of International Tax Law The main sources of international tax law in Kazakh - stan are the Constitution, the Tax Code, ratified inter - national treaties, and other laws governing the con - clusion, operation and application of international treaties. Normative resolutions of the Constitutional Court and the Supreme Court are also significant, as they form part of the applicable law and shape the courts’ approach to the application of tax legislation and international treaties. Although established judicial practice is taken into account in practice, judicial precedent is not for - mally recognised as an independent source of law in Kazakhstan. Tax administrative guidance remains limited: there are currently no specific tax authority instructions providing a comprehensive framework for the application of tax treaties, and individual clarifi - cations issued by the tax authorities are not legally binding and may be reconsidered. Kazakhstan has a relatively broad treaty network consisting primarily of 55 bilateral double tax treaties on income and capital gains with major jurisdictions across Europe, the CIS, Asia, the Middle East and North America. Kazakhstan is also a party to the Mul - tilateral Instrument (MLI) and has listed 41 treaties as Covered Tax Agreements for MLI purposes. In addition, as a member of the Eurasian Economic Union, Kazakhstan applies the Treaty on the Eurasian Economic Union, which includes rules on indirect taxes in mutual trade between member states. 1.2 Hierarchy of Sources The current Constitution and the Tax Code establish the principle that ratified international treaties prevail over domestic legislation in the event of a conflict. However, it should be noted that a new Constitution was adopted by nationwide referendum on 15 March 2026 and will enter into force on 1 July 2026. This principle is not expressly reflected in the new Consti - tution. The entry into force of the new Constitution is expected to result in corresponding amendments to
various codes and other legislative acts of the Repub - lic of Kazakhstan. 1.3 OECD Model/United Nations Influence on Treaty Practice Kazakhstan’s jurisdiction does not strictly follow a single model. Tax treaties are generally based on the OECD Model Tax Convention, while incorporating cer - tain elements of the UN Model. 1.4 Multilateral Instrument Kazakhstan signed the MLI on 25 June 2018 and rati - fied it on 20 February 2020.
2. Territoriality, Residence and Permanent Establishment
2.1 General Principle of Territorial Taxation Kazakhstan applies the principle of worldwide taxa - tion to its tax residents, under which residents are taxed on their global income. Non-residents, in con - trast, are subject to tax only on income derived from sources in Kazakhstan. 2.2 Tax Residence of Individuals An individual is generally recognised as a tax resident of Kazakhstan if either of the following tests is met: • Physical presence test: the individual is present in Kazakhstan for 183 calendar days or more in any consecutive 12-month period ending in the rel - evant tax period; or • Centre of vital interests test: the individual’s centre of vital interests is deemed to be in Kazakhstan where the relevant statutory conditions are met, including the individual’s citizenship or residence status, the residence in Kazakhstan of the individ - ual’s spouse and/or close relatives, and the avail - ability of residential property in Kazakhstan for the individual or such family members. 2.3 Taxation of Resident Individuals Tax-resident individuals in Kazakhstan are gener - ally subject to personal income tax on their world - wide income, ie, income derived both from sources in Kazakhstan and from foreign sources. Personal
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