What Changed in Kazakhstan From 1 January 2026
With the entry into force of the new Tax Code (№214-VIII ZRK of 18 July 2025), Kazakhstan overhauled how non-residents are taxed. Key changes impact withholding rates, progressive individual income tax for foreign workers and migrants, dividend treatment, and dividend holding requirements. (vko.kgd.gov.kz)
Implications for Digital Nomads & Foreign Investors
- Dividends with ≥25% ownership in resident legal entities are taxed at 5% on amounts up to 230 000 AEK, and 15% on excess, a major shift. (vko.kgd.gov.kz)
- Interest, royalties, capital gains: now taxed uniformly at 15%, while some other passive incomes like gambling winnings and debt instrument interest stay at 10%. (vko.kgd.gov.kz)
- No more long-term dividend holding relief: previous incentives for holding shares for over three years have been canceled under the new law. (vko.kgd.gov.kz)
- Foreign worker (labour immigrant) taxation: a progressive scale applies—10% up to 8500 MRP, 15% beyond. Also, income up to the threshold (40×MRP per month) taxed minimal amount; income beyond minimal threshold minus a fixed-deduction (14×MRP) taxed accordingly. (vko.kgd.gov.kz)
Practical Strategies to Optimize Your Tax Position
- Plan shareholding and dividend timing: If you expect dividends near the threshold, structure payouts to minimize higher-rate exposure—maybe distribute smaller amounts early or combine share classes.
- Keep accurate documentation of ownership, foreign vs. resident address, and duration of holding. Without proof, old preferential dividend tax rates are no longer available. (vko.kgd.gov.kz)
- Evaluate legal residency vs. non-residency: If you qualify as a tax resident, you may benefit from different deductions and rates. For digital nomads toggling between countries, understanding whether you're taxed as resident or non-resident matters.
- Forecast foreign income streams: If you hold intellectual property, invest in foreign securities, or expect royalties, estimate how often these will trigger withholding tax.
Example Scenario
Say you're a foreign freelancer earning capital gains, royalties, or interest from Kazakhstan treaties or sources: under the new law, expect a flat 15% withholding tax on those incomes. If dividends also hit the 230,000 AEK threshold, split dividend payments around that boundary could yield savings.
Action Plan Before & After Moves
| Step | Before 2026 Moves | After 2026 Moves |
|---|---|---|
| Investment setup | Consider holding ≥25% ownership to get dividend rate benefits under old rules | Make sure ownership is documented; anticipate 5% vs 15% split in new law |
| Remote or gig work | Understand local tax treaties | Check if you’re taxed under non-resident or resident status; file required declarations by deadlines (e.g. 1 July) |
| Entity vs. personal tax | Use entity structures to reduce passive income exposure | Reconsider if keeping passive income personal might lead to better withholding rates |
Key Dates & Compliance
- 1 January 2026: New Tax Code effective for all parties. (vko.kgd.gov.kz)
- Dividend threshold and related rates apply immediately to payouts. (vko.kgd.gov.kz)
- Declaration deadline for income (non-resident workers and migrants): typically 1 July following tax period. (vko.kgd.gov.kz)
Final Recommendations
If you’re a digital nomad, foreign investor, or migrant worker in Kazakhstan:
- Plan dividends and passive income recognizing 5/10/15% rates.
- Obtain clear documentation on ownership percentage and legal status.
- Consult tax treaty schedules between your home country and Kazakhstan—they may offer relief or reduced rates.
- Keep informed on MRP thresholds, since many rates hinge upon them.