Tax

The Tax Committee serves as a key forum for member companies to address developments in Kazakhstan’s tax legislation and enforcement practices. Bringing together senior finance, legal, and tax professionals, the Committee identifies practical challenges, formulates joint positions on key policy issues and advocates for transparent, consistent, and investment-friendly tax regulation.

Working Groups/Issues

Issue	Short description	Status
Overuse of Royalties	“Royalties” under the tax code of the Republic of Kazakhstan has been adapted to a broad definition and vast application. The expansive use of this classification has led to excessive taxation of services, hurting the taxpayers and competitive climate of Kazakhstan.	On hold
Late VAT Refund	The removal of penalty relief for delayed VAT refunds in the new Tax Code remains unresolved. The issue is considered a policy matter rather than a technical one, affecting cash flow and predictability for taxpayers.	On hold
Excise Tax on Beer	Recurring increases in excise taxes on alcohol and energy drinks raise production, retail costs and affect market competitiveness.	Ongoing
SME Deductions	The new Tax Code provision prohibiting deductions for expenses related to individual entrepreneurs under the simplified tax regime poses risks for companies working with SMEs, potentially limiting collaboration, increasing tax burdens, and discouraging small business development.	Ongoing
Islamic Finance	The absence of clear tax treatment for Murabaha financing in the new Tax Code creates uncertainty, particularly for transactions involving non-bank funders. This raises withholding tax risks and limits the practical use of Islamic finance instruments in Kazakhstan.	Watchlist
Customs Duties and Increased Dividends	Cases were discussed where customs authorities include dividends paid to parent companies in the customs value of imported goods, leading to additional duties. Audits on this issue are largely suspended, while court practice remains inconsistent and continues to evolve.	Watchlist

Frequency of Meetings

Committee Meetings – quarterly
Working Group Meetings – by request

Key Achievements

Positive progress in Overuse of Royalties Issue:

Definition of “know-how” included in Tax Code.
Services related to servers/hosting excluded from royalties

PM Council for Improving the Investment Climate

February 21, 2025 – Issue raised at the Prime Minister’s Council for Improving the Investment Climate.

Engagement with Goverment

February 21, 2025 – Issue raised at the PM’s Council.
May 16, 2025 – Official letter submitted to the Senate.
May 22, 2025 – Working meeting held with the representative of the Committee for State Revenues (KGD) Erlan Sagnayev.
May 27, 2025 – Extended online meeting with the Senate Finance and Budget Committee.
May 30, 2025 – Additional follow-up meeting with the Senate Finance and Budget Committee.
November 5 – Letter submitted to the Prime Minister on SME deduction provisions.
November 5 – Letter sent to the Ministry of Finance regarding excise tax issues.
November 21 – Zoom meeting with the First Deputy Minister of National Economy Azamat Amrin on SME deductions.

How to Join an AmCham Committee

Participation in AmCham committees is open exclusively to AmCham Kazakhstan members.

To join a committee, please sign in to your Member Portal and submit your request directly through the platform. Once submitted, our team will review your request and confirm your participation.