Anticipated to be finalized and adopted in July 2025, the new tax reforms for Kazakhstan would go into effect in January 2026. This LawFlash summarizes the taxation of income from capital gains when selling shares and participatory interests in accordance with the draft of the new Tax Code of Kazakhstan.
In general, income from capital gains when selling shares (participatory interests) is a positive difference between the sale value and the initial value (Article 251.1 and Article 252.1). Such income is recognized as taxable income for all categories of taxpayers:
- Resident legal entities (Article 237.2(2))
- Resident individuals (Article 371.2(12))
- Non-resident legal persons (Article 679.1(7))
- Non-resident individuals (Article 692.1)
The tax rate depends on the recipient of income:
- For resident legal entities (Article 357): 20% (general rate)
- For resident individuals (Article 363(1)): 10% (with an increase to 15% if the statutory threshold value is exceeded)
- For non-resident legal entities (Article 682.1(5)): 15% (20% for residents of countries with preferential tax treatment)
- For non-resident individuals (Article 682.1(5)): 15% (20% for residents of countries with preferential tax treatment)
The tax collection mechanism depends on the recipient of income:
- Resident legal entities include income from capital gains into the aggregate annual income (Article 237.2(2))
- Resident individuals pay tax on income from capital gains independently (Article 382.3, Article 386, Article 387 and Article 405.1)
- For non-residents, the tax is withheld by the tax agent (subject to statutory exceptions) (Article 683 and Article 692)
- Tax may also be recovered from a resident legal entity (the sold shares or participation interests of which are secured by its property) if the obligation to pay the tax is not fulfilled (Article 687.15)
EXCEPTIONS
The Tax Code provides for a number of exemptions and exclusions from tax on capital gains, such as:
- In the case of sale through open tender on a stock exchange functioning on the territory of Kazakhstan (KASE and AIX) of securities which on the day of such sale are officially listed on the stock exchange (Article 337.2(5), Article 400.1(6) and Article 681.1(4))
- In the case of sale of shares issued by a resident legal entity or participatory interests in a resident legal entity established in Kazakhstan, provided that the shares or participatory interests have been held for more than three years (if the object is not related to subsoil use in Kazakhstan) (Article 337.2(7) and Article 400.1(4)). However, this rule applies only to residents receiving income; previously this exemption was also applicable to non-residents