Taxes on Investments in Kazakhstan: What Investors Need to Take into Account

When an investor trades shares, bonds or ETFs, the question inevitably arises eventually: is tax payable on this? There is no unqualified “yes” or “no” here - everything depends on the type of income, the type of security, and where and how it was sold. Let us examine in which situations tax obligations arise for an investor in Kazakhstan, what the broker does, and what only the taxpayer can do.

When an Investor May Incur Tax Obligations

Obligations to pay Individual Income Tax (IIT) may arise in five typical situations:

• upon the receipt of dividends on shares;
• upon the receipt of coupon income on bonds;
• upon the sale of securities at a profit (capital gains);
• upon transactions with foreign assets - the purchase, sale or mere holding of foreign securities;
• where tax return is required - that is, the filing of a tax return, even if no actual tax is payable at the end of the year.

Important: there is no universal answer of the kind “an investor in Kazakhstan pays no tax” or “always pays tax”. Tax consequences depend on the type of income received, the applicable tax benefits, the country of tax residence and other circumstances.

Tax benefits are granted to investors by way of reducing the total amount of taxable income by the amount of income exempt from taxation. In other words, you are required to declare such income in the IIT return, and then reflect the amounts of income exempt from taxation in the relevant lines of the return. This is called an adjustment of taxable income. It is necessary so that the taxpayer declares all of income in the IIT return, irrespective of whether it is subject to taxation, and thereby expressly exercises right to the tax benefit.

Failure to declare such income in the IIT return is deemed a breach of tax legislation and may entail administrative fines or criminal liability.

* This material is devoted to individuals who are tax residents of Kazakhstan investing outside business activities. The rates and conditions above relate to income received in 2026 and are set out in the Tax Code of the Republic of Kazakhstan, including Articles 363, 387, 400, 417, 430 and 436. Where a tax return for 2025 is filed in 2026, the rules of the relevant reporting period apply. The provisions must be verified both as at the date of publication and as at the date of the investor's specific transaction.

Taxation of Income from Securities

Dividends

For an investor, dividends are a separate type of income, distinct from the result of buying and selling a share, and they are taxed under their own rules.

From 1 January 2026, a new Tax Code is in force in Kazakhstan, which introduced a separate progressive IIT scale for dividends: for taxable dividends for 2026, rates of 5% within 230,000 monthly calculation indices (MCI) for the year and 15% on the amount of the excess have been established. For the calculation of this threshold, the MCI effective as of 1 January of the corresponding financial year is applied. At the same time, for dividends on securities included in the official list of Kazakhstan exchanges, an exemption is provided: in addition to listing as at the date of accrual, the active trading criteria established by the Government of the Republic of Kazakhstan for the calendar year must be met. For AIX instruments, separate provisions of AIFC Law also apply.

If dividends are paid by a Kazakhstan issuer and no exemption applies, the tax is withheld by the issuer acting as a tax agent upon the payment of dividends. Nevertheless, a tax return of Form 270.00 may still be required - for example, if the aggregate amount of dividends received during the year exceeds the established threshold, or where other grounds for its filing exist. In respect of dividends subject to self-taxation, the tax obligations are discharged by the investor personally.

Capital Gains

The gain or loss for a tax period is determined as the difference between the sale price of a security and its initial cost. For short trades, this is the difference between the closing and opening price of the position. Income or loss from an increase in value is calculated on the FIFO principle (first in - first out). The law enshrines this method as the only possible one. This means that securities are written off in the order in which they were acquired. In other words, in determining the initial cost of securities, it is not the weighted average price of the security that is used, but the historical acquisition price.

Capital gains may be received from:

• Exempt securities
• Other securities

The following are exempt:

• Securities included, at the moment of sale, in the official lists of the stock exchanges of Kazakhstan - Astana International Exchange (AIX) and Kazakhstan Stock Exchange (KASE);
• Government bonds;
• Agency bonds;
• Units of open-ended and interval mutual investment funds;
• Shares of legal entity participants incorporated in the AIFC.

No exemptions are provided for other securities.

Capital gains upon the sale of exempt securities is exempt from taxation by way of an adjustment of taxable income. For this purpose, the capital gains on such securities must be declared in the tax return, and then that amount must be excluded from taxable income in the special lines. 

The result of the sale of securities may be positive or negative. A loss (a negative value) on the sale of securities reduces the profit (a positive value) on the sale of securities of the same category for the same tax period. If a loss arises from all transactions in securities of the relevant category for the reporting period, it is not carried forward to subsequent tax periods.

It is important to emphasise that the results of transactions in exempt securities and non-exempt securities are calculated separately. If a loss arises on exempt securities, it cannot be used to reduce the profit received from transactions in non-exempt securities. 

The initial cost of securities includes:

• the purchase price and the fee of the Kazakhstani broker for the acquisition (but not the sale) of the security. For securities bought under an option - the exercise price and the premium;
• the value indicated in the asset transfer document (if the asset was received upon the distribution of a company's assets);
• the amount of income previously declared in a declaration or received through a tax agent (if the securities were transferred as income);
• the amount of debt to be repaid (if the securities were received in settlement of a debt);
• the value previously accounted for in income (if the securities were received gratuitously);
• the market price at the time of receipt (if the securities were transferred by inheritance or as charity).

The initial cost must be confirmed by documents. If no documents exist, the cost is deemed to be zero.

Also, the initial cost of securities is always zero if the issuer of such securities is incorporated/registered in an offshore jurisdiction.

Upon the sale or a contribution of securities to the authorised capital, their cost is determined on the basis of the securities that were received first.

• “Non-Exempt” Securities mean securities the income from the sale of which does not meet the conditions for exemption. Income from their sale is subject to IIT on general grounds. The mere absence of a security from an exchange list is not sufficient for such a conclusion: other grounds for the exemption must also be checked.

How FIFO works, by example

Suppose an investor first bought 100 shares at KZT 1,000 each, then another 100 such shares at KZT 1,200 each, and later sold 150 shares at KZT 1,400 each. The prices are conventional; for simplicity, fees are not taken into account in this example.

Under FIFO, the first 100 shares are written off first from the sale, then 50 from the second purchase. Their cost is: 100 × 1,000 + 50 × 1,200 = KZT 160,000. The sale amount is: 150 × 1,400 = KZT 210,000. The result of the transaction is: 210,000 − 160,000 = KZT 50,000. The remaining 50 shares have not yet been sold and are not included in this calculation. Whether tax is payable on the result of the transaction depends on the entitlement to the exemption.

Taxes on Investments in Bonds

Coupon Income

Coupon income is exempt from IIT on debt securities whose issuers are established under the laws of the Republic of Kazakhstan, as well as on securities included in the official list of Kazakhstan stock exchanges as at the date of accrual of the income. Therefore, the absence of a bond from an exchange list does not in itself mean that the coupon is taxable. Where none of the grounds for exemption applies, the income is subject to IIT on general grounds, under the same progressive scale as the rest of the income falling under the general scale.

The status of a specific bond issue as at the date of accrual of the coupon, and whether the tax is withheld by a tax agent upon payment, should be verified against the offering materials of the security and the provisions of the Tax Code in force at the date of payment.
A selection of bonds reviewed by the analysts of Freedom Investments can be found in the “Bond Ideas” section.

Sale of a Bond Before Maturity

If an investor sells a bond on the secondary market before the maturity date, the result of the transaction is determined as the difference between the sale price and the initial cost of the security - under the same rules as for shares: the entitlement to the exemption is determined taking into account the type of security and the terms of the transaction, the FIFO method applies, and profits and losses are netted separately by group.

The calculation must also take into account information on accumulated coupon interest (ACI), which the investor receives from or pays to the counterparty upon the transaction. Coupon accruals and the settlement on the security itself must be distinguished: they cannot be combined into a single income amount without prior verification.

Redemption of a Bond

Upon the redemption of a bond by its issuer, the difference between the redemption amount (usually the par value) and the initial cost of the security is also taken into account in determining capital gains. In this case, the entitlement to exemption must be verified separately: the exemption granted for sale by open trading cannot be automatically applied to a redemption merely because the security is included in an exchange's official list. As in the case of a sale, the coupon component of the payment is accounted for separately from the redemption amount of the principal debt, subject to the rules for interest.

Foreign Securities and Assets

When entering the exchanges of the USA, Europe and Asia, a Kazakhstani investor acquires an additional layer of tax obligations.

• Income from foreign securities. Dividends, coupons and capital gains on securities of foreign issuers may create an obligation to independently calculate the tax and file a tax return in Kazakhstan. For each type of income, the existence of grounds for exemption must be verified separately.

The country that is the source of the income may withhold its own tax - for example, individuals who are not tax residents of the USA are taxed at a rate of 30% on income received from the USA. This applies, for example, to dividends and coupons on securities of US issuers. If you file a Form W-8BEN, you may claim the preferential tax rate on such income (the specific rate depends on your country of tax residence). However, Form W-8BEN itself does not confirm the fact of tax payment and does not substitute for the obligation to pay tax in Kazakhstan.

Form 1042-S is used to confirm the fact of tax withholding under US laws. It reflects the investor's income received from sources in the USA - dividends, coupons and similar payments. However, the form shows only the aggregate amount of income for each type of payment, without a breakdown by individual issuers - broker reports may be used for such a breakdown.

Form 1042-S is executed by investors without US citizenship, residence or tax residence. Only income in respect of which a Form W-8BEN was valid for the client as at the cut-off date is included in the individual form.

Important: under the Tax Code of the Republic of Kazakhstan, in order to offset the tax paid abroad against the Kazakhstan IIT, a confirmation of the payment of tax issued by the tax authority of the relevant country and signed by its authorized officer is required. Form 1042-S does not meet this requirement and therefore cannot be used to reduce the Kazakhstan IIT by the amount of tax withheld in the USA.

• Assets outside Kazakhstan. If, as at 31 December of the reporting year, investor-resident holds securities of foreign issuers, this creates a ground for filing tax return - irrespective of whether any income was received on those securities during the year. In certain cases, an initial assets and liabilities return (Form 250.00) is required; the holding of foreign shares does not always mean that Form 270.00 specifically must be filed. Money in accounts with foreign banks also creates a ground for filing tax return, if their aggregate balance at the end of the year cumulatively exceeds 1,000 MCI.

• Documents worth keeping. Broker reports and foreign account statements for each year, confirmations of the purchase and sale of securities, information on accrued dividends and coupons and, where possible, documents on tax withheld abroad, in case its offset needs to be confirmed subsequently.

Unqualified universal conclusions are best avoided here: the scope of obligations depends on the type of asset, the country of the issuer and the amount involved, so a specific case should be verified against the provisions in force or discussed with a tax adviser.

Tax Return 270.00: Who Files It and In Which Cases

Form 270.00 “Income and Property Tax Return for an Individual” is an annual tax return which, from 1 January 2025, replaced the former Form 240.00. It is in this form that income from transactions in securities, information on foreign assets and other data previously distributed among various reporting forms are now declared.

As at the date of preparation of this materials, the Form 270.00 is filed by:

• individuals who received income subject to self-taxation (other than income from business activities) during the year - for example, dividends or capital gains not taxed at the source of payment, including from foreign sources;
• owners of the property specified in Article 417 of the Tax Code as at the end of the reporting year - including foreign securities, foreign real estate and interest in the authorised capital of legal entities incorporated/registered outside the Republic of Kazakhstan, subject to the exemption for persons discharging the obligation to file an assets and liabilities tax return;
• persons holding money in accounts with foreign banks at the end of the year in an amount cumulatively exceeding 1,000 MCI;
• CEOs and founders (members) of legal entities and quasi-governmental sector entities falling within the conditions of subparagraph 2) of paragraph 1 of Article 417 of the Tax Code, including the condition of holding more than a 10% interest (shares), as well as their spouses who are residents; an exemption is provided for founders (members) of non-profit organisations;
• persons required to file tax returns under the anti-corruption, banking, insurance, and the securities market laws;
• persons who received dividends exceeding 230,000 MCI or income under the general scale exceeding 8,500 MCI during the year. An exemption applies to the second threshold: where the sole source of income is income of an employee from which the tax agent has already withheld IIT at the increased rate;
• persons who acquired during the year the property listed in the Tax Code, including securities, for a cumulative amount exceeding 20,000 MCI - subject to the exemption for persons discharging the obligation to file an assets and liabilities tax return;
• persons owning digital assets as at the end of the year.

A single one of the listed grounds is sufficient. Income below the specified thresholds does not in itself exempt from the filing of a tax return. The complete and current list of grounds for filing Form 270.00, including the threshold amounts in MCI and their tenge equivalents for a specific year, is best verified directly on the website of the State Revenue Committee or the eGov.kz portal - the composition of the categories changes from time to time.

Deadlines: the tax return is filed no later than 15 September of the year following the reporting year, and the IIT calculated therein must be paid within ten calendar days after the established filing deadline - usually no later than 25 September. In 2026, tax returns are filed for 2025: the rates and conditions for income received in 2026 cannot be automatically carried over to last year's transactions.

A video guide on preparing the 270.00 tax return will help you understand its completion. Check whether the version of the form shown in the video corresponds to your reporting year: the rules and fields of the tax return form may change.

Which Documents an Investor May Obtain From the Broker

• Report for the tax return:

– For clients of Freedom Finance Global PLC: https://fbroker.kz/taxreport  
– For clients of Freedom Finance JSC: https://almaty-ffin.kz/en/taxreport

• Broker Report – summary data on transactions and accruals for the selected year, which helps in preparing for the completion of the tax return.

If you have transferred securities between brokers, keep the documents from the former broker on the dates and cost of purchase. A statement of the current balance of securities does not substitute for the history of their acquisition.

It is important to understand: the completion and filing of the tax return is the obligation of the taxpayer. The information report helps to collect the data, but does not in itself substitute for the tax return and does not confirm the discharge of tax obligations. If there are discrepancies in the report, the investor should verify the transactions against the supporting documents. The broker also transmits, upon a request of the tax authority, information on transactions in securities. This does not substitute for the filing of the tax return by the client.

Answers to other practical questions regarding broker documents and reporting for taxation purposes are collected in the Freedom Investments Support Centre.

Example: What Data an Investor Needs To Collect Before Preparing the Tax Return

Suppose a tax resident of Kazakhstan is preparing a tax return for 2026. During that period, the tax resident sold part of shares, received dividends and coupons, and foreign securities remain in account. Let us examine what data the person will need. This is a training scenario: the amounts are conventional and do not reflect quotations, the broker's tariffs or the results of a specific client.

Sale of Shares. The investor received KZT 1,200,000 for the securities. He had bought them in a single lot for KZT 1,000,000 and paid KZT 5,000 in fee for the purchase. The result of the transaction: 1,200,000 − 1,000,000 − 5,000 = KZT 195,000.

For the calculation, documents on the purchase, the fee and the sale are needed, even if the purchase was made in a previous year. The investor then verifies the conditions of the tax exemption. For example, for the exemption on KASE to apply, the share must be included in the official list of the stock exchange as at the date of sale by open trading. Without the exemption, these KZT 195,000 are taken into account in calculating the overall result for non-exempt securities for the year.

Dividends. Dividends of KZT 200,000 were accrued to the investor during the year. The investor identifies them separately from the result of the sale of shares. If the entire amount is taxable, there are no other dividends for the year, and the 5% rate applies, the calculation will be 200,000 × 5% = KZT 10,000.

Coupons. The investor received KZT 50,000 on bonds of a company established under the laws of Kazakhstan. An exemption from IIT is provided for such income. The investor keeps the information on the coupon payment and the bond issue in order to substantiate the ground for the exemption. These KZT 50,000 should not be combined either with the dividends or with the result of the sale of shares.

Foreign Shares. As at 31 December, the investor holds shares of a US company. He did not sell them during the year and received no payments thereon. This is not income from a sale, but the holding of such securities creates a ground for the filing property tax return. The investor takes a statement of the balance of securities as at the end of the year and verifies which form he must file, taking into account the rules for Forms 250.00 and 270.00. The absence of payments on the shares does not exempt the investor from filing tax return.

In the end, the investor collects the broker report for 2026, the documents on the original purchase of the shares sold, information on dividends, coupons and tax withheld, as well as a statement of foreign securities as at the end of the year. He now has the data for the calculation: KZT 195,000 from the sale, KZT 200,000 in dividends and KZT 50,000 in coupons.

They cannot be added together and multiplied by a single rate: each type of income has its own rules. Before filing the tax return, the investor verifies the requirements and deadlines in force specifically for reporting for 2026.

Frequent Investor Mistakes

• Relying on outdated rules. Tax legislation changes regularly in Kazakhstan, and an entirely new Tax Code has come into force from 2026 - what was correct a year or two ago may no longer apply.

• Not keeping broker documents. Statements for previous years can be difficult to reconstruct post factum, especially if the account has been closed or the broker has changed.

Important: at Freedom Investments, all reports and statements are available online and can be downloaded in the trading platform, including for past periods.

• Treating all types of investment income as the same. Dividends, coupons and capital gains are taxed under different rules and at different rates - combining them in a single calculation is incorrect.

• Not taking foreign assets into account. Even without actual income, the holding of foreign securities as at the end of the year may create an obligation to file tax return.

• Confusing capital gains with the entire sale amount. Taxable income is the difference between the sale price and the purchase price (subject to certain adjustments, such as for fee), and not the entire amount received from the sale of the security.

• Using information from unofficial sources without verification. Forums, blogs and social media posts may be a source of ideas, but for decision-making purposes, the figures and rules should be verified against the Tax Code and official clarifications of the tax authorities.

Frequently Asked Questions

Should the profit be declared if the money remains in the brokerage account?

Yes. If securities were sold at a profit and the money has not been withdrawn to a bank account, this does not extinguish the tax obligations. Buying other shares with the proceeds likewise does not cancel the result of the previous sale. Completed transactions and the applicable exemptions matter for the calculation, not the amount of the withdrawal.

Can the profit be reduced by the fall in the value of shares that have not yet been sold?

No. A decline in quotations in the portfolio does not constitute a loss from a sale. Say, an investor earned KZT 100,000 on sold securities, while other shares in his portfolio fell in value by KZT 70,000. Until those shares are sold, the result cannot be reduced to KZT 30,000. After the sale, the possibility of taking the loss into account depends on the tax period and on the group to which the securities belong - exempt or non-exempt.

Why does the profit in the Freedom Broker platform differ from the amount in the information tax report?

One of the reasons is different methods of calculating the purchase cost. The Freedom Broker transaction report uses the weighted average price, whereas FIFO applies for the tax calculation: securities bought earlier are taken into account first. If you bought shares of the same company in several lots at different prices, the results may differ. For this reason, the profit metric from the trading report should not be carried over into the tax return without verification.

If I bought foreign shares through a Kazakhstani broker, do they count as foreign assets?

Yes. What matters is where the issuer is incorporated/registered, not through which broker the shares were bought. If the company is incorporated/registered outside Kazakhstan, its shares remain foreign securities even when purchased on a Kazakhstan exchange. Holding them as at 31 December creates a ground for filing tax return. At the same time, the exemption of income from tax and the obligation to report the holding of shares are separate questions.

References and Useful Materials

• State Revenue Committee: Tax Code of the Republic of Kazakhstan dated 18 July 2025, No. 214-VIII
• KASE trading results for taxation purposes
• KASE: list of categories of securities in respect of which tax exemptions are granted
• Freedom Investments Support Centre
• Video guide on the completion of Form 270.00 using the Freedom Investments information report