Expat Employment in Kazakhstan

Local employment contract

The expatriate enters into a direct employment contract with the Kazakhstani entity — full Labour Code protection applies, a work permit is required unless an exemption applies, and all Kazakhstani payroll taxes and social insurance contributions apply. This structure is straightforward but subjects the expatriate to the full Kazakhstani employment law regime and creates all employer obligations for the Kazakhstani entity.

Secondment agreement

The expatriate remains employed by the home country employer and is seconded to the Kazakhstani entity under a secondment agreement. A work permit is still generally required in Kazakhstan. Tax residence and social insurance obligations depend on the length and terms of the secondment. Bond Stone advises on structuring secondment agreements that balance home country employment continuity with Kazakhstani compliance requirements.

Dual employment structure

The expatriate maintains a contract with the home country employer (for home country benefits, pension, equity) and enters into a separate local contract with the Kazakhstani entity (for local salary, work permit, Labour Code compliance). This structure is often used for senior expatriates. Bond Stone advises on coordinating the two employment relationships. Tax treaties do not normally cover social contributions, so double contributions depend on each country's rules and any social security agreement.

Tax residence & social insurance

A foreign national present in Kazakhstan for at least 183 days in any consecutive 12-month period ending in the tax year is a Kazakhstan tax resident, as is one whose centre of vital interests is there. Residents pay personal income tax on worldwide income at 10%, and 15% on annual income above 8,500 MCI. Social insurance contributions apply to local employment income. Kazakhstan's double taxation treaties (55 in force on the State Revenue Committee's list of 28 April 2023) can change the position for residents of treaty states. Bond Stone advises on tax residence planning and coordinates with the employer's tax advisers on the overall expatriate tax position.