Statutory repatriation right — Law on Investments Article 11

Foreign investors have a statutory right under Chapter 25 of the Entrepreneurial Code to transfer abroad in freely convertible currency: dividends and other income from investments; amounts received from the sale or liquidation of investments; and compensation received in connection with expropriation. This right is exercised after payment of applicable Kazakhstani taxes. The right is reinforced by Kazakhstan’s BIT network — most of Kazakhstan’s 50+ BITs contain explicit profit repatriation guarantees.

Dividend repatriation procedure

The dividend repatriation procedure in Kazakhstan requires: a general meeting of participants resolving to distribute profits; calculation and withholding of dividend withholding tax (15% standard rate — reduced by applicable DTT); and transfer of the net dividend to the foreign shareholder’s bank account abroad through a Kazakhstani bank. The Kazakhstani bank is required to verify the lawfulness of the transaction before processing. Bond Stone advises on the full dividend repatriation procedure and tax optimisation.

Currency control — Law No. 57 (2018)

The Law on Currency Regulation and Currency Control No. 57 dated 2 July 2018 governs currency transactions in Kazakhstan. Key requirements: registration of certain currency transactions with the National Bank; mandatory currency repatriation for export proceeds above specified thresholds (exporters must repatriate 50% of foreign currency earnings within 180 days); and reporting obligations for certain cross-border transfers. Bond Stone advises on currency control compliance for foreign-invested Kazakhstani entities.

Intercompany loans — thin capitalisation

Intercompany loans from a Kazakhstani subsidiary to its foreign parent are a common profit repatriation mechanism — but are subject to transfer pricing rules and thin capitalisation restrictions under the Tax Code. Deductibility of interest payments to related parties is limited where the debt-to-equity ratio exceeds 4:1. Bond Stone advises on structuring intercompany financing arrangements to optimise tax efficiency while complying with Kazakhstani transfer pricing rules.

Withholding tax — DTT optimisation

Dividend payments from a Kazakhstani entity to a foreign shareholder are subject to 15% withholding tax under the Tax Code. This rate is reduced under applicable double taxation treaties — to 5% for qualifying corporate shareholders holding at least 25% of the paying company under many of Kazakhstan’s DTTs. Bond Stone advises on DTT eligibility and the documentation required to apply a reduced treaty rate.

Dividend Repatriation — Energy Sector

Repatriation · Kazakhstan · Energy

Advising a foreign energy investor on dividend repatriation from a Kazakhstani subsidiary — withholding tax treaty analysis, participant resolution, bank transfer procedures, and National Bank currency control compliance.

DTT Application — Chinese Parent

Repatriation · Kazakhstan · China · Tax

Advising a Chinese parent company on applying the China-Kazakhstan double taxation treaty to reduce dividend withholding tax — beneficial ownership analysis, treaty documentation requirements, and 5% rate application.

Intercompany Loan Structuring

Repatriation · Kazakhstan · Corporate

Advising on structuring an intercompany loan from a Kazakhstani subsidiary to its foreign parent — thin capitalisation analysis, transfer pricing documentation, interest deductibility, and withholding tax on interest payments.

Currency Control Compliance — Export Proceeds

Repatriation · Kazakhstan · Trade

Advising an export-oriented Kazakhstani company on mandatory currency repatriation requirements — 50% repatriation obligation, 180-day timeline, National Bank reporting, and exemption assessment for qualifying transactions.

Liquidation Proceeds — Investment Exit

Repatriation · Kazakhstan · Corporate

Advising a foreign investor on repatriation of liquidation proceeds from a Kazakhstani entity — tax treatment of liquidation distributions, currency control compliance, and transfer procedure through a Kazakhstani bank.

Royalty Repatriation — Technology Licence

Repatriation · Kazakhstan · Technology

Advising on repatriation of royalty payments from a Kazakhstani licensee to a foreign licensor — withholding tax treaty analysis, mandatory registration requirements, and currency control compliance.