In 2026, the term “profit tax” does not refer to a single tax for everyone: the profit of a controlled foreign company is subject to corporate or individual income tax in Kazakhstan, depending on the taxpayer (Article 335 of the Tax Code of the Republic of Kazakhstan), while subsoil users pay excess profits tax according to a separate sliding scale (Article 808 of the Tax Code of the Republic of Kazakhstan). Therefore, the type of obligation and taxable income are determined based on the status of the profit recipient and the nature of the activity.
Which Profit Tax Applies in Kazakhstan
The query “profit tax in Kazakhstan” does not in itself identify a specific obligation. Before making the calculation, an accountant should establish:
- who receives the income—a legal entity, a sole proprietor, or an individual;
- whether the recipient is a resident of Kazakhstan;
- which tax regime the recipient applies;
- what type of income it is;
- whether the transaction is related to subsoil use;
- whether the profit relates to a controlled foreign company or its permanent establishment;
- whether the documents required to determine the relevant tax obligation are available.
The terms “corporate profit tax,” “profit tax of the Republic of Kazakhstan,” and “profit tax for sole proprietors” cannot automatically be regarded as referring to the same tax. In particular, the aggregate profit of controlled foreign companies and their permanent establishments is recognized as taxable income and is subject to corporate or individual income tax in the Republic of Kazakhstan. Aggregate profit is calculated taking into account the resident’s share of direct, indirect, or constructive participation or control and the positive amount of the financial profit of the relevant foreign company or permanent establishment (Article 335 of the Tax Code of the Republic of Kazakhstan).
If the profit of a controlled foreign company is attributable to a resident individual, its aggregate amount is included in that individual’s annual income, is subject to individual income tax in Kazakhstan, and is reported in the individual income tax return. The article also provides for cases in which the financial profit of a controlled foreign company or its permanent establishment is exempt, provided that the prescribed conditions are met and supporting documents are available (Article 399 of the Tax Code of the Republic of Kazakhstan).
The wording “2 profit taxes” requires separate attention. It may describe different tax obligations or the duplicate recognition of a single transaction in the accounting records. The cited provisions do not establish a separate type of tax bearing this name. The accountant should separate transactions by taxpayer, type of income, and grounds for taxation and then reconcile them with the tax returns and payment purposes.
Profit Tax Rate and Amount in 2026
The amount of the obligation depends on the type of tax and the procedure for determining taxable income. For the profit of controlled foreign companies, Article 335 provides for the calculation of aggregate profit taking into account the resident’s share of participation or control and the positive amount of the financial profit of each controlled foreign company or its permanent establishment (Article 335 of the Tax Code of the Republic of Kazakhstan). These rules cannot be replaced with the procedure for calculating excess profits tax.
A special sliding scale is established for excess profits tax. Where net income is allocated at a level of up to and including 25% of the amount of deductions, no rate is established. Rates of 10, 20, 30, 40, and 50% apply to the subsequent levels, while a rate of 60% applies to the level exceeding 70%. This scale is applied by a subsoil user when calculating excess profits tax and is not a general scale for taxing the profits of any business (Article 808 of the Tax Code of the Republic of Kazakhstan).
Taxable income for excess profits tax is determined as the difference between aggregate annual income under the subsoil use contract and the corresponding deductions, taking into account the reduction provided for by the Code. If deductions exceed aggregate annual income for the tax period, the excess is carried forward to be offset against taxable income in subsequent consecutive tax periods (Article 802 of the Tax Code of the Republic of Kazakhstan).
Thus, an accountant must not apply the scale from Article 808 to the ordinary income of an organization or sole proprietor. It applies only to the special obligation of a subsoil user, and its tax base is calculated under the rules of Article 802 of the Tax Code of the Republic of Kazakhstan.
To determine the amount of the obligation in 2026, the accountant should check the following in sequence:
- the taxpayer’s status and tax regime;
- the composition of income for the relevant period;
- the economic substance of each material transaction;
- the availability of supporting documents;
- whether the income relates to the profit of a controlled foreign company;
- whether the obligation is related to a subsoil use contract;
- the applicable procedure for determining taxable income and the applicable rate;
- the reporting of the calculated amount in the relevant tax return.
If the search query is worded as “profit prof tax,” it concerns the same topic but contains a typo. For calculation purposes, what matters is not the colloquial name of the payment but the legal classification of the income, the taxpayer’s status, and the specific provision applicable to the transaction.
Payment of Profit Tax: What an Accountant Should Check
The work should begin by reconciling the accounting records and documents. Income is matched against contracts, certificates, invoices, bank statements, and other source documents. It is then determined which taxpayer and type of obligation each amount relates to. This makes it possible to separate the business’s own income from the profit of a controlled foreign company and from indicators under a subsoil use contract.
If there are controlled foreign companies, the resident’s share of direct, indirect, or constructive participation or control and the positive amount of the financial profit of each such company or its permanent establishment must be determined. These are the indicators used to calculate aggregate profit (Article 335 of the Tax Code of the Republic of Kazakhstan).
A resident individual must ensure that the aggregate profit of controlled foreign companies and their permanent establishments is included in annual income and in the individual income tax return. If an exemption provided for specific cases is applied, the individual must have the supporting documents specified by the Code (Article 399 of the Tax Code of the Republic of Kazakhstan).
When calculating excess profits tax, the accountant must maintain records of the indicators under the relevant subsoil use contract: aggregate annual income, deductions, and the carryforward of excess deductions to subsequent consecutive tax periods. This calculation is performed under the special rules for excess profits tax (Article 802 of the Tax Code of the Republic of Kazakhstan).
Before reporting and paying the obligation, it is useful to perform a control procedure:
- reconcile the tax calculation with the accounting registers and source documents;
- eliminate duplicate recognition of income or payment;
- separate the taxpayer’s own income from the profit of controlled foreign companies;
- verify the share of participation or control used to calculate aggregate profit;
- separately verify the indicators for each subsoil use contract;
- match the level of net income allocation to the corresponding excess profits tax rate;
- verify the purpose of each transfer and its reporting in the tax returns;
- retain the calculation and supporting documents.
The cited provisions do not establish a single deadline for payment and filing applicable to all the situations mentioned. The specific obligation is first classified as corporate income tax, individual income tax, or excess profits tax, after which the reporting and payment procedure established for that obligation is applied.
Frequently Asked Questions
Which profit tax do organizations pay in Kazakhstan? — The term “profit tax” is insufficient to identify the payment. For example, the aggregate profit of controlled foreign companies is recognized as taxable income and is subject to corporate or individual income tax, depending on the taxpayer (Article 335 of the Tax Code of the Republic of Kazakhstan).
What is the profit tax rate in 2026? — A single rate cannot be applied to all situations. A sliding scale is provided for a subsoil user’s excess profits tax: the rate depends on the level of net income allocation, and no rate is established at a level of up to and including 25% (Article 808 of the Tax Code of the Republic of Kazakhstan).
Does a sole proprietor pay profit tax? — An entrepreneur’s tax obligation is determined based on their status, regime, and type of income. The rules on the profit of controlled foreign companies provide for it to be subject to corporate or individual income tax, depending on which resident earns the taxable income (Article 335 of the Tax Code of the Republic of Kazakhstan).
How is the profit of a controlled foreign company taxed for an individual? — Aggregate profit is included in the annual income of a resident individual, is subject to individual income tax in Kazakhstan, and is reported in the individual income tax return (Article 399 of the Tax Code of the Republic of Kazakhstan).
How is excess profits tax calculated? — First, taxable income under the contract is determined as the difference between aggregate annual income and deductions, taking into account the prescribed reduction, and then the sliding scale of rates is applied (Articles 802, 808 of the Tax Code of the Republic of Kazakhstan).
Can excess profits tax be regarded as an ordinary profit tax? — No. It is a special obligation of a subsoil user, calculated under a subsoil use contract and a separate sliding scale (Articles 802, 808 of the Tax Code of the Republic of Kazakhstan).
Sources
- Article 335. Taxation of the Profit of a Controlled Foreign Company
- Article 399. Taxation of the Profit of a Controlled Foreign Company
- Article 802. Taxable Income for the Purposes of Calculating Excess Profits Tax
- Article 808. Calculation of the Maximum Amount of Net Income Allocation for the Purposes of Calculating Excess Profits Tax