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Obtaining of BIN

If it is necessary to open a bank account for a foreign company in the Republic of Kazakhstan, firstly such
company should obtain a business identification number (hereinafter – BIN) through the procedure of
registration as the taxpayer on the territory of the Republic of Kazakhstan. It is worth noting that the issue
of the occurrence of tax liabilities depends on the purposes of obtaining a BIN and opening a bank account.

Case 1

According to paragraph 1 of Article 76 of the Tax Code of the Republic of Kazakhstan, “A non-resident
legal entity operating through a permanent establishment without opening a branch, representative office,
for registration as a taxpayer, taking into account the provisions of Article 220 of this Code, is obliged to
submit to the tax authority at the place of residence within thirty calendar days from the date of
commencement of activity in the Republic of Kazakhstan through a permanent establishment the location
of a permanent establishment of a tax application for registration”.

The permanent establishment of a non - resident includes:

  1. any place of production, processing, picking, packing, packaging and (or) delivery of goods;
  2. any control location;
  3. any place of geological exploration of the subsoil, exploration, preparatory work for the extraction
    of minerals and (or) mining and (or) performance of works, provision of services for the control and (or)
    supervision of exploration and (or) mining;
  4. any place of activity (including control or supervisory) related to the pipeline;
  5. any place of installation, installation, assembly, commissioning, start-up of equipment. At the same
    time, a permanent establishment is formed when at least one of these types of activities is carried out with
    subsequent maintenance of such equipment;
  6. any place of activity related to the installation, commissioning and operation of slot machines
    (including consoles), computer networks and communication channels, attractions, as well as related to
    transport or other infrastructure;
  7. place of sale of goods on the territory of the Republic of Kazakhstan. At the same time, a non-
    resident forms a permanent establishment when selling goods at exhibitions and fairs held on the territory of the Republic of Kazakhstan, if such sale lasts more than 10 calendar days;
  8. any place where construction activities and (or) construction and installation works are carried
    out, as well as the provision of services for monitoring the performance of these works;
  9. location of a branch or representative office, with the exception of a representative office carrying
    out activities of a preparatory and auxiliary nature that differ from the main activity of a non-resident;
  10. location of the person carrying out intermediary activity in the Republic of Kazakhstan on behalf
    of a non-resident in accordance with the Law of the Republic of Kazakhstan “On Insurance Activity”;
  11. location of a resident-participant of a joint activity agreement concluded with a non-resident in
    accordance with the legislation of a foreign state or the Republic of Kazakhstan if such joint activity is
    carried out on the territory of the Republic of Kazakhstan;
  12. the place of rendering services, performing works not specified in the preceding paragraphs,
    through employees or other personnel hired by a non-resident for such purposes, if the activity of this
    nature continues on the territory of the Republic of Kazakhstan for more than 183 calendar days within
    any consecutive 12-month period from the date of commencement of entrepreneurial activity within the
    framework of one project or related projects.

Thus, if a foreign company operates on the territory of the Republic of Kazakhstan without forming a
legal entity, then such a foreign company operates through a dependent agent.

If a non-resident carries out business activities in the Republic of Kazakhstan through a dependent agent
(natural or legal person), then such a non-resident will be considered as having a permanent establishment
in connection with any activity that the dependent agent carries out for this non-resident.

At the same time, the dependent agent must simultaneously meet the following conditions:

  • be authorized on the basis of contractual relations to represent the interests of a non-resident in the
    Republic of Kazakhstan, act and (or) perform certain legal actions on behalf of and at the expense of a
    non-resident;
  • the specified activity is carried out by him not within the framework of the activities of a customs
    representative, a professional participant in the securities market and other brokerage activities (except
    for the activities of an insurance broker);
  • its activities are not limited to activities of a preparatory and auxiliary nature.

Taxation

Non-residents who receive net income from activities on the territory of Kazakhstan through a permanent
establishment also pay a tax on net income at the rate of 15 percent. The procedure for taxation of such
non-resident income is regulated by tax legislation.

Case 2

Also, if a foreign company plans to provide online services through its website on the territory of the
Republic of Kazakhstan, then according to paragraph 1 of Article 778 of the Tax Code of the Republic of
Kazakhstan, “For conditional registration as a taxpayer, a foreign company sends a confirmation letter by
mail on paper to the tax authority with the indication:

  1. the full name of the foreign company;
  2. tax registration number (or its equivalent), if there is such a number in the country of incorporation or
    the country of residence of a non-resident;
  3. state registration numbers (or its equivalent) in the country of incorporation of a non-resident or the
    country of residence of a non-resident;
  4. bank details from which the value-added tax will be paid when carrying out electronic trade in goods,
    rendering services in electronic form to individuals;
  5. a list of details, including merchant ID data, used for accepting payments and (or) money transfers;
  6. postal details (official email address, address of the location in the country of incorporation or the
    country of residence of a non-resident)”.

According to paragraph 1 of Article 779 of the Tax Code of the Republic of Kazakhstan, "A foreign company is recognized as a payer of value added tax:

  • through the Internet platform where electronic trade in goods is carried out;
  • providing services in electronic form.”

Taxation

According to Part 3, paragraph 1 of Article 780 of the Tax Code of the Republic of Kazakhstan, “A foreign
company is obliged to pay the calculated value-added tax when carrying out electronic trade in goods,
rendering services in electronic form to individuals to the budget, for each quarter no later than the 25th
day of the second month following the quarter in which the sale of goods, provision of services was carried
out.”

Case 3

If a foreign company opens a bank account only without the purpose of doing business on the territory of
the Republic of Kazakhstan, then the foreign company will not incur taxes.

In this case, the foreign company has only obligations to pay for banking services.

It is also worth noting that when funds are received into the bank account of a foreign company in the
Republic of Kazakhstan, in this case, the authorized bodies for regulation and development of the financial
market may have questions about the origin of funds.

In case of questions from the authorized body, the foreign company will have to provide a package of
documents confirming the legal receipt of funds.

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