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Kazakhstan, formally the Republic of Kazakhstan, is a transcontinental landlocked republic in Central Asia and Eastern Europe. It is bounded to the north and west by Russia, to the east by China, to the southeast by Kyrgyzstan, to the south by Uzbekistan, and to the southwest by Turkmenistan. Its capital is Nur-Sultan, which was formerly known as Astana until 2019. Until 1997, Kazakhstan's capital was Almaty, the country's biggest city. Kazakhstan is the world's biggest landlocked nation, the largest Muslim-majority country by geographical area (and the northernmost), and the world's ninth-largest country overall. It boasts a population of 19 million people and one of the world's lowest population densities, with less than 6 people per square kilometer (15 people per square mile).
The nation is economically and politically dominant in Central Asia, accounting for 60% of the region's GDP, mostly via its oil and gas sector; it also has huge mineral resources. It is a democratic, secular, unitary, constitutional country with a diversified cultural legacy, according to official documents. Kazakhstan is a member of the United Nations, the World Trade Organization, the Commonwealth of the Independent States, the Shanghai Cooperation Organization, the Eurasian Economic Union, the Collective Security Treaty Organization, the Organization of Islamic Cooperation, the Organization of Turkic States, and the International Organization of Turkic Culture.
Kazakhstan's area has traditionally been populated by nomadic people and empires. The ancient Iranian nomadic Scythians occupied the region in antiquity, and the Achaemenid Persian Empire extended into the contemporary country's southern territory. Turkic nomads with ancestors in several Turkic republics, including the First Turkic Khaganate and the Second Turkic Khaganate, have occupied the land since the 6th century. The Mongol Empire, led by Genghis Khan, controlled the country in the 13th century. The Kazakh Khanate captured most of the country that would eventually become modern Kazakhstan in the 15th century.
The Kazakhs evolved as a separate Turkic community by the 16th century, split into three jüz. Throughout the 18th century, they attacked Russian land, prompting the Russians to expand into the Kazakh Steppe; by the mid-19th century, the Russians technically dominated all of Kazakhstan as part of the Russian Empire and released all of the slaves taken by the Kazakhs in 1859. Kazakhstan's territory was reconstructed numerous times after the 1917 Russian Revolution and the subsequent commencement of the Russian Civil War. Within the Soviet Union, it was created in 1936 as the Kazakh Soviet Socialist Republic. During the breakup of the Soviet Union from 1988 to 1991, Kazakhstan was the last of the Soviet republics to proclaim independence. Human rights groups have labeled Kazakhstan's government as authoritarian and the country's human rights status as deplorable.
Employees are entitled to 24 days of paid vacation each year.
Kazakhstan recognizes twelve public holidays.
Employees are entitled to three days of paid sick leave each year. For serious sickness, the entitlement may be increased to 6 days.
Mothers are entitled to 126 days of maternity leave, which is split into 70 days prior to the planned due date and 56 days after the infant is born. During a stressful birth, leave will be prolonged for a further 14 days.
If a mother lives in an environment where nuclear tests are conducted, maternity leave is split into 90 days before and 70 days after the scheduled due date. Maternity leave is shouldered by the employer.
There are no legal protections in place for paternity leave.
When the child hits the age of three, parents or friends are entitled to unpaid leave to care for the child.
Up to 5 calendar days of unpaid leave for marriage; the birth of a child; and the death of a relative.
An employer must send written notification to the employee that the employment arrangement has been terminated.
Employers must provide a termination letter on the last day of work that includes the cause for termination.
Employers must produce an employment certificate upon request that includes information on the employee's dates of work, the nature of the job, the salary, and a recommendation. This letter must be provided within five business days of the request date.
One month's notice is required. Payment in lieu of notice might be offered if the employee agrees.
Probationary periods in Kazakhstan usually last three months.
There are no provisions in the law regarding severance pay.
The standard workweek is 40 hours long. Five-day workweeks are the norm, but a business may opt for a six-day workweek if it better suits its needs. Businesses engaged in creative or athletic endeavors have some latitude in establishing their own schedules.
Between the ages of 14 and 16, employees are not permitted to work more than 24 hours per week. Individuals between the ages of 16 and 18 are limited to 36 hours per week. Additionally, employees who perform exceptionally difficult or hazardous jobs are limited to 36 hours per week. Additionally, employees under the age of 18 and pregnant women who have provided the employer with a medical certificate of pregnancy are not permitted to work between the hours of 10 p.m. and 6 a.m.
Mothers of children under the age of seven, individuals raising children under the age of seven without the child's mother, and individuals caring for a disabled child under the age of sixteen may work only between the hours of 10:00 p.m. and 6:00 a.m. with written consent. Disabled individuals may work during these hours only with written consent and are not otherwise prohibited by a physician. Employees who work at night must be compensated at a rate that is at least 150 percent of their standard hourly or daily rate, with the specific night rate typically determined by contract.
In general, the employee and employer must agree in writing on overtime work. Overtime cannot exceed two hours per day for non-hazardous work and one hour for hazardous work. Additionally, overtime hours cannot exceed 12 per month. Overtime is compensated at 150 percent of the regular rate of pay. Additionally, 1 hour of unpaid leave can be granted for every hour of overtime.
The monthly minimum wage in Kazakhstan is 42,500.00 KZT.
Kazakhstan has progressed toward a single-payer, universal health-care system that is partially funded by the government and partially funded by employers and employees.
Employers must contribute 2% of payroll beginning in 2020. Employees will also be required to contribute 2% of their earnings beginning in 2021.
Housing allowances, transportation allowances, company cars, and education allowances are some of the most common employee benefits in Kazakhstan.
The corporate tax rate is 20% and is applied on a calendar year basis. Corporate income tax applies to all Kazakhstan legal companies and branches of foreign legal organizations (CIT). Taxable income is calculated by subtracting the taxpayer's total yearly income from allowed deductions.
Resident businesses are taxed on their global earnings in Kazakhstan, while non-resident companies operating via a permanent presence in Kazakhstan are taxed solely on the income due to that permanent establishment.
Non-residents without a permanent presence in Kazakhstan who receive income from Kazakhstan-sourced sources are usually liable to income tax withheld at the point of payment on Kazakhstan-sourced income.
The qualifying agricultural income of legal companies producing agricultural goods is subject to a lower CIT rate of 6%.
Furthermore, taxpayers operating in special economic zones (SEZs) may be excluded from CIT provided specific legislative criteria for such advantages are fulfilled.
A single flat rate of 10% (in certain instances 20%) applies to the majority of personal income; 5% applies solely to dividends earned in Kazakhstan.
VAT is now levied at a rate of 12%. This tax is levied on the purchase price of products, works, and services, as well as imports. Goods exports and international transportation services are taxed at 0% VAT. There is a list of VAT-exempt products, works, and services (e.g. sales of medicines, financial services provided by financial institutions, financial leasing services, notary and advocacy services, operations with financial securities and investment gold, loan transactions).
In 2021, the mandatory VAT registration level will remain at 30,000 MCI. The VAT threshold for individual businesses utilizing special tax regimes is set at 114,184 MCI.
The threshold will be lowered to 20,000 MCI beginning in 2022. A calendar quarter is used for VAT reporting.
All foreign citizens who want to visit Kazakhstan must get a visa. A visa to Kazakhstan may be acquired via diplomatic/consular services. Business, tourist, transit, diplomatic, official, investment, work, student, and medical visas are all available.
Kazakhstan's immigration system gives numerous alternatives for employers of foreign nationals. Nationals of Armenia, Belarus, Kyrgyzstan, and Russia are not required to get a visa or a work permit. The requirements, processing dates, work eligibility, and perks for accompanying family members differ depending on the kind of visa.
Unless they are visa free due to their nationality, business travellers must get a business visa before traveling. Business visas are classified into three classes (B1, B2, and B3) based on the purpose of the visit. Business visas may be awarded for single, double, or multiple entries; visa validity varies depending on the kind of visa.
The Work Permit is used by skilled professionals. The validity of a work permit spans from one to three years, depending on the status of the foreign national. Renewal possibilities differ according to work permit category.
Employment contracts may be for a set amount of time or for an unlimited period of time.
In Kazakhstan, it is legally essential to have a written employment contract in the local language that specifies out the conditions of the employee's remuneration, benefits, and termination requirements. In Kazakhstan, an offer letter and job contract should always mention the salary and any other compensation amounts in Kazakhstani tenge rather than a foreign currency.
There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.
Kazkhstani Tenge (KZT)
The procedure of establishing a Kazakhstan subsidiary is dependent on the company you choose, the location of your office building, and other factors. Distinct parts of Kazakhstan might have their own subsidiary laws, much as different states. Before settling on a suitable site, do some study to determine whether it will be simple or difficult to integrate there.
Kazakhstan will enable you to organize as a limited liability partnership (LLP), joint stock company, branch office, or representative office, among others. Each kind of firm has its own set of Kazakhstan subsidiary laws. However, since it reduces risk, the most common kind of corporate structure is an LLP.
The following actions are required to establish your Kazakhstan subsidiary as an LLP:
1. Online or in-person registration of your legal organization with the state
2. Obtaining a digital signature and registering for taxes at the Public Registration Center
3. Notarizing state registration certificates and other post-registration documents
4. Opening a bank account in your home country
5. Employees' registration for life and health insurance
To prevent expensive penalties or delays, it is essential to observe Kazakhstan subsidiary legislation pertaining to an LLP. Because shareholders do not have limitless responsibility for the partnership's losses, LLPs are the most popular legal entity. If your company has difficulties, your personal assets will be safe if you incorporate as an LLP.
To establish your Kazakhstan subsidiary as an LLP, you will require a single partner of any country. You must also deposit a minimum of $1 in the partnership's capital and designate someone to serve as the director. All legal papers must be translated into one of two languages: Kazakh or Russian. Finally, all translations must be notarized before they may be submitted for incorporation.