Dividends remain one of the most relevant topics for business owners in Kazakhstan — both for local residents and international investors. In 2025, the legal and tax framework continues to define clear rules on how dividends can be declared, distributed, and taxed. Below we outline the key principles, legal background, and practical issues that every company and shareholder should be aware of.
What Are Dividends?
According to Article 40 of the Law on Limited and Additional Liability Partnerships, dividends represent the distribution of net income earned by a partnership (TOO) based on quarterly, semi-annual, or annual results.
The decision to distribute dividends is made at the general meeting of participants, which also approves the company’s financial statements.
- A partnership cannot distribute dividends until the entire charter capital is fully paid.
- Dividends must be paid in cash within one month from the date of the decision.
- The charter documents of the company must specify the frequency of dividend distribution (quarter, half-year, or annual).
The Tax Code of Kazakhstan provides a detailed definition of dividends, extending not only to direct profit distribution but also to certain forms of property transfers, benefits, and transactions between related parties.
Key Principles of Dividend Distribution
- Full payment of charter capital is a precondition for any distribution.
- Only net profit (after corporate income tax) can be allocated.
- Dividends require a formal resolution by the general meeting of participants or a sole shareholder.
- Payments must be executed within one month after the decision.
Step-by-Step: How Dividends Are Calculated
- Prepare and approve financial statements (annual or interim).
- Determine net profit based on accounting data.
- Decide on profit allocation at the general meeting.
- Distribute dividends in line with the resolution.
Financial Statements
Depending on the accounting standards applied, companies must prepare either two, five, or a full set of financial statements (under NSFRS, IFRS for SMEs, or IAS 1). These include:
- Balance sheet / statement of financial position
- Profit and loss statement
- Cash flow statement
- Statement of changes in equity
- Notes and accounting policies
Net Profit Formula
Net Profit = Income – Expenses – Corporate Income Tax (CIT)
This indicator is reflected in the profit and loss statement.
Practical Examples
Example 1:
Can dividends be paid if tax return (Form 100.00) shows income but financial statements show a loss?
Answer: No. Dividends can only be paid based on net profit confirmed in financial statements, not tax return data.
Example 2:
Can dividends be paid in installments?
Answer: Yes, provided that such a mechanism is included in the foundation agreement of the partnership (Article 14 of the Law on LLPs).
Residents vs. Non-Residents
For Kazakhstan residents, dividends are subject to personal income tax (PIT), with certain exemptions applicable under the Tax Code.
For non-residents, dividend taxation depends on the provisions of Kazakhstan’s double taxation treaties (DTTs). In most cases, withholding tax applies at the standard rate, unless a reduced rate is available under a treaty.
This makes advance tax planning crucial for international investors, especially when structuring corporate ownership or repatriating profits.
Why It Matters for 2025
With increased attention from tax authorities and the emphasis on transparency in financial reporting, companies must ensure that dividend distributions strictly comply with both corporate law and tax legislation.
Failure to follow these rules can result in penalties, additional tax assessments, or even disputes among shareholders.
How FCHAIN Kazakhstan Can Help
Our team provides comprehensive support to ensure your dividend distributions are compliant, efficient, and aligned with your corporate structure. We assist with:
- Preparing financial statements
- Advising on tax implications for residents and non-residents
- Drafting shareholder resolutions
- Ensuring compliance with Kazakhstan’s accounting and tax rules
- Cross-border dividend planning in line with international tax treaties
Whether you are a local entrepreneur or an international investor, we are here to help you navigate dividend regulations in Kazakhstan in 2025.
For professional support, please contact us at almaty@f-chain.com or via WhatsApp at +7 771 214 1820.
Prepared by:
Ekaterina Kassumova
Director, FChain Kazakhstan
September 12, 2025