Kazakhstan's transfer pricing framework governs cross-border transactions between related parties — including intragroup sales, loans, royalties, and services — and requires that those transactions be priced on arm's length terms. The rules apply to foreign investors and multinational groups operating in Kazakhstan and are administered by the State Revenue Committee (KGD) under the Ministry of Finance. Non-compliance may trigger adjustments, penalties, and documentary sanctions.
The legal basis is Kazakhstan's dedicated transfer pricing legislation — a standalone statute that operates separately from the general Tax Code — supplemented by methodological guidance aligned broadly with OECD Transfer Pricing Guidelines. Kazakhstan is a member of both the EAEU and the CIS, and EAEU-level harmonisation efforts affect certain aspects of cross-border transaction reporting, particularly for transactions within the bloc. The legislation identifies accepted pricing methods (comparable uncontrolled price, cost-plus, resale price, and profit-based methods), establishes documentation requirements, and sets out controlled transaction thresholds above which compliance obligations are triggered.
In practice, foreign companies with Kazakhstani subsidiaries, branches, or joint venture partners should expect KGD scrutiny of intercompany pricing wherever the Kazakhstani entity records below-market margins or makes royalty or management fee payments to a foreign parent. Documentation packages — including a master file and local file in the OECD format — are increasingly expected by KGD auditors even where not formally mandated by statute for every transaction type. Advance pricing agreements (APAs) are available under Kazakhstani law and offer a route to certainty for significant ongoing related-party arrangements.
For foreign investors structuring transactions involving both Kazakhstan and Russia, the interaction between the two jurisdictions' transfer pricing regimes — each with its own controlled transaction definitions and documentation standards — requires coordinated analysis at the point of structuring, not retrospectively during an audit.
If you are managing cross-border related-party transactions in Kazakhstan and need coordinated legal advice covering both Kazakhstani and Russian dimensions, make an enquiry: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76
— Aigerim Serikbayeva Contributing Regional Analyst — Kazakhstan · EAEU Trade, Customs and Market Entry vetrovpartners.com/contributions/
Aigerim Serikbayeva advises on EAEU trade regulation, customs matters, and market entry for foreign investors operating in Kazakhstan and the broader Central Asian region. She contributes regional analysis to Vetrov & Partners on Kazakhstan-specific legal developments affecting cross-border transactions.
This publication is provided for informational purposes only and does not constitute legal advice under Russian or any other applicable law. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Vetrov & Partners is a Russian-qualified law firm. For matters governed by foreign law or requiring local admission in another jurisdiction, we collaborate with trusted counsel in the relevant jurisdiction. For advice regarding your particular situation, please contact info@vetrovpartners.com.