Emirati-owned groups that include a Kazakhstan legal entity are subject to transfer pricing rules under Kazakhstani tax legislation, which has been progressively aligned with EAEU-level standards and the OECD arm's-length principle. The short answer is that intercompany transactions — loans, royalties, management fees, and goods traded between the Kazakhstan entity and related parties in the UAE or elsewhere — must be priced as they would be between independent parties, and documentation supporting that pricing must be prepared and held ready for the Kazakhstan tax authority.
Under Kazakhstani tax legislation, controlled transactions are defined broadly. They include cross-border transactions between related parties, certain transactions involving entities in low-tax jurisdictions, and transactions that meet prescribed financial thresholds. The UAE has historically featured on Kazakhstan's list of preferential tax jurisdictions, which means that transactions between a Kazakhstan entity and a UAE-resident related party may attract heightened scrutiny regardless of the transaction value. Groups should verify the current status of the UAE on that list, as it is periodically revised.
The documentation requirements are material. A group subject to the rules must prepare a Local File (country-specific documentation for the Kazakhstan entity) and, where the consolidated group revenue meets the relevant threshold, a Master File and a Country-by-Country Report. These must be submitted within the timeframes set by the tax authority, and failure to file or to substantiate pricing in an audit can result in transfer pricing adjustments and associated penalties.
For Emirati-owned groups, the practical priorities are: confirming which intercompany transactions with the Kazakhstan entity are controlled transactions under Kazakhstan's rules; reviewing pricing policies for arm's-length compliance; and assessing whether the UAE counterparties fall within a preferential-jurisdiction category. Early-stage documentation — before an audit is initiated — is considerably more effective than a reactive response.
For advice on transfer pricing compliance for your Kazakhstan operations, make an enquiry: info@vetrovpartners.com | WhatsApp/Telegram: +7 (983) 510-38-76
— Aigerim Serikbayeva Contributing Regional Analyst — Kazakhstan, EAEU Trade & Market Entry vetrovpartners.com/contributions/
Aigerim Serikbayeva advises on Kazakhstan market entry, EAEU trade law, and cross-border structuring for foreign groups operating in Central Asia. She collaborates with Vetrov & Partners on Kazakhstan and EAEU-related mandates involving Russian-law elements.
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.