Legal developments in reporting of foreign assets and controlled companies in Kazakhstan under the 2027 Tax Code (in force 1 January 2027)

The 2025 Tax Code of Kazakhstan, which entered into force on 1 January 2026, introduced the most significant overhaul of the country's framework for reporting foreign assets and controlled foreign companies in over a decade. For private clients who became Kazakhstani tax residents in the preceding years, whether as part of a deliberate relocation strategy or as a consequence of shifting their centre of vital interests, the new rules materially changed the scope of annual disclosure obligations. The changes affect not only the breadth of assets that must be declared but also the treatment of structures held through jurisdictions that Kazakhstan's tax authority now scrutinises more actively. Advisers managing cross-border Kazakhstan Russia portfolios and those advising on wealth structuring arrangements should understand the current position before the next reporting cycle.

Before the 2025 Tax Code came into force, Kazakhstan's approach to foreign asset reporting by individual tax residents was comparatively limited in scope. Disclosure obligations applied to a defined range of foreign assets and were subject to thresholds that, in practice, excluded many mid-range holdings. The controlled foreign company rules, though present in the statutory framework, contained gaps in their application to passive holding structures and were interpreted inconsistently across different regional tax offices.

The 2025 Tax Code consolidated and extended these obligations in three principal respects. First, the range of assets subject to mandatory annual disclosure was widened to encompass a broader category of foreign financial assets, including interests in foreign partnerships and certain contractual structures that had not previously been captured. Second, the threshold for triggering CFC status in respect of foreign entities was revised downwards, bringing a larger proportion of minority participations within the reporting perimeter. Third, the Code introduced a more structured approach to the attribution of undistributed profits from controlled foreign companies to the Kazakhstani resident shareholder, with clearer rules on the timing of inclusion and the applicable documentary standard.

The State Revenue Committee has since issued guidance clarifying how the new provisions apply to structures held through intermediate holding jurisdictions — a point of particular relevance for clients who relocated to Kazakhstan while retaining existing offshore arrangements. The guidance signals a more active posture on the part of the Kazakhstani tax authority and is consistent with Kazakhstan's stated commitment to OECD-aligned transparency standards.

"The 2025 Tax Code's extension of the CFC reporting perimeter caught a number of legacy structures that were established before Kazakhstan became a primary residency destination for private clients from the wider region." — Daniyar Abenov, Contributing Regional Analyst — Kazakhstan, Vetrov & Partners

The practical effect of the 2025 Tax Code changes concentrates on four categories of private client.

The first is the individual who became a Kazakhstani tax resident as part of a structured relocation — whether from Russia, another CIS state, or a higher-tax jurisdiction — and who retains legacy interests in foreign holding companies or trusts established before the move. For this group, the question is not simply whether the new rules apply in principle but whether the existing structure was designed with Kazakhstani reporting obligations in mind. In many cases it was not, because Kazakhstan was not the intended destination when the structure was established.

The second category is the individual who holds a participation in a foreign private company, whether as a founder, beneficial owner, or passive investor, and whose participation now falls within the revised CFC threshold. The revised threshold means that structures which previously fell below the reporting perimeter may now attract annual disclosure requirements, together with the obligation to include undistributed profits in the Kazakhstani resident's taxable base.

The third category is the family unit where one family member holds Kazakhstani tax residency while another does not, and where jointly owned or related assets straddle the two positions. The 2025 Tax Code addresses the attribution of interests in this configuration, though the position is not without interpretive difficulty and the guidance from the State Revenue Committee does not resolve every variant.

The fourth category is the foreign investor who holds Kazakhstani assets through a non-resident structure but who spends sufficient time in Kazakhstan to risk crossing the tax residency threshold. For this group, the new rules create an incentive to review residency status proactively and, where residency is confirmed, to assess whether existing foreign holdings require disclosure.

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The reporting obligations under the 2025 Tax Code operate on an annual cycle. For Kazakhstani tax residents who have not yet reviewed the composition of their foreign holdings against the revised thresholds and definitions, the priority is to undertake that review before the next filing deadline rather than after it. Voluntary compliance, where remediation is straightforward, is a materially more efficient outcome than engaging with the State Revenue Committee in the context of a detected deficiency.

Three practical steps are advisable at this stage. First, an audit of existing foreign structures — companies, partnerships, trusts, and contractual arrangements — against the revised CFC definition and foreign asset categories, to determine which holdings now fall within scope. Second, a review of the client's residency position, particularly where the client spends time across multiple jurisdictions and where the basis of Kazakhstani tax residency has not been formally confirmed. Third, an assessment of whether the current holding structure is the most appropriate vehicle for the client's cross-border Kazakhstan Russia and international portfolio given the disclosure obligations that now apply.

For clients whose structures involve holding jurisdictions with which Kazakhstan has an active exchange-of-information arrangement, the practical urgency of compliance is heightened. Kazakhstan's network of tax treaties and its implementation of OECD automatic exchange standards means that information about foreign holdings may reach the State Revenue Committee through administrative channels before a client-initiated review is complete.

Advisers engaged in Kazakhstan private wealth and asset protection matters should also note that the [Private Wealth & Structuring](/jurisdictions/kazakhstan/private-wealth/) and [Tax Residency & Relocation](/jurisdictions/kazakhstan/tax-residency/) practices at the firm can provide coordinated advice on both the disclosure position and the structural options available under Kazakhstani law. Where the matter also touches Russian-law aspects — for instance, where the client retains Russian assets or a Russian corporate structure — the firm's cross-border practice offers integrated analysis across both jurisdictions.

For clients whose exposure is linked to asset protection considerations in Kazakhstan, the [Asset Protection](/jurisdictions/kazakhstan/asset-protection/) practice page sets out the range of available structuring approaches under current Kazakhstani law.

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The 2025 Tax Code resolved a number of the ambiguities that had characterised the prior framework but left several points open. Three areas of ongoing uncertainty are worth noting for advisers monitoring this space.

The first concerns the treatment of foreign trusts and similar non-corporate structures where the Kazakhstani resident is neither a settlor nor a formal beneficiary but exercises effective influence over the administration of the trust. The Code's language on this point is broadly drafted, and the State Revenue Committee guidance to date has not produced a settled position. Clients in this position should treat the disclosure question as unresolved pending further clarification.

The second concerns the interaction between the CFC rules and Kazakhstan's network of double tax treaties. Where a treaty partner's domestic law provides for a preferential regime that results in low or zero taxation of the foreign entity, the question of whether the Kazakhstani CFC rules override treaty protections has not been authoritatively determined. The prevailing approach among practitioners is to treat the CFC attribution rules as applicable unless a specific treaty carve-out can be identified, but this position may be tested as the State Revenue Committee's enforcement posture develops.

The third concerns the position of AIFC-registered entities. The Astana International Financial Centre operates under its own legal framework, and the interaction between AIFC-registered structures and the Kazakhstani Tax Code's CFC provisions requires analysis on a structure-by-structure basis. General assumptions about AIFC entities being outside the CFC perimeter are not warranted without specific review.

These open questions are a further reason for advisers and their clients to engage specialist counsel in Kazakhstan before taking positions on reporting obligations under the 2025 Tax Code. A considered filing position — documented at the time of submission — offers meaningfully better protection than a position adopted without contemporaneous analysis.

• [Kazakhstan Tax Residency & Relocation: An Overview for Private Clients](/jurisdictions/kazakhstan/tax-residency/)
• [Private Wealth Structuring in Kazakhstan: Options for Foreign Investors](/jurisdictions/kazakhstan/private-wealth/)
• [Asset Protection in Kazakhstan: Structuring for Cross-Border Portfolios](/jurisdictions/kazakhstan/asset-protection/)

Q: What specifically changed under the 2025 Tax Code regarding foreign asset and CFC reporting in Kazakhstan?

A: The 2025 Tax Code, in force from 1 January 2026, widened the categories of foreign assets subject to mandatory annual disclosure by Kazakhstani tax residents, revised the participation threshold at which a foreign entity is treated as a controlled foreign company, and introduced clearer rules on the attribution of undistributed CFC profits to the resident shareholder's taxable base. The State Revenue Committee has issued supplementary guidance on structures held through intermediate jurisdictions. The overall effect is a broader and more structured reporting perimeter than existed under the prior framework.

Q: Which private clients and structures are most affected by the new requirements?

A: The changes most directly affect individuals who became Kazakhstani tax residents — whether through a deliberate relocation or extended presence — while retaining foreign holding structures, offshore companies, or participations in foreign partnerships that predate their Kazakhstani residency. Structures established for Russian-connected portfolios, or for assets spanning multiple CIS jurisdictions, often require review because they were not designed with Kazakhstani reporting obligations in mind. Family arrangements where one member holds Kazakhstani residency and another does not also require specific analysis.

Q: What practical steps should a private client or their adviser take in light of these changes?

A: Three steps are advisable: first, audit existing foreign structures against the revised CFC threshold and foreign asset categories to establish which holdings now fall within scope; second, confirm the client's Kazakhstani tax residency status, particularly where the client's time is split across jurisdictions; and third, consider whether the current holding structure remains appropriate given the disclosure obligations that now apply. For clients whose structures involve jurisdictions subject to automatic exchange with Kazakhstan, the practical priority of completing this review before the next annual filing cycle is heightened. Specialist legal advice in Kazakhstan — coordinated with advice on Russian-law aspects where relevant — is the most reliable basis for a defensible filing position.

Vetrov & Partners is a Russian boutique law firm established in 2009, recognised by Pravo-300 for eight consecutive years. The firm advises private clients, family offices, and foreign investors on cross-border asset structuring, tax residency and relocation, and multi-jurisdictional wealth arrangements involving Russia and the wider CIS region.

The firm's Tax Residency & Relocation and Private Wealth practices draw on a network of regional contributing analysts with on-the-ground knowledge of Kazakhstan, Uzbekistan, Armenia, and Georgia, providing coordinated advice that covers both the Russian-law and the local-jurisdiction dimensions of each mandate. With over 1,000 matters handled since inception, the team delivers direct partner involvement on every engagement.

Enquiries: info@vetrovpartners.com | WhatsApp / Telegram: +7 (983) 510-38-76 | t.me/vitvetcom

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.

— Daniyar Abenov Contributing Regional Analyst — Kazakhstan, Vetrov & Partners vetrovpartners.com/contributions/