Transaction tax

Foreign internet companies in Kazakhstan have paid nearly $6.3 million in digital taxes since the start of this year

NUR-SULTAN – Foreign internet companies operating in Kazakhstan have paid three billion tenge ($6.3 million) in digital taxes since the beginning of the year, the head of the digital assets department of the revenue committee of the state, Nurzhan Kuandykov, during a live on August 11. press briefing on the committee’s official YouTube channel.

32 international companies are registered in Kazakhstan, providing services and selling items to citizens. Photo credit:

According to Kuandykov, only foreign Internet companies pay the so-called Google tax. Among them, Facebook, Coursera and Netflix.

“The so-called Google tax is essentially a value added tax (VAT). The tax rate is the same as for other taxpayers – 12%,” he said.

Kuandykov explained that it is not new in tax administration and is widely used in many countries around the world. For example, France has done the same since 2017, the United Kingdom since 2020, Italy since 2021, Turkey since 2020, Russia since 2017, Belarus since 2018 and Uzbekistan since 2021.

According to Kuandykov, Kazakhstan has simplified its tax administration in this regard for convenience.

“It is also important to note that there are no fines or other complicated methods of tax administration. We have complete confidence in the companies. The control measures however remain in place. The administration tax regularly receives information on foreign goods receipts and banking activities,” he explained.

Kuandykov also described the circumstances in which this form of tax is not paid.

“If it is a business-to-business transaction, no Google tax is due. Also, there are goods for which payment is required upon import, i.e. they have already paid VAT on imports,” he concluded.