The primary idea behind the creation of the Astana International Financial Centre (AIFC) was not only to make Kazakhstan attractive to international companies but also to elevate the financial and commercial sectors to a new level. To achieve this goal, the AIFC introduced a Special Tax Regime (STR), which aims to support various types of activities—from banking and investment operations to IT startups and consulting services.
The STR is designed with modern trends in mind: reducing the tax burden, exempting certain incomes from corporate income tax, and attracting foreign specialists through simplified visa and tax regimes. This set of measures provides companies with a competitive advantage while simultaneously boosting business activity within the center.
Key Elements of Tax Incentives:
- Exemption from Corporate Income Tax
According to AIFC rules, resident companies earning income from priority activities may be exempt from corporate income tax (CIT) until 2066. Such a long-term exemption is rare even in the most liberal tax jurisdictions. The list of “priority activities” includes financial services, asset management, consulting, IT projects in the field of digital assets, and other areas specifically approved by the AIFC administration.
Why this matters:
- For international banks and investment funds, this is an opportunity to significantly reduce operational costs in the region.
- For existing Kazakhstani or foreign organizations, this is an incentive to transfer part of their operations under the AIFC jurisdiction, avoiding unnecessary tax barriers.
- 2 . Simplified Taxation of Dividends and Capital Gains
In addition to CIT exemptions, the STR often provides preferential taxation of dividends and capital gains. For example, if an AIFC resident company invests in securities or earns profits from the sale of shares, a portion of this income may either be tax-free or taxed at reduced rates.
For capital market participants (including shareholders and holders of debt instruments), these relaxations open up more favorable investment opportunities through the AIX (Astana International Exchange), located within the AIFC. Such policies are designed to stimulate the development of the local stock market and attract foreign issuers to list in Kazakhstan.
- 3. Tax Incentives for Foreigners
An important part of the STR is individual tax incentives and a simplified visa regime for foreign specialists. For qualified experts, whose presence in a company often determines the success of projects (whether in fintech, consulting, or IT), reduced tax rates and a more flexible migration process play a decisive role in choosing a jurisdiction.
Key benefits:
- Simplified and accelerated visa and work permit processing.
- The ability to benefit from tax incentives even for short-term projects.
- No strict administrative barriers when extending stays in the country.
Thus, experts from around the world can work comfortably in the AIFC, sharing their experience and developing the local ecosystem.
How to Access Tax Incentives
To officially benefit from the Special Tax Regime, a company must:
- Register as an AIFC resident. This process involves submitting an application, providing documents on financial stability, specifying a legal address in Astana, and awaiting approval from the AIFC administration.
- Determine the type of activity eligible for the incentive. If an organization is engaged in multiple areas, it is important to correctly identify those that fall under the STR.
- Comply with the center’s internal regulations and requirements, including maintaining accounting and reporting in accordance with AIFC standards and updating corporate documents in a timely manner.
If these conditions are met, access to tax benefits is granted automatically. It is important to note that tax incentives are contingent on continuous compliance with AIFC requirements and Kazakhstani legislation.
Additional Aspects of the AIFC Tax System
International Double Taxation Avoidance Agreements
Kazakhstan has a number of international agreements aimed at avoiding double taxation (DTA). AIFC residents can benefit from the protection provided by such agreements. This means that profits earned in Kazakhstan will not be taxed again in another country (provided that Kazakhstan has a corresponding agreement with that country).
Nuances for Non-Financial Companies
Although the AIFC STR is often associated with financial organizations, non-financial companies can also take advantage of its benefits. For example, in IT and consulting, licensing is not mandatory, but tax incentives are available upon obtaining residency. Such a “dual” regime allows both large and small firms to quickly enter the Kazakhstani market without spending resources on complex licensing procedures while simultaneously reducing tax expenses.
Duration of Incentives
Tax incentives (especially the CIT exemption until 2066) may seem almost limitless, but they are regulated. Certain activities may qualify for shorter tax exemption periods, and some categories of participants may receive additional benefits. Therefore, when planning, it is important to study not only the letter of the law but also by-laws and monitor changes in AIFC policies.
Practical Examples
Astana International Exchange (AIX) and Investment Funds
AIX is one of the main tools for attracting capital for resident companies. Thanks to preferential taxation of dividends and capital gains, investment funds registered in the AIFC gain competitive advantages. Moreover, many funds focused on the international market prefer this platform for listing their securities, leveraging the legal framework and judicial protection of English law.
Fintech Startups
Fintech companies, such as ReKassa or similar projects, have demonstrated that it is possible to operate effectively in the AIFC with a focus on tax incentives and a high level of legal protection. The CIT exemption frees up funds that can be invested in technology development and team building. The simplified visa regime makes it possible to attract international experts in artificial intelligence, cybersecurity, and data analysis.
Consulting and Legal Firms
Major international players (Deloitte, KPMG, PwC, and EY) are already actively operating in the AIFC. Their resident status allows them not only to support local businesses but also to act as drivers in promoting the center as a world-class platform. For such companies, both tax incentives and access to qualified foreign lawyers and auditors are important, as international practice requires the constant presence of experts from different countries.
The Future of the Special Tax Regime
Over time, the AIFC’s tax policy may evolve, taking into account new trends in the global economy and the needs of the local market. However, it is already clear that Kazakhstan has managed to create a competitive tax and legal landscape that attracts capital and specialists from around the world.
The prospects for the STR’s development depend on:
- Diversification of resident activities (e.g., expanding IT and technology services).
- Further expansion of international double taxation avoidance agreements.
- Implementation of new support programs (similar to “Green Finance” or Digital Residency) that stimulate eco-friendly and digital projects.
In addition, thanks to the AIFC’s flexible regulatory approach, the business community will be able to quickly adapt to changes while maintaining competitiveness in the global market.
The Special Tax Regime of the AIFC is a powerful incentive for companies seeking to reduce their tax burden and strengthen their position in the heart of Eurasia. Exemptions from corporate income tax, dividend and capital gains incentives, and convenient migration rules for foreigners all contribute to creating a favorable climate for starting and growing businesses. The combination of advanced financial technologies, a unique legal system based on English law, and the growing AIX exchange makes the AIFC a hub for investors, entrepreneurs, and specialists from various industries.