Kazakhstan is located in Eurasia and is the largest landlocked country in the world. With convenient access to both European and Asian countries, it’s a great place for companies looking to expand and build many international relationships. However, before you start hiring employees and working with other international businesses, you need to set up your Kazakhstan payroll, follow the country’s tax guidelines, and more.
Taxation Rules in Kazakhstan
As an employer, you need to pay taxes on behalf of your payroll. Employers pay a social tax of 9.5% of their payroll, which includes social security contributions. Employees contribute 10% of their own salaries to social security. You’re also responsible for withholding personal income tax, so you must understand the country’s laws inside and out.
Kazakhstan Payroll Options for Companies
Companies have four different Kazakhstan payroll options:
- Remote: If your parent company already pays employees internally, you can add your employees in Kazakhstan to that payroll. However, this remote option means each country’s employees will have separate compliance laws.
- Internal: An internal payroll is a great option for large companies planning to work in Kazakhstan for years to come. Make sure you have a large staff with individuals who are also experts in Kazakhstan employment compliance to run an internal payroll successfully.
- Payroll processing company: You can also work with a Kazakhstan payroll processing company that will outsource your payroll. The only problem is that your company will still be held compliant.
- Global PEO: A global PEO such as Globalization Partners is the best Kazakhstan payroll outsourcing option. We will handle your payroll and take on all compliance.
How to Set Up a Payroll in Kazakhstan
Before you can choose a Kazakhstan payroll option, you have to incorporate in the country. The entire process can take anywhere from a few weeks to a few months, and this period can delay your timeline for beginning work in the country. You won’t be able to hire employees, form business relationships, or start working until you establish a subsidiary.
Fortunately, you can avoid this requirement by working with Globalization Partners. We already have a subsidiary in Kazakhstan that we’ll use to help you start working faster. When you choose to partner with us, you can start working in a few days, and you won’t have to worry about meeting all of Kazakhstan’s employment compliance laws.
Outlining entitlement and termination terms before adding employees to your payroll can ensure that you stay compliant. Hiring and firing are tricky in different countries, and including entitlement and termination terms in an employment contract can help. Kazakhstan will allow you to hire employees under a three-month probationary period. You can terminate an employment contract for any of the reasons outlined in the Kazakhstan labor laws, but you must notify the employee in writing and give at least one month’s notice. Some employees are entitled to severance pay depending on the reasons for termination.
Payroll Processing Company in Kazakhstan
Choosing Kazakhstan payroll outsourcing with Globalization Partners can give you more time to focus on running your company without the worry that comes with compliance. Contact us today for more information.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.