Expense Reimbursement policy in Kazakhstan

Expense reimbursement in Kazakhstan is governed by the Tax Code of the Republic of Kazakhstan. To ensure reimbursements are treated as non-taxable, strict documentation and compliance requirements must be followed.

This article outlines eligible expenses, documentation requirements, and applicable tax rules.

1. Travel & Transportation Expenses

Mileage Reimbursement

• There is no statutory mileage rate per kilometer defined under Kazakh legislation
• Employers may reimburse mileage based on internal policy

Parking and Tolls

• Treated as separate reimbursable expenses
• Must be supported by receipts or primary documentation

Transport Types

There are no strict restrictions on the mode of transport. Reimbursable options include:

• Air travel
• Rail and bus tickets
• Taxi services
• Rental vehicles

All expenses must be business-related and properly documented.

Business Travel Duration

• Business trips should generally not exceed 40 calendar days to maintain non-taxable treatment in practice
• Per diem limits must also be respected (see below)

2. Documentation & Invoicing Requirements

Proper documentation is essential to ensure reimbursements are not treated as taxable income.

Required Documents

• Invoices
• Receipts
• Travel tickets
• Other primary supporting documents

Invoice Requirements

• It is strongly recommended that invoices are issued in the company’s name, including tax identification details
• If documents are issued in the employee’s name, there is a risk of reclassification as taxable income

Minimum Thresholds

• There is no minimum threshold for documentation
• All expenses must be supported to qualify as non-taxable

3. Reimbursement & Tax Treatment

Non-Taxable Expenses

Provided proper documentation and business purpose are established, the following are generally non-taxable:

• Transportation (airfare, rail, taxi, etc.)
• Accommodation
• Per diem allowances (within statutory limits)

Per Diems

Per diem allowances are non-taxable if they:

• Fall within statutory limits
• Relate to a properly documented business trip

2026 Per Diem Limits

• Domestic (within Kazakhstan):
  6 × Monthly Calculation Index (MCI)
  → 25,950 KZT per day
• International travel:
  8 × MCI
  → 34,600 KZT per day

(2026 MCI = 4,325 KZT)

Exceeding Per Diem Limits

Any amount above the statutory limits is treated as taxable income and subject to:

• Personal Income Tax (PIT)
• Social tax
• Social contributions
• Pension contributions

Taxable Expenses

The following are generally considered taxable:

• Client entertainment expenses
• Gifts
• Health and wellness expenses

4. Additional Compliance Considerations

To ensure compliance and avoid reclassification of expenses as taxable income:

Key Principles

• Documentation is critical
  → Missing documentation may result in taxation
• Clear business purpose must be demonstrated
• Separation of business and personal expenses must be maintained
• Timely submission of expense reports is required

Expense Reporting

• There is no single standardized format mandated by the Tax Code
• However, submitting an expense report is standard practice and necessary to support non-taxable treatment

Employees should use the company-provided expense report template when submitting claims (attached below)

Key Takeaways

• All expenses must be business-related and fully documented
• Per diem limits must be respected to avoid taxation
• Invoices should ideally be issued in the company’s name
• Non-compliance may result in expenses being treated as taxable income