Also legal entities established in accordance with the legislation of the Republic of Kazakhstan, and/or other legal entities whose effective headquarters (or actual administrative offices) are located in the Republic of Kazakhstan, shall also be considered residents of the Republic of
Kazakhstan. Effective headquarters (or actual administrative offices) shall be understood to mean the place where the principal management takes place and where strategic commercial decisions are made which are necessary for the performance of a legal entity’s entrepreneurial activity.

2.2 Permanent establishment of a nonresident

A permanent establishment of a nonresident in the Republic of
Kazakhstan shall be defined as a place of business through which the nonresident performs all or part of its entrepreneurial activity, including activity performed through an authorized person, and specifically:

1) any place of doing business related to the production, processing, assembly, packaging, delivery, or realization of goods, regardless of the duration of the activity;

2) any management office, branch, division, representative office, bureau, office, agency, factory, workshop, production shop, laboratory, store, or warehouse of a nonresident, regardless of the duration of the activity;

3) any place of doing business related to the extraction of natural resources, including the extraction of hydrocarbons: an underground mine, a quarry, an oil and/or gas well, an open-pit mine, land-based or offshore derricks and/or wells, regardless of the duration of the activity;

4) any place of doing business (including monitoring or supervisory activity) related to a pipeline, gas line, the exploration and/or development of natural resources, the installation, set-up, assembly, start- up, adjustment, and/or servicing of equipment, regardless of the duration of the activity;

5) any other place of doing business related to the operation of slot machines (including accessories), computer networks and communications channels, amusement parks, the transportation or other infrastructure, regardless of the duration of the activity.

A construction site, an installation or assembly project, and the performance of planning work shall constitute a permanent establishment regardless of the duration of the work. In this context a construction site
(project) shall be understood to mean specifically the place where work is performed to erect and/or renovate real property, including the construction of buildings and structures and/or the performance of installation work, the construction and/or rebuilding of bridges, roads, and canals, the laying of pipelines, the installation of power engineering, industrial, and other equipment, and/or the performance of other similar work. A construction site (project) shall cease to exist as of the day following the day on which the operating certificate for the project (or the acceptance certificate for the work performed) is signed and the construction has been paid for in full.

A nonresident shall also create a permanent establishment in the
Republic of Kazakhstan if the nonresident:

1) collects insurance premiums and/or provides insurance or reinsurance coverage for risks in the Republic of Kazakhstan through an authorized agent;

2) provides services on the territory of the Republic of Kazakhstan continuously for more than 90 calendar days in any consecutive 12-month period ending in the given tax period, through employees or personnel hired for these purposes;

3) is a participant in a simple partnership (joint operating agreement) created in accordance with the legislation of the Republic of
Kazakhstan and operating on the territory of the Republic of Kazakhstan;

4) holds exhibitions in the Republic of Kazakhstan for a fee and/or at which goods are sold;

5) on the basis of a contractual relationship grants a resident or nonresident the right to represent its interests in the Republic of
Kazakhstan, or to act or conclude contracts (agreements, accords) on its behalf.

A nonresident engaged in entrepreneurial activity in the Republic of
Kazakhstan through an independent intermediary (a broker and/or other independent agent acting on the basis of an agency, commission, or consignment agreement or another similar type of agreement), who is not authorized to sign contracts on behalf of the nonresident, shall not be considered to be creating a permanent establishment. An independent intermediary shall be understood to mean a person operating within the context of his usual (principal) business, who is both legally and economically independent of the nonresident.

2.3 Nonresidents’ income from sources in the Republic of Kazakhstan

The following types of income shall be considered nonresidents’ income from sources in the Republic of Kazakhstan:

1) income from the realization of goods, the performance of work, or the delivery of services in the Republic of Kazakhstan;

2) income earned from management, financial (with the exception of services involving the insurance and/or reinsurance of risks), consulting, auditing, marketing, legal (with the exception of attorney’s services), agency, and information services provided to residents or nonresidents doing business in the Republic of Kazakhstan through a permanent establishment, and related to said permanent establishment, regardless of where the services are actually provided;

3) capital gains resulting from: the realization of property located on the territory of the Republic of
Kazakhstan; the realization of securities issued by residents, as well as a share interest in a resident legal entity or in property located in the Republic of Kazakhstan;

4) income from concession of the right of claim on a debt to residents or nonresidents in connection with doing business in the Republic of
Kazakhstan through a permanent establishment;

5) charges (fines, penalties) for failure to fulfill or improper fulfillment of obligations by residents and nonresidents, which have arisen in the course of operations by said nonresidents in the Republic of
Kazakhstan, including obligations under contracts (agreements, accords) for the performance of work (delivery of services) and/or under foreign trade contracts for the delivery of goods;

6) income in the form of dividends received from a resident legal entity, and income from a share interest in such a legal entity;

7) income in the form of interest, with the exception of interest on debt securities, received from: residents; nonresidents with a permanent establishment or property located in the
Republic of Kazakhstan, if the debt owed by these nonresidents applies to their permanent establishment or property;

8) income in the form of interest on debt securities, received from: resident issuers; nonresident issuers with a permanent establishment or property located in the Republic of Kazakhstan, if the debt owed by these nonresidents applies to their permanent establishment or property;

9) income in the form of royalties received from residents or nonresidents in connection with doing business in the Republic of
Kazakhstan through a permanent establishment;

10) income from the leasing of property located in the Republic of
Kazakhstan;

11) income earned from real property located in the Republic of
Kazakhstan;

12) income in the form of insurance premiums paid under agreements for the insurance or reinsurance of risks arising in the Republic of
Kazakhstan;

13) income from providing transportation services for international shipments, one of the parties of which is the Republic of Kazakhstan;

14) income from operations in the Republic of Kazakhstan under individual labor agreements (contracts) or under other agreements of a civil-legal nature;

15) honoraria for managers and/or other payments received by members of a top administrative body (council of directors, board, or other similar body) of a resident legal entity, regardless of where the actual performance of the administrative duties assigned to such persons takes place;

16) supplemental payments made in connection with residing in the
Republic of Kazakhstan;

17) income in the form of compensation for expenditures borne by an employer to provide material and social benefits or other material advantages to nonresident individuals working in the Republic of
Kazakhstan, including expenditures on meals, housing, enrollment of children at educational institutions, and expenses related to leisure activities, including vacation travel for their family members;

18) pension payments effected by resident pension savings funds;

19) income paid to people employed in the arts: theater, film, radio and television performers, musicians, artists, and athletes from activities in the Republic of Kazakhstan, regardless of the person to whom payments are made;

20) winnings paid by residents;

21) income earned from providing independent personal (professional) services in the Republic of Kazakhstan;

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