How to pay contractors in Kazakhstan from abroad in 2026
How we earn: we get a fee when a provider marked * takes on a client we introduced. Providers that pay us nothing are in the same tables at their list prices.
What changed in Kazakhstan in 2026
Law No. 277-VIII1 changed the Labour Code. From 8 June 20261, it is not permitted to sign a civil contract with an individual when the relationship has at least one feature of an employment agreement. Such a contract should be recognized as an employment agreement regardless of its title, so renaming a job as a service does not help.
The features come from article 271 of the Labour Code:
- work based on a specific qualification, specialty, profession or position
- personal performance of obligations, subject to internal labour regulations
- wages received for the work
Contractor or employee: check before you sign
Ask these questions about each person. A yes to any of them is a reason to get local advice before you sign a civil contract. They are our reading of the features above, not a legal test.
- Did you take this person on for a role, such as backend developer on your team, and not for a defined result?
- Must this person do the work personally, with no right to send someone else?
- Do your internal rules apply, such as working hours, leave requests or a line manager?
- Do you pay a fixed monthly amount whatever was delivered?
Three ways to structure it
The alert we rely on is about contracts with individuals, and it does not say how the rule treats individual entrepreneurs. Do not assume an entrepreneur contract falls outside it until a Kazakh lawyer has confirmed that for your case.
- Sign with the contractor's own business for defined deliverables. This is the option to take to a lawyer first, because the work test above still matters.
- Use a contractor-of-record provider, which signs with the contractor while you sign with the provider. Ask in writing how its Kazakh contracts handle this rule.
- Employ the person through an employer of record or a local entity, if the person is staff in everything but name.
What the contractor pays at home
From 1 January 20262, resident individual entrepreneurs and legal entities can use a simplified declaration if their income stays within 600,000 monthly calculation indices2 a calendar year. The base rate is 4%2, local bodies may change it by up to 50%2, and the tax period is six months.
The patent and app-based regimes of 2025 ended. Businesses had to choose a regime by 1 March 20264, and those that did not were moved to the general procedure. Ask each contractor which regime applies now, because paperwork set up for a patent holder may no longer fit.
What you need on your side
US companies: compensation paid to a nonresident alien for services performed outside the United States is not considered wages and is not subject to withholding5. Ask the contractor for Form W-8BEN, which goes to the payer and not to the IRS6. Without it, a withholding agent may have to withhold at 30%6.
Companies elsewhere: your own tax rules decide what you need from a foreign contractor. This page does not cover them yet, so ask your accountant what to hold for each payment.
When the money arrives in Kazakhstan
Kazakh currency rules require registration of an export or import contract above $50,0003. A contract with no amount stated at signing triggers registration too, and the filing comes before either party starts performing.
Ask your contractor whether your contract counts and put a stated amount in it where you can. Confirm the current wording with the contractor's bank, since this page relies on an official guide and not on the bank's own practice.
What each way of paying costs
These prices are not for the same service, so compare within one type of plan. The full working is on the contractor payment fees page.
List prices for 10 contractors at $2,000 a month each, before FX and bank fees. The plans differ in who signs with the contractor.
| Provider | Product | Monthly cost | Who signs | List price | Checked |
|---|---|---|---|---|---|
| Remote | Contractor Management | $290 | You | from $29 per contractor a month | 2026-11-04 |
| Deel | Hire contractors | $490 | You | from $49 per contractor a month | 2026-11-09 |
| Remote | Contractor of Record | $3,250 | Provider | from $325 per contractor a month | 2026-11-04 |
| Deel | Contractor of Record | $3,250 | Provider | from $325 per contractor a month | 2026-11-09 |
| Mellow | Contractor of Record | $700 - $1,100 | Provider | 3.5-5.5% of payout volume | 2026-11-04 |
| Contractor of record we work with * | Contractor of Record | $600 - $1,100 | Provider | 3-5.5% all-inclusive, falls as volume grows | 2026-11-09 |
| Payroll platform we work with * | Payroll, percentage | $600 - $2,000 | Provider | dynamic 3-10%, starting at 3% | 2026-11-09 |
| Payroll platform we work with * | Payroll, flat fee | $420 | Provider | $42 / €39 per payout, one payout a month assumed | 2026-11-09 |
FAQ
Can I still hire a freelancer in Kazakhstan on a civil contract?
Only if the relationship has none of the features of employment. Since 8 June 20261, one feature is enough for the contract to be treated as an employment agreement.
Does the rule cover individual entrepreneurs?
The alert we read covers contracts with individuals and does not say. Ask a Kazakh lawyer about your case before you rely on an entrepreneur contract.
What rate does a contractor pay on the simplified declaration?
The base rate is 4%2, and local bodies may change it by up to 50%2. The contractor has to be a resident entrepreneur or legal entity within the income limit.
Does a US company withhold tax when it pays a contractor in Kazakhstan?
For services performed outside the United States, the compensation is not considered wages and is not subject to withholding5. Ask for Form W-8BEN, which goes to the payer and not to the IRS6.
Sources
- EY Kazakhstan tax alert, 12 May 2026, checked 4 November 2026
- State Revenue Department, East Kazakhstan, 4 December 2025, checked 4 November 2026
- Kazakh Invest, currency regulation guide, checked 4 November 2026
- Prime Minister of Kazakhstan, official site, checked 4 November 2026
- IRS Publication 515 (2026), checked 4 November 2026
- IRS Instructions for Form W-8BEN, checked 4 November 2026
* We earn a fee when this provider takes on a client we introduced. This page is general information, not legal or tax advice.