TOP 30 largest foreign taxpayers in Kazakhstan | FinReview
27 November 2020

TOP 30 largest foreign taxpayers in Kazakhstan

One-third of tax revenues to the state budget of Kazakhstan fall on the thirty largest companies with foreign participation.

Until October 2020, many Kazakh companies were exempt from tax payments to stimulate business growth. These measures have supported businesses whose profitability has significantly decreased due to quarantine restrictions.

Analysts they represent the rating of the 30 largest foreign taxpayers in Kazakhstan within the ranking of the 50 largest companies.

During the year, companies with foreign participation in Kazakhstan increased by 2.2 thousand units

As of November 1, 2020, there are 22.1 thousand foreign companies operating in the country. In comparison with the previous year’s period, they increased by 11.2%. At the same time, almost all companies, namely 97.4% or 21.5 thousand are registered in the form of a small enterprise.

Foreign companies are most often involved in wholesale and retail trade — 8.7 thousand enterprises operate here. Next in popularity among foreign businessmen are the construction sector, which employs 2.3 thousand companies, and the sphere of professional, scientific and technical activities with 1.7 thousand operating enterprises.

Thirty largest foreign companies provide a third of all tax revenues to the budget

Tax revenues to the state budget have become less dynamic after a steady growth of 17% on average over the past five years. In the first ten months of 2020, the total amount of taxes paid decreased by 10.7% compared to the same period last year.

In monetary terms, the budget was replenished by 6.4 trillion tenge. A third of these payments are made by the top thirty foreign companies.
Traditionally, the main part of tax revenues is generated by the oil and gas sector, whose companies are located on 14 out of 30 lines of the rating. These companies account for 74% of all payments to the thirty largest foreign taxpayers, or 1.6 trillion tenge.

Next in the ranking are companies in the tobacco industry, where three major foreign players operate-JT Kazakhstan, Philip Morris Kazakhstan and British American tobacco Kazakhstan trading. They paid 240.2 billion tenge of taxes.

The tobacco industry is followed by the metallurgical industry. Their tax deductions totaled 161.5 billion tenge.

Which foreign companies pay the largest taxes

Among the thirty largest foreign taxpayers, about 37% of payments were made by Tengizchevroil, a joint venture engaged in the development, production and marketing of oil and gas. The founders of the company are Chevron (USA), which owns a 50% stake, ExxonMobil (USA) holds 25% of shares of KazMunayGas, which has a 20% share, and LukArco (Russia) 5% of the shares.

For ten months of 2020, Tengizchevroil paid 832.1 billion tenge of taxes.

In second place is the Karachaganak Petroleum Operating B. V. consortium. 29.25% of the consortium’s share belongs to Royal Dutch Shell plc (Netherlands, UK), 29.25% – Eni (Italy), 18% – Chevron (USA), 13.5% – LUKOIL (Russia), 10% – KazMunayGas.

Since the beginning of the year, Karachaganak Petroleum Operating B. V. has paid 398.5 billion tenge in taxes.

Kazzinc LLP closes the top three, with 70% of its shares owned by Glencore International (Switzerland) and 30% by Tau — Ken Samruk.

Kazzinc added 109.3 billion tenge of taxes to the state budget.