Found an IT guru who is residing in Kazakhstan, need a local team to complete the service/work or want to send a person for a project in Kazakhstan?
There is a need to establish legal relations with personnel, pay the remuneration and deal with HR and tax compliance. Such legal relations can be established by forming a local subsidiary company or registering a branch office. Not to consider a local physical office and capital contribution to the subsidiary, the process is long and expensive. Besides, the salary has to be paid correctly and on time to a local bank account and in the correct currency.
Take into account following taxes and payroll related contribution in Kazakhstan: individual income tax, pension fund contribution,social tax, social security, contribution to the Social Medical Insurance Fund by the employer and on behalf of employee.
Instead of doing business and earning money there is a high risk of great expenses and waste of time in an effort to hire a single employee.
There may be a situation when you need to send an employee to Kazakhstan to conduct feasibility research or work on preliminary steps of a big project. Both, under the Kazakhstan domestic tax law and international tax treaties an employee acting on behalf of your company and staying more than 183 days in Kazakhstan do constitute a permanent establishment of your company triggering greater tax liabilities in Kazakhstan. Employer of record service is used to avoid a permanent establishment risk.
By acting as an EOR we onboard, manage and pay staff on your behalf by allowing you to retain the role of a manager and by ensuring that that all legal requirements are met, and the employment contracts are compliant with local working hours, parental leave, annual leave, sick leave and regulations about termination.