Social media platforms YouTube and TikTok to disclose income data of Kazakhstani users
Kazakhstan's Minister of Finance, Madhi Takiyev, recently announced that the authorities will receive information about the earnings of bloggers and content creators from popular platforms like TikTok, Facebook, and YouTube. However, it's important to clarify that there is no explicit requirement for these foreign internet companies to report the earnings of individual content creators in Kazakhstan.
The announcement comes as Kazakhstan strengthens its regulatory framework for companies operating locally. This includes licensing and tax reporting requirements for registered entities, such as crypto companies and companies operating branches. However, these regulations do not currently extend to demanding foreign platforms without a registered presence in Kazakhstan to report the earnings of independent bloggers or content creators to the authorities.
Kazakhstan does have tax compliance reminders for registered businesses and entities, covering corporate income tax, personal income tax, social tax, and other declarations. But these do not specifically mention offshore internet platforms or social media companies reporting content creators' earnings to Kazakhstani tax authorities.
Foreign companies registered in Kazakhstan with internet platforms in the country, such as Alibaba and Pinduoduo, are included in the information sharing. The purpose of this information exchange is for tax compliance, as individuals are also required to submit a declaration and pay taxes for any income earned on social media platforms in 2025.
If a declaration is not submitted, tax authorities can notify the citizen based on the data received from international organizations. Kazakhstan is connected to the MLI (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting) and works with the OECD (Organisation for Economic Co-operation and Development). The State Revenue Committee of Kazakhstan has signed agreements to automatically receive information about income earned on these platforms from the OECD, MLI, and other international sources.
In summary, while Kazakhstan maintains regulatory and tax obligations for domestic companies and licensed entities, there is no publicly available evidence that foreign social media platforms must report bloggers' or content creators' earnings to Kazakhstani authorities if these platforms operate without a local licensed entity or branch. Any tax reporting and compliance related to individual creators' income would presumably be the responsibility of the individual taxpayers themselves, in line with Kazakhstan's tax laws. If foreign platforms establish a legal presence or branch in Kazakhstan, they must comply with local tax and reporting regulations applicable to companies operating in the country.
Business and technology are at the center of Kazakhstan's efforts to intensify regulatory oversight over foreign companies, with finance playing a crucial role. The authorities are focusing on licensing and tax reporting requirements for registered entities, including cryptocurrency companies and foreign organizations with branches in the country. However, there's no current mandate for foreign internet platforms like TikTok, Facebook, and YouTube to report the earnings of individual content creators in Kazakhstan.
