Kazakhstan’s Parliament has approved a new Tax Code, set to take effect on January 1, 2026, pending the President’s signature. The main objectives are to reduce the budget deficit and improve the efficiency of tax administration.
Here are the key changes:
VAT: More Taxpayers and a Higher Rate
The most debated amendments relate to Value-Added Tax (VAT).
The mandatory registration threshold will be halved — from 20,000 to 10,000 Monthly Calculation Indexes (MCIs), which equals approx. 39.3 million tenge in 2025. This is intended to curb the practice of business splitting.
The VAT rate will increase from 12% to 16%. Some preferential rates will apply:
- 10% – for producers of pharmaceuticals, medical devices, and services (phased in: 5% in 2026, 10% from 2027);
- 10% – for domestic printed publications;
- 80% VAT refund – for agricultural producers (currently 70%).
Exempt from VAT:
- services under the guaranteed volume of free medical care,
- payment card operations,
- companies employing at least 10 people with disabilities.
Personal Income Tax (PIT): Progressive Rates Introduced
A progressive PIT scale will be introduced for individuals:
- Annual income up to 8,500 MCI – taxed at 10%;
- Income above that – taxed at 15% on the excess amount.
For foreigners:
- Up to 600,000 MCI/year – 10%;
- Above that – 17%.
Dividends:
- Up to 230,000 MCI – taxed at 5%;
- Above that – 15%;
- Dividends from deals on the KASE exchange will remain tax-exempt.
For private practitioners, the PIT rate will be reduced from 10% to 9%.
CIT: Higher for Banks and Gaming, Lower for Agriculture and Social Sector
The standard corporate income tax (CIT) rate remains 20%, but some sectors will see changes:
- 25% – for casinos, betting shops, and banks (except business loans);
- 3% – for agricultural and aquaculture producers (was 10%);
- 6% – for agricultural cooperatives;
- 5% in 2026, 10% in 2027 – for social sector organizations.
Simplified Tax Regimes: Only 3 Out of 7 Will Remain
Out of seven existing special tax regimes, only three will remain:
- For self-employed individuals – income up to 300 MCI/month, PIT rate: 0%;
- Simplified declaration – income up to 600,000 MCI/year, PIT/CIT: 2–6% (set by local authorities);
- For farmers – land area up to 5,000 ha, PIT: 0.5%.
To be abolished:
- patent-based regime,
- mobile application-based regime,
- fixed deduction-based regime,
- retail tax,
- regime for agricultural cooperatives.
Luxury Tax: New Excise Duties Introduced
A new excise tax on luxury items will apply:
- Cars over 75 million tenge – 10%;
- Yachts and private planes over 100 million tenge – 10%;
- Real estate over 450 million tenge – 2% of property value.
Only individuals will be subject to these excise taxes.
Tax Administration: Stricter Oversight
Tax authorities will be able to suspend electronic invoices (e-invoices) if businesses ignore notices from desk (cameral) audits — effectively halting operations.
The new Tax Code also provides clear rules for tax calculations, deadlines, and obligations, replacing vague language with straightforward provisions.
Note: The draft has been submitted to the President. Stay tuned — we’ll let you know once the changes come into force.
