New Tax Code: what is important to know

The draft of the new Tax Code and accompanying amendments concerning taxation were approved by the Majilis in the second reading.

VAT

As a result of the joint work of deputies and the Cabinet of Ministers, the initially proposed VAT rate was reduced from 20% to 16%.

The threshold for mandatory VAT registration was increased from 15 million to 40 million tenge.

A reduced VAT rate of 5% on medicines and medical services will come into effect in 2026, and 10% in 2027.

The following are exempt from VAT:

goods and services within the framework of guaranteed free medical care;
mandatory medical insurance;
treatment of socially significant and rare (orphan) diseases.

Additionally, the following are exempt from VAT:

socially significant food products and books published in Kazakhstan;
services for publishing books in printed form.

In order to support agricultural producers, the amount of VAT additionally included in the offset has been increased from 70% to 80%.

Reform of the simplified declaration

A transition from a permissive to a prohibitive list of activities is envisaged. A single rate of 4% has been established with the right of maslikhats to adjust it within ±50% taking into account regional characteristics. The possibility of applying a special regime in transactions between businesses has been expanded.

Changes in taxation of business and income

The corporate income tax (CIT) rate for gambling businesses and banks increases to 25%.
At the same time, the rate of 20% has been retained for banks’ income from lending to entrepreneurs.
A progressive scale of the CIT is introduced:

for salaries: 10% on income up to 8,500 MCI (up to 33.5 million tenge per year), 15% – above;
for dividends: 5% up to 230,000 MCI (almost up to 1 billion tenge), 15% – above;
for non-residents’ income: 10% up to 600,000 MCI, 17% – above.

Social sphere support

Reduced CIT rates for socially oriented organizations:

from 2026 – 5%;
from 2027 – 10%.

The social tax deduction for people with disabilities has been increased to 5,000 MCI.
A number of public associations are exempt from certain taxes.

Increase in excise taxes and fees for the use of resources

A decision has been made to gradually increase excise taxes on alcohol, tobacco and products with heated tobacco. An excise tax on energy drinks is being introduced. For inefficient use of agricultural land, the fee rates can reach 100 times the amount. The rates of payment for subsoil use will also be revised, taking into account the term of the license and the number of sites.

Key changes in the new Tax Code aimed at simplifying the tax system: