Dear Clients,

We inform you that starting from January 1, 2026, the new Tax Code will come into force in the Republic of Kazakhstan. In this regard, we suggest you review the key changes that may affect your business activities and tax planning.

1. Value Added Tax (VAT)

• VAT rate – 16%.
• VAT registration – mandatory Face ID identification with the taxpayer’s personal presence.
• Deregistration – voluntary deregistration for VAT purposes is abolished.
• Services from non-residents – when receiving invoices from a non-resident (place of supply – Kazakhstan), the tax agent must issue an invoice “to their own address.”

2. Individual Income Tax (IIT)

• A progressive scale is introduced:
  ∙ Up to 8,500 MCI – rate 10%.
  ∙ Above 8,500 MCI – 10% + 15% on the excess amount.
• Dividends:
  ∙ Up to 230,000 MCI – rate 5%.
  ∙ Above 230,000 MCI – 5% + 15% on the excess amount.
• Contracts and invoices for services from non-residents must provide for withholding of IIT/CIT.

3. Special Tax Regimes (STR)

• Simplified declaration (“simplified regime”):
  ∙ Can only be applied by individual entrepreneurs and legal entities – residents of Kazakhstan.
  ∙ Income threshold – 600,000 MCI per year.
  ∙ Tax rate – 4% (subject to adjustment by local executive authorities).
  ∙ No social tax is paid; only IIT applies, and VAT is not applicable.
  ∙ A list of activities prohibited under this regime exists.

4. General Taxation Procedure

• Deduction restrictions: expenses for goods, works, and services purchased from counterparties applying the “simplified regime” are not deductible.
• If it is not possible to determine the supplier’s tax regime, it is recommended to exclude such expenses from deductions to avoid tax risks.

We recommend that you take these changes into account now when planning your operations and adjusting contracts.

If you have any questions or require consultation on specific situations, we will be glad to assist.