Draft Tax Code of the Republic of Kazakhstan from 2026

Changes for Employees under Employment Contracts (Residents of Kazakhstan)

According to the draft Tax Code, starting from 2026 a number of tax deductions will be replaced when determining the taxable income of individuals — residents of Kazakhstan for personal income tax (PIT) purposes.

Instead of the standard tax deduction of 14 MCI, as well as deductions for education, medical expenses, mortgage interest, and large families, a single basic deduction will be introduced:

• 30 MCI per calendar month;

• 360 MCI per calendar year.

The deduction will be granted based on a written application in free form.

Progressive PIT

The new Tax Code introduces a progressive scale of personal income tax for all individuals — both residents and non-residents of Kazakhstan.

The following tax rates are planned:

• If annual income is up to 3 million KZT — tax rate 10%;

• If annual income exceeds 3 million KZT — tax rate 15%.

Example: with annual income of 34 million KZT, PIT at 10% will be withheld from 33.5 million KZT, while the remaining 0.5 million KZT exceeding the threshold will be taxed at 15%.

Table 1: Progressive PIT Rates

Taxation of Dividends

Dividend income will also be subject to a progressive tax scale:

• Up to 230,000 MCI — tax rate 5%;

• Above 230,000 MCI — tax rate 5% on the threshold amount + 15% on the excess.

Table 2: Taxation of Dividends

For the purposes of applying subparagraphs 1) and 5) of this article, the monthly calculation index valid as of January 1 of the respective fiscal year is used.

Changes to Compulsory Health Insurance (CHI) from January 1, 2026

The Mazhilis of Parliament approved in the second reading the draft law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Compulsory Social Health Insurance.”

Key amendments relate to increasing the maximum thresholds for calculating contributions and payments:

• For employer contributions (OOSMS) — from 10 times to 40 times the minimum wage (MW);

• For employee contributions (VOSMS) — up to 20 times MW.

The law will be supplemented as follows:

• Article 27 (p. 2-2): income for calculating contributions is determined as the sum of all accrued income of the employee and shall not exceed 40 MW.

• Article 28 (p. 5-2): income for calculating contributions is determined as the sum of all accrued income and shall not exceed 20 MW.

If contributions are already paid from the main income, duplicate contributions from other income are not required, provided there is supporting documentation (certificate of income and contributions paid issued by the employer or tax agent).

These requirements do not apply to individuals who are independent payers.

Individuals under Civil Law Contracts (Provision of Services)

The Tax Code will be supplemented with Article 345-2 “Tax deduction for social contributions from income under civil law contracts (CLCs).”

Individuals will be entitled to a tax deduction for social contributions withheld from income under civil law contracts (work and services).
The deduction amount will be determined in accordance with the legislation of the Republic of Kazakhstan on social protection.

Other Individuals — Residents of Kazakhstan

Article 356 will be supplemented with paragraph 3, which cancels the application of standard tax deductions to the taxable income of other individuals.