On July 18, 2025, President of the Republic of Kazakhstan Kassym-Jomart Tokayev signed the new Tax Code and the accompanying Law «On Amendments and Additions to Certain Legislative Acts on Taxation». This is a large-scale tax reform covering all key areas — from administration and tax benefits to VAT, PIT, and CIT rates.
The reform aims to simplify the tax system, support businesses, protect vulnerable groups, and stimulate overall economic growth.
What has been simplified
• Volume of tax reporting reduced by 30%
• Number of taxes reduced by 20%
• Tax benefits and fees optimized
• New approaches tot ax administration introduced
• Updated procedures for debt collection and deferrals
The system is becoming simpler and more transparent for both businesses and individual taxpayers.
Key changes in VAT
• The base rate is set at 16%
• Reduced rates apply to medical services and pharmaceuticals:
– 5% starting from 2026
– 10% starting from 2027
• Exempt from VAT:
– services under the guaranteed volume of free medical care and compulsory social health insurance
– treatment of rare and socially significant diseases
– publication of printed books
– archaeological works
• Periodical print publications will be taxed at a 10% rate
• The VAT registration threshold is reduced to 10,000 MCI (approximately 40 million ₸)
New rules for PIT
• Pension payments from the UAPF are fully exempt from personal income tax
• Transport tax is reduced for vehicles older than 10 years
• The social deduction for persons with disabilities is increased from 882 to 5,000 MCI
• Progressive rates are introduced:
– 15% on annual income exceeding 8,500 MCI
– 15% on dividends and entrepreneurial income exceeding 230,000 MCI
• For farmers, a reduced rate of 4.5% applies if the threshold is exceeded
Increased taxation on luxury goods
Excise taxes are introduced for certain categories of high-value goods:
• Cars priced over 75 million ₸
• Yachts and boats over 100 million ₸
• Alcohol priced above 500,000 ₸ per liter
• Cigars priced above 10,000 ₸ per piece
• Real estate with a total value exceeding 450 million ₸ is subject to a higher property tax
The excise rate for all these categories is set at 10%.
Changes in corporate taxation
• The base corporate income tax (CIT) rate remains at 20%
• Differentiated rates are introduced:
– 25% for banks and gambling businesses (excluding loans to businesses)
– 5% for social sector organizations starting in 2026, increasing to 10% in 2027
• Agricultural producers retain a preferential rate of 3%
• Income from securities issued by Baiterek Holding is exempt from tax until 2031
• Tax benefits for stock market participants are maintained
• A new subsoil use tax (MPT) rate of 0% is introduced for five years for newly developed low-profit deposits
• Additional preferences are provided for geological exploration and mineral processing
What will change for the self-employed and small businesses
• The unified land tax is abolished
• Certain fee rates are revised and simplified
• Only three special tax regimes remain:
1. for self-employed individuals
2. based on simplified declaration
3. for farming enterprises
• Self-employed individuals will be able to calculate and pay their taxes through a mobile app without visiting the tax authority
New approaches in tax administration
Desk audits will now be of a preventive nature. Procedures for debt collection, payment deferrals, and installments will be simplified. Business accounts will not be blocked in cases of minor tax debts. All enforcement measures will be applied gradually, depending on the amount owed.
When the changes take effect
The new Tax Code will come into force on January 1, 2026.