ASTANA, Kazakhstan, July 18. The President of Kazakhstan, Kassym-Jomart Tokayev, has signed a new Tax Code and the Law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Taxation Issues,” Trend reports via the press service of Kazakhstan.
According to the information, the documents provide for a large-scale simplification of tax administration, reduction of tax reporting, and changes in rates for key taxes.
The new Code reduces the volume of tax reporting by 30 percent and the number of taxes by 20 percent. The document optimizes benefits and fees and also revises all main directions - from corporate and individual income taxes to investment incentives and redistribution of the tax burden.
“The Tax Code is aimed at creating favorable conditions for business and citizens. For this, we reduced the number of taxes, simplified reporting, and introduced progressive rates for individual income tax, which will make the system fairer and stimulate economic activity,” the press release notes.
A new basic VAT rate of 16 percent is established. Reduced rates are provided for medicines and medical services: 5 percent from 2026 and 10 percent from 2027. Also, VAT exemption is granted for services within the guaranteed volume of free medical care, mandatory social medical insurance, treatment of orphan and socially significant diseases, services for publishing printed books, and archaeological works. A 10 percent rate is set for periodical printed publications. The VAT mandatory registration threshold is lowered to 40 million tenge.
The corporate income tax remains at 20 percent, but differentiated rates are introduced: 25 percent for banks and gambling businesses, 5 percent from 2026 and 10 percent from 2027 for social sector organizations, and 3 percent for agricultural producers. To stimulate the stock market, tax benefits on dividends are retained, and income of the “Baiterek” holding is exempt from tax until 2031.
“An important innovation is the introduction of progressive individual income tax rates: 15 percent applies to incomes exceeding 8,500 MRP (monthly calculation index) per year. A similar rate is introduced for dividends and entrepreneurial incomes exceeding 230,000 MRP. In addition, increased taxation is provided on expensive cars, vessels, and alcoholic products, as well as enhanced property tax on assets over 450 million tenge. This will make the tax system fairer and aimed at supporting socially vulnerable groups,” the statement says.
New mechanisms of tax administration are also being introduced: desk audits will become preventive, procedures for collecting tax arrears, and granting deferrals and installments are simplified. For minor debts, business accounts will not be blocked, and measures will be applied gradually depending on the amount owed.
The new Tax Code will come into force on January 1, 2026.
