ASTANA, Kazakhstan, December 19. Moody’s Ratings anticipates that Kazakhstan’s new tax code, scheduled to take effect on January 1, 2026, will reduce the nation’s dependence on transfers from the National Fund, thereby enhancing fiscal sustainability, Trend reports via Moody’s.
The new tax code will introduce a progressive income tax system, alongside increases in corporate tax and VAT rates, in a bid to expand the tax base.
In addition, Moody’s notes that a forthcoming banking law will modernize Kazakhstan's financial sector by delineating the respective oversight roles of the National Bank and the financial market regulator. This reform aims to foster innovation and enhance governance within the sector.
The revised tax code is expected to streamline reporting processes, reducing the volume of paperwork by 30% and the number of taxes by 20%. It will also simplify tax incentives and collections, eliminate the unified land tax, and reduce the number of tax rates for certain payments. These adjustments will impact key areas of taxation, including corporate and individual income taxes, investment incentives, and the overall redistribution of the tax burden.
Meanwhile, President Tokayev has instructed the Parliament to adopt a new law on Banks and Banking Activities by the end of the year. The law, developed by the Agency for Regulation and Development of the Financial Market, seeks to ensure the stability and sustainability of Kazakhstan's banking system through improved regulation and supervision. It aims to strengthen the resilience of the banking sector, promote innovation, and enhance the role of banks in financing the real economy.