April 9, Majilis of the Parliament of the Republic of Kazakhstan approved the first reading of the draft of the new Tax Code. Acsour experts reviewed the bill, talked about the key changes and how to prepare for them
President of Kazakhstan Kasym-Jomart Tokayev has labelled tax reform as one of the key tasks for the country’s economic development.
The main objectives of the innovations include:
Acsour experts note that the ongoing tax reform has 3 key reasons:
What changes does the bill contemplate?
1. Increase in VAT rate. The rate will increase from 12% to 16%.
2. Changes in the VAT registration threshold. The new threshold is 40 million tenge.
3. VAT for property developers will affect the cost of housing.
4. VAT exemption is provided for socially important food products, book publishing and services in the field of archaeology. A special list of medicines not subject to VAT will also be formed. Paid medical services will be subject to 10% VAT, which will make these services more expensive for the population.
5. The CIT rate will be 25 per cent for the banking and gambling sectors, and 10 per cent for financial leasing. In the social sector, including education and medicine, the rate will be introduced in stages: 5% from 2026 and 10% from 2027. For agricultural producers, the CIT rate of 3% will be retained.
6. Under the special tax regime based on a simplified declaration, the income limit of 2.4 billion tenge is retained and the limitation on the number of employees is cancelled. Instead of the previously proposed permissive list of 40 OKEDs, a ‘prohibitive' one will be introduced — the regime will be applicable to all types of activities not included in the list of prohibitions.
7. It is proposed to increase the basic tax deduction for employees from 14 to 30 MRP — from 55 to 118 thousand tenge. This will help to reduce the taxable part of earnings. For cars older than 10 years, the tax is reduced by 30%, older than 20 years — by 50%.
Acsour experts note that these innovations tighten the tax policy of Kazakhstan, but the bill retains many favourable conditions for taxpayers. For example, the advantages of the simplified regime are preserved. They will allow convenience stores, hairdressing salons, workshops and other businesses focused on serving individuals not to be VAT payers.
The tax reform will have a significant impact on Kazakhstan’s economy. In addition to increasing budget revenues, it aims to create a more transparent and fairer business environment, improve public expenditure management and combat the shadow economy. These measures will help Kazakhstan achieve balanced growth and enhance regional development.
Acsour experts recommend:
1. Conduct an audit of tax accounting in the company. This solution will help to identify business peculiarities that may need to be corrected due to upcoming changes.
2. Consult with specialised lawyers and receive a list of recommendations that will help prepare for the innovations.
Acsour specialists will ensure the correct conduct of business in Kazakhstan, taking into account the latest changes in the country’s legislation.
President of Kazakhstan Kasym-Jomart Tokayev has labelled tax reform as one of the key tasks for the country’s economic development.
The main objectives of the innovations include:
- ensuring VAT transparency;
- combating the shadow economy;
- optimisation of public expenditures and revision of non-priority budget items;
- levelling the business environment.
Acsour experts note that the ongoing tax reform has 3 key reasons:
- The need to balance the budget to continue investing in social capital;
- levelling of competitive conditions in the business sector;
- the need to stop the practice of business fragmentation.
What changes does the bill contemplate?
1. Increase in VAT rate. The rate will increase from 12% to 16%.
2. Changes in the VAT registration threshold. The new threshold is 40 million tenge.
3. VAT for property developers will affect the cost of housing.
4. VAT exemption is provided for socially important food products, book publishing and services in the field of archaeology. A special list of medicines not subject to VAT will also be formed. Paid medical services will be subject to 10% VAT, which will make these services more expensive for the population.
5. The CIT rate will be 25 per cent for the banking and gambling sectors, and 10 per cent for financial leasing. In the social sector, including education and medicine, the rate will be introduced in stages: 5% from 2026 and 10% from 2027. For agricultural producers, the CIT rate of 3% will be retained.
6. Under the special tax regime based on a simplified declaration, the income limit of 2.4 billion tenge is retained and the limitation on the number of employees is cancelled. Instead of the previously proposed permissive list of 40 OKEDs, a ‘prohibitive' one will be introduced — the regime will be applicable to all types of activities not included in the list of prohibitions.
7. It is proposed to increase the basic tax deduction for employees from 14 to 30 MRP — from 55 to 118 thousand tenge. This will help to reduce the taxable part of earnings. For cars older than 10 years, the tax is reduced by 30%, older than 20 years — by 50%.
Acsour experts note that these innovations tighten the tax policy of Kazakhstan, but the bill retains many favourable conditions for taxpayers. For example, the advantages of the simplified regime are preserved. They will allow convenience stores, hairdressing salons, workshops and other businesses focused on serving individuals not to be VAT payers.
The tax reform will have a significant impact on Kazakhstan’s economy. In addition to increasing budget revenues, it aims to create a more transparent and fairer business environment, improve public expenditure management and combat the shadow economy. These measures will help Kazakhstan achieve balanced growth and enhance regional development.
Acsour experts recommend:
1. Conduct an audit of tax accounting in the company. This solution will help to identify business peculiarities that may need to be corrected due to upcoming changes.
2. Consult with specialised lawyers and receive a list of recommendations that will help prepare for the innovations.
Acsour specialists will ensure the correct conduct of business in Kazakhstan, taking into account the latest changes in the country’s legislation.