President Tokayev accepts New Tax Code
President Kassym-Jomart Tokayev has approved a new Tax Code and a related law introducing amendments to tax regulations, as reported by Akorda’s press service.
The code, signed on July 18, facilitates tax administration, including a 30% reduction in tax reporting volume and a 20% reduction in the number of taxes. Among the key amendments is a transition to a 16% value-added tax (VAT). The new Tax Code will take effect on Jan. 1, 2026.
Starting next year, a reduced VAT rate of 5% will apply to remedies and medical services, whereas in 2027, the rate will rise to 10%. Services covered under the statutory free-of-charge medical assistance and the Mandatory Social Health Insurance packages, alongside treatments for socially significant and orphan diseases, will be exempt from VAT. Exemptions will also apply to physical book publishing and archaeological excavations, while periodicals will be subject to a reduced 10% VAT rate.
The mandatory VAT registration threshold will be lowered to 10,000 monthly calculation indexes (MCI) — equivalent to approximately $75,000.
Pension payments from the Unified Accumulative Pension Fund will be exempt from individual income tax. The transport tax will be reduced for vehicles older than 10 years. For citizens with disabilities, the social tax deduction will increase from 882 MCI to 5,000 MCI (approximately $36,893).
The new code also optimizes special tax regimes, leaving only three categories: for self-employed; for entities applicable for simplified declarations; and for farmers. The self-employed will be able to calculate and pay taxes via a mobile app.
The single land tax has been abolished, while several other charges and fees have been reduced. These changes are intended to ease the administrative burden and stimulate economic activity.
The corporate tax remains at 16%, although differentiated rates have been introduced.
An increased 15% income tax rate will apply to citizens whose annual income exceeds 8,500 MCI (approximately $62,718). A similar rate will apply to entrepreneurs’ annual dividends and income exceeding 230,000 MCI (around $1.7 million).
A 10% excise duty has been introduced for individuals purchasing high-value goods. This increased taxation will apply to: cars valued at over 75 million tenge ($140,745); vessels worth more than 100 million tenge ($187,660); alcoholic beverages priced over 500,000 tenge per liter ($938); and cigars priced over 10,000 tenge ($18.77) per unit. Additionally, the property tax will increase for individuals whose cumulative real estate value exceeds 450 million tenge ($844,453).
Earlier this month, Tokayev also signed additional amendments to the Tax Code, regulating who is required to submit asset and liabilities declarations, as well as declarations on income and property.
