Mazhilis adopts new tax code in Kazakhstan

Members of the Mazhilis, the lower house of Kazakhstan’s parliament, have adopted the draft of the new tax code in its second reading. The document has now been passed to the Senate, the upper chamber, for approval.

The second reading of the draft law was relatively quiet, as no discussion took place this time. MP Berik Beisengaliyev delivered a report on the key concepts of the new tax code, after which MPs voted for its adoption.

The MP also reported that the value-added tax (VAT) rate was lowered from the previously proposed 20% to 16%, while the VAT registration threshold has been set at 40 million tenge ($78,227). Lower tax rates will be introduced for medicine and medical services: 5% starting in 2026 and 10% in 2027, respectively. Goods and services provided free of charge under guaranteed medical support, medical insurance, treatment of rare diseases and socially significant illnesses will be exempt from VAT.

The same exemption will also apply to socially significant food staples, domestically printed books and publishing services. Furthermore, the government will increase the amount of VAT that Kazakhstani agricultural producers can credit from 70% to 80%, reducing their overall tax burden.

Retail sales tax and the simplified form of tax declaration have been combined into a single special tax regime with a rate of 4%. However, local legislative bodies — maslikhats — will be allowed to adjust this rate by ±50%. Any company not included on a prohibited list may use this regime. These companies can also provide services to both individual consumers and businesses.

For entities in the social sphere, the corporate income tax rate will be 5% starting in 2026 and 10% in 2027. In addition, the tax credit for disabled people is going to be as high as 5,000 times the minimum calculation index (MRP).

Corporate income tax for banks and gambling businesses will increase to 25%, while income banks earn from lending to businesses will remain at 20%.

The new tax code also introduces a progressive scale for individual income tax:

• 10% for income below 8,500 MRP (about $65,515 per year);
• 15% for income above that amount.

Investors will also be required to pay 5% in individual income tax on dividends from securities up to 230,000 MRP (about $1.9 million), and 15% for dividends above that threshold. All existing tax benefits they previously enjoyed will be lifted.

The government also plans to gradually increase excise duties on alcohol, tobacco and energy drinks. This measure aims to promote a healthy lifestyle. Inefficient use of agricultural land will be penalized with up to a 100-fold increase in payment rates.

The subsoil use payment rate will also be revised, depending on the validity period of licenses and the number of fields involved.