Retail investors in Kazakhstan will now pay taxes based on the netting principle. All transactions starting from Jan.1, 2025, will be taken into account on a cumulative basis — with the possibility of deducting losses from profits. These changes to the Tax Code were signed into law by President Kassym-Jomart Tokayev.
At the same time, the law allows investors to deduct brokerage commissions when purchasing securities. This means the tax base will reflect the investor’s actual profit. These amendments eliminate the previous imbalance, where taxes could be charged even in cases of financial loss.
According to Sergey Lukyanov, chairman of the board of Freedom Finance JSC, the adopted changes make the tax system more logical, transparent and aligned with international standards.
«The changes eliminate the key contradictions of the previous approach, in which investors could face the need to pay taxes even if they reported losses, not gains. This is especially important for retail investors, for whom the predictability and fairness of the tax burden play a decisive role. We are already adjusting our systems so that our clients can focus on investments without the need to think about tax calculations,» he said.
According to Gali Iskaliyev, vice president of Freedom Finance Global, the introduction of fair taxation results from the systematic and transparent work of the Ministry of National Economy, Ministry of Finance, State Revenue Committee, Agency for Regulation and Development of the Financial Market, Parliament, the Association of Financiers of Kazakhstan, and the broader professional community.
«We are grateful to all participants of the process for their willingness to engage in dialogue and for the high-quality development of initiatives. We are currently discussing other regulations that will boost the development of the stock market in Kazakhstan and the country’s economy as a whole,» he emphasized.
The amended document also introduces a differentiated approach to taxation depending on the type of securities. The law defines which securities are considered privileged — meaning no income tax is applied when they are sold. These include:
- Securities on the official lists of KASE and AIX
- Government and agency bonds
- Equity units of mutual investment funds
- Shares of companies registered with the Astana International Financial Centre
All other securities will be taxed under the standard rules. However, income from the sale of privileged securities must still be reported in the tax return, even though it can be excluded from the taxable base using specific sections of the tax form.
Profit and loss calculations will be done separately for each category — privileged and non-privileged. Losses in one category cannot offset profits in the other. In addition, if an investor ends the year with a net loss from securities transactions, that loss cannot be carried forward to reduce taxes in future periods.
The method for calculating income has also been officially defined. The only accepted method is FIFO (First In, First Out). This means that when selling securities, their cost will be determined based on the earliest purchase date — regardless of which account they are stored in. For tax purposes, all trading accounts held with the same broker are treated as one. Even if identical assets are held across different accounts, the oldest purchase is used to calculate the tax base.
This may lead to discrepancies between the financial outcome and the tax assessment — for example, a taxable gain could be reported even if the investor incurred a real loss.
The updated code also places special emphasis on determining the initial cost of assets. This value must be documented and may include:
- The purchase price
- Brokerage commissions
- Option premiums
- Market value on the date of receipt (as a gift or inheritance)
- Transfer value listed in legal documents
If the investor cannot document the purchase price, it will be considered zero, thereby increasing the taxable base.
Strict rules are also applied to securities associated with low-tax jurisdictions. If the rights to such securities or the transactions themselves are registered in such countries, their initial value in Kazakhstan is recognized as zero, except for certain debt instruments.
A separate section of the changes concerns digital assets, including cryptocurrencies. A new article in the Tax Code now regulates how income from digital asset transactions is taxed. The FIFO principle also applies here.
The transfer of a digital asset in exchange for other property is not considered a sale, unless it is sold. Income from derivative financial instruments involving digital assets will be calculated as the difference between the assets received and those used. Furthermore, the value of a digital asset received from an offshore jurisdiction may also be recognized as zero. All calculations must be based on data from an online resource approved by the government.
