The Tax Code, effective 1 January 2026, introduces a standard CIT rate of 20%, adjusted CIT rates for various sectors, a VAT increase from 12% to 16%, with various exemptions. 

Kazakhstan has introduced a new Tax Code, as per Law No. 214-VIII, introducing revised corporate, VAT, and individual income tax rates.

The legislation was signed into law by President Kassym-Jomart Tokayev on 18 July 2025.

The tax measures will generally take effect on 1 January 2026.

Corporate income tax (CIT)

  • The standard CIT rate is maintained at 20%.
  • The CIT rate for second-tier banks (excluding business lending) and gambling entities has been set at 25%.
  • Reduced CIT rates have been introduced, which are:
    • 10% for education and medical entities.
    • 5% for social activities (increasing to 10% in 2027; 0% for non-profits).
    • 3% for agricultural/aquaculture producers;
    • 6% for agricultural cooperatives.
  • CIT has been exempted on the income derived from securities issued by the state-owned Baiterek holding company until 2031.
  • The additional R&D tax deduction has been increased from 50% to 200% of R&D expenses.

Value-added tax (VAT)

  • The standard VAT rate has been increased from 12% to 16%.
  • The reduced VAT rate for pharmaceuticals and medical products, currently at 5%, will rise to 10% in 2027.
  • Free medical care, compulsory social health insurance, and certain medical products/services have been exempted from VAT.
  • The VAT registration threshold has been lowered from 20,000 MCI to 10,000 MCI (~KZT 40 million).

Individual Income Tax (IIT)

  • Progressive IIT rates:
    • Income up to 8,500 MCI is taxed at 10%.
    • Income over 8,500 MCI is taxed at 15%.
  • Dividend IIT rates:
    • Dividends up to 230,000 MCI are taxed at a rate of 5%.
    • Dividends over 230,000 MCI are taxed at a rate of 15%.
  • Private professionals, including notaries, lawyers, and mediators, are subject to a flat 9% IIT rate.
  • Tax deductions:
    • Basic Employment Income: Deduction increased to 30 MCI per month (previous 14 MCI)
    • Disability Social Tax: Deduction increased to 5,000 MCI per year.

The MCI for 2025 is KZT 3,932.