Kazakhstan’s President signed amendments to transfer pricing  regulations on 18 July 2025, introducing new rules effective 1 January 2026 that emphasize substance over form, revise reporting thresholds, define key financial terms, and tighten compliance deadlines.

The President of Kazakhstan signed the No. 215-VІIІ on 18 July 2025 introducing changes to transfer pricing (TP) regulations.

Substance over form in TP analysis

A new principle of “substance over form” has been emphasised for controlled transactions involving intangible assets. The law requires a functional analysis comparing transaction terms with market conditions, focusing on the actual conduct of parties, functions performed, and risks assumed. This may allow tax authorities to reassess the nature or terms of transactions.

Revised threshold calculation for CbC reporting

The threshold for filing a Country-by-Country (CbC) report, set at EUR 750 million, will now be calculated using the official exchange rate published by the National Bank of Kazakhstan instead of the average market exchange rate. This change brings Kazakhstan’s rules in line with international CbC reporting standards.

Definition of risk-free interest rate

The amendments introduce a definition of “risk-free interest rate” for tenge, euro, dollar, and other currencies. Tax authorities are expected to closely review financial transactions to ensure that interest rates align with legislative requirements and reflect appropriate risk premiums.

Definition of intangible asset

A new definition of “intangible asset” has been established as an identifiable non-monetary asset that constitutes intellectual property under Kazakhstan’s regulatory legal acts.

Compliance measures recommended

Given the increased scrutiny under the revised TP rules, taxpayers are advised to review contracts and transaction terms, prepare supporting documentation, and adjust pricing or agreements where necessary.

Reduced submission deadline

The deadline for taxpayers to provide documents and information justifying the transaction price upon request by authorised bodies has been reduced from 90 days to 30 days.

The amendments will take effect from 1 January 2026.

Earlier, Kazakhstan’s Ministry of Finance had initiated a public consultation regarding the draft order proposing changes to the transfer pricing law.