The new regulations are designed for calculating second-tier banks’ taxable income, effective 1 January 2026.

Kazakhstan’s Ministry of Finance and National Bank have jointly approved new rules for determining taxable income from banking activities conducted by second-tier banks.

The measures, issued through Joint Order No. 508 of 18 September 2025 and Resolution No. 55 of 26 September 2025. The Order was officially published on 3 October 2025.

The rules establish that taxable income for second-tier banks is divided into two main categories: income from lending activities to business entities and income from other banking activities that are not related to lending. Expenses incurred by banks are classified either as direct, which are fully attributable to a specific activity, or general, which are allocated proportionally across different activities based on predefined criteria.

For lending activities, taxable income is calculated by deducting eligible expenses, adjustments, and reductions from the aggregate annual income derived from these activities. The types of income considered include interest, commissions, leasing income, factoring and guarantee operations, penalties recognised by debtors, income from assignment of claims, net positive foreign exchange differences, and reductions in provisions or reserves. Losses from lending activities are recognised when deductions and adjustments exceed total income.

Taxable income from other banking activities is calculated separately using a similar methodology, with income, expenses, and adjustments treated independently from lending activities. This ensures clear separation of taxable income streams in line with the Tax Code of Kazakhstan.

The purpose of these rules is to standardise the calculation of taxable income for second-tier banks, ensuring proper separation and classification of income and expenses from different banking activities and compliance with Kazakhstan’s tax legislation.

This joint resolution and order shall be implemented with effect from 1 January 2026 and shall be officially published.