Kazakhstan has opened a public consultation on proposed Tax Code amendments that would reintroduce selected investment tax incentives, introduce a temporary tax regime for high-tech investment, and update VAT provisions to reduce administrative barriers.
Kazakhstan has launched a public consultation on 2 July 2026, on a package of amendments to the Tax Code of the Republic of Kazakhstan, with proposals intended to improve the investment climate, simplify tax administration, and address a number of administrative and tax issues affecting businesses.
Among the proposed measures is the introduction of a temporary up to five-year preferential income tax regime designed to attract highly skilled personnel and investment for the establishment of high-tech manufacturing facilities. Eligibility would be subject to mandatory job creation for citizens of Kazakhstan and the transfer of knowledge and technology.
The draft amendments also propose restoring the investment tax preferences that applied before 1 January 2026 for companies implementing priority investment projects, with the aim of maintaining investor confidence and policy stability.
On indirect taxation, the proposals include a VAT exemption for the import of raw materials and/or materials used under investment contracts. The government also plans to allow subsoil users to deduct input VAT on goods acquired under hydrocarbon production contracts for complex offshore projects, subject to specified conditions. Additional VAT changes would ensure VAT neutrality for goods transferred to the state for national defence purposes.
The consultation document identifies several areas where the current tax framework is considered to create additional costs or administrative burdens. These include Corporate Income Tax (CIT) on mandatory goods labelling, Value Added Tax (VAT) on factoring and forfeiting operations, the tax treatment of unfulfilled advances received from non-residents for long-term investment projects, and the absence of VAT relief for imported raw materials under investment contracts.
The proposals also seek to address issues relating to business immigrants and highly skilled specialists by introducing targeted tax incentives, while reducing administrative barriers associated with AIFC investment residency documentation. In addition, the draft would amend the social tax deduction mechanism for individuals with disabilities to provide a flat 5,000 MRP deduction regardless of when a disability group changes during the year.
According to the consultation paper, the reforms draw on tax incentive models used in Portugal, Italy, and the UAE, as well as VAT investment measures adopted in Uzbekistan, Turkey, and Malaysia. While the government acknowledges the proposals could temporarily reduce VAT and CIT revenues, it expects the measures to broaden the tax base over time through increased investment, new production capacity, and greater entrepreneurial activity.
The draft law is targeted for 2026, with the Ministry of National Economy and the Ministry of Finance identified as the responsible authorities for implementation.
The consultation will remain open until 27 July 2026.
