Kazakhstan’s National Economy Minister Nurlan Baibazarov said the country’s new Tax Code will take effect in January 2026.

This follows Kazakhstan’s President Kassym-Jomart Tokayev’s announcement in his State of the Nation address on 2 September 2024 that the implementation of the Tax Code should be postponed for a year.

The Tax Code was designed to streamline the budget process, enhance tax administration, prevent different interpretations of tax rules, and integrate digital technologies.

“The new Tax Code is supposed to be adopted by July 2025 and to come into force from 1 January 2026. This period is needed for public awareness, to draft regulatory acts, and get the databases of the State Revenue Committee ready,” Baibazarov said. 

Earlier, on 24 July 2024, Kazakhstan’s Ministry of National Economy updated the draft of its new tax code with several amendments.

The draft proposed new corporate tax rates, such as 20% for general taxpayers, 25% for banks and gambling, 10% for manufacturing, and 3% to 6% for agriculture.  It also proposes changes to non-resident withholding tax, introducing a 5% tax on dividends for non-resident investors.

Furthermore, the draft eliminates the 10% withholding tax exemption for dividends on shares held over three years, as well as exemptions on dividends and interest from Kazakhstan Stock Exchange securities. It also introduces a 300% super deduction for R&D expenses.

The Tax Code will remove certain previous benefits and introduce changes such as banking dividend taxation, optimised tax regimes for entrepreneurs, digitalised tax administration, and a new VAT administration mechanism.