New Tax Code in Kazakhstan

05.08.2025 The President of Kazakhstan signed Law No. 214-VIII on the introduction of a new Tax Code. The law will enter into force on January 1, 2026. The new Tax Code provides for a large-scale simplification of tax administration: the volume of tax reporting is reduced by 30%, the amount of tax is reduced by 20%, benefits and fees are optimized.

Major changes to the Tax Code:
1. The general corporate income tax rate remains at 20%;
2. An increased corporate tax rate of 25% has been introduced for the banking activities of second-tier banks (with the exception of lending to enterprises) and organizations engaged in gambling;
3. Exemption from corporate tax is introduced in respect of income earned by companies from securities issued by the Baiterek State Holding, including capital gains, until 2031;
4. The amount of the additional R&D deduction is increased, which allows taxpayers to further reduce their taxable income by an amount equal to 200% of R&D expenses, compared with the previous additional deduction of 50%;
5. The standard VAT rate increases from 12% to 16%;
6. Reduced VAT rates are provided for certain socially important goods and services, including a VAT rate of 5% on medicines and medical devices, which will increase to 10% in 2027.;
7. VAT exemption is provided for guaranteed free medical care and compulsory social health insurance services, while some additional medical products and services will be exempt from payment in accordance with bylaws.;
8. The VAT registration threshold has been reduced from 20,000 MCI (monthly calculation index) to 10,000 MCI, which is equivalent to about 40 million tenge;
9. A luxury tax has been introduced: increased rates on property worth over 450 million tenge, excise taxes on cars more expensive than 75 million tenge, expensive ships and aircraft, as well as excise taxes of 10% on elite alcoholic beverages and cigars

Link to the source: https://online.zakon.kz/Document/?doc_id=37777973&ysclid=mdycvjhufk564286795