Majilis Adopts New Tax Code: VAT, Income Tax, and Sector Reforms Approved

On April 30, Majilis deputies adopted the draft of the new Tax Code and related amendments on taxation issues in a second reading, Orda.kz reports.

One of the key changes concerns the value-added tax (VAT) rate. The initially proposed 20% rate was lowered to 16%. The threshold for mandatory VAT registration was also raised — from 15 million to 40 million tenge.

Beginning in 2026, reduced VAT rates will be introduced for medicines and medical services: 5% in 2026 and 10% in 2027.

Goods and services provided under the guaranteed volume of free medical care (GVFMC), compulsory medical insurance, and treatment of orphan and socially significant conditions will be fully exempt from VAT.

The exemption also applies to socially significant food products, domestically produced books, and services related to their publication.

To support the agricultural sector, the VAT offset rate for agricultural producers was increased from 70% to 80%.

The simplified taxation system will undergo changes with the introduction of a new model: a prohibitive list of activities will replace the previous permit list. A unified tax rate of 4% will be implemented, with maslikhats permitted to adjust it by ±50% based on regional characteristics.

A special tax regime will also now apply to transactions between business entities.

The corporate income tax (CIT) rate for gambling businesses and banks has been raised from 20% to 25%. However, the 20% rate remains for banks whose income comes from business lending.

One of the most significant reforms is the introduction of a progressive scale for individual income tax (IIT):

• For wages: 10% up to 8,500 MCI (approximately 33.5 million tenge annually), 15% above that
  
• For dividends: 5% up to 230,000 MCI (about 1 billion tenge), 15% above that
  
• For non-residents’ income: 10% up to 600,000 MCI, 17% above that

Original Author: Artyom Volkov