Tax-exempt goods will not face Value-Added Tax (VAT) implications.
Kazakhstan's Proposed Tax Code Shows Key Changes to Tax Rates and Exemptions
In a pivotal announcement made at a Majilis meeting, Vice-Premier and Minister of National Economy, Serik Zhumaniyazov, revealed the draft of Kazakhstan's new Tax Code. The proposed changes introduce crucial updates to tax rates and exemptions.
According to the draft, several commodities and services will remain exempt from Value-Added Tax (VAT). These include socially significant food products, book publishing, and archaeology. In the social sphere and healthcare, a list of medicines exempt from VAT will be determined by the government. paid medical services will incur a VAT rate of 10%.
The individual income tax (IIT) in the social sphere will increase gradually, with a 5% increment planned for 2026 and a 10% increase in 2027. To promote growth in specific sectors, a special tax regime will be introduced with a prohibited list, meaning everything not included in the list will be allowed. Agricultural producers will continue to benefit from a preferential rate of "minus 70%," while the processing industry will retain the IIT rate of 20%.
Banking operations will also attract VAT, and the Agency for Protection of Competition, together with the government, will analyze the justification of current rates to prevent price increases.
Previously, the AMANAT party faction in the Majilis had propositioned exempting 19 socially significant food products from VAT. However, the final decision appears to deviate from this earlier proposal.
The new Tax Code is designed to modernize the tax system, stimulate fairness, and drive economic growth. It is expected to take effect in January 2026. It remains to be seen how these changes will impact businesses and consumers in Kazakhstan.
- The new Tax Code in Kazakhstan, which is scheduled to take effect in January 2026, introduces a special tax regime in an effort to promote growth in specific sectors.
- In the proposed Tax Code, banking operations will attract Value-Added Tax (VAT), and the Agency for Protection of Competition, along with the government, will analyze the justification of current rates to prevent price increases.
- The Finance and Economy sector, as well as the general news outlets, will closely monitor the impact of Kazakhstan's new Tax Code on businesses and consumers, given its focus on modernizing the tax system, stimulating fairness, and driving economic growth.
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