President Kassym-Jomart Tokayev signed the new Tax Code (No. 214-VIII) on 18 July 2025. It replaces the 2017 code and applies from 1 January 2026.
For anyone trading or producing in Kazakhstan, VAT is the change that bites first. The basic rate goes from 12% to 16%. Medicines and medical services used to be exempt; they now carry 5% in 2026 and 10% from 2027, while services within the state's free medical care package and compulsory health insurance stay exempt. The threshold for mandatory VAT registration has actually come down. The President's website puts it at 10,000 monthly calculation indices, roughly KZT 40 million, and the exact figure moves with the index each year.
The basic corporate income tax rate does not change, it is still 20%, but there are now more bands. Banks (except for lending to businesses) and gambling operators pay 25%, social-sector organisations 5% in 2026 and 10% in 2027, and agricultural producers keep a reduced 3%.
Foreign shareholders should read the next part separately. It comes from Baker McKenzie's analysis. The exemption for gains on selling shares in a Kazakh company held for more than three years has been removed. Withholding tax on dividends falls from 15% to 5% on the part that does not exceed KZT 954.04 million, and stays at 15% above that. Withholding tax on interest paid by Kazakh borrowers to foreign lenders drops from 15% to 10%.
Rules related to this news
The official line on simplification is that tax reporting shrinks by 30%, the number of taxes by 20%, and only three special regimes remain: for the self-employed, for a simplified return, and for farms.
All of this comes from the President's website and a law firm's note. We could not open the code itself on Adilet this time, so exact amounts and conditions should be checked against the official text and with a local tax adviser.
Source: Website of the President of Kazakhstan, https://www.akorda.kz/ru/glavoy-gosudarstva-podpisan-novyy-nalogovyy-kodeks-i-soputstvuyushchiy-emu-zakon-o-vnesenii-izmeneniy-i-dopolneniy-v-nekotorye-zakonodatelnye-akty-respubliki-kazahstan-po-voprosam-nalogooblozheniya-1863237
Baker McKenzie, https://www.bakermckenzie.com/en/insight/publications/alerts/2025/09/kazakhstan-new-tax-code
Code text (Adilet), https://adilet.zan.kz/rus/docs/K2500000214/links
Key facts
- Kazakhstan's new Tax Code enters into force on January 1, 2026, replacing the old 2017 Code.
- Kazakhstan's basic VAT rate rises from 12% to 16%.
- Kazakhstan's basic corporate income tax rate remains 20%; banks and the gambling industry are raised to 25%.
- When a Kazakh company distributes dividends to foreign shareholders, the withholding tax on the portion not exceeding 954 million tenge is reduced from 15% to 5%.
- Kazakhstan has abolished the tax exemption for foreign shareholders transferring shares in a Kazakh company after holding them for three full years.
- The withholding tax on interest paid to foreign lenders is reduced from 15% to 10%.
FAQ
When does Kazakhstan's new Tax Code enter into force?
The new Tax Code was signed by President Tokayev on July 18, 2025, No. 214-VIII, enters into force on January 1, 2026, and replaces the old 2017 Code.
How has Kazakhstan's basic VAT rate changed?
The basic VAT rate rises from 12% to 16%. Medicines and medical services were previously exempt; in 2026 they will be taxed at 5%, and from 2027 at 10%; services covered by the state free medical care package remain exempt.
Has Kazakhstan's corporate income tax rate changed?
The basic rate remains unchanged at 20%. Banks (except for lending to enterprises) and the gambling industry are raised to 25%; social sector organizations are taxed at 5% in 2026 and 10% from 2027; agricultural producers continue at 3%.
What changes have been made to withholding tax when a Kazakh company distributes dividends to foreign shareholders?
For the portion of dividends not exceeding 954 million tenge, the withholding tax is reduced from 15% to 5%, while the portion exceeding that amount remains at 15%. The withholding tax on interest paid to foreign lenders is reduced from 15% to 10%.
Can foreign shareholders still enjoy tax exemption when transferring shares in a Kazakh company?
The previous rule granting tax exemption after holding shares for three full years has been abolished; tax arrangements involving equity transfers need to be separately reviewed.