Mazhilis deputies have adopted in the second reading a new Tax Code with substantial changes to the tax system. The government proposal to increase VAT to 20% has been adjusted — the final rate has been set at 16%, and a range of benefits for the medical and social sectors have been introduced. The document was developed in accordance with the instructions of the President of the country and is aimed at optimising the tax system.
As a result of joint work between the deputy corps and the Cabinet of Ministers, important decisions were made on reforming the tax system. One of the key changes was a reduction of the rate initially proposed by the government, from 20% to 16% for VAT. Furthermore, the threshold for mandatory registration for VAT has been raised almost threefold — from 15 million to 40 million tenge, which is expected to simplify operations for small businesses.
Particular attention in the new code is paid to socially significant areas. In the medical sphere, reduced VAT rates are being introduced: 5% from 2026 and 10% from 2027 for medicines and medical services. At the same time, goods and services provided within the guaranteed volume of free medical care, compulsory medical insurance, as well as the treatment of orphan and socially significant diseases, are fully exempt from VAT.
The Tax Code provides support for cultural and food security through exemption from VAT of socially significant food products (SSFPs) and domestically published books, including services for their publication in printed form. For the agricultural sector, the amount of VAT additionally attributable as a credit has been increased from 70% to 80%, which is expected to contribute to the development of agricultural production.
Significant changes have also affected the simplified tax system. Instead of a permissive list, a prohibitive list of types of activities has been introduced, and a single tax rate of 4% has been established. At the same time, local maslikhats have received the right to adjust it within a range of ±50% to account for regional specifics. The scope of application of the special tax regime for transactions between business entities has also been expanded.
Corporate income tax for the gambling business and banks has been increased to 25%. However, an important exception has been made for the banking sector: on income from lending to entrepreneurs, the rate remains at the previous level — 20%.
Significant innovations have been introduced into the system of individual income tax (IIT). A progressive IIT scale is being introduced, differentiated by type of income. For salaries, two rates have been set: 10% on income up to 8,500 MRP per year (33.5 million tenge) and 15% on amounts exceeding this threshold. For dividends, a two-tier system is also provided: 5% on income up to 230,000 MRP (1 billion tenge) and 15% on higher amounts. For non-resident individuals: income up to 600,000 MRP is taxed at a rate of 10%, above that at a rate of 17%.
It is expected that this tax structure will avoid increasing the tax burden on citizens with low and middle income levels, while maintaining the fairness and proportionality of the system.
It will be recalled that the initial version of the reform proposed increasing VAT to 20%, but after intervention by the President and consultations with the business community, a more balanced decision was made. At the same time, the collegial body had proposed lowering the threshold for VAT from 20,000 MRP (78.6 million tenge) to 3,800 MRP (about 15 million tenge). In turn, deputies proposed cutting the threshold to 10,000 MRP (39.3 million tenge).