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Kazakhstan Discusses New Amendments to the Tax Code

Kazakhstan continues to discuss proposed amendments to the Tax Code with the participation of business representatives and government authorities.

On July 24, 2026, the National Chamber of Entrepreneurs “Atameken” hosted a meeting dedicated to planned changes to tax legislation. The discussion was held following an instruction from Serik Zhumangarin, Deputy Prime Minister and Minister of National Economy of Kazakhstan.

By August 7, 2026, regional chambers of entrepreneurs and industry associations are expected to submit their proposals on the draft amendments. The consolidated position of the business community will then be reviewed by the Project Office for the Implementation of the Tax Code and submitted for further legislative development.

The Project Office for the Implementation of the Tax Code was established as a central coordination platform to systematize and promptly review business requests related to the application of the new Tax Code provisions, which came into effect on January 1, 2026.

Proposed amendments

In early July, the Ministry of National Economy of Kazakhstan published a regulatory policy advisory document for public discussion as part of the draft law “On Amendments and Additions to the Tax Code.” The discussion will continue until July 30, 2026.

The proposed amendments were developed through the work of the Project Office and relevant working groups, taking into account instructions from the President, the Prime Minister of Kazakhstan, and government decisions.

Key proposals include:

Introducing a five-year incentive tax regime to attract unique expertise and investment in the development of high-tech industries. The regime would require companies to create jobs for Kazakhstan citizens and ensure knowledge transfer.
Exempting imports of raw materials and supplies under investment contracts from VAT, provided that investors fulfill their respective obligations.
Allowing VAT input credits for goods purchased by subsoil users under contracts for the extraction of hydrocarbons within complex offshore projects and transferred into state ownership for defense-related purposes.
Restoring the previous procedure for granting tax incentives to organizations implementing priority investment projects, which was in effect before January 1, 2026. The amendments also propose allowing investors to independently develop the necessary infrastructure with subsequent reimbursement of costs through corporate income tax (CIT) deductions.
Exempting individuals from personal income tax on income received from transactions with digital assets conducted through Kazakhstani providers for the period from January 1, 2026, to December 31, 2028.

The package also includes proposals previously reviewed by the Project Office, including:

introducing a mechanism to reduce taxable income subject to corporate income tax by part of the costs associated with product labeling;
exempting factoring and forfaiting transactions of second-tier banks from VAT;
adjusting the procedure for VAT crediting on agricultural products;
exempting international air navigation services from VAT;
abolishing the fee for issuing residency confirmation documents for certain investment residents of the Astana International Financial Centre.

Business-government dialogue on tax reform

The discussion of the amendments is taking place against the backdrop of the first results of implementing the new Tax Code. In mid-July, the Government of Kazakhstan reported that state budget revenues increased by almost 16% in the first half of 2026 compared with the same period last year.

At the same time, the tax reform has raised concerns among parts of the business community. According to expert assessments published in May 2026, the new tax rules put around 30% of Kazakhstani businesses at risk of closure or moving into the shadow economy. The sectors most affected were those with low profit margins.

One of the key concerns for businesses was the rule preventing companies operating under the general tax regime from deducting expenses related to transactions with counterparties using the simplified tax regime. According to business representatives, this has effectively resulted in small companies losing access to part of the B2B market.

Previously, the Kazakh authorities did not support proposals to revise this rule. However, the current stage of discussions provides cautious optimism: tax changes are now being discussed with businesses much more actively, and the proposed amendments could become a compromise solution.

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