At the meeting of the Council for Improving the Investment Climate, chaired by Prime Minister Olzhas Bektenov, issues related to tax policy were discussed, as reported by primeminister.kz.
The new Tax Code being developed includes the implementation of a service model for administration, a 30% reduction in tax reporting, and a 20% decrease in the number of tax payment types. A reduced income tax rate will be introduced for producers of locally manufactured goods, while raw material processors will receive a deferral on VAT for imported equipment.
During the meeting, changes regarding the taxation of royalties were also clarified, according to the government press service.
According to the Ministry of Finance, a record 1.2 trillion tenge was paid out in VAT refunds in 2024. A new information system will be launched on January 1, 2026, which will enhance the efficiency and transparency of the tax refund process.
It is worth noting that on February 20, 2025, the Ministry of National Economy submitted a package of amendments to the Tax Code draft to the Mazhilis.
In Kazakhstan, a discussion is underway regarding increasing the VAT rate from the current 12%. Previously, the issue of raising the VAT rate from 12% to 20% was considered, with an intention to reduce the burden on the wage fund to 30%. Additionally, Deputy Prime Minister and Minister of National Economy Serik Jumangarin proposed lowering the VAT threshold to 15 million tenge. During a meeting with business representatives on January 28, 2025, President Kassym-Jomart Tokayev stated that any innovations should be based on comprehensive analysis and a well-thought-out strategy, and instructed the government to further explore the VAT rate issue.
On February 11, 2025, Serik Jumangarin stated at a government meeting that the value-added tax rate "will be differentiated: 16%, 10%, 0%, and VAT exemptions." It was also reported that in the construction sector, a social infrastructure payment (SIP) is planned to be implemented instead of VAT.
The proposed reform regarding the elimination of social tax and pension contributions by entrepreneurs could take place on the condition of raising the VAT to 20%. This would allow the state to have revenues to cover social contributions instead of the employer. However, with the currently proposed VAT rate of 16%, social contributions are suggested to remain unchanged.
The Ministry of Finance of Kazakhstan is also considering issues related to reducing ineffective tax benefits and differentiating the individual income tax based on personal income levels.