The Ministry of National Economy has submitted a package of amendments to the Tax Code draft to the Mazhilis. The changes aim to enhance tax administration, as reported by a correspondent from the Kapital.kz business information center, citing data from the ministry.
Key amendments include:
- reducing the threshold for mandatory VAT registration from 20,000 MRP (78.6 million tenge) to 3,800 MRP (15 million tenge);
- increasing the VAT rate from 12% to 16%, while a reduced rate of 10% will be established for certain sectors;
- limiting the application of the simplified tax regime to the B2C segment (business to end consumers) only.
The increase of the VAT rate from the current 12% is under discussion in Kazakhstan.
Previously, the question of raising the VAT rate from 12% to 20% was considered in the Republic of Kazakhstan, with intentions to reduce the labor cost burden to 30%. Additionally, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin proposed lowering the VAT threshold to 15 million tenge. During a meeting with businesspeople on January 28, 2025, President Kassym-Jomart Tokayev stated that any innovations should be based on comprehensive analysis and a well-thought-out strategy, instructing the government to further explore the VAT rate issue.
On February 11, 2025, Serik Zhumangarin stated at a government meeting that the value-added tax rate “will be differentiated: 16%, 10%, 0%, and exemption from VAT.” It was also reported that in the construction sector, they plan to implement a social infrastructure payment (SIP) instead of VAT.
The proposed reform regarding the abolition of social tax and OPRV payments by entrepreneurs could occur if the VAT were raised to 20%. This way, the state would have revenues to cover social contributions instead of the employer. However, with the currently proposed VAT rate of 16%, it is suggested to leave social contributions unchanged.
The Ministry of Finance of Kazakhstan is also considering issues related to reducing ineffective tax benefits and differentiating personal income tax (PIT) based on individuals' income.
Prime Minister Olzhas Bektenov has instructed to submit the Tax Code draft to the Mazhilis by February 20, 2025.