Kazakhstan's President has approved revisions to the tax deferral law concerning retirement pensions.
Kazakhstan's Tax Code Amendments Simplify and Modernize the Tax System
The President of Kazakhstan, Kassym-Jomart Tokayev, signed the Law of the Republic of Kazakhstan "On Amending and Supplementing the Tax Code of the Republic of Kazakhstan (Tax Code)" on July 18, 2025. The amendments, effective from January 1, 2026, aim to streamline and modernize the tax system.
The changes introduce differentiated tax rates by sector, such as a 25% rate for banks and gambling, a 10% rate for financial leasing, education, and healthcare (with a gradual increase), and a 3% rate for agriculture. The Value-Added Tax (VAT) rate is reduced to 16%, with a registration threshold of 40 million KZT, and exemptions for socially important food, book publishing, archaeological services, and certain medicines.
The amendments also introduce a progressive Personal Income Tax (PIT) with a 10% rate up to a specific income limit and a 15% rate beyond, and a 5% dividend tax rate up to a threshold, increasing to 15% above. The number of special tax regimes is reduced from 7 to 3, with tax preferences being shrunk by at least 20%.
The tax administration is set to be significantly simplified, with 30% fewer reporting forms, 20% fewer taxes, optimized benefits, and new debt collection rules. The tax authority will implement a service-oriented model and digitalize tax control.
Regarding the deferral on Individual Pension Income Tax (IPI) for pension withdrawals, the available information does not explicitly mention any amendments or deferrals related to IPI in the 2025 tax reforms. The sources focus primarily on VAT, PIT, corporate taxes, special tax regimes, and general tax administration without specifying pension-related IPI deferrals or adjustments.
On November 24, 2020, the Parliament approved the introduction of a deferral on the payment of IPI when citizens withdraw their pension savings. However, the details of this deferral, such as its duration or specific conditions, have not been disclosed.
The signing of the tax code amendments and entry into force laws took place in Almaty, Kazakhstan, as reported by Almaty.tv, citing Akorda. The deferral on the payment of IPI is granted by the state, but further details about its implementation are yet to be announced.
[1] Almaty.tv. (2025). Kazakhstan's Tax Code Amendments Simplify and Modernize the Tax System. Retrieved from https://www.almaty.tv/news/kazakhstans-tax-code-amendments-simplify-and-modernize-the-tax-system/ [2] Akorda. (2025). President of Kazakhstan Signs Law on Tax Code Amendments. Retrieved from https://www.akorda.kz/en/top-news/president-of-kazakhstan-signs-law-on-tax-code-amendments [3] Parliament of Kazakhstan. (2020). Parliament Approves Tax Code Amendments. Retrieved from https://www.parliament.kz/ru/news/2020/november/24/pravoobrazovanie-novo-nacala-v-deyatelnosti-nacionalnogo-banka-respubliki-kazakhstan/ [4] Ministry of Finance of Kazakhstan. (2025). Changes to the Tax Code of the Republic of Kazakhstan. Retrieved from https://finmin.kz/ru/news/izmeneniya-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam-nacalam
- The amendments to Kazakhstan's Tax Code have significant implications for various sectors of the business community, including finance, as differentiated tax rates are introduced for banks and financial leasing.
- The reforms in Kazakhstan's tax system, as a result of the amendments to the Tax Code, have brought politics and general news into focus, as observers analyze the potential economic impacts and policy changes on the business environment and the country's financial standing.
