Forthcoming Amendments to the Tax Code: Highlights from the Shymkent Seminar

Investment and business incentives

Reliefs for Golden Visa holders. Exemption from personal income tax on income earned outside Kazakhstan, from universal declaration, and from property and land taxes. The reliefs extend to the investor's family.

Investment tax residents of the AIFC. It is proposed to abolish the fee of 7,000 monthly calculation indices for issuing a document confirming the residency of a foreign national or stateless person.

Digital assets. It is proposed to exempt individuals from personal income tax on income from transactions in digital assets carried out through licensed Kazakhstani providers. The relief would apply for 2026–2028. In parallel, mechanisms are being developed for businesses to use digital assets and stablecoins in cross-border settlements.

Investment project incentives. Since 2026 it has no longer been possible to conclude a priority project together with an Investment Agreement, and conclusion has been transferred to the Ministry of Foreign Affairs rather than sectoral bodies. It is proposed to restore the previous mechanism with all fiscal measures, and to allow investors to build infrastructure at their own expense with reimbursement through corporate income tax, including for participants in special economic zones.

Mineral extraction tax

Adjustment of the tax on uranium. At present, where actual and planned production volumes diverge, the subsoil user adjusts the tax only in the return for the fourth quarter. It is proposed to spread the adjustment across the returns for the first three quarters. The reason is that the Atomic Energy Agency does not plan to approve production volumes for individual subsoil users, which creates a risk of rates being understated in the first three quarters.

Common minerals. The Budget Code allocates mineral extraction tax according to the location of the production site, while the Tax Code allocates it according to the subsoil user's place of registration. It is proposed to resolve this conflict by bringing the Tax Code into line with the Budget Code.

Taxation of non-residents

Exemption from withholding tax — the most significant practical change. Under the 2017 Tax Code, the distinction turned on the permanent establishment: income under contracts not economically connected with a PE was exempt without restriction, even where the non-resident had a PE in Kazakhstan.

Under Article 705 of the new Code, a tax agent may apply the exemption independently if two conditions are met: an international treaty has been concluded and ratified with the non-resident's state of residence, and a residency document has been submitted within the prescribed time. However, paragraph 1 of the article expressly excludes certain types of income from independent exemption.

The practical conclusion: a treaty and a certificate of residency are no longer enough. Before each payment, companies need to check whether the income falls within the exclusions, and review internal procedures designed around the previous regime.

Advances to non-residents. Since 2026, advances have been taxed after 12 months. It is proposed to extend this to 24 months: for capital-intensive projects in construction, heavy engineering and large EPC contracts, the current period places a considerable burden on working capital.

Securities. Since 2026, gains realised by non-resident legal entities on listed securities have been taxable, whereas the exemption has been retained for residents. It is proposed to restore the previous rule in order to remove the unequal treatment and regulatory arbitrage with the AIFC.

VAT

Simplified refunds for all exporters. In force since 1 January 2026. Previously 40–50 companies had access to the simplified procedure; now more than 1,000 are eligible. The conditions are: no outstanding notices from the tax authorities, an export share of at least 50% of total turnover, and a refund amount confirmed by audit for the previous 12 months. Refunds are made within 15 working days without an audit.

Refund administration. The cap on refunds under the simplified procedure (previously 50–80%) has been removed, so compliant taxpayers can recover up to 100% of excess VAT. The "Pyramid" report no longer blocks refunds where there is a break at a distant supplier; cross-checks are now targeted at identified risks. Refunds are expected to arrive around two months earlier on average.

Import VAT on goods for lease. At present the offset method does not apply to goods intended for sale or international finance leasing, but leasing is not expressly mentioned. It is proposed to add it to the list, so that importers of goods for rental will pay import VAT in cash.

Factoring. Under the previous Code, factoring, forfaiting, bank guarantees and sureties were exempt from VAT. The new Code does not treat factoring as a loan, so it is taxable. It is proposed to restore the exemption.

Personal income tax and social tax

Salary and civil-law contract income as a single base. At present the progressive personal income tax scale applies only to salary. It is proposed to combine salary and civil-law contract income from the same tax agent into a single base for the 8,500 MCI threshold. This closes the possibility of splitting income between two types of payment to benefit from a lower rate. Dividends are placed under a separate formula with their own base and rates.

Income of board members. At present a member of a board of directors or another management body that is not the highest body is treated as an employee, and their income is taxed as salary. It is proposed to treat such income as a separate category. The rule covers boards of directors of joint-stock companies, supervisory boards of LLPs and equivalent bodies, including in foreign jurisdictions, and does not affect general meetings, executive bodies or civil servants.

If the amendment is adopted, companies should check in advance how payments to current board members are structured.

Disability deductions. For Groups I–II, 5,000 MCI; for Group III, 882 MCI. Where the disability group changes during the year, the maximum deduction applies until the end of that year.

Social tax. Since 2026, insurance payments and payments funded by grants have fallen within the scope of taxation as a result of new wording. It is proposed to restore the exemption that applied before 2026.

Tax administration

Special tax regime for the self-employed. At present, participants in LLPs and shareholders in joint-stock companies may formally also apply the self-employed regime, with a considerably lower burden than on dividend payments. It is proposed to prohibit them from using this regime regardless of the type of activity.

Electronic invoices. Among the changes under discussion is a new deadline for issuing electronic invoices when purchasing work or services from a non-resident: no later than 15 days from the date of the transaction, instead of 5 days after the tax is paid. It is also proposed to set an invoicing deadline for the electricity balancing market and to restore the issuance of Kazakhstani residency certificates for domestic use.

Subsequent expenditure on fixed assets. The speakers also drew attention to a provision already in force that is often misapplied. Under Article 281, the taxpayer chooses whether to deduct subsequent expenditure, add it to the value balance, or form a new balance. That choice is not determined by the accounting treatment: the right to a deduction is preserved even where the expenditure is recorded as capital in the accounts.

What to do now

Out of all these changes, two are urgent for most companies.

Review procedures for payments to non-residents. The rules on withholding tax exemption have changed fundamentally, and an approach that worked under the 2017 Code may now lead to additional assessments.

Exporters should check their eligibility for simplified VAT refunds. The pool of eligible companies has grown twentyfold, and many that now qualify are not yet aware of it.

The remaining changes are at the proposal stage. They are worth monitoring, as the final wording may differ from what is currently being discussed.

If you would like to assess how these changes affect your company, the Fortune Partners tax team can review your situation in detail.

Speakers: Olzhas Kassenov, Director of the Tax Practice, o.kasenov@fortunepartners.kz; Yerlan Kuspanov, Senior Manager in the Tax Practice, e.kuspanov@fortunepartners.kz