Entity Setup
Adapting to Kazakhstan's 2026 Tax Code: Entity Setup & Strategy
Kazakhstan launched a brand new tax code in January 2026, replacing all special regimes and revising corporate and individual tax structures. Here's what entrepreneurs should know when setting up or evolving entities.
By NomadicTax Research Team • 5-8 min read • August 28, 2026
## Kazakhstan’s Big Shift: New Code, New Regimes
Effective **1 January 2026**, Kazakhstan adopted a new Tax Code (Law No. 214-VIII ZRK) that **terminated all special tax regimes (СНР)** in place up to that point. All businesses must now either select a new regime permitted under the new code or operate under the **general tax framework**. Affected taxpayers had to submit notice of their chosen regime by **1 March 2026**. Failure to do so means defaulting to the standard regime. ([astana.kgd.gov.kz](https://astana.kgd.gov.kz/ru/news/o-vybore-rezhima-nalogooblozheniya-2-161944?utm_source=openai))
### Key Corporate Changes (CIT / КПН)
- Base **Corporate Income Tax (КПН)** rate is **20%**. Higher or lower rates are designated based on sector (e.g., banks at **25%**, agricultural producers at **3%**, etc.). ([astana.kgd.gov.kz](https://astana.kgd.gov.kz/ru/news/kpn-po-novomu-klyuchevye-izmeneniya-s-2026-goda-2-160684?utm_source=openai))
- A major administrative change: the obligation to calculate **advance payments** before filing returns has been removed. Instead, authorities will calculate first-quarter advances. ([astana.kgd.gov.kz](https://astana.kgd.gov.kz/ru/news/kpn-po-novomu-klyuchevye-izmeneniya-s-2026-goda-2-160684?utm_source=openai))
### Individual Income Tax & Social Tax Updates
- Introduction of a **progressive scale** for individual income tax (ИПН): **10% up to 8 500 MRP**, and **15%** on the portion above that. ([vko.kgd.gov.kz](https://vko.kgd.gov.kz/ru/news/individualnyy-podohodnyy-nalog-dlya-fizicheskih-lic-stavki-vychety-8-165691?utm_source=openai))
- New **basic and social deductions** have been codified: for dependents, disability, veterans, etc. Only one employer tax agent can apply the basic deduction for a given taxpayer. ([vko.kgd.gov.kz](https://vko.kgd.gov.kz/ru/news/individualnyy-podohodnyy-nalog-dlya-fizicheskih-lic-stavki-vychety-8-165691?utm_source=openai))
- Social tax (paid by employers) restructured. Flat rates apply; previously employers could subtract certain social contributions in computing the social tax base—that is now curtailed. ([kgd.gov.kz](https://kgd.gov.kz/sites/default/files/UIT/zhurnal_012026.pdf?utm_source=openai))
## Considerations When Establishing or Restructuring a Company
### Selecting Entity & Regime
Entrepreneurs must decide whether to stay under the general regime (with full compliance, more paperwork) or opt for simplified/special regimes **if available** under the new Code. Because all prior regimes were abolished, many firms are caught in transition. Evaluate:
- Both tax liability vs. compliance cost
- Whether your sector qualifies for a reduced rate (agriculture; IT; SEZs)
### Cash Flow Impact
With the removal of the advance payment obligation before returns, cash flows improve—firms won’t need to prepay without knowing income. But authorities’ first-quarter estimates might still bind unless overridden. Budget accordingly.
### Documentation & Reporting Systems
Expect revised invoices, financial statements, and tax accounting rules. New forms/regimes often comes with new software or reporting pipelines. Do not wait until end of first full tax year to update systems.
### Example: An Agribusiness Setup
A farm entity produces and processes its own crops. Under Kazakhstan’s new code, it may qualify for the **3%** КПН rate. But if its revenues exceed certain thresholds, it may lose preferential status. So setup should include projections of revenue, classification under Agriculture, and registering appropriately with tax authorities before 1 March deadline for regime notice. Verify that all corporate documents reflect the classification.
## Action Plan
- Use transitional periods effectively—register regimes early.
- Model after-tax profits under different regimes (general vs reduced) to decide entity structure.
- Hire local tax counsel experienced with the new code to avoid misclassification.
- Ensure bookkeeping and accounting software is compatible with new reports and that staff are trained.
Kazakhstan’s 2026 Code offers both opportunity and risk: fairer taxes and transparency, but heavy penalties for noncompliance or poor structuring. Setup with foresight is key.