New Tax Code Effective 1 January 2026
- Kazakhstan’s new Tax Code (Law № 214-VIII ZRK, 18 July 2025) entered into effect on 1 January 2026, replacing the old Code. (astana.kgd.gov.kz)
- Key impacts included the phase-out of most special tax regimes (SNRs)—in many cases, taxpayers must elect a regime under Article 714 by 1 March 2026, otherwise the general taxation regime kicks in by default. (astana.kgd.gov.kz)
Choosing the Right Entity Type
- Options often include:
- Limited Liability Company (LLC / TOO / ТОО) — limited liability, more formal structure.
- Sole Proprietor / Individual Entrepreneur (IE) — lighter compliance, though tax obligations under new code can be steeper.
- Foreign branches / representative offices — may face withholding / permanent establishment rules.
Transitioning from Special Regimes
- Businesses using special tax regimes pre-2026 needed to notify use of new regime by 1 March 2026 to avoid being placed under the general regime. (astana.kgd.gov.kz)
- If notification is missed, automatic assignment to general regime applies from 1 Jan 2026. This has implications for tax rate, accounting, VAT, payroll tax.
Compliance Obligations under General Regime
- VAT registration where applicable.
- Full bookkeeping and audited financial statements for larger entities.
- Submission of new reporting forms approved by Order of the Minister of Finance 12 November 2025, No. 695. Forms include 250.00, 270.00 etc. (vko.kgd.gov.kz)
- New rules on tax control: shorter timelines, automatic zero-reporting if missed, no more “withdrawal” of declarations. (astana.kgd.gov.kz)
Example: Setting up an LLC under General Regime
- Submit registration documents; get TIN, register for VAT if turnover over threshold.
- Fill out new reporting forms—if missed deadlines, system auto-files zero reports, but penalties may still apply for misrepresentation. (astana.kgd.gov.kz)
- Monitor withholding on payments to nonresidents—dividends, royalties, interest have specific rates under new Code. (vko.kgd.gov.kz)
Action Plan Checklist
- Determine entity form based on liability, expected turnover, need for foreign operations.
- Check eligibility for special regimes; if none, prepare for general taxation starting 2026.
- Engage local accountant familiar with Code §§ 250.00, 270.00 etc. to upload proper tax forms.
- Regularly review tax legislation and practice guidelines from KGD (Kazakhstan), and comparable bodies in other CIS countries.
Conclusion: Establishing an entity in Kazakhstan now requires aligning with the 2026 Code. Choose your regime wisely and stay current with procedural and reporting changes to ensure compliance and avoid surprises.