Taxation of Income of PEPP

Persons engaged in private practice (hereinafter - the PEPP) include private notaries, private bailiffs, attorneys, and professional mediators.

In accordance with Article 394 of the Tax Code, the income of a person engaged in private practice includes income received from performing the respective type of activity.

Thus, the object of taxation for individual income tax is the income received by PEPPs in connection with the performance of notarial, advocacy, or private bailiff activities, or the activity of a professional mediator.

At the same time, the taxpayer is entitled to apply tax deductions provided by legislation:

• social payment tax deduction;
• basic tax deduction;
• social tax deductions.

According to the Article 363 of the Tax Code, the income of persons engaged in private practice is subject to IIT at a rate of 9 percent of taxable income.

A monthly procedure for calculating and paying IIT has been established for PEPPs.

The calculated amount of tax is subject to payment no later than the 5th day of the month following the month for which the tax is calculated.

A significant change starting January 1, 2026, is the procedure for applying VAT regarding persons engaged in private practice.

The transitional provisions of the new Tax Code provide that upon its entry into force, PEPPs are not VAT payers and are subject to deregistration for VAT purposes.

Starting from 2026, for persons engaged in private practice, social tax is calculated:

• for themselves—in the amount of 2 MCI;
• for each employee—in the amount of 1 MCI.

At the same time, PEPPs fulfill obligations regarding social payments in the manner established by the legislation of the Republic of Kazakhstan.

A person engaged in private practice submits a declaration of income and property (Form 270.00) no later than September 15 of the year following the reporting year.