Key Amendments to the Tax Code of the Republic of Kazakhstan Effective from January 1, 2026, Concerning Individual Income Tax and Social Tax

As of January 1, 2026, a new Tax Code has been introduced in the Republic of Kazakhstan, providing changes to the procedure for calculating and paying individual income tax (IIT) and social tax.

🔹 Individual Income Tax

One of the main changes is the introduction of a progressive IIT rate (Article 363 of the Tax Code of the Republic of Kazakhstan).

The following rates are established for individuals:

• annual taxable income up to 8,500 MCI — 10%;
• the amount exceeding 8,500 MCI — 15%.

The 15% rate applies only to the amount exceeding the established threshold.

For persons engaged in private practice, the IIT rate is 9%.

For dividend income, a rate of 5% applies to taxable income up to and including 230,000 MCI, while a rate of 15% applies to the amount exceeding this threshold.

Individual entrepreneurs and peasant or farm enterprises applying the generally established taxation procedure are also subject to a progressive IIT rate with a threshold of 230,000 MCI.

🔹 Social Tax

The basic rules for calculating social tax are established by Section 9 of the Tax Code of the Republic of Kazakhstan.

Starting from 2026, the basic social tax rate is 6% (Article 557) and is calculated independently of the amount of social contributions.

A social tax rate of 1.8% applies to taxable items related to the following activities:

• production and sale of agricultural products of own production;
• processing of agricultural products of own production and sale of the products of such processing.

For individual entrepreneurs and individuals engaged in private practice, social tax is calculated under a special procedure:

• 2 MCI for themselves;
• 1 MCI for each employee.

For peasant or farming enterprises engaged in the above-mentioned agricultural activities, social tax is calculated as follows:

• 6 MCI for themselves;
• 3 MCI for each employee.

Taxpayers applying the special tax regimes for self-employed persons and based on a simplified declaration are not subject to social tax.

Thus, the changes introduced from 2026 provide for a differentiated approach to the calculation of individual income tax and social tax, taking into account the taxpayer's category, income level, and applicable taxation regime.