New system of special tax regimes: expanding coverage of the population by the social and pension system

Since January 1, 2026, in Kazakhstan, in connection with the entry into force of the new Tax Code of the Republic of Kazakhstan and amendments to the Social Code of the Republic of Kazakhstan, updated special tax regimes (SSRS) are being introduced: SSRS for the self-employed, SSRS based on a simplified declaration, as well as SSRS for peasant or farm farms. These regimes regulate not only the payment of taxes by self-employed citizens, but also mandatory types of pension contributions. 1. SNR for the self-employed, including those who operate using Internet platforms The self-employed tax Code, which has been implemented since 2026, is intended for individuals (citizens of Kazakhstan, Candace) who are not individual entrepreneurs (sole proprietors) and do not employ employees. The SNR for the self-employed covers a limited list of activities approved by the Government of the Republic of Kazakhstan. The income limit for the self-employed who apply the CPR for a calendar month should not exceed 300 times the monthly calculation index (MCI) effective on January 1 of the corresponding financial year (3,600 MCI per year). The self-employed who apply this tax code independently pay mandatory pension contributions (OPV) and mandatory employer pension contributions (OPVR) from their income. The pension contribution rates for the self-employed are: • OPV – 1% of income, • OPVR – 1% of the income. The self-employed will apply this tax code using a special mobile application based on their receipts and other information about income received from other sources. Income accounting in places where there is no public telecommunications network in the self-employed is conducted in a simple form, developed by them independently, indicating the date, the name of the operations, the amounts received as a result of each operation, the total amount for each day, for the month. The operator of the Internet platform will withhold and transfer OPV and OPVR from the self-employed who apply the SNR and carry out activities using Internet platforms and (or) mobile applications of platform employment Pension contribution rates for the self-employed who operate using Internet platforms and/or mobile employment platform applications are also as follows: • OPV – 1% of income, • OPVR – 1% of the income (at the expense of the own funds of the operator of the Internet platform (agent). The tax period for applying the Tax Code for the self-employed is a calendar month. 2. SNR based on a simplified declaration Sole proprietors and legal entities that are residents of the Republic of Kazakhstan may apply the tax declaration on the basis of a simplified declaration, with the exception of taxpayers specified in paragraph 2 of Article 723 of the Tax Code of the Republic of Kazakhstan (legal entities in which other legal entities account for more than 25 percent, non–profit organizations, participants in special economic and industrial zones, etc.). The SNR on the basis of a simplified declaration has the right to apply, under appropriate conditions, persons: - whose marginal income for a calendar year does not exceed 600,000 times the amount of the MCI effective on January 1 of the corresponding financial year; - those carrying out activities that are not included in the list defined by the Government of the Republic of Kazakhstan, in respect of which the use of the SRR is prohibited on the basis of a simplified declaration. The pension contribution rates for the SSR based on the simplified declaration are as follows: • OPV - 10% of income, • OPVR - 3.5% of income in 2026, followed by an annual increase to 5% in 2028. The tax and accounting period for applying a special tax regime based on a simplified declaration is six months. CPR for peasant or farm farms The CPR for farms has the right to use peasant or farm farms if there are land plots on the territory of Kazakhstan on the rights of private ownership and (or) land use (including the right of secondary land use). The selected CPR for farms is not subject to change during the calendar year, except in cases when the activities of farms cease to comply with the conditions of its application. The rates of pension contributions of the SNR for farms are: • OPV -10% of income, • OPVR-3.5% of income in 2026, followed by an annual increase to 5% in 2028. Peasant or farm enterprises that apply the CPR for farms, when receiving income from activities that are not covered by the CPR for farms, calculate, pay the relevant taxes and submit tax reports on them in the following tax regimes: 1) in the SNR on the basis of a simplified declaration in accordance with the conditions of its application; 2) in a generally prescribed manner. The tax and accounting period for the application of the CPR for farms is a calendar year. Payment of the Social security Fund, the social security Fund within the framework of the Social Security Fund for the self-employed, the social Security Fund based on a simplified declaration, as well as the social Security Fund for peasant or farm farms (KFH) is carried out no later than the 25th day of the month following the month of income generation. The introduction of the SNR for the self-employed, the SNR based on a simplified declaration, the SNR for farms is aimed at: • Expanding the coverage of the pension and social system through the active involvement of the self-employed and microbusiness; • simplification of doing business for millions of citizens of Kazakhstan; • Further digitalization of tax administration through mobile applications and online platforms. These innovations will make it possible to form pension savings, ensure the social security of working citizens and create incentives to get out of the "shadow". The UAPF was established on August 22, 2013 on the basis of JSC NPF GNPF. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan. The trust management of pension assets of the UAPF is carried out by the National Bank of the Republic of Kazakhstan. In accordance with pension legislation, the UAPF attracts mandatory pension contributions, mandatory employer pension contributions, mandatory occupational pension contributions, voluntary pension contributions, as well as crediting and accounting for voluntary pension contributions formed from the unclaimed amount of guaranteed compensation for a guaranteed deposit transferred by an organization providing mandatory deposit guarantee in accordance with the Law of the Republic of Kazakhstan. "On mandatory deposit guarantee, placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension payments. The Fund also records target assets and target requirements, records and transfers target savings (TS) to target savings accounts, payments of TS to their recipient to bank accounts, and records returns of TS in accordance with the procedure established by the Government of the Republic of Kazakhstan under the National Fund for Children program. (For more information on www.enpf.kz ).