Dividends and IIT in Kazakhstan in 2026: How an Accountant Should Perform the Calculation

IIT on Dividends in 2026

IIT on dividends in Kazakhstan is calculated based on the income of an individual participant or shareholder. The accountant must determine the recipient's tax status, classify the payment, calculate the taxable amount, and record the transaction for tax accounting purposes. For income in the form of dividends, Article 363 of the Tax Code establishes a separate progressive IIT scale (Art. 363 of the Tax Code of the RK).

Before performing the calculation, it is important to establish through documentation that the payment constitutes dividends. Dividends from income distribution include, in particular, net income or a portion thereof paid on shares, as well as net income or a portion thereof distributed by a legal entity among its founders or participants. The Tax Code also classifies certain payments made upon liquidation, reduction of charter capital, or repurchase of an interest or shares, as well as certain types of constructive dividends, as dividends (Art. 13 of the Tax Code of the RK).

Therefore, the accountant should verify the decision of the participants or shareholders on profit distribution, information about the recipients, the size of their interests or the number of shares, and the amount of each person's income. The payment purpose and accounting documents must correspond to the substance of the transaction.

It is convenient to perform the verification separately for each individual. This approach makes it possible to correctly account for the amount of taxable dividends for the calendar year, the recipient's tax status, and the special rules applicable to specific types of payments.

IIT on Dividends in the RK: What the Accountant Should Check

Before calculating IIT, the accountant should check the following in sequence:

• who receives the dividends—an individual or an organization;
• whether the individual is a resident of Kazakhstan;
• whether the payment meets the definition of dividends established by Article 13 of the Tax Code;
• whether the profit distribution decision has been documented;
• whether the dividend amount for the specific recipient has been determined correctly;
• the total amount of taxable income in the form of dividends for the calendar year;
• whether the documents required to apply special rules to a non-resident's income or dividends on depositary receipts are available;
• whether the data in the decisions, accounting documents, tax records, and accounting system are consistent.

In 2026, an individual's taxable income in the form of dividends for the calendar year up to and including 230 000 MCI is subject to IIT at a rate of 5%. With an MCI of 4 325 ₸, this threshold is 994 750 000 ₸. If the income exceeds the threshold, the tax is 49 737 500 ₸ plus 15% of the excess amount. The MCI effective as of 1 January of the relevant financial year is used to determine the threshold (Art. 363 of the Tax Code of the RK).

This scale cannot be replaced with the general IIT scale for an individual's other income. Income in the form of dividends is classified as a separate category in Article 363 of the Tax Code. The calculation must take into account the amount of taxable dividends for the entire calendar year because the established threshold applies specifically to annual income (Art. 363 of the Tax Code of the RK).

Special provisions apply to certain transactions. When dividends on shares that are the underlying assets of depositary receipts are paid through a nominee holder to the final recipient who is a resident, application of the prescribed procedure depends on the availability of a list of holders or a document confirming ownership and a document confirming residency in the Republic of Kazakhstan (Art. 354 of the Tax Code of the RK). For a final recipient who is a non-resident, the reduced rate under an international treaty applies to such shares if the prescribed list of holders and a document confirming the non-resident's residency are available (Art. 707 of the Tax Code of the RK).

Figures from old guidance materials should not be used in the calculation. Search queries such as “IIT on dividends in 2021” and “IIT on dividends in the RK in 2023” relate to previous tax periods. Historical transactions are governed by the rules applicable during the corresponding period, while the calculation for 2026 uses the scale established by the current Article 363 of the Tax Code. Old calculations are suitable for reconciling reports for previous periods but do not determine the rate for income received in 2026.

How to Accrue Dividends and IIT in 1C

The accrual of dividends to individuals in the accounting system should be recorded based on the profit distribution decision and the register of recipients. Each recipient's record must correctly reflect their identification details and tax status, while the income amount must correspond to the decision of the participants or shareholders.

When configuring the calculation, a separate income type must be used for dividends. This is important because a special progressive scale applies to taxable income in the form of dividends: 5% within 230 000 MCI per calendar year and a calculation at a rate of 15% on the amount exceeding the established threshold (Art. 363 of the Tax Code of the RK).

The automatic calculation depends on the information entered into the software. If the income type, recipient, amount, or accumulated income in the form of dividends for the calendar year is specified incorrectly, the resulting IIT will also be calculated incorrectly. Therefore, the result must be compared with an independent calculation based on the scale in Article 363 of the Tax Code.

For recipients of dividends on shares that are the underlying assets of depositary receipts, merely specifying the tax status in the software is insufficient. The grounds for applying the special procedure must be supported by the documents listed in Articles 354 and 707 of the Tax Code for residents and non-residents, respectively (Arts. 354, 707 of the Tax Code of the RK).

After posting the transaction, the amounts of income and IIT recorded for each individual, the total for the calendar year, and the budget settlement data should be checked. The method of recording the tax accrual and remittance is selected according to the configuration being used and the accounting scheme configured by the organization.

The practical workflow is as follows:

1. Prepare and verify the profit distribution decision.
2. Ensure that the payment meets the definition of dividends under Article 13 of the Tax Code.
3. Enter the dividend recipients and amounts into the accounting system.
4. Verify the tax status of each individual.
5. Determine the recipient's accumulated amount of taxable dividends for the calendar year.
6. Calculate IIT using the progressive scale in Article 363 of the Tax Code.
7. Post the transaction and compare the software result with the independent calculation.
8. Reconcile the income and tax amounts with the accounting documents and tax returns.

How to Avoid Calculation Errors

The main risk is applying the general IIT rate to dividends or applying the 5% rate without taking the annual threshold into account. In 2026, the 5% rate applies to taxable income in the form of dividends up to and including 994 750 000 ₸. The excess is taxed at 15%, while the tax on the income amount within the threshold is 49 737 500 ₸ (Art. 363 of the Tax Code of the RK).

Another common error is determining the income type solely from the payment description. Article 13 of the Tax Code covers not only the distribution of net income on shares or participating interests but also other expressly listed payments and constructive dividends. The transaction should be classified based on its substance and supporting documents (Art. 13 of the Tax Code of the RK).

It is also risky to assume that correctly posting a transaction in 1C is sufficient in itself to confirm that the tax is correct. The software uses the entered information and settings. An error in the income type, amount, recipient's tax status, or accumulated annual income affects the calculation result.

For internal control purposes, it is useful to retain the profit distribution decision, the register of recipients, the calculation of each participant's or shareholder's amount, tax status information, and the calculation applying the annual threshold together with the tax calculation. Special transactions involving depositary receipts require the set of documents prescribed by the relevant provision of the Tax Code. The final IIT amount should be reconciled among the decisions, accounting system, payment documents, and tax returns.

Frequently Asked Questions

What IIT rate applies to dividends in 2026? — Taxable income in the form of dividends for the calendar year up to and including 230 000 MCI is taxed at a rate of 5%. With an MCI of 4 325 ₸, the threshold is 994 750 000 ₸. If the threshold is exceeded, the tax is 49 737 500 ₸ plus 15% of the excess amount (Art. 363 of the Tax Code of the RK).

Can an IIT calculation for dividends from 2021 or 2023 be used for a payment in 2026? — No. Calculations from previous years apply to the corresponding tax periods. Income for 2026 is calculated using the scale in Article 363 of the Tax Code effective in 2026.

Are all payments to a participant classified as dividends? — Dividends comprise payments and income expressly listed in Article 13 of the Tax Code. These include the distribution of net income among participants, payments on shares, and certain income received upon liquidation, reduction of charter capital, or repurchase of an interest or shares (Art. 13 of the Tax Code of the RK).

How should the dividend calculation in 1C be checked? — The amount for each recipient should be compared with the profit distribution decision, the income type and tax status should be verified, the accumulated taxable income in the form of dividends for the calendar year should be determined, and the calculated IIT should be compared against the progressive scale in Article 363 of the Tax Code.

What documents are required for the special procedure relating to depositary receipts? — For a final recipient who is a resident, a list of holders or a document confirming ownership of the depositary receipts and confirmation of residency in the Republic of Kazakhstan are required (Art. 354 of the Tax Code of the RK). To apply the reduced rate under an international treaty to the income of a final recipient who is a non-resident, a list of holders and a document confirming their residency are required (Art. 707 of the Tax Code of the RK).

Sources

• Tax Code of the Republic of Kazakhstan: Article 13 “Dividends”
• Tax Code of the Republic of Kazakhstan: Article 354 on dividends on shares that are the underlying assets of depositary receipts
• Tax Code of the Republic of Kazakhstan: Article 363 “Tax Rates”
• Tax Code of the Republic of Kazakhstan: Article 707 on the application of an international treaty