What happened
The income of businesses applying the special tax regime based on a simplified declaration increased by almost 19%. This result indicates an increase in economic activity under one of Kazakhstan’s most widely used tax regimes.
The growth comes amid updates to tax legislation: a new Tax Code has been in effect since January 2026, under which special tax regimes were streamlined. At the same time, government policy is aimed at creating favorable conditions for entrepreneurship, reducing the administrative burden, and establishing clear rules for doing business.
Income growth in itself does not mean that profit automatically increases by the same amount. Income reflects the amount of receipts received or receivable, while a business’s financial result also depends on its expenses. Therefore, entrepreneurs should assess not only revenue trends but also the accuracy of tax accounting.
Who the simplified regime applies to
Individual entrepreneurs and legal entities that are residents of Kazakhstan may apply the special tax regime based on a simplified declaration if they meet the established conditions.
In particular, the maximum income for a calendar year must not exceed 600 000 times the MRP effective as of 1 January of the relevant financial year. In addition, the taxpayer’s activities must not be included in the list of activities approved by the Government for which the application of this regime is prohibited.
The legislation also establishes restrictions on the composition of participants in legal entities and their participation in other organizations applying special tax regimes. Among others, this regime may not be applied by non-profit organizations, participants in special economic and industrial zones, Astana Hub participants, or taxpayers conducting activities under joint activity agreements.
Compliance with the conditions should be checked not only when selecting the regime but also during business operations. An increase in turnover, a change in the ownership structure, or the introduction of a new area of activity may affect the right to use the simplified declaration.
How to account for income and what the accountant should check
The taxable item under the simplified regime is income, without deducting expenses, received or receivable for the tax period under the accrual method. This means that it is not sufficient for the accountant to rely solely on cash flows through the bank account or cash desk: the point at which the right to income arises must be taken into account.
Income may include more than just receipts from the sale of goods, performance of work, and provision of services. In particular, the Tax Code also includes:
- income from property rental and royalties;
- income from the write-off of liabilities;
- income from the assignment of claims;
- fines, penalties, and other sanctions acknowledged by the debtor or awarded by a court, subject to the stipulated exceptions;
- budget funds received to cover costs;
- surplus inventory identified during stocktaking;
- property received free of charge for business activities, except for the established exclusions;
- certain amounts related to the maintenance and repair of leased property.
In practice, the accountant should reconcile contracts, acceptance certificates, invoices, banking transactions, cash documents, and stocktaking results. Written-off liabilities, receipts free of charge, and contractual sanctions require particular attention: such transactions can easily be overlooked if only ordinary sales are accounted for.
When preparing reports, it is important to check the completeness of source documents, the correct period for recognizing income, and compliance with the conditions of the regime. Tax reporting contains information about taxable items, income, liabilities, and calculated payments. If an error is identified after the reports have been filed, the Tax Code provides for supplementary reporting to make amendments or additions.
Frequently asked questions
Does the increase of almost 19% refer to income or profit? — It refers to the income of businesses under the simplified regime. It is not possible to conclude that net profit increased by the same amount without information about expenses.
Are business expenses taken into account under the simplified regime? — The general taxable item is determined as income without deducting expenses. Special rules for reducing the taxable item apply in certain cases provided for by law.
Can a legal entity apply the regime? — Yes, the regime is available to IEs and legal entities that are residents of Kazakhstan, provided they comply with restrictions on income, activities, the composition of participants, and other conditions.
Must income that has not been paid by the buyer be recognized? — Income is determined under the accrual method and includes amounts receivable. The recognition date should be determined based on the terms of the transaction and source documents.
What should be done if an error is found in a declaration that has already been filed? — The correction rules for the relevant period should be reviewed. The Tax Code provides for supplementary tax reporting to amend previously submitted data.