--- title: "IE under the Simplified Tax Regime in 2026: How to Determine the Regime and Calculate Taxes" country: KZ lang: en author: Сапа Т.И. (https://buhgpt.kz/authors/sapa-ti) date: 2026-10-13 canonical: https://buhgpt.kz/suraqtar/ip-na-uproshchenke-v-2026-godu-kak-opredelit-rezhim-i-ras-en source: BuhGPT --- # IE under the Simplified Tax Regime in 2026: How to Determine the Regime and Calculate Taxes > **TL;DR:** What IE under the simplified tax regime means in 2026 In 2026, an IE may apply the special tax regime based on a simplified declaration if their income for the calendar year does not exceed 600 000 MCI, that is, 2 595 000 000 ₸, and the activities carried out are not included --- What IE under the simplified tax regime means in 2026 In 2026, an IE may apply the special tax regime based on a simplified declaration if their income for the calendar year does not exceed 600 000 MCI, that is, 2 595 000 000 ₸, and the activities carried out are not included in the government list of activities prohibited under this regime (Article 723 of the Tax Code of the Republic of Kazakhstan). An IE under the simplified tax regime is an individual entrepreneur who officially applies the special tax regime based on a simplified declaration. For an accountant, the colloquial term “simplified regime” is insufficient: before calculating tax, it is necessary to establish the applicable regime, compare the actual activities with the established restrictions, and verify the entrepreneur's income for the calendar year. The income limit is determined based on the taxable item calculated under the rules of Article 724 of the Tax Code of the Republic of Kazakhstan. Income from activities conducted under the special tax regime for peasant or farm enterprises is not included in this limit. At the same time, an IE may not apply the simplified declaration to activities carried out under a joint activity agreement (Article 723 of the Tax Code of the Republic of Kazakhstan). The accountant should first collect the following source information: - the IE registration date and information about the applicable tax regime; - the types of activities actually carried out; - agreements, including joint activity agreements; - information about employees and income accrued to them; - the structure of income received and receivable; - source documents for the sale of goods, performance of work, and provision of services; - previously prepared tax registers and filed reports. After this reconciliation, it is possible to determine the IE's eligibility for the regime and the taxable item. The taxpayer independently calculates individual income tax, except for tax withheld at the source of payment, by applying the established rate to the taxable item for the reporting tax period (Article 726 of the Tax Code of the Republic of Kazakhstan). Who the simplified regime applies to and what the accountant should check The special tax regime based on a simplified declaration may be applied by individual entrepreneurs and legal entities that are residents of the Republic of Kazakhstan and meet the established conditions. Registration as an IE does not in itself mean that this regime applies: the entrepreneur's tax data, income amount, actual activities, and absence of restrictions stipulated by the Tax Code of the Republic of Kazakhstan are relevant (Article 723 of the Tax Code of the Republic of Kazakhstan). The review can conveniently be conducted in several stages. Stage one — identification of the regime. Information about the selected regime must be compared with the IE's tax reports and registration data. A business owner's statement that they operate “under the simplified regime” does not replace the taxpayer's official status. Stage two — review of activities. Actual transactions, agreements, and source documents should be compared with the list of activities for which the Government of the Republic of Kazakhstan prohibits the application of the regime based on a simplified declaration. Transactions under joint activity agreements must be identified separately: this regime does not apply to such activities (Article 723 of the Tax Code of the Republic of Kazakhstan). Stage three — income review. The income limit for a calendar year is 600 000 MCI. With the MCI at 4 325 ₸ in 2026, this amounts to 2 595 000 000 ₸. The taxable item determined under Article 724 of the Tax Code of the Republic of Kazakhstan is used for comparison with the limit; therefore, it is necessary to monitor not only bank receipts but also income receivable under the accrual method (Articles 723, 724 of the Tax Code of the Republic of Kazakhstan). Stage four — review of the composition of income. The taxable item includes, among other things, income from the sale of goods, performance of work, provision of services, royalties, and property rental, as well as income from the write-off of liabilities, assignment of claims, penalties acknowledged by the debtor or awarded by a court, budget funds to cover costs, identified surpluses, and certain types of property received free of charge. Reimbursement by a tenant of an IE landlord's expenses for property maintenance and repair is also accounted for under the rules of Article 724 of the Tax Code of the Republic of Kazakhstan. Stage five — review of the entrepreneur's status. Individuals and IEs who are founders or participants of a legal entity applying a special tax regime may not apply the regime based on a simplified declaration. The restriction also applies to participants in special economic and industrial zones and Astana Hub (Article 723 of the Tax Code of the Republic of Kazakhstan). The mere presence of employees is not specified in Article 723 of the Tax Code of the Republic of Kazakhstan as a condition precluding the application of the simplified declaration. However, information about employees is necessary to correctly determine the taxable item: starting from the month in which the taxable item calculated cumulatively from the beginning of the year exceeds 24 000 MCI, the taxable item is reduced by the employer's expenses related to employee income. In 2026, this threshold is 103 800 000 ₸ (Article 724 of the Tax Code of the Republic of Kazakhstan). Accounting and documents of an IE under the simplified regime An IE applying the special tax regime based on a simplified declaration must organize and maintain tax accounting in accordance with Chapter 20 of the Tax Code of the Republic of Kazakhstan (Article 723 of the Tax Code of the Republic of Kazakhstan). The accountant must ensure a clear link between the business transaction, agreement, source document, recognition of income, and recording of the indicator in tax accounting. The taxable item is income without deducting expenses that was received or is receivable for the tax period under the accrual method. Therefore, relying solely on movements of funds in the bank account is insufficient: the accountant must take into account the terms of the agreement and the time when receivable income arises (Article 724 of the Tax Code of the Republic of Kazakhstan). For each transaction, documents that make it possible to determine its substance and amount should be retained: agreements, invoices, statements of completion, delivery notes, receipts, bank documents, and other transaction documents. It is advisable to structure the working register by the types of income listed in Article 724 of the Tax Code of the Republic of Kazakhstan so that sales, rental income, write-offs of liabilities, assignments of claims, penalties, budget reimbursement of costs, and other reportable receipts are shown separately. Income received or receivable from activities under joint activity agreements is not included in the income determined for the regime based on a simplified declaration. At the same time, the taxpayer may not apply this regime to such activities. Therefore, the relevant agreements and transactions must be recorded separately in tax accounting (Articles 723, 724 of the Tax Code of the Republic of Kazakhstan). When an entrepreneur sells an asset that is neither inventory nor a receivable, the capital gain is determined separately for each asset as the positive difference between the selling price and the initial cost. Such assets include, in particular, fixed assets used in business activities, construction in progress, uninstalled machinery and equipment, intangible assets, and biological assets (Article 390 of the Tax Code of the Republic of Kazakhstan). In practice, the accountant should maintain a working register showing the transaction date, counterparty, basis, income amount, date of its recognition under the accrual method, type of income, and supporting document. Such a register makes it possible to monitor the annual limit, the composition of the taxable item, and the data used for independent tax calculation. What to do in 2026 and how to monitor deadlines When starting work with an IE, the accountant should check the applicable regime, actual activities, the entrepreneur's participation in legal entities, the existence of joint activity agreements, the composition of income, and tax accounting data. It is convenient to record the review results in an internal checklist and update it whenever the activities or contractual model change. Income must be monitored cumulatively for the calendar year. The main limit for applying the regime in 2026 is 2 595 000 000 ₸, or 600 000 MCI. A separate control threshold for an employer is a taxable item of 103 800 000 ₸, or 24 000 MCI: starting from the month in which it is exceeded, the reduction by expenses related to employee income stipulated by Article 724 of the Tax Code of the Republic of Kazakhstan is applied. Individual income tax is calculated at a rate of 4% of the taxable item for the reporting tax period. The local representative body may decrease or increase this rate by no more than 50%, depending on the type of activity and location of the taxable facility. Such a change may not be established individually for a particular taxpayer. If different rates apply to an IE's income, the entrepreneur must maintain separate tax accounting for such income (Article 726 of the Tax Code of the Republic of Kazakhstan). To calculate the tax, the accountant must first determine the taxable item under Article 724 of the Tax Code of the Republic of Kazakhstan, then determine the rate applicable to the relevant type of activity and location of the taxable facility, and apply it to the taxable item for the reporting tax period. The 4% rate may not be used without taking into account the official decision of the local representative body if a different rate has been introduced for the relevant activity and territory. If the entrepreneur has approached the income limit, started a new type of activity, become a participant in a legal entity under a special tax regime, or entered into a joint activity agreement, eligibility for the simplified declaration should be reassessed. The review must be conducted when the relevant circumstance arises, rather than only when preparing reports. Frequently asked questions Do “simplified IE” and “IE under the simplified regime” mean the same thing? — In everyday speech, these expressions are used as synonyms. The official term is the special tax regime based on a simplified declaration. Eligibility for it is determined under the conditions of Article 723 of the Tax Code of the Republic of Kazakhstan. What income limit is established for an IE under the simplified regime in 2026? — No more than 600 000 MCI per calendar year. With the MCI at 4 325 ₸, this amounts to 2 595 000 000 ₸. To check the limit, the taxable item determined under Article 724 of the Tax Code of the Republic of Kazakhstan is taken into account (Article 723 of the Tax Code of the Republic of Kazakhstan). How is income determined under the simplified regime? — The taxable item is income without deducting expenses that was received or is receivable for the tax period under the accrual method. The composition of reportable income is established by Article 724 of the Tax Code of the Republic of Kazakhstan. What rate applies in 2026? — The basic individual income tax rate is 4% of the taxable item. The local representative body may change it by no more than 50%, depending on the type of activity and location of the taxable facility (Article 726 of the Tax Code of the Republic of Kazakhstan). Can an IE under the simplified regime operate under a joint activity agreement? — The special tax regime based on a simplified declaration does not apply to activities under such an agreement. Income from joint activities is not included in the income determined for this regime (Articles 723, 724 of the Tax Code of the Republic of Kazakhstan). What should be done if the type of activity has changed? — The new type of activity must be compared with the list of activities established by the Government for which application of the regime is prohibited. If the activity is included in this list, the condition of Article 723 of the Tax Code of the Republic of Kazakhstan is not met. How does having employees affect the calculation? — If the taxable item calculated cumulatively from the beginning of the calendar year exceeds 24 000 MCI, it is reduced by the employer's expenses related to employee income starting from the month in which the limit is exceeded. In 2026, 24 000 MCI amounts to 103 800 000 ₸ (Article 724 of the Tax Code of the Republic of Kazakhstan). Sources - Tax Code of the Republic of Kazakhstan, Article 390 — income from capital gains on the sale of IE assets. - Tax Code of the Republic of Kazakhstan, Article 723 — conditions for applying the special tax regime based on a simplified declaration. - Tax Code of the Republic of Kazakhstan, Article 724 — procedure for determining income when applying the special tax regime based on a simplified declaration. - Tax Code of the Republic of Kazakhstan, Article 726 — calculation of taxes under the special tax regime based on a simplified declaration. --- _BuhGPT — ИИ-помощник для бухгалтеров Казахстана: https://buhgpt.kz_