IIT in 2026: progressive scale, deductions, and calculation example

The main change in Kazakhstan's tax system starting January 1, 2026 is the entry into force of the new Tax Code No. 214-VIII dated 18.07.2025, which completely repeals the code of 2017. This means a change in rates, an update to accounting methodology, a revision of article numbering in contracts, and reconfiguration of automated systems. Preparation should begin now, as the changes affect the fundamental basis of taxation.

VAT: Rate increase and new offset conditions

The base VAT rate is being increased from 12% to 16%, which will require adjustments to pricing policy and strict control over documentary confirmation of offsets.

Four-pillar principle for VAT offset

According to Art. 480, the following conditions must be met for a lawful VAT offset:

1. Status: The recipient is a registered VAT payer
2. Purpose: Goods/services are used exclusively for taxable turnover
3. Single use: The offset is made only once, based on the earliest applicable ground (para. 9, Art. 480)
4. Recognition in the ESF IS: The taxpayer must place a mark of recognition for VAT offset in the ESF IS before submitting the declaration

Without the technical mark in the ESF IS, the offset will be considered illegitimate.

Supporting documents for VAT offset

According to paras. 6–7, Art. 480, the offset is made on the basis of:

• Domestic market: ESF with a correct IIN/BIN
• Air transportation: A document confirming the fact of travel
• Import: Customs declaration or import declaration (within the amounts paid)
• Non-resident services: ESF + payment document confirming tax payment

Critical errors in VAT filing

According to Art. 482, an offset is excluded if the ESF lacks:

• date
• number
• name of goods
• turnover amount

Special attention should be paid to technical requisites: the absence of a digital signature or a paper-based issue (in violation of para. 1, Art. 492) render the document void for tax accounting purposes.

PIT in 2026: deductions and calculation

The PIT rate remains at 10% (Art. 313 of the Tax Code), however the tax burden on employees will decrease due to a twofold increase in the standard deduction — from 14 MCI to 30 MCI (129,750 tenge).

Example of PIT calculation for a salary of 500,000 tenge (resident):

1. Gross income: 500,000 tenge
2. Less MPC (10%): 50,000 tenge
3. Less MHIC (2%): 10,000 tenge
4. Less EPC (3.5%): 17,500 tenge
5. Less standard deduction (30 MCI): 129,750 tenge
6. Taxable base: 292,750 tenge
7. Total PIT (10%): 29,275 tenge

Key tax constants for 2026

• MCI 2026: 4,325 tenge
• Social Tax (ST): 6% (net rate, not reduced by the amount of social contributions)
• Social Contributions (SC): 5%
• MPC / EPC: 10% / 3.5%
• MHIC / EHIC: 2% (limit 20 MMW) / 3% (limit 40 MMW)

It is important to note that the 6% social tax is not reduced by the amount of social contributions, which leads to an actual increase in the tax burden on the payroll fund.

Reporting and penalties

The main reporting form remains 200.00 (quarterly). For VAT (form 300.00), special attention should be paid to Appendix 300.04 for imports under the offset method. It covers 10 categories of goods (from equipment and agricultural machinery to pedigree cattle).

The totals from 300.04 must be technically correctly transferred to the main declaration:

• Import amount → to line 300.00.029 A
• VAT amount → to lines 300.00.011 and 300.00.029 B

Penalties for violating tax payment deadlines (Administrative Offences Code):

Failure to comply with lawful requirements of state revenue authorities entails a warning, and for a repeat violation, a fine of 15 MCI.

Preparing 1C for the transition to the new Tax Code

For a correct transition to the 2026 Tax Code, configurations must be updated to the current versions:

• "Accounting for Kazakhstan" 3.0.73.1 — for the private sector
• "Payroll and HR for government organizations" 1.0.42.3 — exclusively for the public sector

Automation checklist:

1. Rate directories: Verify the 16% VAT setting from 01.01.2026
2. Deduction setup: Set the standard PIT deduction parameter to 30 MCI
3. Cash control: Enable "Prohibited Operations Control" in 1C for cash payments exceeding 1,000 MCI to prevent loss of offset
4. Integration with the ESF IS: Verify the functionality for placing the "Offset Recognition Mark" — this is the main "stop factor" before submitting form 300

2026 readiness checklist

To minimize risks, it is recommended to:

1. Conduct a contract review: Recalculate obligations taking into account the 16% VAT
2. Update document templates: References to articles of the old 2017 code in contracts and orders will become legally outdated
3. Conduct a technical audit of 1C: Ensure integration with the ESF IS for real-time confirmation of offsets

The new Tax Code is not just new figures, but also new digital discipline. Timely system configuration will save you from additional tax assessments and penalties.

Frequently Asked Questions

By how many percentage points is VAT being increased in 2026?

VAT is being increased from 12% to 16%, that is, by 4 percentage points.

What is the standard PIT deduction amount in 2026?

The standard PIT deduction is being increased from 14 MCI to 30 MCI, which amounts to 129,750 tenge.

What happens if the VAT offset recognition mark is not placed in the ESF IS?

Without the technical recognition mark in the ESF IS, the offset will be considered illegitimate, and the taxpayer will lose the right to the deduction.

What documents serve as the basis for VAT offset on imports?

For imports, the basis for VAT offset is the customs declaration or import declaration, within the amounts paid.

What penalty applies for violating tax payment deadlines for individuals?

The penalty for violating tax payment deadlines for individuals is 30 MCI, which equals 129,750 tenge in 2026.