Per diem allowances within the established norms are not taxed in 2026, while payments in excess of the norms are recognized as income and taxed at the following rates: IIT — 10%, MPC — 10%, MPCP — 3.5%, SC — 5%, SocT (employer) — 6%, OSMHI (employee) — 2%, OSMHI (employer) — 3%. The calculation is based on the updated MCI (4,325 tenge for 2026). The specific per diem norms require clarification based on the final text of the subordinate legal acts.
Transition to the new Tax Code effective January 1, 2026
From January 1, 2026, the Tax Code of the Republic of Kazakhstan dated 25.12.2017 becomes fully invalid and is replaced by the Tax Code of the Republic of Kazakhstan No. 214-VIII dated 18.07.2025. This means changes to article numbers and a deep restructuring of tax accounting methodology. Accountants need to adapt business processes to the new rates and administration rules in advance.
VAT rate increase to 16%
The most critical change is the increase in the base VAT rate and the tightening of conditions for recognizing input tax credit.
| Parameter | Before (until 2026) | Now (from 2026) |
|---|---|---|
| Base VAT rate | 12% | 16% |
| Registration threshold | 20,000 MCI | 10,000 MCI |
| Threshold in tenge (for 2026) | — | 43,250,000 KZT |
| Main legal act | Tax Code dated 25.12.2017 | Tax Code of the Republic of Kazakhstan No. 214-VIII dated 18.07.2025 |
The registration threshold is calculated based on the projected 2026 MCI value of 4,325 tenge.
Conditions for recognizing input VAT
According to Article 480 of the new Tax Code, the right to credit arises if the recipient is a VAT payer and the goods, works, and services are used for taxable turnover purposes. The legislator clearly regulates the list of supporting documents depending on the situation:
| Situation | Supporting document for credit |
|---|---|
| Purchase of goods, works, services in the Republic of Kazakhstan | ESF with correct supplier IIN/BIN |
| Air transport | Document confirming the fact of travel |
| Periodical publications | Invoice according to paragraph 6 of Article 493 of the Tax Code |
| Release from the state material reserve | Invoice from the authorized body (VAT calculated using the formula from Article 480) |
| Import of goods | Customs declaration or import declaration |
| Non-resident services | ESF + document confirming VAT payment to the budget |
Important requirement: the taxpayer must mark the recognition of VAT for credit in the ESF information system before submitting the tax return (Form 300.00).
Restrictions on VAT credit
According to Article 482 of the new Tax Code, VAT is not accepted for credit in the following cases:
- Goods, works, or services are used in non-taxable turnover
- Incorrect IIN/BIN of the parties in the ESF
- Missing date, number, name of goods/works/services, or turnover amount
- Absence of digital signature or paper-based execution (in violation of Article 492)
- Payment under the transaction exceeded 1,000 MCI (4,325,000 KZT) in cash, including VAT — the right to credit is completely lost, regardless of the number of payments
Configuring 1C for operation in 2026
To ensure accurate accounting and reporting, the following up-to-date releases must be used:
- "Accounting for Kazakhstan" version 3.0.73.1
- "Payroll and Personnel for Government Organizations" version 1.0.42.3
Technical preparation checklist:
- Rate directories: conduct an audit of tax registers and set the VAT rate to 16% from 01.01.2026
- Limit control: configure warnings in payment documents to comply with the 1,000 MCI cash payment threshold
- Integration verification: check data mapping with the ESF information system for correct marking of credit recognition
- Separate accounting: for companies with mixed turnover or construction organizations, configure separate accounting parameters according to Articles 487 and 489 of the new Tax Code
- Import via credit method: when filling out Appendix 300.04 by product categories (I–X), ensure strict compliance of declaration lines:
- 300.04.001 A (import amount) → transferred to 300.00.029 A
- 300.04.001 B (VAT amount) → transferred to 300.00.011 and 300.00.029 B
Open questions and uncertainties
Despite the adoption of the approved Code, a number of parameters remain uncertain:
- Final deadlines for filing Form 300.00 and the payment schedule
- Exact amounts of administrative fines for violating the new VAT registration rules
- Exhaustive lists of turnovers exempt from tax
- Specific per diem norms (the number of MCIs allowed for deduction) and the exact article numbers of the new Tax Code regarding employer deductions
Action plan for accountants
- Update software to the latest versions
- Conduct an audit of separate accounting settings
- Begin a detailed study of Articles 427, 428, 480, and 482 of the new Tax Code
- Review pricing and contract terms considering the VAT increase to 16%
- Ensure compliance with the 1,000 MCI limit on cash transactions
Timely 1C configuration is the key to avoiding discrepancies in the 2026 desk audit control.
Frequently Asked Questions
What VAT rate will apply from January 1, 2026?
The base VAT rate is increasing from 12% to 16%.
What is the VAT registration threshold in 2026?
The registration threshold is decreasing from 20,000 MCI to 10,000 MCI, which amounts to 43,250,000 KZT for 2026 (based on the projected MCI of 4,325 tenge).
What taxes apply to per diem allowances in excess of the norms in 2026?
Excess per diem allowances are taxed at the following rates: IIT — 10%, MPC — 10%, MPCP — 3.5%, SC — 5%, SocT (employer) — 6%, OSMHI (employee) — 2%, OSMHI (employer) — 3%.
When must the VAT credit recognition mark be made in the ESF information system?
The VAT credit recognition mark must be made in the ESF information system before submitting the tax return (Form 300.00).
What cash payment limit affects the right to VAT credit?
If the payment under the transaction exceeded 1,000 MCI (4,325,000 KZT) in cash, including VAT, the right to credit is completely lost, regardless of the number of payments.