The 2026 tax reform in Kazakhstan introduces the Tax Code of the Republic of Kazakhstan No. 214-VIII dated 18.07.2025, which fundamentally changes tax rates and calculation rules. The base VAT rate is raised from 12% to 16%, the social tax remains at 6% (but is no longer reduced by social contributions), the standard IIT deduction is 30 MCI (129,750 tenge), and the VAT payer registration threshold is 10,000 MCI (43,250,000 tenge). VAT offset requires a mandatory mark in the ESF IS (Electronic Invoicing System) before submitting the Form 300.00 declaration, and is not allowed for cash transactions exceeding 1,000 MCI (4,325,000 tenge).
Global changes in tax legislation
Starting January 1, 2026, the Republic of Kazakhstan enters a new economic reality with the introduction of Tax Code of the Republic of Kazakhstan No. 214-VIII dated 18.07.2025. This is not merely an adjustment of existing rules, but a fundamental reform accompanied by a complete renumbering of articles and a revision of tax rates.
For the professional accounting community, 2026 will be a period of high workload: from implementing new payroll calculation algorithms to changing the VAT offset methodology.
VAT 2026: new rate and offset rules
VAT reform is the most critical area of change. The rate increase and tightened offset conditions require not only mathematical precision but also a revision of business processes for interacting with counterparties.
| Parameter | Before 2026 (Tax Code-2017) | From 2026 (Tax Code No. 214-VIII) |
|---|---|---|
| Base VAT rate | 12% | 16% |
| Registration threshold | According to 2017 rules | 10,000 MCI (43,250,000 tenge) |
| Mandatory mark in ESF IS | Not required for offset | Mandatory before filing declaration |
Conditions for VAT offset (Article 480 of the new Tax Code)
For lawful recognition of VAT offset, simply having an ESF is no longer sufficient. According to Article 480, the following criteria must be met:
- The recipient is a VAT payer
- Goods/services are used for taxable turnover
- The taxpayer must mark in the ESF IS a special note on VAT offset recognition before submitting the declaration (Form 300.00)
- If there are multiple grounds, the offset is made only once, based on the earliest of them
Critical cases of exclusion from offset (Article 482 of the new Tax Code)
- Cash limit: VAT is not accepted for offset on transactions paid in cash if the amount exceeds 1,000 MCI (4,325,000 tenge). This limit is calculated including VAT and regardless of payment frequency.
- ESF defects: Errors in the IIN/BIN, missing date, number, or incorrect product name make the offset impossible.
- Document format: Paper invoices (if the law requires electronic form) or the absence of a digital signature (EDS) deprive the right to offset.
Payroll calculation in 2026: taxes, deductions and new rates
In 2026, the burden on the payroll fund increases. A key change is the revision of the Social Tax structure.
Current figures for 2026:
- MCI — 4,325 tenge
- Standard IIT deduction — 30 MCI (129,750 tenge). This is the priority deduction, replacing the old norms of 1 minimum wage or 14 MCI.
Employee deductions
| Type of payment | Rate | Base / Restrictions |
|---|---|---|
| MPC (Mandatory Pension Contribution) | 10% | No more than 50 minimum wages |
| MHIC (Mandatory Health Insurance Contribution) | 2% | No more than 20 minimum wages |
| IIT | 10% | (Income − MPC − MHIC − Deductions) |
Employer accruals (company expenses)
| Type of payment | Rate | Expert note |
|---|---|---|
| Social tax (ST) | 6% | Under the new Tax Code, ST is no longer reduced by the amount of SC |
| Social contributions (SC) | 5% | Base limit — 7 minimum wages |
| EHIC (Employer Health Insurance Contribution) | 3% | Base limit — 40 minimum wages |
| EMPC (Employer Mandatory Pension Contribution) | 3.5% | At the employer's expense (limit 50 minimum wages) |
IIT calculation algorithm
- Priority is given to the 30 MCI deduction
- Mandatory payments (MPC, MHIC) are deducted from income
- Then the 129,750 tenge deduction is subtracted
- A 10% rate is applied to the remainder
Practical example: net pay calculation for a 500,000 tenge salary
Let's consider the calculation for an employee with a standard deduction (without additional benefits).
Initial data:
- Salary: 500,000 tenge
Deduction calculation:
- MPC (10%): 50,000 tenge
- MHIC (2%): 10,000 tenge
- IIT base: 500,000 − 50,000 − 10,000 − 129,750 (30 MCI deduction) = 310,250 tenge
- IIT (10%): 31,025 tenge
Total net pay: 500,000 − 50,000 − 10,000 − 31,025 = 408,975 tenge
Employer taxes on top of salary:
- ST (6%): 30,000 tenge
- EHIC (3%): 15,000 tenge
- EMPC (3.5%): 17,500 tenge
- SC (5%): Calculation requires clarification of the 2026 minimum wage value according to the budget law (at the time of publication, the exact minimum wage value for 2026 was not fixed in the source)
1C update and reporting preparation
Switching to the new rates is not just a release update, but also manual configuration of analytics.
Base versions to start with:
- 1C:Accounting for Kazakhstan — version 3.0.73.1 (planned release, followed by specific patches for the new Tax Code)
- 1C:Payroll and HR — version 1.0.42.3
System setup checklist:
- "VAT Rates" reference book: Create or update the rate to 16%. Check all price types in price lists.
- ESF IS integration: Check the functionality for marking VAT offset notes. This becomes a mandatory step in the business process before closing the period.
- Cash control: Configure a ban or warning in 1C for processing cash expense orders on transactions exceeding 4,325,000 tenge (1000 MCI including VAT).
- Import (Appendix 300.04): For correct reporting formation, it is necessary to set up Item or Fixed Asset cards in advance, specifying product categories (from I to X: equipment, agricultural machinery, livestock, etc.). Without this analytics, appendix 300.04 will not be filled in correctly.
- Payroll setup: Set the EMPC rate to 3.5% and update the standard deduction amount to 129,750 tenge.
Key takeaways and checkpoints
- 16% VAT is the new baseline reality
- The registration threshold is now fixed: 10,000 MCI
- VAT offset is impossible without a mark in the ESF IS and compliance with the cash transaction limit
- The 6% social tax is no longer reduced by social contributions, increasing direct business expenses
- The 30 MCI standard deduction becomes a powerful tool for reducing IIT for ordinary employees
It is recommended to audit current databases and analytics settings in 1C before the end of 2025. Timely preparation is the only way to avoid tax risks and reporting failures for Forms 300.00, 200.05, and 910.00 in the new tax cycle.
Frequently asked questions
What is the new base VAT rate from 2026?
The base VAT rate is raised from 12% to 16%.
What is the VAT payer registration threshold in 2026?
The registration threshold is 10,000 MCI (43,250,000 tenge).
Can VAT be offset for cash transactions?
VAT is not accepted for offset on transactions paid in cash if the amount exceeds 1,000 MCI (4,325,000 tenge) including VAT.
What is the standard IIT deduction amount in 2026?
The standard IIT deduction is 30 MCI (129,750 tenge).
Has the social tax rate changed?
The social tax rate remains 6%, but under the new Tax Code it is no longer reduced by the amount of social contributions, which increases employer expenses.