Value Added Tax (VAT), known locally as НДС, is one of the key indirect taxes in Kazakhstan. The system is built around electronic reporting, mandatory e-invoicing, quarterly filing, and strict documentation requirements. This article provides a clear and structured overview of how VAT works today and what businesses must prepare until the 2026 reforms come into force.

Kazakhstan is preparing major reforms to its VAT (НДС) system starting from 2026 as part of a wider modernization of tax administration and efforts to simplify compliance. The government has announced a transition toward a more automated, risk-based and transparent VAT model, which includes:

• Restructuring the VAT refund process with deeper integration into digital analytics and reduced manual intervention.
• Enhancing the risk-management system to detect fraudulent invoices, abnormal VAT credit claims, and artificial exporters.
• Expanding the functionality of e-invoicing and the Virtual Warehouse (VW) system to improve traceability of goods.
• Potential adjustments to VAT rates and thresholds, depending on economic and budgetary policy discussions in late 2025.
• Further digitalization, including broader use of real-time data from the national electronic tax platform.
• Possible introduction of SAF-T or similar standardized audit files, aligning Kazakhstan with OECD tax data standards.

These measures are aimed at creating a more predictable and automated VAT environment, reducing administrative burden for compliant taxpayers while tightening control over high-risk sectors.

With these changes on the horizon, understanding how the current VAT system works is essential.

1. VAT Rates and Scope

• The standard VAT rate in Kazakhstan is 12%. It is planned to be increased to 16 % from January 1^st 2026.
• A 0% rate applies to export operations and certain international services.
• Some goods and services are exempt, such as financial services, education, and residential real estate.

VAT applies to the supply of goods and services in Kazakhstan, imports, and certain cross-border digital services.

2. VAT Registration

Businesses must register for VAT when their turnover exceeds a legally defined threshold (linked to the Monthly Calculation Index — MCI). Voluntary registration is also possible.

Old registration threshold: 20,000 MCI (Approx. €125,100)
New threshold from 2026: 10,000 MCI (Approx. €62,550)

Key aspects:

• After registration, companies must issue electronic invoices (e-invoices) using Kazakhstan’s electronic invoicing system.
• Certain goods must also be tracked through the Virtual Warehouse (VW) module before an e-invoice can be legally issued.
• TIN (Tax Identification Number) details of both supplier and buyer must be included.

3. VAT Period, Filing, and Payment Deadlines

Kazakhstan uses a quarterly VAT reporting period.

• VAT return filing deadline: the 15th day of the second month after the end of the quarter.
• VAT payment deadline: the 25th day of the second month after the quarter.
• VAT reporting is strictly electronic.

4. VAT Invoicing Rules

VAT invoices are issued exclusively in electronic form.

Mandatory invoice data includes:

• Invoice date and number
• Supplier and buyer details
• VAT rate and amount
• Description of goods/services
• Currency and exchange rate (if applicable)

Issuing deadlines:

• E-invoices must be issued within 15 calendar days of the supply.

Virtual Warehouse Requirements:

Certain categories of goods cannot be sold unless they are recorded in the VW module.

5. VAT on Imports and Exports

Imports

• Imports are subject to 12% VAT, normally paid during customs clearance.
• Input VAT can typically be claimed if related to taxable operations.

Exports

• Exports are zero-rated.
• Exporters may claim VAT refunds, provided documentation is complete and electronically traceable.

6. VAT Rules for Digital Services and E-Commerce

Foreign suppliers of digital services to consumers in Kazakhstan must:

• Register for VAT (even without local presence)
• Pay VAT quarterly
• Convert foreign-currency payments using the National Bank’s official rate
• File simplified VAT reports electronically

Foreign suppliers do not issue Kazakh e-invoices and generally cannot claim input VAT.

7. VAT Credits and Refunds

Businesses may deduct input VAT on purchases used for taxable supplies.
Rules:

• E-invoice from a VAT-registered supplier is required.
• Input VAT related to exempt or non-business activities is not deductible.
• VAT refunds (mainly for exporters) require thorough documentation and undergo risk-based checks.

8. Common VAT Compliance Issues

1. Incorrect e-invoices or missed deadlines
2. Virtual Warehouse mismatches
3. Incorrect VAT rate or classification
4. Currency conversion errors
5. Documentation gaps in VAT refund claims
6. Incorrect treatment of imports or digital services

9. Practical Tips for Businesses

• Maintain accurate and timely e-invoices.
• Ensure goods subject to virtual warehouse rules are properly recorded.
• Monitor exchange rates and conversions.
• Verify suppliers’ VAT status and invoice compliance.
• Prepare strong documentation for any VAT refund claims.
• Start preparing early for the 2026 VAT reforms, especially regarding digital data requirements.

Conclusion

Kazakhstan’s VAT system is already highly digitalized, centered around e-invoicing, virtual warehouse controls, and systematic quarterly reporting. The upcoming 2026 reforms will intensify digitalization, strengthen risk-based VAT control, and streamline refund processes. Companies operating in Kazakhstan should familiarize themselves with both the current rules and the expected future changes to ensure smooth compliance.

The post How VAT (НДС) Reporting Works in Kazakhstan: A Complete Guide appeared first on Leinonen Kazakhstan.

Updated Definitions and Clarifications

The new legislation provides more precise explanations for several commonly used tax terms, helping taxpayers and authorities apply consistent interpretations.

• Royalties: The definition of royalties now explicitly includes payments for updating software versions. However, technical work such as fixing bugs or correcting system errors—activities that do not result in the creation or development of new software—is not considered a royalty and will therefore not be taxed under this category.
• Know-how and recruitment services: Both concepts now have legal definitions, reducing ambiguity in cross-border service agreements and helping businesses determine when withholding tax obligations apply.

New Rules for Non-Resident Income

From 2026, the taxation of non-resident income becomes more comprehensive. Certain services that were previously exempt or inconsistently taxed will now face a uniform 20% tax rate, regardless of where the services are performed.

The affected service categories include:

• Information processing
• Advertising
• Design
• Recruitment and staffing

This change aligns with Kazakhstan’s broader goal of taxing digital and cross-border services more effectively, ensuring fair competition between local and foreign providers.

Another important update concerns advance payments for goods or services purchased from non-residents. The time limit for recognizing an unfulfilled advance has been shortened from two years to twelve months. If the supplier fails to deliver within one year, the advance amount will be treated as taxable income.

Adjustments to Tax Rates

Several tax rates affecting non-resident income and foreign employee remuneration are being restructured:

• Dividends: For non-residents owning 25% or more of a Kazakh legal entity, income up to 230,000 MCI (approximately 904 million KZT in 2025) will be taxed at 5%, while any amount exceeding this threshold will be taxed at 15%.
• Foreign employees’ salaries: Income up to 8,500 MCI (around 33.4 million KZT in 2025) will be taxed at 10%, and income above that at 15%.
• Loan interest: The withholding tax rate on interest payments will be reduced from 15% to 10%, a move expected to encourage foreign lending and investment.

Additionally, retroactive bonuses granted when selling goods—often referred to as “retro bonuses”—will now be classified as marketing services and taxed accordingly.

What Stays the Same

Despite these updates, the core taxation principles and reporting procedures remain unchanged. Kazakhstan continues to apply its existing framework for withholding taxes, reporting timelines, and double taxation relief.

Special Considerations for Cross-Border Transactions

Businesses engaging with non-residents should review their contracts and payment flows in light of the new code. The following factors remain crucial when determining tax obligations:

• Whether the counterparty’s jurisdiction is listed as preferential (low-tax);
• Whether a double taxation avoidance treaty exists with that country;
• And where the services are physically rendered—within Kazakhstan or abroad.

For technology companies operating within Astana Hub, the tax exemption on payments to non-residents for income and royalties has been extended until 2029, preserving a key advantage for participants in the innovation ecosystem.

Make sure to contact your accountant and ask how the multitude of changes planned to go into effect in 2026 will affect your particular business.

The post Kazakhstan’s 2026 Tax Code: Key Changes in International Taxation and What Businesses Should Know appeared first on Leinonen Kazakhstan.

Key Steps in Establishing a TOO

1. Prepare Founding Documents
   The main document is the Charter of the TOO, which defines its activities, structure, and management. If there is more than one founder, a Foundation Agreement is also needed. Additionally, you will need documents identifying the founder or founders of the company for both legal and physical persons. Proof of a legal address is needed, meaning a lease agreement or letter of intent to rent from the landlord. In practice, a local lawyer needs to prepare part of the documents and guide you through the collection of documents on the founder´s side.
2. Notarize and Translate Documents
   Founders’ documents, such as passports for individuals or incorporation documents for legal entities, must be translated into Kazakh/Russian and notarized. This is normally done locally, once the package of documents you have sent reaches your lawyer in Kazakhstan.
3. Choosing an Address and Representative

The TOO´s address and representative (director) must be indicated when submitting the documents for registration. This means that you need to have rented an office, or received a letter of intent to rent from a landlord. The company´s director is the person who has the sole right to sign official documents on behalf of the company.

4. Submit to the Public Service Center
   The application for registration is submitted to the state entity “Government for Citizens.” The process is generally efficient, and registration can often be completed within a few days. The main time consuming element is the collection and preparation of the package of documents, which usually takes between 1-2 months.
5. Register for Taxes and Open a Bank Account
   Once the TOO is established, it receives a Business Identification Number (BIN), register with the tax authorities, and open a bank account in Kazakhstan. The process of bank accounts opening requires much of the same documentation as the registration phase, including the identification documents of the beneficiary owners of the TOO. This phase usually also takes up some time unless all the correct documentation is prepared beforehand during the company registration process.

Required Documents

• Founders’ passports or company identification documents (with notarized translations).
• Application for registration.
• Charter of the new company.
• Proof of legal address.
• Foundation Agreement (if multiple founders).

Since the registration process is in most cases handled by a local lawyer, they will need a Power of Attorney from you to complete the process.

We have practical experience from many company establishment cases, so we can share some of the most common challenges companies face. Some companies wish to establish a TOO in Kazakhstan very quickly, but do not take into account that the process of gathering the correct documentation usually takes time. You should prepare for a 1-2 month period for the process when you decide to invest in Kazakhstan and open a company.

The next challenge that usually comes up is the appointing of a director for the company. Some investors already have a local person in mind for the position from previous cooperation or business in the country, which is great. However, if you don´t, you should think about running a recruitment process for the position in parallel with the company opening process. You may also appoint a foreign citizen to the position, but in this case a work visa is required, which also takes some time and paperwork to procure.

Finally, choosing the address for the company is a headache in many cases. If you need to rent a physical office, there are good options available. If you are sending someone on-site, they can handle the search for an office. If you want to do it fully remote, you should use a qualified real estate agent for the task. In Kazakhstan, using a virtual address is frowned upon by the authorities, but it is a compliant option too if the service provider knows how to properly provide the service. If you need a virtual office service in Kazakhstan, feel free to ask us, as having this service provided by your accounting company is a logical option.

In general, we advise our clients to be engaged in the process, as there are a lot of details involved. Always use a local expert consultant to help you manage the establishment process to get the desired result in a good time frame.

The post Establishing a LLC (TOO) in Kazakhstan: Steps, Requirements, and Real Business Cases appeared first on Leinonen Kazakhstan.

Key payroll taxes and contributions include:

• Individual Income Tax (IIT): A flat rate of 10% is withheld from employees’ gross salaries. This applies to both residents and non-residents, with deductions reported quarterly by the 15th of the second month following the reporting period (May 15, August 15, November 15, and February 15).
• Mandatory Pension Contributions (OPC): Employees contribute 10% of their gross salary to the Unified Accumulative Pension Fund (UAPF), capped at 50 times the minimum monthly wage (KZT 4,250,000 in 2025). Employers also contribute 1.5% of the employee’s salary.
• Social Contributions: Employers pay 3.5% of the employee’s salary (capped at 7 times the minimum monthly wage, KZT 595,000 in 2025) to the State Pension Centre.
• Mandatory Social Health Insurance (OMIC): Employers contribute 3% of the employee’s salary, and employees contribute 2%, both capped at 10 times the minimum monthly wage (KZT 850,000 in 2025).
• Unified Tax Payment (UTP): Introduced in 2023, this consolidates IIT, pension, social, and health insurance contributions into a single payment of 23.8% of the payroll fund for micro and small enterprises under special tax regimes, due monthly by the 25th.

Compliance and Reporting Obligations

Businesses must file quarterly payroll tax reports and maintain accurate records to comply with Kazakhstan’s labor and tax laws. Errors in calculations or filings can lead to audits, fines, or reputational damage, making compliance a significant challenge for companies without local expertise.

What’s Coming in 2026: A New Tax Code

Looking ahead to 2026, Kazakhstan’s new Tax Code promises to shake things up. While details are still taking shape, the government is trying to make life easier for businesses with a focus on streamlining processes. Expect payroll reporting to get a bit smoother, possibly with an expanded Unified Tax Payment system that could cover more companies, cutting down on paperwork. There’s talk of tweaking contribution rates, like those for social or health insurance, which might nudge up costs slightly. What is certain is that in the short term, payroll specialists will have their hands full in 2026 getting adapted to the changes.

Why to Outsource Payroll

This is where outsourcing shines. Handing payroll over to a specialized provider takes the weight off your shoulders. These experts know the ins and outs of Kazakhstan’s tax and labor laws, ensuring compliance without you breaking a sweat. They leverage tools like 1C and self-service platforms, so you’re not stuck managing spreadsheets or chasing deadlines. It’s also a cost-saver—no need to build an in-house HR team fluent in local rules. With 2026 bringing new rules, a trusted partner can help you navigate the changes seamlessly, letting you focus on growing your business instead of wrestling with payroll.

Get in touch today to organise a consultation with a Kazakhstan payroll expert and stay informed on the latest changes affecting you.

The post Payroll Outsourcing in Kazakhstan: A Guide for Companies appeared first on Leinonen Kazakhstan.

Key Changes in the New Tax Code

The draft of the new Tax Code, shared for public discussion in 2024, includes several amendments that impact various sectors. Below are the most relevant changes for accounting, tax, and payroll professionals:

• Payroll Taxes: The social tax rate is fixed at 6%, ensuring predictability for employer contributions. However, the exclusion of most personal income tax deductions will increase employees’ taxable income, affecting payroll calculations.
• Corporate Income Tax (CIT): Differentiated CIT rates are introduced, with social sector organizations benefiting from a 10% rate, while banks and certain entities face a 25% rate. Other businesses will generally be subject to a 20% rate.
• VAT Administration: The “e-Tamga” system, a digital VAT payment platform, mandates electronic invoices for works and services, aiming to eliminate fictitious transactions and automate VAT refunds.
• Personal Taxation: The universal filing requirement expands to all citizens in 2025, mandating a one-time asset and liability declaration (Form 250.00) and an annual income and property declaration (Form 270.00). Deadlines are set for July 15 (hard copy) or September 15 (electronic) of the following year.
• International Taxation: Changes include amended definitions of tax residency, new triggers for permanent establishment, and adjustments to withholding tax rates, such as a 5% rate on dividends to nonresidents with significant capital holdings.

These changes reflect Kazakhstan’s commitment to modernizing its tax system, with a focus on digitalization and compliance.

Impact on Accounting and Tax Professionals

The new Tax Code presents both challenges and opportunities for accounting and tax professionals. The differentiated CIT rates necessitate revised tax planning strategies, as businesses may need to restructure to optimize tax liabilities. For instance, social sector organizations can leverage the 10% CIT rate to enhance sustainability, while banks must prepare for higher tax obligations. The “e-Tamga” system requires accounting departments to upgrade software and train staff to handle electronic VAT invoices, ensuring compliance with new reporting standards. Additionally, the removal of certain tax incentives, such as benefits for government securities income, will impact financial planning for corporations.

The universal filing requirement, effective for all citizens in 2025, adds complexity. While individuals are responsible for filing Forms 250.00 and 270.00, businesses may need to provide guidance to employees, particularly those unfamiliar with tax reporting. This could involve workshops or informational resources, increasing the workload for tax departments. Furthermore, the suspension of the tax statute of limitation during audits and expanded grounds for tax audits underscore the need for meticulous record-keeping and compliance.

Impact on Payroll Processing

Payroll professionals will face significant adjustments due to the new Tax Code. The fixation of the social tax rate at 6% provides clarity, as employers can plan contributions without anticipating rate changes. However, the exclusion of most personal income tax deductions is a critical change. Previously, deductions for expenses like medical costs or dependents may have reduced taxable income. Their removal means payroll systems must be recalibrated to withhold higher taxes, ensuring accurate deductions at source. This change could also affect employee net pay, potentially requiring communication to manage expectations.

Additionally, the universal filing requirement may indirectly impact payroll departments. Employees may seek clarification on their tax obligations, particularly regarding income and property declarations. Payroll teams should be prepared to direct employees to resources or coordinate with HR to provide support. The new Tax Code’s emphasis on digitalization, such as electronic invoicing for VAT, may also influence payroll processes if businesses integrate payroll and tax reporting systems for efficiency.

Preparation for the New Tax Code

To navigate the transition, professionals in accounting, tax, and payroll should take proactive steps:

1. Stay Informed: Monitor official announcements from the State Revenue Committee and consult reputable sources for updates on the Tax Code’s final provisions.
2. Update Systems: Invest in software upgrades to support electronic VAT invoicing and revised payroll tax calculations. Ensure compatibility with the “e-Tamga” system and other digital platforms.
3. Training and Education: Participate in training programs offered by professional associations or consultancies to understand the new tax provisions and their practical implications.
4. Engage Stakeholders: Collaborate with HR and management to communicate changes to employees, particularly regarding universal filing and increased tax withholdings.
5. Review Compliance: Conduct internal audits to ensure current practices align with the new Tax Code’s requirements, focusing on record-keeping and reporting accuracy.

Businesses can also leverage consulting services to assess the impact of the new Tax Code on their operations. Leinonen is happy to have a discussion with you to help you plan changes to your accounting and payroll functions.

Broader Context and Economic Implications

Kazakhstan’s new Tax Code is part of a broader effort to strengthen its economy, projected to grow by 5.1% in 2025. The code’s focus on digitalization, such as the “e-Tamga” system and potential VAT administration using the digital tenge, aligns with global trends toward transparent and efficient tax systems. However, the removal of certain tax benefits and increased tax rates for specific sectors may raise concerns among businesses, particularly in banking and gaming. The government’s decision to postpone the Tax Code’s implementation to 2026, as announced by President Kassym-Jomart Tokayev, reflects a commitment to public awareness and readiness.

The universal filing requirement, fully implemented in 2025, is a significant step toward combating tax evasion and increasing transparency. By requiring all citizens to declare assets and income, Kazakhstan aims to align with international standards, such as those set by the OECD’s Base Erosion and Profit Shifting (BEPS) framework, which Kazakhstan joined in 2017. This move may enhance Kazakhstan’s reputation as a reliable partner in global tax cooperation but will require significant effort from both individuals and businesses to comply.

Conclusion

The upcoming Tax Code in Kazakhstan, set to take effect in January 2026, represents a pivotal shift for the accounting, tax, and payroll industries. With changes like the fixed 6% social tax rate, exclusion of personal income tax deductions, and the “e-Tamga” VAT system, professionals must adapt to new compliance and reporting requirements. The universal filing requirement for all citizens in 2025 further underscores the need for proactive preparation. By staying informed, updating systems, and investing in training, accounting, tax, and payroll professionals can navigate these changes effectively, ensuring compliance and leveraging opportunities for efficiency.

The post Upcoming Changes in Kazakhstan’s Tax Code: Implications for Accounting, Tax, and Payroll appeared first on Leinonen Kazakhstan.

Definition of Royalties in Kazakhstan

Under Kazakhstan’s Tax Code, royalties are defined as payments made for the right to use or transfer:

• Copyrights, patents, trademarks, and industrial designs;
• Software and databases;
• Trade secrets, know-how, and other confidential business information;
• Motion pictures, audio recordings, and broadcasting rights;
• Any other intellectual property or licensing rights.

Royalty Tax Rates and Withholding Tax

Royalty tax in Kazakhstan primarily affects non-resident entities receiving payments from local businesses. The key aspects include:

1. Withholding Tax for Non-Residents:
   • The standard withholding tax rate on royalties paid to non-residents is 15%.
   • This rate may be reduced under Double Taxation Agreements (DTAs) if Kazakhstan has a tax treaty with the country where the non-resident entity is based. Some treaties lower the rate to 10% or even 5%.
2. Corporate Income Tax (CIT) for Residents:
   • If a resident company receives royalties, they are subject to Kazakhstan’s corporate income tax of 20%, applied on net taxable income.

Double Taxation Agreements (DTAs) and Their Impact

Kazakhstan has signed DTAs with many countries to avoid double taxation on income, including royalty payments. These agreements often specify reduced withholding tax rates. To benefit from a reduced rate, non-resident entities must:

• Provide a certificate of tax residency from their home country;
• Submit an application for DTA benefits to the Kazakhstani tax authorities.

VAT on Royalty Payments

In addition to withholding tax, royalty payments made to non-residents may also be subject to Value Added Tax (VAT) at a standard rate of 12%. If a Kazakhstani company pays royalties to a foreign entity, it is responsible for:

• Withholding 12% VAT on the gross royalty amount;
• Self-assessing and remitting the VAT to the tax authorities.

Tax Compliance and Reporting Requirements

Companies paying royalties in Kazakhstan must ensure compliance with local tax regulations, including:

• Properly calculating and withholding tax from royalty payments;
• Filing tax declarations and reports with the State Revenue Committee;
• Keeping documentation proving the nature of the royalty payments and the applicability of DTA benefits.

Potential Tax Optimization Strategies

Businesses operating in Kazakhstan can optimize their tax burden on royalties by:

• Structuring licensing agreements in a way that benefits from the most favorable DTA terms;
• Considering alternative forms of payments (e.g., service fees) where applicable;
• Ensuring all required tax residency documentation is in place to claim reduced withholding rates.

Royalty taxation in Kazakhstan is an important consideration for businesses dealing with intellectual property and licensing arrangements. With a standard 15% withholding tax on royalties for non-residents, plus potential VAT implications, companies must carefully plan their tax compliance strategies. Utilizing double taxation agreements, proper documentation, and tax planning can significantly reduce the tax burden and improve financial efficiency.

For businesses engaged in IP-related transactions in Kazakhstan, staying informed about regulatory updates and seeking professional tax advice is essential to ensure compliance and optimize tax liabilities.

The post Royalty Taxes and Withholding Taxes in Kazakhstan appeared first on Leinonen Kazakhstan.

One of the main reasons to consider switching accounting service providers is the potential for improved quality of service. If your current provider has been underperforming—whether by missing deadlines, delivering inaccurate reports, or failing to communicate effectively—it may be time to find a partner who can better meet your business’s needs. A reliable accounting service provider ensures compliance with Kazakhstan’s regulations and delivers valuable insights for strategic decision-making.

Cost efficiency is another factor driving businesses to seek new providers. High fees that do not match the value delivered can strain resources that could be allocated elsewhere. By transitioning to a more competitively priced and efficient service, you can optimize your financial management and reinvest savings into growth opportunities.

Additionally, as businesses evolve, so do their accounting needs. A new provider may offer tailored solutions that align more closely with your current and future goals. Whether it’s specialized expertise, integration with your existing systems, or expanded services like payroll or tax consulting, a fresh partnership can better support your objectives.

Timing is critical, and the beginning of the year offers a fresh start for financial records. Transitioning now ensures that your new provider handles your records from the outset of the fiscal year, avoiding complications that can arise from mid-year changes.

Early-year transitions also align with strategic planning. This is when businesses set goals and budgets for the year, and a capable accounting service provider can offer valuable insights to inform your financial strategy. By making the switch now, you minimize disruptions, as the early months often involve fewer overlapping projects and deadlines. A well-planned transition ensures that your new provider integrates smoothly into your processes.

To make the change successful, it’s important to assess your specific needs and identify what you require from an accounting service provider. Researching and comparing providers is essential to find a partner with a strong track record, positive client reviews, and expertise in Kazakhstan’s regulatory environment. Clear communication with your current provider is crucial to set expectations and timelines for the handover process, ensuring a smooth transfer of responsibilities and records.

The post Start of the New Year is a great time to change accounting services in Kazakhstan appeared first on Leinonen Kazakhstan.

As an employer hiring Kazakh nationals, knowing your employees’ rights and having an awareness of these public holidays is vital, and not just to stay in line with regulations.

In Kazakhstan, a positive community in the workplace is important. Appreciating and celebrating key national holidays can foster a spirit of inclusivity, togetherness, and appreciation of Kazakhstan’s history and culture within your company.

Weekends and Public Holidays: Legal Entitlements of Employees and Obligations of Employers

In Kazakhstan, employees can work weekends and holidays at their request. If an employee is to work on a weekend or public holiday at your request, you must obtain written consent from them. However, there are a few exceptional circumstances in which you can ask an employee to work a weekend or holiday without obtaining written consent.

These are:

• For the prevention of certain emergencies.
• For prevention and investigation of accidents related to work, loss of, or damage to property.
• For performing unforeseen and urgent work.

Further details on the specifics of these scenarios can be found in Article 86 of the Labour Code of the Republic of Kazakhstan.

When an employee agrees or chooses to work weekends or public holidays, they must be given either additional days off to compensate, or a contractually agreed additional payment (at least 1.5x their usual pay). Some company policies may offer additional benefits for working on public holidays, but this is not mandatory. More information on this can be found in Article 109 of the Labour Code of the Republic of Kazakhstan.

Other Important Points for Employers in Kazakhstan

• For rational use of working time during public holidays and on weekends, the Government of the Republic of Kazakhstan has the right to transfer weekends to other working days. This is covered in paragraph 5 of Article 84 of the Labour Code of the Republic of Kazakhstan.
• In Kazakhstan, you are not allowed to employ women with a certificate of pregnancy to work on weekends or during holidays.

Holiday pay and Vacation Time

How is Holiday pay Calculated in Kazakhstan?

The calculation of holiday pay is fairly easy; average daily salary is multiplied by the number of vacation days. To calculate an employee’s average daily salary, simply divide the wages they accrued during the previous working year (12 months) by the number of days they worked in the same period.

How Many Days off on Vacation are Employees Entitled to in Kazakhstan?

Employees in Kazakhstan are entitled to 24 calendar days off on annual leave (excluding holidays). If a vacation falls on a public holiday, they are added to the number of vacation days but are not subject to payment.

List of Public Holidays in Kazakhstan in 2025

• January 1 (Wednesday): New Year’s Day
• January 2 (Thursday): New Year Holiday
• January 7 (Tuesday): Orthodox Christmas Day
• March 8 (Saturday): International Women’s Day
• March 10 (Monday): Day off for International Women’s Day
• March 21 (Friday): Nauryz (Spring Equinox)
• March 22 (Saturday): Nauryz Holiday
• March 23 (Sunday): Nauryz Holiday
• March 24 (Monday): Additional day off for Nauryz Holiday
• May 1 (Thursday): Unity Day
• May 7 (Wednesday): Defender of the Fatherland Day
• May 9 (Friday): Victory Day
• June 6 (Friday): Kurban Ait (Eid al-Adha, tentative date)
• July 6 (Sunday): Day of the Capital
• July 7 (Monday): Additional day off for Day of the Capital
• August 30 (Saturday): Constitution Day
• September 1 (Monday): Additional day off for Constitution Day
• October 25 (Saturday): Republic Day
• December 16 (Tuesday): Independence Day

Are There any Unique Regulations for Specific Public Holidays for Companies in Kazakhstan?

Currently, there are no unique regulations for specific public holidays in Kazakhstan.

Manage Public Holidays in Kazakhstan With Leinonen

Understanding operations in a new country can be confusing. With 34 years in business and over 1500 satisfied customers spanning 11 countries, Leinonen can offer all the trusted advice you need.

To find out how we can help with all things accounting, tax and payroll for your Kazakhstan base base, get in touch today.

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The new Tax Code will introduce differentiated corporate income tax rates and include specific provisions for the taxation of banking sector dividends. This means companies across industries will need to adjust their financial forecasting and reporting to align with these new, potentially variable tax rates, impacting overall profitability assessments and payroll deductions for related employee bonuses and stock dividends.

For payroll, digitalization will play a key role, as the Tax Code mandates the optimization of tax regimes for entrepreneurs and the introduction of a VAT administration mechanism through the digital tenge. Payroll and accounting systems will need to incorporate digital compliance measures, potentially requiring companies to update software and train accounting teams to navigate the new tax processes efficiently.

The removal of some existing tax benefits also requires careful consideration, as companies may see increased tax liabilities that affect net income and influence budgeting for employee benefits and other expenses. By proactively adjusting payroll and accounting operations in anticipation of the 2026 changes, businesses can streamline their transition and ensure compliance with Kazakhstan’s evolving tax framework.

Implementing these features early will help companies manage the financial and operational impacts of the new Tax Code, while leveraging digital tools to remain compliant with Kazakhstan’s updated taxation policies.

The post Reworked Tax Code to come into effect starting 2026 appeared first on Leinonen Kazakhstan.

Current Tax Base and Calculation (Since January 1, 2023)

As of January 1, 2023, the taxation base for MET on uranium is determined using the weighted average market price of natural uranium concentrate (U3O8) from public sources over a reporting period. The tax rate is 6% of this price, multiplied by the quantity of uranium extracted.

New Taxation Rates Starting in 2025

From January 1, 2025, a new tax rate of 9% will be applied to uranium mining for that year only, marking a temporary increase from the current 6%.

Differentiated Approach from 2026 Onward

Effective January 1, 2026, the MET on uranium will follow a differentiated approach based on annual production volumes and the market price of uranium concentrate (U3O8). The tax rates will vary according to the scale of extraction, as detailed below:

• Up to 500 tons: 4%
• Up to 1,000 tons: 6%
• Up to 2,000 tons: 9%
• Up to 3,000 tons: 12%
• Up to 4,000 tons: 15%
• Over 4,000 tons: 18%

Price-Triggered Increases in MET

In addition to the differentiated rates, MET will rise further if the average uranium price exceeds certain thresholds:

• Above $70 per pound: +0.5%
• Above $80 per pound: +1.0%
• Above $90 per pound: +1.5%
• Above $100 per pound: +2.0%
• Above $110 per pound: +2.5%

Expected Impact

These new regulations are expected to significantly affect the joint ventures and subsidiaries of Kazatomprom starting in 2026, as they will be subject to higher, differentiated taxation rates. However, the amendments to the Tax Code will not affect the company’s tax expectations for 2024.

The full text of the legal act is available in Kazakh and Russian via the following link: online.zakon.kz.

Kazatomprom remains committed to adhering to the new regulations as they come into effect, with preparations already underway to manage the forthcoming changes in tax obligations.

The post Kazatomprom Announces Changes in Mineral Extraction Tax on Uranium appeared first on Leinonen Kazakhstan.