Kazakhstan is undergoing a significant overhaul of its tax framework: the new Tax Code (No. 214-VIII, dated 18 July 2025) entered into force on 1 January 2026, introducing progressive personal income tax, a raised corporate income tax rate for banks and gambling operators, and revised rules for non-residents. Separately, draft amendments circulated for public consultation in July 2026 – including a proposal to abolish the fee for confirming the tax residency of AIFC residents – remain proposals and have not yet become law. Foreign investors and internationally active companies with operations, holding structures or personnel in Kazakhstan should assess their exposure to both the enacted changes and the pending proposals now.
What the New Tax Code Changed from 1 January 2026
The Tax Code of the Republic of Kazakhstan (No. 214-VIII of 18 July 2025) is the primary legislative reference for the current regime. Its key departures from the prior code are relevant to any cross-border structure touching Kazakhstan.
- Progressive personal income tax. A graduated rate structure now applies to individual income. Foreign nationals seconded to Kazakhstan, participants in AIFC-registered entities, and high-earning local employees all fall within scope. The applicable brackets and rates are set out in the Code; advisers should map each affected individual's income profile against the new schedule.
- 25% corporate income tax for banks and gambling operators. Entities licensed in these sectors face a statutory CIT rate of 25%. Group structures that include Kazakhstani financial institutions need to revisit their effective tax rate calculations, transfer pricing positions, and dividend repatriation assumptions accordingly.
- Revised non-resident rules. The Code introduces or refines withholding tax obligations for payments sourced in Kazakhstan to non-resident recipients. The precise rates applicable to any given payment type depend on the relevant double tax treaty; where no treaty applies, the domestic statutory rate governs. Companies making royalty, interest, service fee, or dividend payments to offshore group entities must confirm their withholding tax position under the new rules.
- Tax residency determinations. The criteria and procedures for establishing or confirming tax residency in Kazakhstan, including for AIFC residents, have been updated. This directly affects structuring decisions for investment vehicles and individuals who split time across jurisdictions.
If your group has not yet conducted a line-by-line review of the new Code against its Kazakhstani contracts, payroll arrangements and holding structures, that gap should be addressed promptly. Our team advises on tax law in Kazakhstan, including non-resident compliance, withholding analysis and treaty application.
The July 2026 Draft Amendments: Proposals Under Consultation
In July 2026, Kazakhstani authorities circulated draft amendments to the Tax Code for stakeholder consultation. These are proposals only; they carry no legal effect until formally enacted and promulgated. However, foreign investors benefit from tracking them because they signal policy direction and may affect planning decisions made today.
The most notable proposal in the consultation package is the abolition of the fee currently charged for confirming the tax residency of AIFC residents. If enacted, this would reduce an administrative burden on entities registered within the Astana International Financial Centre and individuals relying on AIFC residency certificates for treaty purposes. The AIFC operates under its own legal framework administered by the Astana Financial Services Authority (AFSA), with dispute resolution available through the AIFC Court and, for arbitration, the International Arbitration Centre (IAC). Changes to residency confirmation costs interact with those institutional arrangements and should be read alongside them.
No other specific provisions from the July 2026 consultation have been confirmed to us as enacted at the date of this alert. Investors should treat all consultation-stage proposals as subject to material change before any final text is published.
The Kazakhstan Digital Code and Its Tax Intersections
The Digital Code of the Republic of Kazakhstan (No. 255-VIII, signed 9 January 2026) took effect in July 2026. While primarily a technology-sector instrument, it has direct intersections with the tax landscape for companies engaged in digital services, crypto-asset transactions, and data-driven business models operating in or from Kazakhstan.
Internationally, the crypto-asset reporting framework developed under DAC8-equivalent standards and the global minimum tax rules associated with Pillar Two (as reflected in DAC9-related implementation discussions) are shaping how cross-border digital and financial flows are reported and taxed. Kazakhstan has not yet published a confirmed timetable for domestic implementation of Pillar Two or a DAC8-equivalent crypto-asset reporting regime; both remain subject to national legislative process. Companies with crypto-asset holdings or digital service revenues attributable to Kazakhstan should monitor developments closely, as the Digital Code creates the regulatory infrastructure on which tax reporting obligations may be layered.
For groups already planning their Pillar Two top-up tax positions across jurisdictions, the absence of confirmed Kazakhstani implementation rules is itself a planning variable that needs to be flagged to group tax functions.
Who Is Most Affected
The combination of the new Tax Code and the Digital Code creates heightened compliance considerations for several categories of foreign investor:
- Holding and investment fund structures routing dividends, interest, or royalties through or out of Kazakhstan, particularly where non-resident withholding tax rates apply.
- Banks, financial institutions, and gambling operators subject to the 25% CIT rate.
- AIFC-registered entities and their participants, given the pending residency fee proposal and the broader AFSA regulatory environment.
- Technology companies and digital asset businesses whose activities are now addressed by the Digital Code and who face evolving crypto-asset reporting requirements.
- Employers with internationally mobile employees in Kazakhstan, in light of the new progressive personal income tax structure.
- Any group subject to Pillar Two that has Kazakhstani entities within scope of the global minimum tax calculation.
If you are structuring a new investment into Kazakhstan or reviewing an existing structure, our corporate law advisory services in Kazakhstan – available at ferrazwhitmore.com/services/corporate-law/kazakhstan/ – can assist with entity choice, AIFC registration considerations, and governance alignment.
Immediate Action Items for International Companies
Given the pace of change, the following steps are advisable for any company with Kazakhstani exposure:
- Map withholding tax exposure. Review all outbound payments from Kazakhstani entities to non-residents against the revised non-resident provisions of the new Tax Code, taking into account applicable double tax treaties.
- Reassess effective CIT rates. If your structure includes a Kazakhstani bank or gambling licence holder, update financial models to reflect the 25% CIT rate operative from 1 January 2026.
- Audit personal income tax positions. For seconded employees, shadow payroll calculations, and AIFC-based individuals, verify alignment with the new progressive rate schedule.
- Monitor the July 2026 consultation. Track the progress of the draft amendments, particularly the AIFC residency fee proposal, so that your structures can be adjusted promptly once any amendment is enacted.
- Assess Digital Code and crypto-asset implications. If your business model involves digital assets or data services, engage with counsel on how the Digital Code interacts with your current and anticipated tax reporting obligations, bearing in mind that Pillar Two and DAC8-equivalent rules may follow.
For background on how AIFC dispute resolution has functioned in practice, including the interaction between tax and corporate governance issues, our case commentary on AIFC Tech Holding provides useful context.
Next Steps with Ferraz & Whitmore
The pace of Kazakhstani tax reform means that a position that was compliant under the prior code may require adjustment now. Our international tax and corporate team has experience advising foreign investors, funds, and multinationals on Kazakhstani regulatory change, AIFC structuring, and cross-border tax compliance. We do not offer guaranteed outcomes, but we do provide clear analysis of the legal position and the options available to your organisation.
To discuss your group's specific exposure under the new Tax Code or the Digital Code, or to obtain a preliminary view on the likely impact of the July 2026 draft amendments on your structure, please contact us at info@ferrazwhitmore.com or visit our contacts page.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.