Taxes for sole proprietors and LLPs in Kazakhstan

Which regimes exist

Small businesses usually choose between two options:

• the simplified regime (based on a simplified declaration) — simple reporting and a low rate;
• the general regime — standard corporate/individual income tax and VAT, full accounting.

Simplified regime

Tax is a percentage of income — a base rate of about 4% (some cities, e.g. Almaty, lowered it to 3%), reported every six months. The simplified regime can be used up to an annual turnover of about 600,000 MCI (roughly 2.6 bn KZT in 2026). Its taxpayers usually don't register for VAT. It's convenient for small companies and services, but not all activities are eligible — check the restrictions before registering.

General regime

An LLP pays corporate income tax (CIT) — a base rate of 20%. A sole proprietor on the general regime pays individual income tax (IIT): from 2026 it's progressive — 10% on annual income up to 8,500 MCI and 15% above that. Some sectors have reduced rates and special rules.

VAT

From 2026 the base VAT rate is 16% (up from 12%). VAT registration becomes mandatory once annual turnover exceeds 10,000 MCI (about 43m KZT in 2026) — down from the previous 20,000 MCI. Below it, registration is voluntary.

Payroll taxes when hiring

If you hire employees, mandatory contributions are withheld and charged on wages: pension contributions, medical insurance, social contributions, social tax and income tax at source. Leave the exact rates and calculation to an accountant.