“We are starting from a clean slate”: Finance Ministry explains tax reform measures

Tengrinews.kz – Kazakhstan has adopted a package of measures to ensure a smooth transition to the new Tax Code and prevent negative consequences for micro and small businesses.

The measures were recalled on Tuesday at a government meeting by Vice Minister of Finance Erzhan Birzhanov.

“To ensure a flexible transition to the new Tax Code and to make sure micro and small businesses do not suffer, operational measures have been adopted. They have already been approved, and we will officially announce these changes once again literally this week,” Birzhanov said.

What will change for businesses

The vice minister outlined key decisions that will take effect as part of the tax reform.

First, micro and small businesses will be exempt from administrative liability for failing to register for value-added tax (VAT).

“This was a major problem we faced. There are currently many disputes with taxpayers being considered in court,” Birzhanov noted.

Second, starting next year, a new rule will allow penalties and fines to be written off, provided that the principal tax debt is paid.

No audits for previous years

Another fundamental decision concerns the refusal to conduct audits for past tax periods.

“We are canceling desk audits for previous periods. That means we will not issue desk audit notifications for 2023, 2024 and 2025 in 2026,” the vice minister explained.

In addition, tax inspections for those years will also not be carried out.

“In other words, we are starting life from a clean slate,” Birzhanov emphasized.

No lawsuits

Tax authorities will also refrain from filing court claims against micro and small businesses related to transactions from previous periods.

“These innovations are aimed at supporting micro and small businesses,” the vice minister concluded.

Tax reform in Kazakhstan

Kazakhstan’s new Tax Code will come into force on January 1, 2026. As part of the reform, it was initially planned to expand the list of prohibited activities by including more than 44 types of business activities. Discussions involving the government, lawmakers and business representatives continued for a long time.

In September, members of the Mazhilis said the prohibitive list could include around 1,000 OKED classifications. Later, the Ministry of National Economy published a draft government resolution approving a list of activities for which the simplified tax regime based on a simplified declaration would be prohibited. The list included 795 out of 1,111 OKED activities, or about 30 percent of taxpayers.

In October, the Kazakh government adopted a number of decisions aimed at ensuring macroeconomic stability and mitigating the negative effects of economic reforms.