From 1 January 2026, individual entrepreneurs applying the special tax regime based on the simplified declaration continue operating under the updated Tax Code. The overall logic of the regime remains unchanged, but due to the increase in the MCI and changes in certain rates, the calculated amounts of taxes and contributions are adjusted.
Income threshold for applying the simplified regime
In 2026, the monthly calculation index (MCI) is set at 4,325 KZT. Accordingly, the annual income limit for applying the simplified regime is:
600,000 MCI per year = 2.595 billion ₸.
At the same time, from 2026, taxpayers applying a special tax regime are not eligible for VAT registration. This rule also applies to LLPs under the simplified regime: even if the turnover exceeds the threshold of 10,000 MCI, there is no obligation to register for VAT.
Social contributions paid by an individual entrepreneur for themselves
An individual entrepreneur under the simplified regime is required to pay monthly social contributions for themselves. In 2026, the following parameters apply:
• minimum wage (MW) — 85,000 ₸;
• mandatory pension contributions (MPC) — 10%;
• employer’s mandatory pension contributions (EMPC) — 3.5%;
• social contributions (SC) — 5%;
• mandatory social health insurance contributions (MSHI) — 5% calculated from a base of 1.4 MW.
Minimum social contributions
When social contributions are paid at the minimum level — based on income equal to 1 MW (85,000 ₸):
• MPC: 85,000 × 10% = 8,500 ₸;
• EMPC: 85,000 × 3.5% = 2,975 ₸;
• MSHI: 1.4 × 85,000 × 5% = 5,950 ₸;
• SC: 85,000 × 5% = 4,250 ₸.
Total: 21,675 ₸ per month.
Payments for hired employees
If an entrepreneur has employees, an additional tax burden arises. Part of the payments is withheld from the employee’s salary, while another part is paid by the entrepreneur from their own funds.
Withheld from the employee’s salary:
• mandatory pension contributions — 10%;
• MSHI contributions — 2%;
• individual income tax — 10% of taxable income.
Paid by the entrepreneur as the employer:
• employer’s mandatory pension contributions — 3.5%;
• social contributions — 5% (calculated from income after deducting MPC);
• MSHI contributions — 3%.
An employee’s individual income tax may be reduced through tax deductions. The most common deduction is a monthly deduction of 30 MCI. To apply it, the employee must submit an application, and the deduction may be used with only one employer.
Income tax under the simplified declaration
In 2026, the tax rate under the simplified declaration is 4% of income for the half-year. Local akimats may set the rate within a range of 2% to 6%.
The tax is paid twice a year under BIC 101202.
According to Article 722 of the new Tax Code of the Republic of Kazakhstan, taxpayers applying the special tax regime based on the simplified declaration:
• are not payers of social tax;
• are not VAT payers (except for VAT on imports and VAT related to non-residents).