Is an Individual Entrepreneur on the Simplified Tax Regime Required to Keep Accounting Records? FCHAIN

Is an Individual Entrepreneur on the Simplified Tax Regime Required to Keep Accounting Records?

Many individual entrepreneurs in Kazakhstan operating under the special tax regime based on a simplified declaration wonder whether they are required to keep accounting records and prepare financial statements. Let us review this issue from the perspective of the legislation of the Republic of Kazakhstan.

 

Legal framework

According to the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting”, individual entrepreneurs are entitled not to keep accounting records and not to prepare financial statements, except for the preparation and storage of primary documents, provided that all of the following conditions are met simultaneously.

 

Conditions for exemption from accounting

An individual entrepreneur may not keep accounting records if he or she:

1. Applies the special tax regime based on a simplified declaration in accordance with the Tax Code of the Republic of Kazakhstan;
2. Has an annual income not exceeding 135,000 MCI (in 2026 this amounts to 583,875,000 tenge);
3. Is not registered for value-added tax (VAT);
4. Is not a subject of natural monopolies.

If all the above conditions are met, the entrepreneur is exempt from maintaining accounting records and preparing financial statements; however, they are still required to prepare and store primary documents (contracts, acts, invoices, waybills, etc.).

 

What if the right to exemption is lost?

If an individual entrepreneur ceases to meet at least one of the above conditions, they are required to:

• start keeping accounting records;
• prepare financial statements

starting from the month following the month in which such non-compliance occurred (for example, exceeding the income threshold or registering for VAT).

Failure to comply with these requirements may result in tax risks and penalties.

 

How FChain helps entrepreneurs

FChain helps individual entrepreneurs and businesses to:

• determine whether accounting is required in their specific situation;
• correctly transition to accounting when the right to the simplified regime is lost;
• automate the tracking of income, primary documents, and reporting;
• reduce the risk of errors and penalties;
• save time and resources on routine operations.

With FChain, you can be confident that your accounting complies with legal requirements, allowing your business to grow without unnecessary complexity.

 

For professional support, please contact us at almaty@f-chain.com or via WhatsApp at +7 771 214 1820

Simplified Declaration Starting from 2026

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

January 26, 2026