Individual Income Tax in 2026

Individual Income Tax in 2026

 Starting from January 1, 2026, amendments introduced by the new Tax Code of the Republic of Kazakhstan will come into force. One of the key changes is the replacement of the familiar “standard deduction” for individual income tax with a “basic tax deduction,” as well as a significant increase in its amount.

 

What Has Changed in the Individual Income Tax Deduction?

According to Article 403 of the new Tax Code of the Republic of Kazakhstan, starting from 2026, the standard deduction of 14 MCI (KZT 55,048 in 2025) will be replaced by a basic tax deduction. The amount of the basic tax deduction will be set at 30 MCI.

With the MCI for 2026 established at KZT 4,325, the monthly deduction amount will be KZT 129,750. In subsequent years, the applicable MCI for each year will be used, meaning the deduction amount will increase automatically in line with the MCI.

 

Application of the Deduction During the Year

The basic tax deduction is applied for each calendar month. At the same time, the total annual amount of the basic deduction may not exceed 360 MCI, as established by the law on the republican budget and effective as of January 1 of the relevant financial year. Previously, the annual limit was 168 MCI, so from 2026 the limit has been increased more than twofold.

 

Procedure for Applying Deductions by the Tax Agent

According to Article 437 of the new Tax Code of the Republic of Kazakhstan, the basic tax deduction and social tax deductions are applied by the tax agent at the source of payment based on an application submitted by the individual requesting the application of tax deductions. Copies of supporting documents are required only for the application of social tax deductions.

This means that, for proper application of deductions, employers must organize the timely collection of employee applications and, where required, supporting documents, as well as ensure correct configuration of payroll calculation systems.

 

How FChain Can Help

FChain helps employers and accounting teams prepare for the 2026 changes and reduce the risk of errors in tax calculations. We support the setup of processes for collecting applications and supporting documents, provide consultations on the application of tax deductions, and assist in updating payroll calculation logic and control checks to ensure compliance with the new Tax Code requirements.

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

Social Tax in 2026

Mandatory Employer Pension Contribution Rate Increased from 2026

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

January 16, 2026