Preliminary results of the work of the Project Office for the Implementation of the Tax Code were reviewed at its 8th meeting, chaired by Deputy Prime Minister – Minister of National Economy Serik Zhumangarin.

In total, 60 issues related to the implementation of the provisions of the Tax Code have already been considered at the meetings of the Project Office. In particular, in the healthcare sector, work is nearing completion on amendments to subordinate legislation concerning the application of VAT on the import of medicines and medical devices, as well as the exemption from VAT of orphan and socially significant medicines. On 13 February of this year, the Ministry of Health adopted an order establishing maximum prices for medicines and medical devices without VAT.

The Ministries of Industry and Construction, Energy, and Finance, the Committee for the Regulation of Natural Monopolies, and Samruk-Kazyna are working on amendments to procurement rules regarding the purchase of goods, works, and services from taxpayers applying the special tax regime based on a simplified declaration. The discussion concerns mechanisms aimed at ensuring compliance with tax legislation and production processes while maintaining a competitive environment without increasing costs for quasi-state companies. The Ministry of National Economy is forming a unified basis for developing the relevant amendments based on the ideology of the Tax Code.

Other issues related to “administration from scratch,” the transition of tax regimes, the financial sector, the operation of the ISNA information system, and others were resolved promptly.

The list of issues requiring amendments to the Tax Code includes:

1. Application of personal income tax deduction when the disability group changes

The amount of the tax deduction depends on the disability group (5,000 or 882 MCI). When the disability group changes during the year, a question arises regarding the amount of the applicable deduction.

It is proposed to establish a provision under which, if the disability group changes during the year, the maximum deduction of 5,000 MCI is applied based on the “absorption” principle (Article 404 of the Tax Code), and to clarify the wording of the relevant provision.

2. Abolition of the requirement to issue electronic invoices for interest on loans

Turnover related to interest on credits, loans, and microloans is exempt from VAT (Article 474 of the Tax Code). However, due to editorial inaccuracies, such transactions are not included in the list of operations for which electronic invoices are not required.

It is proposed to eliminate the requirement to issue electronic invoices for such transactions and apply the provision retroactively from 1 January 2026.

3. Expansion of the list of information not considered tax secrecy

It is proposed to exclude the following information from tax secrecy:

• amounts of social payments;

• arrears on social payments;

• certain registration data of taxpayers.

The amendments are aimed at digitalizing administration and simplifying the fulfillment of social obligations. Amendments to Article 45 of the Tax Code are required.

4. Confirmation of import of aviation fuel when applying VAT exemption

The Tax Code exempts from VAT the import of aviation fuel for air transportation (Article 479). However, the current wording may require confirmation of import by diplomatic missions, which refers to another subparagraph of the article.

It is proposed to clarify the provision in order to eliminate possible ambiguities.

5. Exemption from excise duty on the export of energy drinks

Currently, exports of excise goods are exempt from excise duty. However, in the case of toll processing, excise duty arises for the processor when transferring finished products to the owner of the raw materials, even if the goods are subsequently exported.

It is proposed to exempt such transfer of products from excise duty if they are intended for subsequent export. A similar mechanism is already applied to petroleum products.

6. Allocation of mineral extraction tax on common minerals at the place of extraction

The Budget Code provides for the allocation of the mineral extraction tax on common minerals to budgets at the place where the extraction site is located.

At the same time, the Tax Code provides for the payment of the tax at the place of registration of the subsoil user.

It is proposed to amend the Tax Code and reporting forms in order to bring the provisions into alignment.

#Serik Zhumangarin #Tax Policy

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