Kazakhstan Budget Plans Include Replacement of VAT and an Increase in Individual Income Tax Rates

The government of Kazakhstan has reportedly approved its budget plan for 2016 to 2020. The main proposed changes include:

• Replacing the value added tax regime (current rate 12%) with a simple sales tax regime, with a rate of 12% for cash payments, 7% for non-cash payments, and 5% for online purchases; and
• Increasing the individual income tax rate from 10% to 11% in 2017 and to 12% in 2018.

Additional details of the planned changes will be published once available.