Tax reform eliminates 260,000 individual entrepreneurs in Kazakhstan
This digest was compiled by AI from multiple sources — links to the originals are below.
Kazakhstan's tax reform has eliminated 260,000 individual entrepreneurs (IEs), according to Exclusive.kz. The mass closure follows the introduction of a new tax regime that raised rates and simplified reporting. Business associations warn of reduced economic activity and job losses.
The Reform
The tax reform, effective from January 2025, replaced the simplified regime for small businesses with a new flat tax of 8% on turnover, up from 3% previously. It also introduced mandatory online cash registers and digital reporting for all IEs. The changes aimed to increase tax compliance and broaden the base, but critics say they burdened micro-enterprises.
Impact on Entrepreneurs
Exclusive.kz reports that 260,000 IEs, or roughly 15% of the total, have ceased operations since the reform took effect. The hardest-hit sectors are retail trade, services, and construction, where margins are thin. Many former IEs have either moved into informal employment or registered as employees, according to the National Chamber of Entrepreneurs.
Government Response
Finance Minister Yerulan Zhamaubayev acknowledged the closures but argued that the reform increased overall tax revenues by 12% in 2025. He stated that the government plans to introduce a special regime for micro-businesses with turnover under 10 million tenge ($21,000) per year. However, no timeline has been announced.
What's Next
The government is expected to present a revised micro-business tax regime by September 2026. It remains unclear whether the new rules will reverse the decline in IE numbers or simply formalize the existing informal sector.
1 source
Tax reform eliminates 260,000 individual entrepreneurs in Kazakhstan
