Current as of August 5, 2026. In 2026, 1 MCI equals ₸4,325. Amounts in tenge are converted from MCI at the 2026 rate and may change in following years.
Two regimes: the fundamental difference
If you strip away the details, the difference between the regimes comes down to three things: what the tax is calculated on, whether you have to pay VAT, and how complex the accounting is.
The simplified regime is a preferential regime for small business. The tax is calculated directly on turnover (all money received) at a rate of 4%, and expenses are not taken into account. There is no VAT on the simplified regime. A report is filed just twice a year. In return there is an income ceiling and a list of activities to which the regime is not available.
The standard regime is the base regime with no limits on income and (with rare exceptions) on activities. The tax is calculated on profit — that is, on the difference between income and documented expenses. But here VAT appears once the turnover threshold is exceeded, and the accounting and reporting are noticeably more complex.
Put simply: the simplified regime wins on simplicity and a low rate, the standard regime — on the absence of limits and the ability to work with VAT for large clients.
Comparison table: standard vs simplified regime in 2026
| Parameter | Simplified | Standard |
|---|---|---|
| What the tax is calculated on | Turnover (income), expenses not counted | Profit (income minus expenses) |
| Income-tax rate | 4% (the maslikhat may vary it within 2–6%) | LLP — CIT 20%; sole proprietor — IPN 10% (progressive) |
| Annual income limit | 600,000 MCI = ₸2,595,000,000 (in 2026) | No limit |
| Activity restrictions | Yes — a prohibited list (Resolution No. 970, 44 activities) | Practically none (apart from a few bans) |
| VAT | Not paid (except on imports and on behalf of a non-resident) | Mandatory at income above 10,000 MCI = ₸43,250,000, rate 16% |
| Employee limit | None | None |
| Reporting | Semi-annual (form 910.00) | Quarterly and annual |
| Accounting | Simple (a summary ledger) | Full accounting of income and expenses |
| Bank current account | Required | Required |
| Online cash register (when accepting cash and cards) | Required | Required |
Income-tax rates: how it works on the standard regime
On the simplified regime everything is simple — 4% of turnover. On the standard regime the rate depends on the form of business.
For an LLP, corporate income tax (CIT) applies at the standard rate of 20% on taxable profit. Other rates apply to certain sectors: for example, a reduced rate for agricultural producers and a higher rate for banks and gambling. Most ordinary LLPs pay exactly 20%.
For a sole proprietor, individual income tax (IPN) applies on a progressive scale: 10% on annual profit up to 230,000 MCI (₸994,750,000 in 2026) and 15% on the amount exceeding that threshold. So small and medium sole-proprietor businesses pay 10%.
An important point: on the standard regime the tax is taken on profit, not turnover. If you have large documented expenses (buying goods, rent, salaries), the real burden may turn out lower than the rate suggests. That is precisely why the standard regime is sometimes more advantageous than the simplified one for trade and manufacturing with a high share of expenses, despite the higher rate.
VAT — the main deciding factor
This is the point that most often decides the matter.
On the simplified regime you are not a VAT payer regardless of turnover (except for VAT on imported goods and VAT on behalf of a non-resident). And, importantly, you cannot become a VAT payer on the simplified regime even voluntarily.
On the standard regime, at annual income above 10,000 MCI (₸43,250,000 in 2026) you must register for VAT and charge the tax at a rate of 16%.
Hence a practical conclusion. If your clients are ordinary individuals or small businesses, they don't need VAT, and the VAT-free simplified regime gives you a price advantage. But if you work with large companies that pay VAT themselves, they usually want to receive VAT invoices from you so they can claim the credit. Working with such clients is more convenient on the standard regime with VAT-payer status.
When to choose the simplified regime
The simplified regime is usually advantageous if:
- your annual income fits within the 600,000 MCI limit (₸2,595,000,000 in 2026);
- your activity is not on the prohibited list (Government Resolution No. 970);
- you have few documented expenses (services, consulting, a small markup on your own work);
- your clients are individuals or small businesses that don't need VAT;
- simple accounting and minimal reporting matter to you.
When to choose the standard regime
The standard regime is more often a fit if:
- your income exceeds, or will soon exceed, the simplified-regime limit;
- your activity is prohibited for the simplified regime;
- you have a high share of expenses, and a tax on profit works out better than a tax on turnover;
- your clients need VAT on invoices;
- you conduct foreign trade or work with large counterparties.
How to change your regime
The regime does not change by itself — you need to file a notification of the tax regime applied through the Taxpayer's Cabinet or the eGov.kz portal. When switching to the simplified regime, it takes effect from the 1st of the month following the month the notification is filed. Keep in mind the deadlines for those already on a special regime: an application to keep the special regime for 2026 had to be filed by March 1, 2026, otherwise an automatic transfer to the standard regime occurred.
A detailed breakdown of the simplified regime with all the limits and the full list of prohibited activity codes is in the separate article on the 2026 simplified regime.
Frequently asked questions (FAQ)
Which is better — the standard or the simplified regime?
There is no universal answer. The simplified regime is advantageous with low expenses and clients who don't need VAT. The standard regime is better with a high share of expenses, large turnover, or when clients need VAT. The decision depends on the specific business model.
Which regime has the lower rate?
The simplified regime has the lower rate (4% of turnover versus 20% CIT or 10% IPN on the standard regime). But on the standard regime tax is calculated on profit, not turnover, so with large expenses the final amount can be smaller.
Can you work with VAT on the simplified regime?
No. On the simplified regime you cannot be a VAT payer, even voluntarily. If you need VAT, switch to the standard regime.
What is the income limit on the simplified regime in 2026?
600,000 MCI, i.e. ₸2,595,000,000 in 2026 prices.
When does VAT arise on the standard regime?
At annual income above 10,000 MCI (₸43,250,000 in 2026). The VAT rate is 16%.
Do the regimes differ for a sole proprietor and an LLP?
Both regimes are available to sole proprietors and LLPs. The difference is mainly in the income-tax rate on the standard regime: an LLP pays 20% CIT, a sole proprietor pays 10% IPN (and 15% on amounts above the 230,000 MCI threshold).
How we can help
You can get turnkey services from us:
- Accounting and tax bookkeeping — records, reporting and taxes turnkey on any regime.
- Registration and changes — changing the tax regime, adjusting activity codes and other registration actions.
This material is for information only and is not individual tax advice. Rates, limits and thresholds may be refined by secondary legislation. Before making decisions, check the current version of the law or consult a specialist. Current as of August 5, 2026.