In 2026, there is no single tax rate for all individual entrepreneurs: the percentage is determined based on the applicable tax regime and the specific obligation. For individual entrepreneurs applying the special tax regime based on a simplified declaration, the taxable item is income excluding expenses, receivable or received during the tax period under the accrual method (Article 724 of the Tax Code of the Republic of Kazakhstan).
How to Determine the Tax Rate for an Individual Entrepreneur
The query “what is the tax rate for an individual entrepreneur” does not contain enough information for a calculation. First, it is necessary to establish which obligation is concerned. An entrepreneur may be looking for the tax rate on business income, the VAT calculation procedure, tax on payments to employees, or the amount of late-payment interest. These are different payments, so the same percentage cannot be used in all calculations.
For verification, the accountant will need:
- the tax regime applied by the individual entrepreneur;
- the type of activity and any restrictions applicable to the selected regime;
- the entrepreneur’s VAT status;
- the composition of income and expenses, if they are taken into account when determining the taxable item;
- whether there are employees and employer expenses relating to their income;
- the tax period for which the calculation is made;
- the version of the legislation effective on the relevant date.
It is important to distinguish between the rate, the taxable item, and the final amount payable. The percentage alone does not indicate the tax burden. Even if the correct rate is selected, the result will be incorrect if the accountant applies it to the wrong taxable item or assigns the transaction to the wrong period.
Individual Entrepreneurs: Tax Rate in 2026
For a 2026 calculation, a percentage from an old memo, publication, or last year’s accounting software settings cannot be used automatically. Before preparing the declaration, it is necessary to determine the applicable regime, verify that the entrepreneur meets its conditions, and establish the rules for determining the taxable item for the required period.
The practical verification procedure is as follows:
- Record the tax period and the date of the transaction.
- Determine the regime actually applied by the individual entrepreneur during that period.
- Identify the specific type of tax or other mandatory payment.
- Find the provisions governing the rate and the procedure for determining the taxable item.
- Check the effective date of the provisions and the applicable transitional provisions.
- Reconcile the calculation with the accounting records, declaration, and personal account.
Under the special tax regime based on a simplified declaration, the taxable item is income excluding expenses, receivable or received during the tax period under the accrual method. When calculating corporate or individual income tax, other than taxes withheld at source, this taxable item is reduced by the taxpayer-employer’s expenses relating to employee income starting from the month in which the taxable item, calculated cumulatively from the beginning of the calendar year, exceeds 24 000 MCI (Article 724 of the Tax Code of the Republic of Kazakhstan).
With an MCI of 4 325 ₸, 24 000 MCI in 2026 amounts to 103 800 000 ₸: 24 000 × 4 325 ₸. This is neither a tax rate nor a general income limit for all individual entrepreneurs. This figure determines the point from which, when calculating tax under the specified regime, the taxable item is reduced by the employer’s expenses relating to employee income provided for in the article.
Profit Tax: What Rate Should an Individual Entrepreneur Apply?
The phrase “profit tax rate” requires clarification. In everyday language, profit is often used to mean receipts credited to an account, revenue, income after refunds, or the difference between income and expenses. For tax calculations, these indicators cannot be treated as interchangeable: the taxable item is determined according to the rules of the applicable regime.
The accountant should begin not by searching for a percentage, but by answering three questions:
- which indicator is recognized as the taxable item;
- which receipts are included in income for calculation purposes;
- which adjustments or expenses are taken into account when determining the taxable item.
After that, the rate prescribed for the established regime and payment can be applied. This procedure reduces the risk of multiplying the correct percentage by the wrong amount. If an entrepreneur asks for the “percentage of profit,” the accountant must obtain information about the tax regime and determine which indicator the entrepreneur refers to as profit.
Under the simplified declaration, income used to determine the taxable item includes, in particular, income from the sale of goods, performance of work and provision of services, royalties, income from leasing property, income from the write-off of liabilities, income from the assignment of a claim, certain fines and late-payment interest, budget funds allocated to cover costs, surpluses identified during an inventory count, and certain property received free of charge (Article 724 of the Tax Code of the Republic of Kazakhstan). Therefore, the taxable item under this regime cannot automatically be equated solely with receipts credited to a bank account.
The threshold of 24 000 MCI should also not be described as a general income limit for any individual entrepreneur. It relates to the reduction of the taxable item when calculating corporate or individual income tax under the simplified declaration, other than taxes withheld at source. The reduction by the employer’s expenses relating to employee income begins in the month when the threshold is exceeded (Article 724 of the Tax Code of the Republic of Kazakhstan).
VAT is checked separately. Its calculation cannot be combined with tax calculated under the individual entrepreneur’s regime: the accountant determines the type of transaction, the entrepreneur’s tax status, the relevant tax period, and the rules for determining the taxable amount. The same revenue figure does not provide grounds for automatically applying the rate of any of these payments to it.
Late-Payment Interest Rate on Taxes
Late-payment interest is not the primary tax rate. It is related to the late performance of an obligation, so the accountant must separately determine the grounds for its accrual, the period of delay, and the applicable calculation procedure. The late-payment interest rate cannot be taken from a provision on the tax rate or used in place of the tax rate.
The working procedure for verifying late-payment interest includes the following actions:
- verify the date on which the obligation arose;
- check the established payment deadline;
- reconcile the accrual with the taxpayer’s personal account;
- determine the calculation rule effective during the period to which the delay relates;
- record the dates and indicators used in the calculation statement.
If the software calculated late-payment interest automatically, the result should be reconciled with the personal account data and calculation parameters. Configuring the accounting system helps perform the calculation, but the accountant must still correctly determine the obligation, its performance deadline, and the period of delay.
What the Accountant Should Check Before Payment
Before transferring the amount to the state budget, prepare a short calculation statement. It should specify the individual entrepreneur, period, regime, type of obligation, taxable item, applied rate, amount, and the provision on which the calculation is based. For an indicator monitored cumulatively, also record its value by month.
If the individual entrepreneur applies the simplified declaration, use income excluding expenses under the accrual method when calculating the taxable item. After the taxable item, calculated cumulatively from the beginning of the calendar year, exceeds 24 000 MCI, it is reduced by the employer’s expenses relating to employee income starting from the month in which the threshold is exceeded. In 2026, the threshold is 103 800 000 ₸ (Article 724 of the Tax Code of the Republic of Kazakhstan).
It is also necessary to make sure that the rate relates specifically to the required payment. Tax on business income, VAT, withholdings from payments to employees, and late-payment interest are calculated under different rules. For this reason, answering the query “tax rate for individual entrepreneurs in Kazakhstan” always begins with classifying the obligation.
For internal control, it is useful to retain the version of the regulation that was effective during the calculation period, the calculation date, and a breakdown of the taxable item. This will make it possible to explain the calculation to the entrepreneur, confirm the month in which the established threshold was exceeded, and reconstruct the reasoning during a subsequent reconciliation.
Questions and Answers
What is the tax rate for an individual entrepreneur in Kazakhstan in 2026? — There is no single rate for all individual entrepreneurs. The rate is determined according to the tax regime and type of obligation. Under the simplified declaration, the taxable item is income excluding expenses under the accrual method, and the prescribed reduction of the taxable item applies after 24 000 MCI is exceeded (Article 724 of the Tax Code of the Republic of Kazakhstan).
Can an individual entrepreneur’s tax be calculated simply on turnover? — The calculation is based on the taxable item established for the applicable regime. Under the simplified declaration, this taxable item is income excluding expenses, receivable or received during the tax period under the accrual method (Article 724 of the Tax Code of the Republic of Kazakhstan).
Are profit tax and individual entrepreneur tax the same thing? — This description is insufficient for a calculation. The accountant must identify the specific payment, the applicable regime, the taxable item, and the procedure for calculating it.
Is the late-payment interest rate the same as the tax rate? — No. Late-payment interest and the primary tax are calculated separately: for late-payment interest, the deadline for performing the obligation and the period of delay are taken into account, while for tax, the taxable item and the rate for the relevant payment are used.
What does the threshold of 24 000 MCI mean? — For a taxpayer applying the simplified declaration, this is the taxable item calculated cumulatively from the beginning of the calendar year. Starting from the month in which it is exceeded, the taxable item is reduced by the taxpayer-employer’s expenses relating to employee income when calculating corporate or individual income tax, other than taxes withheld at source (Article 724 of the Tax Code of the Republic of Kazakhstan).
How much is 24 000 MCI in 2026? — With an MCI of 4 325 ₸, this amount is 103 800 000 ₸: 24 000 × 4 325 ₸.