Law No. 28/20 was enacted on July 22, 2020, approving substantial and relevant amendments to the Personal Income Tax Code (approved by Law No. 18/14, of 22 October 2014).

• Group A (Income from employment contracts)
  • Increase of the non-taxable basis from 35,000 Kz to 70,000 Kz;
  • Increase of the minimum rate from 7% to 10%;
  • Maximum rate increase from 17% to 25% (applicable from 10,000,001 Kz).
• Group B (Income earned by self-employed workers carrying out a professional activity)
  • Change of the rate and the taxable basis, when the income is paid by entities with organized accounting - IRT becomes due on all income at the withholding rate of 6.5%;
  • The income paid by other persons will be subject to the rate of 25% (previously subject to 15%), the taxable amount being dependent on the type of taxpayer.
  • The taxpayer hiring services subject to withholding tax under the terms of the IRT or of the Industrial Tax (including services to non-resident entities), is required to withhold the applicable tax at the rates provided for in the relevant Code.
• Group C (Income earned by self-employed workers carrying out an industrial or commercial activity)
• The tax regime matches that of Group B and a new Minimum Profits Schedule is approved.

These changes will take effect on August 21, 2020.

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