Kazakhstan - Taxation
In January 2002 a new Tax Code went into effect. The new code, seen by tax experts as a model of equity, economic neutrality and simplicity (on its face, if not in its implementation), replaced the 1995 Tax Code that had been criticized for leaving too much discretion in the hands of the Tax Police and other government officials. The new code also reduced a number of tax rates. Under it, the personal income tax (PIT) ranges from 5% to a top rate of 30%, down from 40%, while the corporate income tax (CIT) rate remains set at 30%. Social taxes (payroll taxes) were reduced to 11% from 21% and the rate for the value-added tax (VAT), introduced 1 January 1992, was reduced to 16% from 20%.
In January 2003, a new investment law was introduced that generally eliminates tax incentives for foreign investors.