The new Tax Code of the Republic of Kazakhstan entered into force in January 2026. The new Tax Code introduced the following provisions relevant to the agricultural sector:
the standard VAT rate was increased from 12% to 16%
socially significant food products are exempted from VAT
the VAT offset for agricultural producers and cooperatives was increased to 80%
the 3% preferential corporate income tax (CIT) rate was maintained for agricultural producers
simplified tax reporting requirements.
The new Tax Code also introduced measures targeted to larger farms or wealthier producers, including:
a reduced personal income tax (PIT) rate of 4.5% for farmers exceeding income thresholds
an up to 100-fold increase in land use fees for inefficient agricultural land use
the exclusion of property donations to farms from taxable income
the reduction of the VAT registration threshold from KZT 80 million to KZT 40 million (USD 150 000 to USD 77 000)
the abolition of the unified land tax.
The Land Code was amended several times in 2025. The period of non-use after which agricultural land may be forcibly seized was reduced from two years to one, with monitoring now based on satellite remote sensing. In 2025, a total of 2.2 million hectares of land were reclaimed in line with the annual plan; the 2026 land recovery plan has been set at 1 million ha. Lease contracts for agricultural land are now subject to mandatory review every 10 years, and lease of state-owned land is provided exclusively through electronic auctions.
In 2025, amendments to the 2023 land leasing regulations increased the maximum permissible sizes of agricultural land plots, with limits differentiated by region and user category. By raising plot-size ceilings, the amendment reduces the risk that large grain-producing farms will be required to divest land upon lease renewal. Additionally, land records were fully transferred to a digital cadastre system.
From 1 January 2026, the mechanism for setting threshold and maximum permissible retail prices on socially significant food products was abolished, with state control reoriented from price caps to monitoring compliance with the 15% trade margin limit. The list of socially significant food products was temporarily expanded from 19 to 31 items to improve price transparency and eliminate unproductive intermediaries. Additionally, in 2025, a “digital food voucher” was introduced as targeted non-cash support for recipients of state social assistance
The preferential leasing programme for agricultural machinery was expanded in 2025, with the volume of leasing increasing to KZT 250 billion (USD 480 million) (up from KZT 120 billion – USD 230 million – in 2024). In 2025, agricultural producers acquired 25 000 units of agricultural machinery through self-financing, leasing, and credit.
In February 2025, two new investment subsidies were introduced: “Acquisition of Mounted and Trailed Agricultural Machinery” with a 15% subsidy rate, and “Construction and Expansion of a Poultry Egg Processing Plant” with a 40% subsidy rate. Additionally, a subsidy of 25% was introduced for the purchase of drones and fan-type sprayers to support accelerated technical re-equipment of the phytosanitary service.
In 2025, per-head livestock subsidy rates increased by 73-75%, and were capped at a rate of half of the actual acquisition cost. Since 2025, amendments to production-based priority crop, livestock and processing subsidies require producers and processors receiving KZT 100 million (USD 190 000) or more in aggregate subsidies per year to maintain or increase the gross production. The gross production requirement is planned to extend to all production-based priority crop, livestock and processing subsidy recipients in 2029. Non-compliance for two consecutive years results in a one-year subsidy suspension for a first offence and two years for repeat cases.
In 2025, a digital system (GosAgro) was introduced to improve the transparency and reduce corruption risks associated with the distribution of subsidised diesel fuel.
The phytosanitary system was reformed in 2025 with the introduction of user-paid phytosanitary quarantine and expert examination. The revenue generated is used to reduce the service's dependence on the state budget and fund equipment modernisation.
To inform policy developments and improve data quality, Kazakhstan conducted the National Agricultural Census in 2025. The census covered all agricultural producers, from large agricultural holdings to individual farmers and private households, gathering information on land, crops, livestock, equipment, labour, and other key resources.