From 2026, your supplier's tax regime affects your bottom line. We break down when a simplified-regime contractor costs more than their invoice suggests.
What changed in 2026
Under Article 286, paragraph 16 of the new Tax Code: expenses on goods, work, or services purchased from entities applying a special tax regime cannot be deducted for Corporate Income Tax (CIT) purposes.
Previously, your supplier's tax regime did not matter. Now it does.
The CIT deduction as a cashback
Every 100,000 KZT your LLP officially spends on business reduces your tax bill by 20,000 KZT. Pay a contractor one million, and the government effectively returns 200,000 KZT through a lower tax bill. Think of it as a 20% cashback on all official business expenses.
From 2026, this cashback disappears when your supplier is on the simplified tax regime (STR).
The numbers
Your LLP (VAT payer) is choosing between two contractors, both quoting 100,000 KZT.
| Contractor on general regime | Contractor on simplified regime | |
|---|---|---|
| Price excl. VAT | 100,000 KZT | 100,000 KZT |
| VAT on invoice | +16,000 KZT | none |
| Total paid | 116,000 KZT | 100,000 KZT |
| VAT input credit | - 16,000 KZT | 0 |
| CIT deduction (cashback) | - 20,000 KZT | 0 (no deduction) |
| Real cost to the LLP | 80,000 KZT | 100,000 KZT |
For an LLP on general regime: a simplified-regime supplier must be at least 20% cheaper, otherwise the general-regime option is better.
For a sole trader on general regime: the threshold is 10%.
This is not a preference, it is the tax math. Show the supplier the numbers.
How to check a contractor's tax regime
Go to portal.kgd.gov.kz/ru/pages/api-services/snr and enter the contractor's BIN or IIN. The official KGD service shows whether the entity applies an STR and from what date.
Three scenarios
- 1Supplier on STR, already 20% below market. Keep them. The price gap covers the lost deduction.
- 2Supplier on STR, price is in line with market. Negotiate a discount of at least 20% (LLP) or 10% (sole trader), or find a replacement on general regime.
- 3Key supplier, cannot be replaced. Propose they switch to general regime. The argument: on general regime they can invoice with VAT, their revenue increases, and you can absorb transition costs through the contract price.
Checklist
- •List all regular suppliers: services, contractors, rent, IT
- •Check each one at portal.kgd.gov.kz/ru/pages/api-services/snr
- •For each STR supplier: is their price 20% below market?
- •If not: negotiate or find a general-regime replacement
- •Add to new contracts: the contractor must notify you of any change in tax regime