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Kazakhstani banks may get tax agent status to automatically withhold social payments for the self-employed

Draft amendments to the Tax Code propose that banks withhold and transfer social payments directly upon receiving payment through an app.

In brief
  1. Kazakhstan proposes making banks tax agents to automatically withhold a 4% social payment from self-employed income.
  2. The system will deduct the fee directly upon payment receipt in banking apps, eliminating manual calculations.
  3. The move aims to reduce state debt among the 180,000 self-employed registered since early 2026.
Kazakhstani banks may get tax agent status to automatically withhold social payments for the self-employed

Kazakhstan is discussing amendments to the Tax Code that will allow banks to automatically withhold social payments from the income of the self-employed. When payment for services arrives via a banking app, the system will calculate the 4% fee and transfer it to the funds, leaving the user with the net balance.

The draft document is published on the Open Legal Acts portal, reports Digital Business. This is currently a proposal for public discussion, and its wording may change before the law passes.

How the withholding works

Self-employed people in Kazakhstan currently work under a special tax regime that has been in effect since early 2026. If an entrepreneur does not hire employees and stays within the monthly income limit, they are completely exempt from income tax.

The only mandatory burden remains social payments. These amount to 4% of income and include mandatory pension contributions, employer contributions, social deductions, and mandatory health insurance payments.

Currently, users calculate these amounts themselves through a mobile app. Internet platforms are an exception: if a person works through them, the operator withholds the payments automatically.

The draft proposes expanding this practice to direct bank transfers. Banks will receive tax agent status in specific cases. When a self-employed person receives payment for their services into an account, the bank will instantly deduct 4% and distribute it to the funds. The user will not spend time on calculations and generating separate receipts.

Market impact

The authors of the amendments expect full automation to reduce the self-employed’s debt to the state. According to official data, 180,000 self-employed people have registered in the country since the beginning of the year.

The state is gradually moving microbusiness tax administration into banking interfaces, turning fee payments into an invisible background operation. For banks, this means a new infrastructural role, and for users, a significant simplification of legal work.

Why it matters

The state is shifting microbusiness tax administration directly into banking interfaces, turning tax compliance into a seamless background process and giving banks a new infrastructural role.

Sources