Kazakhstan has decided not to rush the introduction of a royalty on solid mineral resources. The launch of the tax, originally planned for early 2027, may be pushed back to 2029. The reason is simple: the calculation formula hasn’t yet been finalized into working shape. The issue was discussed at a project office session on the new Tax Code, chaired by Deputy Prime Minister Serik Zhumangarin.
Under the concept, the royalty would apply to raw materials extracted under licenses issued after December 31, 2026, including processed products. But now the timeline is being pushed back to allow time to work out the details.
The main unresolved issues concern the tax base for technogenic mineral formations, administrative procedures, and the rates themselves. Officials also need to account for the capital intensity of new projects and the profitability of extracting associated components. Without these calculations, the tax risks being either unfair or simply unworkable.
The concept envisions the royalty replacing the mineral extraction tax for new solid mineral exploration and mining projects. Base rates previously outlined were: 13% for ore, 10% for concentrates, and 7% for metals.
In parallel, the government is expanding its mineral resource base. In 2026, an additional 327,000 square kilometers were allocated for geological exploration, bringing the total available area to 1.7 million square kilometers. This creates a foundation for future projects to which the new fiscal regime will apply.
The pause until 2029 gives the industry time to adjust to the coming changes and gives the government a chance to avoid hasty decisions. If the mechanism is properly worked out, Kazakhstan will get a modern taxation system for subsoil use, and investors will get clearer, more predictable rules.
Source: Kursiv.kz
Image: Press Service of the Government of the Republic of Kazakhstan
