Abstract
Abstract The article explores the possibilities and limitations for transition to a progressive scale of personal income tax in Kazakhstan (individual income tax). It is assumed that the optimal progressive scale should be selected based on the balance of interests of the state and employees. During the study of the wage sector, its main characteristics were identified: a high level of differentiation and “gaps” in wage levels, a significant share of low-paid workers (“working poor”), a high gap between the minimum wage (MW), median and mode from the average monthly wage value. These features create limitations when deciding on the possibility of transition to a progressive scale of individual income tax in Kazakhstan. A number of new potential risks have been identified: a reduction in local budget revenues in regions with low wages, tax evasion, and an increase in additional costs for new tax administration. Statistical calculations were carried out to develop possible income tax scales with different tax rates.