On 28 July 2021, the State Revenue Committee announced amendments that have been made to Tax Code. The changes were introduced by Law No. 52-VII of 24 June 2021 and, unless otherwise specified, generally apply from 1 January 2022. The Tax Code of the Republic of Kazakhstan provides for a number of following changes:
- According to the new changes, taxpayers will be notified of the existence of tax liabilities. To do this, citizens can provide the tax authority with information about their phone numbers and e-mail addresses.
- Income from reinvestment in new fixed assets is also exempt from corporate income tax. This measure is aimed at improving the investment climate and the development of the manufacturing industry, so that small businesses in the manufacturing industry will be exempted from CIT for profits reinvested in the development of production.
- Deduction of interest expense on intra-group loans is intended to give the subsidiaries the right to deduct the interest expense on loans received from the national parent company.
- The provisions of the Tax Code are brought in line with the legislation on the cotton industry in connection with the adoption of the Law of the Republic of Kazakhstan “On Amendments to Some Legislative Acts of the Republic of Kazakhstan on the Cotton Industry and Repeal of the Law of the Republic of Kazakhstan” On Development of the Cotton Industry “;
- reduction of taxable income of social entrepreneurship entities under the CIT in order to stimulate social entrepreneurship in the amount of expenditures on training, advanced training or retraining of socially vulnerable categories of the population in employment with such entity, but in the tax period 120 MCI reduction in the amount not exceeding the double amount;
- In order to stimulate the creation of new industries, as well as to increase investment in the manufacturing industry, it is planned to apply additional VAT accounting (70%) for new manufacturing companies in the sale of goods that are the result of production activities in the manufacturing industry ;
- VAT exemption for imports of SEZ “Qyzyljar” in order to reduce the cost of agricultural machinery by 12% and ensure its availability;
- The application of minimum control prices for certain goods from the EAEU countries will help to reduce the cost of imported goods and allow to collect VAT from the current tax base, the measure is aimed at supporting and protecting domestic producers, as the application of mirror measures against discriminatory Kazakhstan exports allows;
- if a social entrepreneurship entity complies with several provisions of paragraphs 2, 3, 4 and 5 of Article 521 of the Tax Code, social entrepreneurship entities have the right to apply a reduced rate of 0.5% on property tax and choose one of the minimum tax rates. The changes are aimed at ensuring access to entrepreneurship for certain target groups;
- Entrepreneurs working in the field of catering were given the right to apply the retail sales tax for 2 years (from 2023 to 2025) with a tax rate of 6%. This measure aims to reduce the tax burden on the catering industry;
- deducting the employer’s expenses in favor of employees, aimed at the organization and conduct of restrictive measures, including quarantine, anti-epidemic, sanitary and preventive measures, as well as not to consider these costs as income of the employee;
- Payment for digital mining was introduced in order to regulate the production of cryptocurrencies, as well as to increase budget revenues from mining;
- The deadline for submission of a residence certificate was extended until 31 December 2021 In order to avoid double taxation during the period of restrictive measures. Due to the introduction of quarantine measures abroad, it is difficult to submit documents;
- It is planned to defer the payment of IPT and social taxes from the salary fund from April 1 to July 1, 2021 in order to support businesses in the areas most affected by the pandemic.