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Changes have been made to the Tax Code in Kazakhstan, press service of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan said on Wednesday.
According to the new changes, taxpayers will be notified of the presence of tax liabilities. To do this, citizens can provide the tax authority with information about their phone numbers and e-mail address. Fulfillment of tax obligations of entrepreneurs will be simplified with the introduction of the e-SalyqBusiness mobile application.
The application will make it possible to register online as an individual entrepreneur, calculate taxes and social payments, cancel the presentation of the tax form for persons applying the specified special tax regime. The arrest of accounts will be applied only if the tax debt exceeds 6 MCI (17,502 tenge). If the debt is below this amount, the measures to freeze the accounts are not applied.
Second-tier banks are now empowered to conduct debit transactions on the account until the tax authority's order to suspend debit transactions on the taxpayer's bank accounts upon repayment of the debt specified therein is revoked.
An individual entrepreneur, who is not a VAT payer, for civil transactions in the amount of more than 1,000 MCI (2.9 million tenge), instead of issuing an e-invoice, has the right to provide the buyer with such an online cash register check. Also, if an entrepreneur directs income for reinvestment in new fixed assets, then this income will not be subject to CIT. This measure is envisaged in order to improve the investment climate and development of the manufacturing industry, as small businesses in the manufacturing industry do not tax the CIT profit, which will be reinvested in the development of production (acquisition or construction of buildings and structures for industrial purposes). The deductibility of interest expense on intercompany loans is intended to provide the deductible for deduction of interest expense on loans received by subsidiaries from the national parent company.
The Tax Code provides for a number of the following changes:
- Correspondence of the norms of the Tax Code with the legislation on the cotton industry is provided in connection with the adoption of Amendments to Certain Legislative Acts on the Cotton Industry and invalidation of the Law On Development of the Cotton Industry ";
- a decrease in taxable income for CIT by social entrepreneurship entities in the amount of expenses incurred to pay for training, advanced training or retraining of socially vulnerable categories of the population who are in labor relations with such an entity, but not more than 120 times the MCI effective as of January 1 of the corresponding financial year per employee for the tax period, provided for the purpose of stimulating social entrepreneurship;
- application of an additional VAT offset (70%) is provided for new manufacturing companies in the sale of goods resulting from the implementation of activities for the production of products in the manufacturing industry in order to stimulate creation of new industries, as well as increase investment in the manufacturing industry;
- extension of VAT exemption on imports to FEZ "Qyzyljar" is provided with the aim of reducing the cost of agricultural machinery by 12% and ensuring its availability;
- application of the minimum level of reference prices for certain goods from the EAEU will help prevent the facts of understating the value of imported goods and enable VAT collection from the current taxable base, the measure is aimed at supporting and protecting domestic producers, since it will allow the use of mirror measures in relation to countries that discriminate export;
- application of a reduced rate of 0.5% on property tax by social entrepreneurship entities and granting of the right to choose in the application of one of the lowest tax rates, if the social entrepreneurship entity complies with several provisions of paragraphs 2, 3, 4 and 5 of Article 521 of the Tax Code, the changes that are envisaged in order to ensure access of representatives of certain target groups to entrepreneurial activity;
- granting for 2 years (from 2023 to 2025) the right to entrepreneurs in public catering to apply the STR of the retail turnover tax, with a tax rate of 6%, this measure is provided in order to reduce the tax burden for the public catering sector;
- deduction for the purpose of calculating CIT of the employer's expenses in favor of employees aimed at organizing and conducting sanitary and anti-epidemic, sanitary-preventive measures in connection with the introduction of restrictive measures, including quarantine, as well as not recognizing these expenses as an employee's income;
- introduction of fees for digital mining is provided for the purpose of legislative regulation of the industry for the extraction of crypto currencies, as well as increasing the income of funds to the budget from mining;
- extension of the deadline for submitting a certificate of residence until December 31, 2021 is provided in order to avoid double taxation during the period of restrictive measures, since the submission of documents is difficult due to quarantine measures in foreign countries;
- a deferral is provided for the payment of personal income tax and social tax with payroll from April 1 to July 1, 2021 in order to support business entities in the sectors most affected by the pandemic.
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