Kasim-Jomart Tokayev, President of the Republic of Kazakhstan, signed the laws “On Amendments and Additions to the Code of the Republic of Kazakhstan,” “On Taxes and Other Mandatory Payments to the Budget” (Tax Code), and the Law of the Republic of Kazakhstan “On Enactment of the Code of the Republic of Kazakhstan,” “On Taxes and Other Obligatory Payments in the Budget” (Tax Code) in December 2022.
The amendments include:
- Introduction of a unified payment from the pay fund for micro and small businesses with a reduction in the total burden. The amount of a single payment will be distributed among the funds and the budget by the State Corporation “Government for Citizens” under the mechanism of a single cumulative payment;
The expansion of the VAT reduction by 70% for the processing of agricultural products.
- This benefit is proposed to extend to fishing enterprises when processing caught fish at their own facilities;
- Extending the validity of the VAT reduction by 70% for the production of sugar, confectionery, and yeast;
- Exemption from VAT raw cane sugar imports;
It is proposed
- to exempt from VAT to support the domestic jewelry industry in the sale of refined gold by the precious metals refinery;
- Incentives are also offered in the field of the electricity industry. Thus, the cost of electrical networks accepted the transfer of ownership gratuitously will not be recognized as income of energy transmission organization;
- Appropriation to deduction to passenger carriers the expenses incurred in performing services backbone railway network, by using decreasing coefficient “0” to the authorized tariff, as well as the designation of temporary balancing fees to freight carriers;
- Introduction of a zero VAT rate for fuelling aerial vehicles of foreign airlines;
- A VAT exemption of raw material and/or feedstock for the pesticide industry;
- Exemption of limits on deductions on remuneration paid on securities held by UAPF (Unified Accumulative Pension Fund);
- Application of norms on ownership income while selling parking spots with increment in value only within a year after their acquisition;
- Cost considerations of customs payments in determining ownership incomes on transport facilities;
- Introduction of the rate of charge for first registration equal to 200 thousand tenges upon legalization of motor transport vehicles imported into the territory of the Republic of Kazakhstan before September 1, 2022;
- VAT exemption of trade on sales of home appliances and/or devices of domestic electronic equipment;
- A VAT exemption of pieces of art imported by non-governmental museums, with the approval of the list of such works;
- Stimulation of international traffic of goods by introducing remission of charges for the first registration of semi-trailer trucks with a vehicle manufacture year of up to 7 years;
- Exemption from PIT income from debt amortization on mortgage credit;
- Tax credit provision for improvement of a model-based contract, including gas projects;
- Providing a legislative framework for norms of desk audit through the use of electronic tax invoices;
- Inclusion of employee population in the list of non-tax secret information;
- Scheduling the period of stay of temporarily imported goods from the EAEU countries in the territory of the Republic of Kazakhstan;
- Granting the right for rescheduling tax obligation fulfillment.
