DESTINATION KAZAKHSTAN
draft for the new tax code
of Kazakhstan
In regards to the implementation of the instructions of the Head of State, given
in Steps 44 and 45 of the Nation's Plan "100 concrete steps", messages to the
people of Kazakhstan dated 30 November 2015 and as of 31 January 2017, as
well as at the expanded government meeting of 3 January 2017, the Ministry
of National Economy drafted a new Tax Code jointly with the line ministries and
in close cooperation with the business community.
In general, the draft Code provides for a change in ideology, the introduction
of incentives and simplification of administration.
Ideology will be aimed at protecting a bona fide taxpayer. Incentives will
be given to various sectors of the economy. Administration will become
simpler and will motivate self-payment of taxes.
Timur Suleimenov,
Minister of National
Economy of the Republic
of Kazakhstan
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FIRST.
Ideology
Ideology will be aimed at protecting the
interests of a bona fide taxpayer.
First, all ambiguities and inaccuracies will
be interpreted in favor of taxpayers. This
principle will allow us to treat tax disputes
fairly.
Secondly, it is proposed to not apply fines
and penalties if the taxpayer acted in ac-
cordance with the explanation of the tax
authority, which subsequently is a change
to the position. Thirdly, stronger justifi-
cation will be required to add additional
charges; currently tax audits must demon-
strate appropriate justification.
Fourthly, business will be given more time
to study legislative changes. The amend-
ments are proposed to be accepted no
later than 1 July 2018.
Fifthly, there is protection from numer-
ous amendments during the year. It is
proposed that all amendments to be in-
troduced should be consolidated into one
draft law. This will enable businesses to be
aware of all changes to the tax code.
Also, the structure of the Tax Code will
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change. Each section will be personalized,
which means, each type of taxpayer will
be classified within its own section.
SECOND.
Modes for SMEs
and agribusiness
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For the development of small and medium-
sized businesses, it is envisaged to main-
tain the existing special tax regimes.
A new alternative regime is proposed,
which is known as a fixed deduction mode.
This is beneficial for those who have high
turnover but low profit, meaning that half
of the earnings can be deducted without
confirmation. And if a record of expenses
is maintained, there is an opportunity to
receive bonuses (deductions) for confirma-
tion of expenses. Taxpayers are given the
right to choose a regime.
For the ‘simplified declaration’ regime, the
requirement for the amount of income will
be the same, for individuals as for legal en-
tities. The current version states that the
number of employees should not exceed
more than 25 people, with an income of