World Monitor Magazine WM_Energy 2017 | Page 15

DESTINATION KAZAKHSTAN 2,800 tenge minimum monthly salary, which is 68,4 million tenge annualy. If the legal entity number of employees is no more than 50 people than the income should be 5,600 tenge minimum monthly salary, which is 136,9 million tenge annualy. It is proposed that the number of employ- ees should not exceed more than 30 people, the income for the year being not more than 4,100 tenge minimum monthly salary, which is 100 million tenge annualy. In the patent, the rate is reduced from two per cent to one per cent. This is to reduce the tax burden in connection with the introduction of the contributions to compulsory social health insurance and compulsory pension payments. For the agricultural sector, incentive measures are also proposed. Payers of the unified land tax will not be VAT payers, re- gardless of turnover. To reduce the burden on the wage fund, it is proposed to abolish the social tax for the head, members and employ- ees of peasant farming. Other activities will be allowed a separate accounting. Since 2020, according to this mode, the tax will be de- termined from the turnover at a rate of 0.5 per cent (now depends on the estimated value). In the special tax regime (STR) for producers of agricul- tural products, a VAT exemption has been cancelled, which contradicts the requirements of the WTO. Since, according to WTO requirements, equal conditions of taxation should be applied for goods of domestic production and import. An alternative measure of support will be provided for them. There is no restriction on the use of STR by affiliated per- sons. 3 THIRD. Subsoil use In the sphere of subsoil use, investment in geological ex- ploration will be stimulated. Taking into account the world practice, it is proposed to abolish the excess profit tax for the mining industry by transferring the load to the rental tax on coal exports. In the world practice for the mining sector there is no such tax. In fact, this tax was paid to coal mining companies. Also, is the plan is to cancel the commercial discovery bo- nus in order to stimulate successful reconnaissance. For marine and deep oil deposits, a simpler alternative to subsoil use tax is proposed. To accelerate the exploration of solid minerals, a mecha- nism for rent payments is introduced. It is also possible to take into account the costs of un- successful exploration in another mining contract within a single legal entity. There will be a review of approaches to determining rev- enue for the sale of oil and gas that falls below the cost. Also, it is proposed to reduce the MET (mineral extraction tax) rate for tin from six per cent to three per cent. This is done to maintain a new branch of metallurgy - the tin industry. THE FOURTH. Financial sector 4 To improve the financial sector, incentive measures are also proposed. The double interpretation for taxes of an organization’s acquired assets and the management of doubtful assets will be excluded. For individuals, exemption from individual income tax is provided for the forgiveness of debts. When transferring distressed assets to collectors, the col- lector's discount will be taxed after the asset has been evaluated. A submission to change the procedure for taxation of the PIS of funded insurance has been proposed. Fifth. The real sector 5 VAT benefits are offered for the automotive industry and special economic zones under a special investment con- tract (SIC). supported by EUROBAK 13