It is proposed to exempt SMEs from taxes for two years in Kazakhstanadmin
Senate deputies of the Parliament of Kazakhstan proposed to exempt small and medium-sized businesses from VAT and social tax for two years. On behalf of the President of the country, a retail tax of 3% of income is being introduced. The senators considered the draft law “On amendments and additions to the Code of the Republic of Kazakhstan“ On taxes and other obligatory payments to the budget ”(Tax Code) and returned it to the Mazhilis. This amendment provides improvement of tax policy, contributing to the simplification of doing business and attracting investment in Kazakhstan.
Entrepreneurs will save about 40 billion tenge with a retail tax of 3%.
The new tax will be especially beneficial in industries where the main cost is the labor fund.
It is explained that the proposed retail tax of 3% on turnover will be very beneficial in those industries where there is no so-called VAT offset and the main costs are payroll and other expenses that are not covered by VAT and cannot be offset. It is noted that if the VAT threshold is raised, the new tax will not be paid.
According to the Ministry of National Economy of the Republic of Kazakhstan, the special regime will affect 4 thousand SMEs, which can save about 40 billion tenge.