Kazakh entrepreneurs to enjoy tax exemption until 2023

According to the Law “On Amendments and Additions to Certain Legislative Acts of Kazakhstan on Improving Rehabilitation and Bankruptcy Procedures, Budget, Tax and Railway Laws” beginning 1 January 2020 some domestic taxpayers are exempted from paying taxes until 1 January 2023.

According to the Ministry of National Economy, such a measure will ease the tax burden on representatives of small and micro businesses.

In accordance with the law, micro-businesses are individual entrepreneurs with the number of employees up to 15 people and with annual incomes of up to 30 thousand MCI (79 million tenge), small businesses are individual entrepreneurs and legal entities with the number of employees up to 100 people and with annual income of up to 300 thousand MCI (795 million tenge).

The income tax is a corporate income tax for legal entities, an individual income tax for individual entrepreneurs, a single land tax for peasants or farms, as well as a social tax for entrepreneurs operating under special tax regimes on the basis of a simplified declaration.

All other taxes and fees will be paid when obligations arise.

At the same time, tax exemption applies to micro and small business entities that apply special tax regimes.

Along with this, the taxpayers not exempted from taxes are engaged in activities as follows:

1) turnover of narcotic drugs, psychotropic substances and precursors;

2) production and (or) wholesale of excisable products;

3) grain storage at grain receiving points;

4) lottery;

5) gambling business;

6) circulation of radioactive materials;

7) banking (or certain types of banking operations) and the insurance market (except for the activities of an insurance agent);

8) audit;

9) professional activities in the securities market;

10) credit bureaus’ activities;

11) security;

12) circulation of civilian and service weapons and their ammunition;

13) subsoil use, including the activities of prospectors;

14) sales of minerals, including the activities of traders, the sale of coal, oil;

15) retail sales of certain types of petroleum products of gasoline, diesel fuel and fuel oil;

16) foreign economic activities.

Income tax exemption will apply to 1.2 million micro and small business entities, allowing the businesses to save over 380 billion tenge in three years for further developing their activities.

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