Amendments to tax code enter into force in Kazakhstan

President Kassym-Jomart Tokayev has signed into law 25 amendments to the country’s tax code, according to the press service of Ak Orda.

These amendments cover a special tax regime for retail tax and distressed assets of banks and microfinance organizations. For instance, the new edition of the tax code restores retail tax in Kazakhstan.

«Any business with a staff of fewer than 200 people and revenue lower than $4.6 million a year can apply for a special tax regime. This regime has two different rates depending on whether an individual (4%) or an entity (8%) is going to buy from that business. Moreover, local maslikhats will be able to cut retail tax in half for services and goods offered to individuals,» the National Entrepreneur Chamber Atameket said in a statement.  

The chamber’s head Raimbek Batalov believes that the move will let thousands of entrepreneurs operate legally. Previously, many of them preferred to hide part of their revenues to evade extra taxes.

The renewed tax code also regulates a set of issues associated with reestablishing debtor solvency and judicial and non-judicial bankruptcy of individuals. Before that novelty, bankruptcy was available only for companies. Now, everyone can use this procedure if necessary.

The state fee for passports for people under age has been reduced from $60.5 to $30.2. The move followed long-held complaints that parents must spend money on new passports for their children every two to three years because their appearance changes quickly.

The new tax legislation also introduces fees for using all types of lands, except for state forest funds and national nature reserves.

In November 2022, Minister of National Economy Alibek Kuantyrov said that the preparation of the new tax code may take a year and a half. At the time, he also noted that the new tax parliament might pass the new tax code before September 2023 and it would enter into force in 2024.

During his national address on September 1, 2022, President Tokayev said that the country has to update its fiscal legislation and tax code. He also called for the digitalization of tax services to eliminate any personal interaction between tax officials and taxpayers.