Mazhilis approved amendments to the Tax Code in the first reading

Today, during the plenary session of the Mazhilis of the Parliament of the Republic of Kazakhstan, the Minister of National Economy Alibek Kuantyrov presented a draft law on amendments and additions to the Tax Code.

In his speech, the head of the MNE noted that the project was developed in pursuance of the instructions of the Head of State, as well as to solve the urgent tasks of the Government on taxation issues. One of the main directions of the bill is to increase the tax return from the extraction of natural resources.

The dynamics of prices for solid minerals was analyzed. So, for the period 2018-2022. exchange metals showed a significant increase in prices from 40% and above, non-exchange metals (iron ore, chromium ore, manganese, etc.) show an average increase of 20% to 40%.

“Taking this into account, it is proposed to increase the severance tax rates for exchange metals by 50%, and for other solid minerals – by 30%,” A. Kuantyrov specified.

The minister also spoke about measures aimed at discouraging the withdrawal of capital from the country. Dividends are now exempt from taxation, subject to certain conditions.

“It is proposed to abolish benefits with the establishment of a rate of 10%. Tax practice shows that there are cases of withdrawal of money abroad in the form of payment for intangible services to related parties. In this regard, it is proposed to limit the application of deductions for intangible services provided by affiliated persons - non-residents, within no more than 3% of taxable income," he informed.

The next change is the increased taxation of digital mining. Since the beginning of this year, a fee for digital mining has been introduced in the amount of 1 tenge per 1 kWh of electricity consumed.

“In order to equalize the load and discourage the consumption of own electricity, differentiated rates are offered: the lower the cost of electricity, the higher the fee rate,” the head of the MNE said.

With regard to the taxation of tobacco products, in 2024, excises on cigarettes should be set at a level of at least 28 euros. In fulfillment of the obligations, a gradual increase in excise taxes on cigarettes, as well as on products with heated tobacco, is proposed.

Kuantyrov recalled that the Head of State instructed to provide assistance to businesses to compensate for the damage caused during the January events.

“In the course of this work, taxation issues arise. In order to avoid the emergence of a tax liability for entrepreneurs on the amount of compensation received, norms are proposed to resolve these issues,” he said.

In addition, the minister noted that when taxing the import of certain goods from the territory of the EAEU, a minimum price level is applied. The norm was adopted to prevent facts of underestimation of the cost of imported goods. It is proposed to apply this tool to goods imported from "third" countries.

In turn, the deputies expressed their proposals on the draft law. Minister of National Economy Alibek Kuantyrov assured that the opinions of Mazhilis members would be carefully considered.