For individual entrepreneurs working in the generally established tax procedure

For individual entrepreneurs working in the generally established tax procedure

According to the Resolution of the Government of the Republic of Kazakhstan dated March 20, 2020 No. 126 "On measures to implement the Decree of the President of the Republic of Kazakhstan dated March 16, 2020 No. 287" On further measures to stabilize the economy "(hereinafter - PP RK No. 126), the correction factor" 0 " to the rates of individual income tax (hereinafter - IPN) of individual entrepreneurs working in the generally established tax procedure (hereinafter - IP ESD) is established.

This resolution is valid from March 20, 2020 and up to December 31, 2020 inclusive (paragraph 6 of Subclause 126 of the Republic of Kazakhstan).

Thus, the coefficient " 0 " is applied to the rate of the IPN of the IP ESD calculated from the income accrued for the period from March 20, 2020 to December 31, 2020.

Unless otherwise established by the Tax Code, the taxpayer (tax agent) maintains tax accounting in tenge on the accrual basis in accordance with the procedure and conditions established by the Tax Code.

The accrual method is an accounting method according to which the results of transactions and other events are recognized upon their commission, including from the date of performance of works, provision of services, shipment and transfer of goods to the buyer or his authorized representative for the purpose of selling or depositing property, and not from the date of receipt or payment of money or its equivalent (paragraphs 1, 2 of Article 192 of the Tax Code).

Note that, unless otherwise provided by paragraph 4 of Article 190 of the Tax Code, tax accounting is based on accounting data. The procedure for maintaining accounting records is established by the legislation of the Republic of Kazakhstan on accounting and financial reporting (paragraph 3 of Article 190 of the Tax Code).

Thus, the total annual income includes all types of income of the taxpayer, including income from sales without including the amount of value added tax and excise tax (subparagraph 1) of paragraph 1 of Article 226 of the Tax Code).

Income from sales is the amount of income arising from the sale of goods, works, services, except for income included in the total annual income in accordance with Articles 228 – 240 of the Tax Code, as well as income specified in paragraph 4 of Article 258 of the Tax Code, in the part not exceeding the amount of expenses specified in paragraph 1 of Article 258 of the Tax Code.

Income from sales is determined in the amount of the cost of goods, works, and services sold, without including the amount of value-added tax and excise tax.

The date of recognition of income from sales is determined in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting (paragraphs 1,2,3 of Article 227 of the Tax Code).

In turn, accounting is an orderly system of collecting, registering and summarizing information about the operations and events of individual entrepreneurs and organizations, regulated by the legislation of the Republic of Kazakhstan on accounting and financial reporting, as well as accounting policy.

Accounting policy is the specific principles, bases, regulations, rules and practices adopted for application by an individual entrepreneur or an organization for accounting and financial reporting in accordance with the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, international or national standards, the international standard for small and medium-sized businesses and the standard accounting chart of accounts, based on their needs and

Transactions and events are recorded in the accounting system, and must be provided for:

1) adequate support of accounting records with the originals of primary documents and the reflection of all operations and events in the accounting records;

2) chronological and timely recording of operations and events;

3) bringing synthetic (final) accounting into line with analytical (detailed) accounting (paragraphs 1, 2, 3 of Article 6 of the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting").

In connection with the above, for the purpose of calculating the IPI, the date of recognition of income from sales is determined in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting. At the same time, we note that the date of payment of the amount of the advance (prepayment) is not taken into account when determining the date of recognition of income in both accounting and tax accounting.

The procedure for filling out the Declaration on the IPN (TNF 220.00) in connection with the introduction of the PP RK No. 126 has not changed. The total amount of the total income received by the sole proprietor of ESD for the tax period of 2020 is to be reflected in the tax code 220.00. At the same time, the amount of the PII to be paid to the budget is indicated, calculated from the income accrued for the period from January 1, 2020 to March 19, 2020.

At the same time, we draw your attention to the fact that such sole proprietors of ESD keep separate records of objects of taxation and objects related to taxation in accordance with the procedure provided for in Articles 194-195 of the Tax Code. Accordingly, for tax purposes, such sole proprietors keep separate records of income and expenses until 20.03.2020 and from 20.03.2020.