Electronic trade in goods

         For tax purposes, subparagraph 65) of Article 1 of the Tax Code defines the concept of electronic trade in goods.

         Electronic trade in goods is an entrepreneurial activity for the sale of goods to individuals, carried out by means of information technology through an online store and (or) an Internet site, while observing the following conditions:

      - registration of transactions for the sale of goods is carried out in electronic form;      - payment for goods is made by non-cash payment;      - the presence of its own service for the delivery of goods to the buyer (recipient), or the presence of contracts with persons providing services for the carriage of goods, courier and (or) postal activities.        Also, subparagraphs 29) and 30) of Article 1 of the Tax Code give the concepts of an Internet site and an online store.        According to subparagraph 10) of paragraph 1 of Article 88 of the Tax Code, taxpayers carrying out activities in the field of electronic trade in goods are subject to registration as a taxpayer carrying out certain types of activities.        In accordance with paragraph 3 of Article 293 of the Tax Code, a taxpayer engaged in electronic trade in goods shall reduce the corporate income tax calculated in accordance with Article 302 of the Tax Code by 100 percent.        The provisions of this clause shall apply if the income from the implementation of electronic trade in goods, taking into account the excess of the amount of positive exchange rate difference over the amount of negative exchange rate difference arising from transactions in such activities, amount to at least 90 percent of the total annual income. If this condition is not met, the taxpayer is not entitled to apply the provisions of this article.        In addition, in accordance with subparagraph 2) of Article 33 of the Law of the Republic of Kazakhstan "On the Enactment of the Tax Code" (hereinafter - the Law) dated December 25, 2017 No. 121-VI ЗРК (hereinafter - the Law), paragraph 2 of Article 357 of the Tax Code until January 01, 2020 year is valid in the following wording: “the taxable amount of income of an individual entrepreneur applying the generally established taxation regime is determined in the following order:        taxable income of an individual entrepreneur, determined in accordance with article 366 of the Tax Code,        minus      taxable income of an individual entrepreneur engaged in electronic commerce in goods,      minus      the amount of income adjustment provided for in paragraph 1 of Article 341 of the Tax Code,      minus      the amount of tax deductions in the amount and in the manner specified in Article 342 of the Tax Code.      A reduction in the taxable amount of income of an individual entrepreneur for the taxable income of an individual entrepreneur engaged in electronic trade in goods is made if the income from the implementation of electronic trade in goods, taking into account the excess of the amount of positive exchange rate difference over the amount of negative exchange rate difference arising from transactions in such activities, is not less than 90 percent of the income of an individual entrepreneur received in aggregate for the tax period. If this condition is not met, an individual entrepreneur is not entitled to apply the provisions of paragraphs three and four of the first part of this clause.       In accordance with paragraph 2 of Article 28 of the Tax Code, persons engaged in electronic trade in goods and applying the norms of the tax legislation of the Republic of Kazakhstan in terms of reducing the calculated amount of corporate income tax, reducing the taxable amount of income of an individual entrepreneur for the taxable income of an individual entrepreneur, reducing the taxable income of an individual for taxable income of an individual entrepreneur are obliged to provide information on such activities to the tax authority at the location in the manner, time and form approved by the authorized body.