Special tax regime for retail tax

In accordance with article 696-1 of the Tax Code, taxpayers have the right to apply a special tax regime for retail tax, provided that they: - are recognized as small and medium-sized businesses in accordance with the Entrepreneurial Code of the Republic of Kazakhstan; - carry out one or several types of activities determined by the Government of the Republic of Kazakhstan for the purposes of applying this regime. The special retail tax regime provides for a special procedure for calculating corporate or individual income tax, with the exception of withholding taxes. The calculation of corporate or individual income tax, with the exception of taxes withheld at the source of payment, when applying a special tax regime for retail tax, is made by the taxpayer independently by applying a rate of 3 percent to the taxable object for the reporting tax period. The object of taxation for a taxpayer applying a special tax regime for retail tax is income received (to be received) during the tax period in the Republic of Kazakhstan and abroad, determined in accordance with the generally established procedure: by a legal entity - in accordance with section 7 of this Code; an individual entrepreneur - in accordance with section 8 of this Code. Article 696-2 of the Tax Code provides: - the tax period for the application of the special retail tax regime is a calendar quarter. Declarations for taxpayers applying a special tax regime for retail tax shall be submitted to the tax authority at the location of the taxpayer no later than the 15th day of the second month following the reporting tax period. Taxes specified in the declaration for taxpayers applying a special tax regime for retail tax are paid to the budget no later than the 25th day of the second month following the reporting tax period. In accordance with article 54-4 of the Law of the Republic of Kazakhstan on the implementation of the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (hereinafter - the Tax Code), exemption from taxes on income in the period from January 01, 2020 to January 01, 2023 year applies to taxpayers applying special tax regimes and recognized as subjects of micro-business or small business, including payers of the single land tax: - the amount of corporate (individual) income tax (except for withheld at the source of payment), calculated in accordance with Articles 686, 687, 695, 700 of the Tax Code; - the amount of social tax, calculated in accordance with Article 687 of the Tax Code; - the amount of the single land tax, calculated in accordance with Article 704 of the Tax Code. Subjects of small business (micro-business) are taxpayers who meet the conditions established by paragraphs 2 and 3 of Article 24 of the Entrepreneurial Code of the Republic of Kazakhstan. These exemptions do not apply to taxpayers operating in the production and wholesale of excisable products, gambling, lotteries, retail sales of gasoline, diesel fuel and fuel oil, trafficking in narcotic and psychotropic substances, storing grain at grain receiving points, circulation of radioactive materials, banking, audit insurance activities, professional activities in the securities market, credit bureaus, security activities, the circulation of civil and service weapons and ammunition for them, the field of subsoil use and marketing minerals, including the activities of miners, participants in foreign economic activity (FEA), as well as activities under the special tax regime of the retail tax.