Tax exemption for 3 years
In his Address to the people of Kazakhstan, the Head of State instructed to exempt micro and small business entities from income taxes for 3 years and to introduce a moratorium on inspections.
In accordance with Article 57-4 of the Law of the Republic of Kazakhstan dated December 25, 2017 "On the Introduction of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (Tax Code) " (hereinafter-the Law)
The exemption from income taxes for the period from January 1, 2020 to January 1, 2023 applies to taxpayers who apply special tax regimes and are recognized as subjects of micro-entrepreneurship or small business, including payers of a single land tax.
That is, micro - and small business entities operating under a Patent, a simplified declaration, using a fixed deduction, agricultural producers applying a tax reduction of 70%, and peasant farms paying a single land tax, reduce by 100 percent:
1) the amount of corporate (individual) income tax (except withheld at the source of payment);
2) the amount of social tax calculated in accordance with Article 687 of this Code;
3) the amount of the unified land tax calculated in accordance with Article 704 of the Tax Code.
At the same time, it should be taken into account that restrictions on the release of persons engaged in:
1) activities related to the turnover of narcotic drugs, psychotropic substances and precursors have been introduced;
2) production and (or) wholesale sale of excisable products;
3) grain storage activities at grain collection points;
4) conducting a lottery;
5) gambling business activities;
6) activities related to the circulation of radioactive materials;
7) banking activities (or certain types of banking operations) and activities in the insurance market (except for the activities of an insurance agent);
8) audit activities;
9) professional activity in the securities market;
10) activities of credit bureaus;
11) security activities;
12) activities related to the circulation of civilian and service weapons and ammunition;
13) activities in the field of subsurface use, including the activities of prospectors;
14) the sale of minerals, including the activities of traders, activities for the sale of coal, oil;
15) retail sale of certain types of petroleum products, gasoline, diesel fuel and fuel oil;
16) foreign economic activity.
It should be noted that under persons engaged in foreign trade, taxpayers who import/export goods transported to/from the territory/territories of third countries, i.e. non – member states of the Eurasian Economic Union (the Republic of Armenia, the Russian Federation, the Republic of Belarus and the Kyrgyz Republic) are considered.
Thus, taxpayers who apply special tax regimes (on the basis of a patent, a simplified declaration, using a fixed deduction, for agricultural producers and agricultural cooperatives, as well as peasant or farm enterprises) and are recognized as subjects of micro-entrepreneurship or small business, in accordance with the conditions set out in the above article, are subject to exemption from payment from income received for the period from 01.01.2020 to 31.12.2022.
At the same time, it should be noted that the exemption applies only to tax liabilities for the payment of taxes arising during the specified 3-year period. Taxpayers are required to submit tax reporting forms and use cash registers. When submitting returns, you must specify the data on the income received with an indication of 0 in the tax payable column.