Question: An individual does not use the labor of hired employees and receives income from the sale of goods, performance of works, and provision of services to persons who are not tax agents. Is such a person obligated to register as an individual entrepreneur if the income received exceeds 360 times the MCI?
Answer: According to the paragraph 2 of Article 35 of the Entrepreneurial Code of the RK dated October 29, 2015, No. 375-V ZRK, mandatory state registration as an individual entrepreneur is subject to individuals who meet one of the following conditions:
1) use the labor of hired employees on a permanent basis;
2) have an annual income from private entrepreneurship, calculated in accordance with the tax legislation of the Republic of Kazakhstan, in an amount exceeding 360 times the monthly calculation index established by the law on the republican budget and effective as of January 1 of the corresponding financial year.
At the same time, in accordance with paragraph 3 of Article 35 of the Entrepreneurial Code, an individual who does not use the labor of employees on a permanent basis has the right not to register as an individual entrepreneur upon receiving the following types of income established by the Tax Code:
1) income subject to taxation at the source of payment;
2) income subject to taxation by an individual independently.
According to the norms of the Tax Code, income subject to taxation by an individual independently includes, among other things, income from the sale of goods, performance of works, and provision of services to persons who are not tax agents. Thus, an individual has the right not to register as an individual entrepreneur when receiving income subject to taxation by an individual independently, regardless of the amount of income received.