The Special Tax Regime (STR) based on a simplified declaration applies to individual entrepreneurs and legal entities that are residents of the Republic of Kazakhstan and meet the requirements established by the Tax Code. The main provisions governing this regime are established by the Tax Code of the Republic of Kazakhstan. The main provisions of this regime are established in Chapter 78 of the Tax Code of the Republic of Kazakhstan, specifically Articles 722–727.
Under the STR based on a simplified declaration, individual or corporate income tax is calculated by applying a 4% tax rate to the taxable base. Local representative bodies may change the tax rate within the limits established by the Tax Code.
The tax and reporting period under the STR based on a simplified declaration is six months (half-year). The simplified declaration must be submitted no later than the 15th day of the second month following the reporting half-year, while the calculated tax must be paid no later than the 25th day of the second month following the reporting half-year.
Turnover from the sale of goods, works and services carried out within the framework of this special tax regime is recognized as turnover not subject to VAT.
Taxpayers are required to maintain tax records and fulfill the obligations of a tax agent for individual income tax on income subject to taxation at the source of payment in accordance with the general provisions of the Tax Code.
Thus, the STR based on a simplified declaration provides for a simplified procedure for calculating income tax based on the taxable base and the applicable tax rate. For the correct application of this regime, it is necessary to take into account the restrictions on income, types of activities, composition of participants and other requirements established by the Tax Code of the Republic of Kazakhstan.