What changed in the tax legislation in 2021?
An important change for entrepreneurs affected by the pandemic is the introduction of a special retail tax regime, which will be in force for 2 years, until January 1, 2023.
The STR of the retail tax may be applied by small and medium-sized businesses if they carry out one or more types of activities defined by the Decree of the Government of the Republic of Kazakhstan dated 2 February 2021 No. 30.
The regime provides for the payment of corporate income tax (CIT) or individual income tax (IIT) for the calendar quarter at the rate of 3 percent of total income without deductions.
Taxpayers applying this regime are exempt from paying social tax and value added tax (VAT).
VAT payers should be removed from the VAT register when moving to this mode.
From 1 January 2021, the registration of a non-resident as a taxpayer will be carried out only for non-resident legal entities.
Individuals – non-residents, foreigners or stateless persons for the assignment, exclusion of IIN must apply to the registration authorities.
You should know, for convenience of taxpayers, the terms of providing the following services have been reduced:
- revocation of tax reports-up to 1 working day from the date of the tax application submission (earlier 5 business days);
- suspension of tax reporting-up to 1 working day (earlier 3 working days);
- information on the absence (presence) of arrears at the request of the justice authorities-up to 3 working days (previously 5 working days);
- conducting offsets/refunds is reduced to 5 working days (previously 10 working days).
For those who import goods into the territory of the Republic of Kazakhstan from the territory of the EEC Member States, it is interesting to know that from the beginning of this year, the submission of a declaration on indirect taxes on imported goods (form 320.00) is excluded. The taxpayer will only be required to submit an application for the import of goods and payment of indirect taxes on form 328.00.
From April 1, 2021, for transactions over 1000 MNU, deductions for CIT are made with the availability of an EI, regardless of whether the supplier is a VAT payer or not.
The availability of an EI is not required in some cases, when works and services are purchased from a non-resident, when goods are imported into the territory of the Republic of Kazakhstan, etc.
From 1 January 2021, expenses (of a VAT payer) on a cash transaction in the amount of more than 1000 MNU are not deductible underCIT.
From 1 April 2021, taxpayers are required to issue the EI:
non-payers of VAT, when selling goods of the "Virtual warehouse" in the IS EI;
legal entities, non-residents, sole proprietors, persons engaged in private practice - non-payers of VAT, concerning a transaction of more than 1000 MNU (except if the buyer applies the SRT);
for international cargo transportation services.
From January 1, 2022, for the purposes of mandatory VAT registration, the minimum turnover is reduced from 30,000 MNU to 20,000 times MNU.
Very important information for VAT payers - for 2 years until January 1, 2023, the turnover on the implementation of socially significant passenger transportation by road, as well as by trams, is exempt from VAT.
From January 1, 2021, an investment tax credit is in force, at which you can reduce your payments on CIT and / or property tax by 100 percent and pay the loan amounts in stages.
The procedure for reducing tax payments is determined by the investment tax credit agreement concluded with the authorized investment authority.
Taxpayers who apply the STR, produce and sell alcoholic beverages, alcohol, tobacco products, subsurface users, etc. are not entitled to apply the investment tax credit.
An important change applies to all employees. Starting from January 1, 2020, when calculating the personal income tax, an individual employee is entitled to a tax deduction for contributions to the MSHI.
For individuals under contract of civil-legal nature, starting from January 1, 2018, a tax deduction is also provided for both mandatory contribution for retirement benefits and MSHI contributions, which will be fair.
For those who receive low wages, from January 1, 2021, if the employee's accrued income does not exceed 25 MNU, then 90% is attributed to the reduction of the employee's taxable income under the IPN.
It will be interesting for individuals, the deadline for paying the vehicle tax has been postponed from December 31 to April 1 of the year following the reporting year. So, vehicle owners can pay the tax for 2020 until April 1, 2021.
Simplified payment procedure by combining property tax and land tax, that is, in 2021 for 2020, individuals can already pay one type of property tax per 1 BCC.
In addition, since January 1, 2020, the land tax for owners of apartment building has been abolished.