On transition to a special tax regime for retail tax

The special tax regime of the retail tax may be applied by taxpayers on the condition that they:

1) are recognized as subjects of small and medium-sized businesses in accordance with the Entrepreneur Code of the Republic of Kazakhstan;

2) carry out one or several types of activities determined by the Government of the Republic of  Kazakhstan for the purposes of applying this regime (paragraph 1 of Article 696-1 of the Tax Code).

The Resolution of the Government of the Republic of Kazakhstan "On determining the types of activities for the purposes of applying the special tax regime of retail tax" (hereinafter: the List) No. 30 was adopted on February 2, 2021.

The list consists of 114 types of activities for the purposes of applying the special tax regime for retail tax.

If one of the types of activity is not included in the List of types of activity, the taxpayer is not entitled to apply a special tax regime for retail tax.

According to subparagraph 6) of paragraph 2 of Article 679 of the Tax Code, a taxpayer, except a newly formed one, is entitled, in accordance with the conditions of application, to switch to a special tax regime for retail tax-from the generally established tax procedure or other special tax regime.

In order to switch to a special tax regime of retail tax, the taxpayer submits a notification of the applicable tax regime to the tax authority at the location in paper format or in electronic form, in particular through the web portal "electronic government''.

Let us draw your attention, that the procedure for de-registration as a VAT payer is provided for (paragraph 1 of Article 85 of the Tax Code) taxpayers who are VAT payers and who have expressed a desire to switch to the application of a special tax regime for retail tax.

Office of Advocacy