On changes to tax legislation on the provision of public services

On December 20, 2021, the Law of the Republic of Kazakhstan No. 85-VII LRK «On amendments and additions to the Code of the Republic of Kazakhstan «On Taxes and Other Obligatory Payments to the Budget» (Tax code) and the Law of the Republic of Kazakhstan « On the introduction of the Code of the Republic of Kazakhstan « On Taxes and Other Obligatory Payments to the Budget» (Tax Code) », providing for the following main changes was signed:

Simplification of the procedure for termination of the activity of value added tax payers (hereinafter - VAT)

Amendments to subparagraph 1) of paragraph 1 of Article 59 and subparagraph 1) of paragraph 1 of Article 66 of the Tax Code (effective date: January 01, 2022)

It provides for the application of a simplified liquidation procedure to VAT payers who, according to tax reporting data, did not carry out business activities during the limitation period.

Application of cash registers

Addition of subparagraph 1) of Article 165 of the Tax Code (effective date: January 1, 2022)

The concept of «monetary settlements» includes mobile payments as well.

Online cash registers are used for cash payments for the purchase of goods, performance of works, provision of services carried out through mobile payments.

The concept of «mobile payments» introduced by subparagraph 41-1) of article 1 « On payments and payment systems ».    

In addition, Article 27 of the Entrepreneurial Code of the Republic of Kazakhstan is supplemented by subparagraph 3-1), which provides for the obligation for business entities when accepting non-cash payments to a bank account for the sale of goods, performance of works, provision of services to use a current bank account intended for entrepreneurial activity.

Submission of tax reports

Addition of a new paragraph paragraph 9 of Article 208 of the Tax Code, which come into force on January 1, 2028.

The amendments provide for the right of a tax agent not to submit tax reports in the absence of objects of taxation for corporate income tax (hereinafter - CIT), withheld at the source of payment from the income of non-residents.