New benefits on CIT and VAT for the manufacturing industry

Kazakhstan has new VAT and CIT benefits for small business entities in the manufacturing industry. Such flexibilities are provided in order to improve the investment climate and the development of the manufacturing industry.

 

On corporate income tax

A small business entity operating in the manufacturing industry and applying the generally established taxation procedure has been granted the right to reduce reduces the amount of the calculated corporate income tax by the amount of expenses for the purchase or construction of industrial buildings and structures that meet the requirements of paragraph 4 of Article 274 of the Tax Code (subparagraph 7) of paragraph 1 of Article 288 of the Tax Code). Such flexibilities came into force from January 1, 2022.

 

On value - added tax

Application of an additional VAT offset (70%) is provided for new manufacturing companies in the sale of goods resulting from the implementation of activities for the production of products in the manufacturing industry. Manufacturers of alcoholic beverages, tobacco products and metallurgical industry cannot apply benefits (subparagraph 4) of paragraph 1 of Article 412 of the Tax Code). Such flexibilities came into force from July 1, 2021.