Special retail tax regime: what benefits are provided?
Starting from January 1, 2023, the SNR of the retail tax was retrospectively renewed.
Previously, this regime was introduced as a temporary measure to support the sectors of the economy most affected by the covid pandemic in 2021-2022.
The SNR of the retail tax is aimed at the development of entrepreneurs engaged in activities in the field of trade, catering, where the end consumer is an individual.
The advantages of this regime are that taxpayers who apply this regime:
- the right not to register for VAT;
- they are not social tax payers;
- has the right to carry out activities in different localities;
- reduce the income received from entrepreneurial activity by the amount of the wage fund for employees.
Conditions for the application of the regime:
1) employees – up to 200 people;
2) income for the calendar year – up to 600,000 MCI (in 2024 – 2.2 billion tenge);
3) carry out exclusively one or more types of activities defined by the Government of the Republic of Kazakhstan.
Corporate and individual income tax rates:
- 4% - for all income received during the tax period in the Republic of Kazakhstan and abroad. Local representative bodies have the right to reduce by 50 %;
- 8% of income, in case of documentary confirmation of the amounts of deductions for such expenses (with an electronic invoice statement or a receipt indicating the buyer's IIN /BIN). The rate is not subject to reduction.
For what types of activities can the SNR of the retail tax be applied?
In his message to the people of Kazakhstan dated September 1, 2023, the Head of State noted that the initiative to introduce a retail tax tax has shown its relevance and, therefore, it is necessary to expand activities twice.
Since 2024, the list of activities permitted for the application of a special retail tax regime has been expanded from 190 to 364 positions.
To determine the types of activities for this regime, we considered types of activities in the field of trade, catering and other types of activities where the end user is an individual, as well as types of activities where it is not expected to receive a large income.
43.2% of the proposed activities are in food production (ice cream, juices, bakery and flour confectionery, coffee, etc.) and various goods (ready-made pet food, printing, newspapers, photo and film equipment, jewelry and similar products, etc.).
10% of the proposed activities are repairs (electric motors, generators and transformers, electric lighting equipment, sports and pleasure boats, etc.)
3.2% of the proposed activities are publishing (books, computer games, magazines and periodicals, newspapers, etc.).
What has changed since 2024?
Local representative bodies can accept the decision to reduce the size of the retail tax rate no later than March 30 of this year and this decision will be effective from January 1 of the year of its adoption. This Law will come into force on January 1, 2024.
When applying the SNR of the retail tax, income is determined cumulatively, similar to the procedure for determining income in a simplified manner (previously, income was determined in a generally established tax procedure).
The taxation of income from the sale (provision of services) depends on how the taxpayer applying the SNR of retail tax has reflected in his accounting:
as a product - when sold, income is subject to taxation using the IPN/CPN rate of 4% or 8% (8% in the case of an electronic invoice for the purpose of confirming the buyer's expenses for deduction) - the tax return form 913.00 is submitted;
as fixed assets, when it is sold, income is subject to taxation in the generally established tax procedure – tax return forms 100.00 (legal entities) or 220.00 (sole proprietors) are submitted.
Department of State Bodies for the district of Beimbet Mailin