In order to clarify the provisions of the Code of the Republic of Kazakhstan "on taxes and other mandatory payments to the budget" (hereinafter - the Tax code) dated December 25, 2017, No. 120-VI ZRK, regarding the tax administration of electronic Commerce in goods, reports the following.
For tax purposes, subparagraph 65) of article 1 of the Tax code defines the concept of electronic trade in goods.
E - Commerce in goods is a business activity for the sale of goods to individuals, carried out through information technology through an online store and (or) an Internet platform, subject to the following conditions:
registration of transactions for the sale of goods is carried out in electronic form;
payment for goods is made by cashless payment;
the presence of its own delivery service for goods to the buyer (recipient), or the presence of contracts with persons engaged in cargo transportation services, courier and (or) postal activities.
Also, sub-paragraphs 29) and 30) of article 1 of the Tax code define the concepts of an Internet platform and an online store.
According to subparagraph 10) of paragraph 1 of article 88 of the Tax code, taxpayers engaged in electronic trade in goods are subject to registration as a taxpayer engaged in certain types of activities.
The registration as the taxpayer carrying out separate types of activity – electronic Commerce goods produced on the basis of the notification of the beginning or termination of a taxpayer engaged in certain types of activities, in the order determined by the Law of the Republic of Kazakhstan "About permissions and notifications", in accordance with the second subparagraph of paragraph 4 of article 88 of the Tax code.
This notification is submitted to the tax authority no later than three business days before the start of a separate type of activity.
Currently, the developed draft form of Notification of the beginning or termination of activities as a taxpayer engaged in certain types of activities - exchange operations with cash foreign currency by authorized organizations and electronic trade in goods (hereinafter - Notification) is sent for approval to the Ministry of national economy of the Republic of Kazakhstan.
After the Notification is approved and registered by the Ministry of justice of the Republic of Kazakhstan, the Notification must be received by the state revenue Department at the location of the individual entrepreneur or legal entity on paper.
In the future, it will be possible to submit Notifications in electronic form through the State database "E-Licensing" (hereinafter – GBD EL).
In addition, articles 89 and 90 of the Tax code establish the procedure for changing and supplementing the registration data of a taxpayer engaged in certain types of activities, as well as for removing it from the registration register.
Thus, before the implementation of automated interaction with the state tax service AND the implementation of the Notification form in the Committee's IP, the list of registered / de-registered taxpayers engaged in certain types of activities - electronic trade in goods (hereinafter-NP) The state revenue Department (hereinafter referred to as the UGD) must send the taxpayer to the state revenue Department on a weekly basis with the date of registration, for further transmission to the Committee by e-mail uafl@mgd.kz.
The state revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (hereinafter referred to as the Committee) will post the list of NP on the Committee's Internet resource (E-Commerce tab) within the next business day.
In accordance with paragraph 3 of article 293 of the Tax code, a taxpayer engaged in electronic trade in goods reduces the corporate income tax calculated in accordance with article 302 of the Tax code by 100 percent.
The provisions of this paragraph shall apply if income from the implementation of electronic trade in goods, taking into account the excess of the amount of the positive exchange rate difference over the amount of the negative exchange rate difference arising from transactions in such activities, is not less than 90 percent of the total annual income. If this condition is not met, the taxpayer may not apply the provisions of this article.
According to subparagraph 2) of article 33 of the Law of the Republic of Kazakhstan "About introduction in action of the Tax code" (hereinafter - the Law) of December 25, 2017 No. 121-SAM VI (hereinafter - the Law) paragraph 2 of article 357 of the Tax code to 01 Jan 2020 operates as follows: "the taxable amount of income of an individual entrepreneur, applying generally established tax regime, determined in the following order:
the taxable income of an individual entrepreneur, specified in accordance with article 366 of the Tax code,
minus
taxable income of an individual entrepreneur engaged in electronic trade in goods,
minus
the amount of income adjustment provided for in paragraph 1 of article 341 of the Tax code,
minus
the amount of tax deductions in the amount and procedure specified in article 342 of the Tax code.
The taxable amount of income of an individual entrepreneur is reduced by the taxable income of an individual entrepreneur engaged in electronic trade in goods, if the income from electronic trade in goods, taking into account the excess of the amount of the positive exchange rate difference over the amount of the negative exchange rate difference arising from operations on such activities, is at least 90 percent of the income of an individual entrepreneur received collectively for the tax period. If this condition is not met, the individual entrepreneur may not apply the provisions of paragraphs three and four of part one of this paragraph.
Also, article 48 of the Law stipulates that individual entrepreneurs engaged in trade shall calculate the amount of individual income tax included in the cost of a patent by applying a rate of 2 percent to the object of taxation, with the exception of income received by non-cash payments, which are taxed at the rate of 1 percent.
Based on the foregoing, the NP was granted tax preferences in compliance with the provisions of the Tax code.
For the purposes of tax administration of NP, the Tax code provides the following.
In accordance with paragraph 2 of article 28 of the Tax code, persons engaged in electronic trade in goods and applying the norms of the tax legislation of the Republic of Kazakhstan in terms of reducing the calculated amount of corporate income tax, reducing the taxable amount of income of an individual entrepreneur on the taxable income of an individual entrepreneur, reducing the taxable income of an individual on the taxable income of an individual entrepreneur, are required to provide information on such activities to the tax authority at the location in the order, time and form, which are approved by the authorized body.
Currently, a draft order of the Minister of Finance of the Republic of Kazakhstan "on approval of the form, terms and Rules for providing information by persons engaged in electronic trade in goods and applying the norms of the tax legislation of the Republic of Kazakhstan in terms of reducing the calculated amount of corporate income tax, reducing the taxable amount of income of an individual entrepreneur to the taxable income of an individual entrepreneur for such activities" has been developed (hereinafter - The project) and sent for approval to the Ministry of Finance of the Republic of Kazakhstan.
According to the Draft, a registered NP chooses the form for submitting information either by issuing an electronic invoice (hereinafter referred to as the e-invoice) for each completed transaction (on a daily basis) or by submitting information to taxpayers annually. However, if the NP makes a decision to issue an ESF, there are no obligations to submit the form of information about concluded transactions.
In accordance with subparagraph 17) of article 24 of the Tax code second-tier banks and organizations executing certain types of banking operations shall be obliged to present to the taxpayers consisting on the registration account for the activities referred to in subparagraph 10) of paragraph 1 of article 88 of the present Code, data on presence of Bank accounts and their numbers, balances and cash flow on these accounts in the manner and terms established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan.
In accordance with paragraph 3 of article 28 of the Tax code, persons engaged in forwarding, transporting, or delivering goods in the electronic trade of goods shall submit information at the request of the tax authority in the manner, time, and form approved by the authorized body.
On the basis of information obtained from NP, of second-tier banks and organizations executing certain types of banking operations, and persons engaged in the shipment, transportation, delivery of goods in electronic Commerce products and discharged NP ESF, will be automated cameral control on the compliance with paragraph 65) article 1, paragraph 3 of article 293 of the Tax code, subparagraph 2) of article 33 of the Law.
If you have any questions, contact the UGD in Uzunkol district at the address S. Uzunkol str. g. Musrepova house 25 and by phone 2-16-83