In the implementation of the Comprehensive Plan to Restore Economic Growth until the end of 2020, the Law of the Republic of Kazakhstan "On Amendments and Additions to the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory 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 Mandatory Payments to the Budget" (Tax Code)" were signed on July 2 this year, which provides for the following tax incentive measures.
Tax amnesty
A tax amnesty is provided for the write-off of penalties for individuals, provided that they pay the amounts of the principal debt for property tax, land tax and vehicle tax, formed for the tax periods up to January 1, 2020, with the exception of obligations to pay property tax and land tax for 2019.
The amount of the penalty that is registered in the taxpayer's personal account as of April 1, 2020, as well as the amount of the penalty accrued on the amount of such arrears before the date of its payment, including the day of payment, is subject to write-off. At the same time, the penalty fee is deducted according to the type of tax for which the arrears were paid. The term of the tax amnesty is until December 31, 2020.
The tax amnesty will allow the citizens who took part to be released from the accrued sanctions, which will improve the quality of life and well-being.
Exemptions from taxes, fees and charges
In connection with the introduction of licensing of microfinance activities, the fee for the registration of organizations engaged in microfinance activities has been abolished from January 1, 2021.
In order to increase the competitiveness of domestic companies engaged in international road transport of goods and update the fleet of cargo vehicles from July 1, 2020 to December 31, 2020, an exemption from the payment of the fee for the primary state registration of motor vehicles for truck tractors engaged in international road transport of goods is provided.
From April 1, 2020 to October 1, 2020, an adjustment is provided for the income of an employee of a taxpayer who is not a subject of the quasi-public sector and is engaged in the creation and broadcasting of television programs and (or) radio broadcasting and (or) the publication of newspapers, magazines and (or) periodicals, that is, the exemption of employees of non-state media from paying individual income tax. Accordingly, such income is not subject to social tax.
from June 1 to December 31, 2020
Import of spare parts for aircraft (engines, power plants, heat exchangers, radio altimeters, radars, sensors, casings) is exempt from VAT.);
taxpayers engaged in the activities of air passenger transport are exempt from VAT for non-residents on royalties, maintenance and software updates, services for the presentation and processing of information, providing access to an Internet resource;
It is planned to apply the coefficient "0" to the rates of land tax and payment for the use of land plots occupied by runways at airfields and airport terminals.
Support for individual industries
from June 1 to December 31, 2020
In order to increase the volume of output without attracting additional working capital, as well as to preserve paid jobs for mining (with the exception of those engaged in the production of hydrocarbons), mining and metallurgical enterprises included in the List subject to monitoring by large taxpayers, it is provided:
an increase from 70 to 80% of the amount of excess value added tax that can be refunded in a simplified manner without conducting a tax audit for the period of the first, second and third quarters of 2020.
the right to exceed the amounts of the actually calculated CIT for 2020 over the amount of the calculated advance payments in the amount of no more than 33 %.
The VAT payment deadline for JSC NC KTZ for the second and third quarters of 2020 has been postponed to February 25, 2021.
Tax administration
For the purpose of correspondence with the amendments to the Law "On the National Bank of the Republic of Kazakhstan", which provide for the introduction of restrictions on cash withdrawals, from January 1, 2021, the obligation of second-tier banks and organizations engaged in certain types of banking operations is provided to provide information and (or) documents to the state revenue authorities to obtain information on the presence or absence of grounds for refusing to issue cash exceeding the established limit.
Thus, the state revenue authority, taking into account the application of the risk management system, will make one of the following decisions::
for a low degree of risk-on the absence of grounds for refusing to issue cash;
for a high degree of risk - on the existence of grounds for refusing to issue cash.
Until December 31, 2020, the deadline for registration and submission to the tax agent of a document confirming the residence of a non-resident for 2019 is extended.
Electronic documents certified by EDS and meeting the conditions established by the Law "On Electronic Document and EDS"may be recognized as primary documents.
Taxpayers are granted the right to recognize copies of primary documents (scanned copies) as accounting documents for the period of the state of emergency on the territory of the Republic of Kazakhstan, provided that the original primary documents are issued within seven months following the month in which the state of emergency on the territory of the Republic of Kazakhstan is terminated. And until the end of such a seven-month period, copies of such primary documents are recognized as originals when conducting tax audits and other control methods for tax periods in which the state of emergency was in effect.
New collection obligations
Starting from January 1, 2021, a license fee for the right to engage in certain types of activities is provided for branches of non-resident banks of the Republic of Kazakhstan, insurance (reinsurance) organizations-non-residents of the Republic of Kazakhstan, insurance brokers-non-residents of the Republic of Kazakhstan to carry out activities in the financial market of the Republic of Kazakhstan, as well as a fee for issuing consent to the election (appointment) of senior employees of a branch of a non-resident bank of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization-non-residents of the Republic of Kazakhstan, a branch of an insurance broker-non-resident of the Republic of Kazakhstan.