Switching from a generally established procedure to simplified declaration taxation mode for the LLP

An LLP can operate according to the generally established taxation procedure (GETP) in several cases:

• when registering the LLP (by default), if none of the special tax regimes was initially selected (clause 1 of article 679 of the Tax Code);
• when the right to use special regime is ceased (the net income declared or the number of personnel has been reached beyond the established limit numbers, opening a branch or starting an activity for which the use of special regimes is prohibited ).

The LLPs that do not fall under the terms for the use of special regimes listed in Article 683 of the Tax Code are obliged to apply a generally established procedure:

• those conducting activities, the types of which are indicated in clause 3 of clause 2 of article 683 of the Tax Code;
• those having branches in Kazakhstan or representative offices abroad;
• had declared the excess of the income limit for the tax period (a calendar year) established by subparagraph 2 of paragraph 2 of article 683 of the Tax Code;
• had exceeded the number of employees specified in subparagraph 1 of paragraph 2 of article 683 of the Tax Code.

The specificity of LLP that use a generally established procedure is the absence of restrictions on the amount of turnover, on the number of employees hired, the ability to open branches in any region and be engaged in any type of activity not prohibited by the law.

The right to switch to simplified taxation for an LLP is established by clause 2, clause 2, Article 679 of the Tax Code.

 At the same time, in order for a limited liability company that has previously applied a special tax regime to be able to take advantage of the SD-based SNR, it is necessary that the organization has worked on the limited liability Company for at least 1 calendar year. This requirement is contained in clause 4 of Article 679 of the Tax Code.

 Thus, if such an LLP plans to switch to a tax accounting based on the Tax Code from 01.01.2025, it must apply the generally established regime for the entire year 2024 and meet the requirements of art.683 of the Tax Code at the time of the change of tax regime.

 If the LLP has been applying the OPN for an incomplete 2024 year, it is possible to start applying the SNR based on the UD in 2025 only after the full 12 months of applying the OPN have expired.

 For example, for 7 months in 2023 and 5 months in 2024, it will be possible to apply the SD-based SNR from June 2025.

 In order for an LLP to switch to a CD-based tax accounting system, it is necessary to submit a notification to the State Revenue Department on the applicable tax regime (Clause 6, Article 679 of the Tax Code).

 You can submit a notification:

•  on paper;
• in electronic form through the Taxpayer's Office.

To send an electronic notification in the Taxpayer's Account web application, you must use an EDS or a one-time SMS password. The notification form is located in the section Tax Statement - Special tax regime - Notification of the applicable tax regime.

In the notification, you must fill in:

• name and BIN of the LLP;
• location (address) LLP;
• the chosen tax regime (based on a simplified declaration);
• the reason for the change in the taxation regime.

After filling in all the fields, you need to click "Check the filling" and "Send to the OGD." In this case, the system will automatically warn you about a change in the current tax regime as a result of sending a notification. You must confirm your intention by clicking on the "Confirm" button.

The date of the beginning of the application of the SNR based on the UD when submitting a notification will be considered the 1st day of the month following the month of filing the notification (clause 3, clause 8, Article 679 of the Tax Code).

That is, if the notification is submitted in December 2024, it will be possible to apply the simplified version from 01.01.2025.

If all of the following criteria are met, an LLP that applies a STR based on SD will be able to apply a reduced corporate income tax (CIT) rate of 3%, submit a simplified declaration form 910.00 every six months.

In order to be eligible for the application of STR based on SD, the LLP must meet the following basic criteria specified in Article 683 of the Tax Code:

• the half a year income should not exceed 24,038 times the monthly calculation index (MCI) established by the law on the republican budget and effective as of January 1 of the corresponding financial year;
• the number of employees should not exceed 30 people;
• there should be no branches and representative offices;
• in the authorized capital of a LLP that applies a STR based on SD, there should not be more than 25% of the participation share of other legal entities;
• the founder (participant) of the LLP applying a STR based on SD is not being simultaneously a member of another LLP, which also applies a special tax regime.
• There are no activities carried out specified in the list from subparagraph 3 of paragraph 2 of article 683 of the Tax Code.

In particular, those taxpayers who do not carry out the following types of activities have the right to apply the STR based on SD : 

1. production of excisable goods;
2. storage and wholesale of excisable goods;
3. sale of certain types of petroleum products - gasoline, diesel fuel and fuel oil;
4. holding lotteries;
5. subsoil use ;
6. collection and reception of glassware;
7. collection (procurement), storage, processing and sale of scrap and waste of non-ferrous and ferrous metals;
8. consulting services;
9. activities in the field of accounting or auditing;
10. financial , insurance activities and intermediary activities of an insurance broker and an insurance agent;
11. activities in the field of law, justice and jurisdiction;
12. activities within the framework of financial leasing.