Retail tax for entrepreneurs affected by the pandemic

Taxpayers have the right to apply a special retail tax regime provided that they:

1. are recognized as small and medium-sized businesses in accordance with the Entrepreneurial Code of the Republic of Kazakhstan;
2. carry out one or several types of activities determined by the Government of the Republic of Kazakhstan for the purposes of applying this regime.

The special retail tax regime provides for a special procedure for calculating corporate or individual income tax, with the exception of withholding taxes.

The calculation of corporate or individual income tax, with the exception of taxes withheld at the source of payment, when applying a special tax regime for retail tax, is made by the taxpayer independently by applying a rate of 3 percent to the taxable item for the reporting tax period.

The object of taxation for a taxpayer applying a special tax regime for retail tax is income received (to be received) during the tax period in the Republic of Kazakhstan and abroad, determined in accordance with the generally established procedure:

• a legal entity - in accordance with Section 7 Tax Code;
• an individual entrepreneur - in accordance with Section 8 Tax Code.

Entities applying this regime are not social tax payers and have the right not to be VAT payers, regardless of the size of turnover.

The tax period for the application of the special retail tax regime is a calendar quarter. 

Subjects of small and medium-sized businesses applying the STR for retail tax submit ФНО 913.00.

Declarations for taxpayers applying a special tax regime for retail tax shall be submitted to the tax authority at the location of the taxpayer no later than the 15 th day of the second month following the reporting tax period. 

The taxes specified in the declaration for taxpayers applying a special tax regime for retail tax are paid to the budget no later than the 25 th day of the second month following the reporting tax period. 

The above regime is designed for 2 years as an anti-crisis measure to reduce the tax burden on SMEs and optimize the procedure for paying taxes and payments to the budget.

The list of activities is established by Resolution of the Government of the Republic of Kazakhstan.

The list includes those activities for which restrictive quarantine measures were applied during the pandemic.

A total of 114 types of activities have been identified.

In particular, the list includes:

• maintenance and repair of cars;
• retail trade in non-specialized stores that are commercial facilities;
• retail trade in furniture in specialized stores, which are trade objects;
• retail sale of books in specialized stores that are trade objects;
• retail trade of audio and video recordings in specialized stores;
• retail sale of sports equipment in specialized stores;
• retail trade in clothing and footwear;
• retail trade in cosmetics and toiletries;
• retail sale of flowers in specialized stores;
• retail sale of second-hand goods in stores;
• transportation by buses, trams, trolleybuses;
• car parking activities;
• provision of hotel services with restaurants;
• activities of tour operators and agencies;
• preschool education;
• theatrical and concert activities, circuses, museums;
• repair of furniture and interior items, shoes;
• provision of services by hairdressers and beauty salons.

A complete list is presented here.