Draft of the new Tax Code assumes a reduction in the tax rate for small businesses from 2018
The Vice Minister reported that now in Kazakhstan a small business can choose different options for paying taxes: generally established, like companies and a patent – when once in a half year 2% of turnover is paid. The draft new Tax Code proposes to reduce the tax rate from 2% to 1%, starting in 2018.
“If the turnover is large, then a small business can choose the “simplified declaration” mode – when once in the half year 3% of turnover is paid. It replaces 2 taxes (income and social taxes). In the draft tax code, restrictions on turnover and numbers are equalized for legal entities and for individual entrepreneurs. This improvement, first of all, is for self-employed entrepreneurs,” R. Dalenov said.
He noted that small business will be offered a new fixed deduction regime, which is beneficial for those who have high turnover, but low profit.
“For such entrepreneurs, it is unprofitable to charge turnovers. Therefore, the tax base will be the difference between income and expenditure. Peasants and farmers will get the right to become goods and services tax payers without losing their preferential treatment. They will also be allowed to engage in other activities, and they also do not lose preferential treatment. There will be no restrictions on entering cooperatives, being founders in several agricultural producers, etc.”, R. Dalenov noted.
Source: The Prime Minister of Kazakhstan