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Wednesday, December 2nd, 2020

New draft Tax Code expected to reduce tax rates for small businesses beginning 2018

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Within the framework of implementing the “100 concrete steps” Plan of the Nation, it is proposed to reduce the tax rate for small businesses beginning 2018. This was reported by Deputy Minister of National Economy Ruslan Dalenov during a briefing at the Government press center.

The Deputy Minister reports that currently in Kazakhstan a small business can choose different options for paying taxes: generally established, same as companies, or patent – when 2% of turnover is paid once every half a year. 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 every half year 3% of turnover is paid. It replaces 2 taxes (income and social taxes). The draft tax code includes equalization of restrictions on turnover and numbers for legal entities and individual entrepreneurs. This improvement first and foremost benefits individual entrepreneurship, � 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 tax turnovers. Therefore, the taxable base will be cash flow. Peasants and farmers will get the right to become VAT payers without losing their preferential treatment. They will also be allowed to engage in other activities, without losing preferential treatment. There will be no restrictions on entering cooperatives, being founders in several agricultural productions, etc.” � R. Dalenov noted.

Source: Government of the Republic of Kazakhstan

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