Why the new Tax Code
A conference "On the Draft New Tax Code" was held In Astana on 14th of August under the chairmanship of the First Vice-Minister of the National Economy of RK Ruslan Dalenov with the participation of Deputy Chairman of the Management Board of NCE RK "Atameken" Rustam Zhursunov. It should be noted, every 6-8 years there are changes in the taxation paradigm, the tax system is consistently developing.
"The tax system went through the formation, codification, then the tax burden was resolved and finally, simplification is being realized. We need an ideological turn in the direction of a bona fide business, we need to develop a large scale entrepreneurship. Administration should be subtle but effective", - said Ruslan Dahlen.
The law "On Taxes and Other Mandatory Payments to the Budget" lasted 6 years (1995-2001), the first tax code replaced it for 8 years (2001-2009). The second tax code is valid for the 9th year (from 10th of December 2008). The draft of the new Tax Code is based on three basic principles: ideology, incentives and administration.
The First Vice-Minister of the National Economy of the Republic of Kazakhstan noted that the ideology of the new Tax Code includes: all ambiguities and inaccuracies are interpreted in favor of the taxpayer, cancellation of the fine and penalties, if the tax authorities incorrectly explain the Tax Code, the requirement for justification of additional charges, more time for business to study changes in the Tax Code (the amendments are accepted no later than July 1), the cancellation of numerous amendments (the ban on making amendments to the accompanying laws), the new structure: the personalization of sections: each category is covered by its section.
For the purposes of administration, it is proposed to maintain the current regimes for SMEs and agribusiness. The threshold for VAT (30 thousand MCI, 68 million tenge) was retained (2018 - 25 thousand MCI, 2019 - 20 thousand MCI, 2020 - 15 thousand MCI), the limitation period for SME is reduced from 5 to 3 years.
"NCE RK" Atameken" presented its vision and already on its basis the joint partner writing of the draft was carried out. Anyone who wants to open a business, should not be confused by how to pay taxes - this should be done easy and simple. We plan to change ideology, introduce incentives, simplify administration", - the First Vice-Minister of National Economy of the Republic of Kazakhstan said.
What will tax innovations give: reduction of tax disputes, reduction of the number of inspections, simplification of administration, incentives for recycling of raw materials, support for lending, convenient regimes for agribusiness and SMEs, predictability of tax changes.