Atameken and Ministry of National Economy develop Rules for placing outdoor advertising
Entrepreneurs shouldn’t bear extra cost of advertising.
The Atameken NCE RK is receiving appeals from businessmen about the placement of outdoor advertising. According to them, the akimat employees conduct explanatory work among entrepreneurs, but interpret the norms of the Law "On Advertising" and the Tax Code of the Republic of Kazakhstan in different ways.
In particular, according to government agencies, since April 11 an advertiser will have to pay tax on dynamic or scrolling billboards in a new way: an advertiser should pay per each picture that appears on the screen.
The Atameken declares that this interpretation is wrong.
Paragraph 3 of Art. 605 of the Tax Code of Kazakhstan states that the payment for outdoor advertising is established “based on the location and area of the outdoor advertising”. There is no reference to the number of videos or images.
In order to exclude further misunderstanding between state agencies and business, the Ministry of National Economy of the Republic of Kazakhstan jointly with the Atameken developed the Rules for placing outdoor (visual) advertising, which are now being approved by the state authorities.
In particular, the Rules provide that “the amount of payment for the first and subsequent months of placement of outdoor (visual) advertising is calculated in accordance with the base monthly rates approved by the Tax Code, based on the location and area of the side of placement of outdoor (visual) advertising, regardless of the number of placed outdoor (visual) advertising, including images, video, advertising lines in the Kazakh and Russian languages".
These Rules will clarify and eliminate controversial issues.
Also the experts of the Atameken note that permits for outdoor advertising, received by the business before the entry into force of the new Law, are considered valid until the expiration date. Accordingly, it is not required to submit a new notification, it is only necessary to pay the tax in a timely manner, but this should be done before the 25th of the current month.
In addition the Rules will resolve controversial issues on the design of windows. In particular, it is allowed to place information on the windows, but only on the inside of the glass and only the goods or services sold at the point of sale.
If you have any questions, please call: 8 (7172) 919-327 Azamat Beisembinov
The draft rules can be found here.
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