Atameken discussed consequences of transition from patent to simplified tax declaration
The experts of the Committee on Trade of the Presidium of the Atameken NCE RK discussed how the transition from a patent to a special tax regime on the basis of a simplified declaration will affect the Kazakhstani business.
It should be noted that from 2020 the trade industry should switch to a simplified regime. In addition, from January 1, 2020, all cash payments for goods sold will be carried out with the use of cash registers.
According to the director of the Department of Trade of the Atameken NCE RK Nurlybek Mukanov, the transition to a simplified declaration will not encourage traders to leave the grey market, but on the contrary will encourage entrepreneurs to hide their income, as this change in the tax regime will lead to additional costs for business.
In particular, Atameken has analyzed the company with an annual turnover of 8.9 million tenge, where the net profit under the patent is 115,590 tenge. It would seem that a slight change in turnover tax by 1% (from 2% to 3% of turnover) will lead to a reduction in the net profit of the private enterprise by 36%.
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"It turns out that with the same turnover of funds net profit will be only 73 716 tenge. While the tax deductions will practically not change, and the net profit will be reduced due to additional expenses: opening and maintenance of a bank account, rent of POS-terminal, maintenance of online cash registers(KKM), payment for Internet services," Nurlybek Mukanov said.
As a result, additional revenues to the budget will amount to 915 million tenge, the income of outside organizations (the second-tier banks, Kazakhtelecom JSC, organizations selling and servicing online cash registers (KKM) will be 3.9 billion tenge.
The executive director of the Direct Selling Association of Kazakhstan Anastassiya Kalashnikova emphasized that business is not against working on a simplified declaration, but is concerned about the additional financial costs of digitalization, as well as the complexity of accounting reports.
"Business will have to hire an accountant, while work on the patent was available to entrepreneurs who worked independently, without hired employees," she said.
In turn, Chairman of the Trade Committee Kairat Mazhibayev noted that the increase in sales and competition entails a reduction in the cost of services. However, this is not observed on the part of service companies and the banking sector. The National Chamber of Commerce asked the National Bank of the Republic of Kazakhstan to review the tariffs of banks. To date, they vary depending on the servicing of payment cards within the network of one bank or in interbank transactions, and range from 0.5% to 2.5%.
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The chief of the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan Gulmira Smagulova noted that the transition to the simplified declaration is not associated with the transition to online cash registers(KKM). The difference between the simplified declaration and the patent is the tax rate, previously it was 2%, and the tax rate on income under the Special tax regime will be 3% : personal income tax on income (revenue) - 1.5%, social tax on income - 1.5%.
"The question is not exactly to the State Revenue Committee, but we know about it and have repeatedly raised the issue of revising tariffs. Also, any entrepreneur will be able to reduce the amount of his individual entrepreneur's personal income tax by the number of expenses when purchasing an online cash register (KKM) in the amount of 50%, but not more than 60 thousand tenge. The amendments will also apply to those who will buy a three-component integrated system, and such entrepreneurs can reduce their annual tax by 60,000 tenge within two years," Gulmira Smagulova explained.
As a result of the meeting, Kairat Mazhibayev proposed to meet on a separate platform with the invitation of all responsible persons from the associations, representatives of competent government agencies, the National Bank, Kazakhtelecom JSC, and other service providers and suppliers of equipment.
"As a result of the meetings, it is necessary to develop a clear position on changing the tax regime for trade entities, and entrepreneurs should benefit by 2% in the form of quality of public services. It is necessary to work out clearly the calculations of transaction costs, as well as how the business will become more transparent with this amendment," Kairat Mazhibayev concluded.
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