The Ministry of National Economy proposes several amendments to the Tax Code.

The Ministry of National Economy presented several amendments to the Tax Code in terms of taxation and improvement of the investment climate on the platform of the Atameken NCE RK.

In particular, it is proposed to reform taxes on property and land of individuals. According to the Ministry, the analysis showed that 60% of the total number of taxpayers pay up to 1,000 tenge or 4.6% of the total revenues.

At the same time, the costs of administration of the state and taxpayers are high. In this regard, the Ministry proposes to combine taxes on property and land from individuals without changing the elements of the tax (object of taxation, tax base, rates, calculation and payment procedure). The tax on land and property will be considered separately, and the taxpayer will be charged one amount.

Also, the Ministry of National Economy proposes to cancel the land tax for owners of apartment buildings, as it is associated with an insignificant amount of tax and significant costs of administration due to a large number of facilities and the complexity of the calculation.

The next change concerns the limitation of cash payments. Ban on deducting expenses in cash in the amount of more than 1000 monthly notional units to CIT deductions. According to the data of the Ministry of National Economy, a similar norm is valid for VAT: the amount of VAT to be paid upon receipt of goods, works, and services under a civil law transaction, the payment for which is made in cash, including VAT, is not included as an offset and exceeds the 1000-fold amount of the monthly calculation index.

In addition, VAT payment for electronic services is subject to consideration. The Ministry noted that foreign companies, providing services in the electronic form to buyers in Kazakhstan, do not pay taxes, while in Russia and Belarus the services in electronic form are subject to VAT.

In this regard, it is proposed to set VAT for services in electronic form (Google tax). The tax will be paid by the foreign company that directly provides the service to the customer. The introduction of an investment tax credit is being considered in terms of investment tax preferences. The measure is aimed at attracting new investments, as well as stimulating the development of new industries. In particular, the loan will be provided for three years under CIT and property tax.

It will be interest-free, but in case of non-fulfillment of the investment program, a penalty will be charged. It is also proposed to extend investment tax preferences to contracts for the extraction of groundwater. Currently, the use of investment tax preferences is prohibited for assets related to the implementation of activities under the subsoil use contract. In particular, investment tax preferences consist of deducting the cost of preference objects and (or) subsequent expenses for reconstruction and modernization.

In the sphere of cargo and passenger transit support, there is an exemption from VAT on regular automobile transportation of passengers and luggage for three years, zero rates for cargo transshipment from a railway to water transport, zero rates of VAT for aircraft refueling.

To develop production, the exemption from VAT on the sale by dealers of vehicles and (or) agricultural machinery of domestic production is being considered; preferential taxation (VAT -70%) of production and processing, preparation of cotton fiber, cotton fiber, sugar production from sugar beet, confectionery, yeast production; adjustment of the tax base for the excise tax on beer for export.

It is also proposed to exempt VAT on sales between participants of one FEZ for all by analogy with FEZ "Astana - new city", exemption from VAT on import of raw materials and (or) materials for the production of components of vehicles and agricultural machinery, as well as sales of components of vehicles and agricultural machinery for the final manufacturer and for sale on the secondary market.

In subsoil use, the Ministry proposes changes in the unification of the method of accounting for sulphuric acid for acidification in the uranium industry; exemption from mineral extraction tax on the utilization of underground waters extracted with hydrocarbons; revision of the rates of signature bonus for licenses for subsoil use.

In the financial sector, the discussion will include benefits under CIT and IIT in case of forgiveness of the borrower's debt by mortgage companies; exemption from IIT from income from value growth in the sale of units of unit investment funds; exemption from taxation of investment income of the Fund for Guaranteeing Insurance Benefits in the event that they are used to increase the insurance fund. Changes under IIT refer to the elimination of double taxation under civil law contracts. At present, when calculating IIT under civil law contracts, the amounts of mandatory pension contributions are not deducted. It is proposed to clarify the procedure for the application of the deduction.

The Ministry of National Economy also considers excluding the cost of uniforms from the income of an individual; exclusion of the condition for the conclusion of a contract for the provision of services in the event of non-recognition by an individual of the expenses of the employer related to the transportation of employees to their workplace and back. There is an exemption from personal income tax by means of sponsorship and charitable assistance (similar to grants). Amendments of the Supreme Court refer to the imposition of state duty on policyholders and insurers in the courts when the right of claim is transferred to them on the basis of the agreement on the assignment of the right of the claim (assignment); the imposition of state duty on complaints about the actions of the bailiff.

It is also proposed to establish lower limits for the state duty rates in courts and increase the rates for divorce suits (differentiated with regard to the residence of children), for non-property claims - by 10 times, for bankruptcy claims - by 20 times.

Public services and fulfillment of obligations

Presentation: Draft Law of the Republic of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Taxation and Improvement of the Investment Climate"

Presentation: Draft Law of the Republic of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Taxation.

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