Investor guide

Taxation

TAXATION


The following types of taxes and obligatory payments to the budget operate in the Republic of Kazakhstan with the following rates.

Choose tax type
*Tax Code of the Republic of Kazakhstan
Objects and rate Base* Payers

1) Taxable income – 20%;

2) Income taxed at the source of payment – 15%;

3) Net income of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment – 15%.

Articles 222,223, 313 and 652

1) legal entities-residents of the Republic of Kazakhstan, with the exception of state institutions and state educational institutions of secondary education;

2) non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment or receiving income from sources in the Republic of Kazakhstan.

Objects and rate Base* Payers

1) taxable income of an individual at the source of payment is 10%; income in the form of dividends received from sources in the Republic of Kazakhstan taxed at the rate - 5 %.

2) Taxable income of an individual in case of self-taxation – 10%.

Articles 316, 318, 320

1) Individuals who have objects of taxation in the form of taxable income of an individual at the source of payment and with self-taxation

Objects and rate Base* Payers

Taxable turnover – 12%

Taxable imports – 12%

Articles 367, 422, 82, 83

Mandatory registration of VAT in excess of turnover within one calendar year 30,000 MCI (article 82 of the tax code)

Legal entities-residents, non-residents operating in the Republic of Kazakhstan through a branch, representative office, individual entrepreneurs in excess of the above amount are subject to mandatory registration for value added tax

These persons are required to submit to the tax authority at the location of the tax application for registration of value added tax

 

Voluntary registration of VAT

Persons who are not subject to mandatory registration for value added tax have the right to register for value added tax by filing a tax application for registration for value added tax in one of the following ways:

1) on paper, without prior permission;

2) in electronic form;

3) state registration of a resident legal entity in the National register of business identification numbers.

Objects and rate Base* Payers

Objects

produced in the territory of the Republic of Kazakhstan and imported into the territory of:

1) all kinds of alcohol;

2) alcoholic beverages;

3) tobacco goods;

4) products with heated tobacco, nicotine-containing liquids for use in electronic cigarettes;

5) gasoline (except aviation), diesel;

6) motor vehicles intended for;

7) crude oil, gas condensate;

8) alcohol-containing medical products registered in accordance with the legislation of the Republic of Kazakhstan as a medicinal product.

Rates

Excise rates are set in absolute amount per unit of measurement in real terms.

Example: 600 tenge / liter

Articles 461 to 463 of the Tax code of the RK

Excise payers are individuals and legal entities that:

1) produce excisable goods on the territory of Kazakhstan;

2) import excisable goods to the territory of Kazakhstan;

3) carry out wholesale, retail sale of gasoline (except for aviation) and diesel fuel in the territory of the Republic of Kazakhstan;

4) carry out a sale of of the confiscated, ownerless, passed by the right of inheritance to the state and gratuitously transferred to property of the state in the territory Of the Republic of Kazakhstan excisable goods specified in the "Code of the Republic of Kazakhstan dated December 25, 2017 № 120-VI "On taxes and other obligatory payments to the budget" subparagraphs 5) - 7) of the first article 462 of the tax code, and on which the excise tax in the territory of the Republic of Kazakhstan was not previously paid in accordance with the legislation of the Republic of Kazakhstan;

5) implement the a sale of of the property mass of excisable goods specified in the " Code of the Republic of Kazakhstan dated December 25, 2017 № 120-VI ""On taxes and other obligatory payments to the budget article 462 of the tax code of the Republic of Kazakhstan, and on which the excise tax on the territory of the Republic of Kazakhstan was not previously paid in accordance with legislation of Kazakhstan;

6) carry out the assembly (complete set) of excisable goods provided "Code of the Republic of Kazakhstan dated December 25, 2017 № 120-VI " on taxes and other obligatory payments to the budget( Tax code) " subparagraph 6) of the first article 462 of the Tax Code of the Republic of Kazakhstan.

2. Excise tax payers are also individuals who import excisable goods from the territory of the member States of the Eurasian Economic Union for business purposes.

The criteria for classifying excisable goods as imported for business purposes shall be established by the authorized body.

Objects and rate Base* Payers

Objects:

Volume of crude oil and crude oil products, coal sold for export

Rates

When exporting crude oil and crude oil products, the rental tax on exports is calculated on the basis of the world price per barrel of oil as a percentage. Example:

Up to $ 20 per barrel – 0%;

Up to $ 200 per barrel – 32%

When exporting coal, the rental tax on exports is calculated at the rate of 4.7 percent.

Articles 713,714

Payers of rent tax on exports are individuals and legal entities that sell for export:

1)    crude oil and crude oil products, excluding crude oil and gas condensate exports.

For the purposes of this section, crude oil and crude oil products are considered to be goods classified in subitems 2709 00 of the unified Commodity nomenclature of foreign Economic activity of the Eurasian Economic Union;

2) coal.

Objects and rate Base* Payers

Special payments and taxes of subsoil users include:

1) subscription bonus;

2) payment for reimbursement of historical costs;

3) alternative tax on subsoil use;

4) royalty;

5) share of the Republic of Kazakhstan on production division;

6) mineral extraction tax (MET);

7) excess profits tax

MET objects:

The physical volume of the mineral raw materials extracted in the Republic of Kazakhstan, hydrocarbons, groundwater and therapeutic mud.

MET rates:

Installed in a fixed expression depending on the object of production.

 

Excess Profit Tax Objects

The part of the net income of a subsoil user defined for the purposes of calculating the excess profits tax to a separate subsoil use contract for the tax period in excess of an amount equal to 25 percent of the amount of subsoil users' deductions for the purposes of calculating the excess profits tax

Rates

Excess profit tax is paid by the subsoil user on a sliding scale of rates determined in accordance with the procedure established in Article 762 of the Tax Code of the Republic of Kazakhstan.

Alternative tax rates for subsoil use

The alternative tax on subsoil use is calculated at the rates established in Article 768 of the Tax Code of the Republic of Kazakhstan, based on the world price of oil, calculated in accordance with the procedure specified in paragraph 3 of Article 741 of the Tax Code of the Republic of Kazakhstan.

Chapter 85, 86, 87 of the Tax Code of the Republic of Kazakhstan

MET

The mineral extraction tax payers are subsoil users engaged in the extraction of hydrocarbons, minerals, groundwater and therapeutic mud, including the extraction of minerals from man-made mineral formations for which no mineral extraction tax and (or) royalties have been paid, within the framework of each individual subsurface use contract , with the exception of subsoil users, carrying out activities exclusively under the exploration license.

 

Excess profits tax

Payers of excess profits tax are subsoil users for the activities carried out under each individual subsoil use contract.

 

Alternative tax on subsoil use

The alternative tax on subsoil use is entitled to apply in return for the payment of reimbursement of historical costs, the mineral extraction tax and excess profits tax legal entities-subsoil users who have entered into the subsoil and subsoil use in accordance with the legislation of the Republic of Kazakhstan:

1) Contract for production and (or) for combined exploration and production of hydrocarbons on the continental shelf of the Republic of Kazakhstan;

2) a contract for the production and / or exploration and production of hydrocarbons at deposits with a depth of the upper point of hydrocarbon deposits specified in the mining allotment or in a contract for the production or exploration and production of hydrocarbons in the absence of mining allotment not higher than 4500 meters and the lowest point of hydrocarbon deposits specified in the mining allotment or in the contract for the production or exploration and production of hydrocarbons in the absence of a mining allotment, 5000 meters and below.

Objects and rate Base* Payers

OBJECTS:

1) the number of employees , including the payers themselves for individual entrepreneurs (with the exception of individual entrepreneurs using special tax regime based on a simplified declaration and individuals engaged in private practice);

2) Employer expenses for employee income for:

legal entities - residents of the Republic of Kazakhstan;

non-resident legal entities operating in the Republic of Kazakhstan through permanent institutions;

non-resident legal entities operating through a structural unit that does not lead to the formation of a permanent institution.

Rates

from January 1, 2018 - 9.5 percent;

from January 1, 2025 - 11 percent.

Individual entrepreneurs and private practitioners calculate social tax at 2 times the monthly calculation indicator established by the law on the national budget and the current one at the date of payment, for oneself and 1-fold the monthly calculated indicator for each employee

Articles 482, 484, 485

1) individual entrepreneurs;

2) private practice;

3) legal entities-residents of the Republic of Kazakhstan, unless otherwise specified by paragraph 3 of this article;

4) non-resident legal entities operating in the Republic of Kazakhstan through permanent institutions;

5) non-resident legal entities operating through a structural unit that does not lead to the formation of a permanent establishment.

Objects and rate Base* Payers

Objects

Vehicles, with the exception of trailers, registered and (or) registered in the Republic of Kazakhstan

Rates

The tax is calculated at the rates established in the monthly calculation indicators established in Article 492 of the Tax Code of the Republic of Kazakhstan.

Section 13 of the Tax Code of the Republic of Kazakhstan

1) individuals with taxable objects;

2) legal entities having objects of taxation on the right of ownership, Economic management or operational management

Objects and rate Base* Payers

Objects

Buildings, objects, assets

Rates:

Individuals:

Calculation depending on the value of objects of taxation at the rates established in the Tax Code of the Republic of Kazakhstan.

Legal entities:

1.5% to the tax base

0.5% for legal entities applying a special tax regime based on a simplified declaration

Section 15 of the Tax Code of the Republic of Kazakhstan

1) legal entities having an object of taxation on the basis of the right of ownership, Economic management or operational management in the territory of the Republic of Kazakhstan;

2) individual entrepreneurs who have a taxable object of ownership in the territory of the Republic of Kazakhstan;

3) a concessionaire who has a taxable object of ownership and use, which is a concession object in accordance with a concession agreement;

4) persons referred to in Article 518 of the Code.

Objects and rate Base* Payers

Objects:

1) game table;

2) slot machine;

3) cashier tote;

4) electronic tote box;

5) book office bookmaker;

6) bookmaker's box office.

Rates:

1) gaming table - 1,660-fold size of the minimum wage, MCI and the subsistence minimum (for 1995 - 2018) monthly calculation index per month;

2) gaming machine - 60 times monthly settlement index per month;

3) totalizator cash register - 300 times the monthly calculation rate per month;

4) Totalizator's electronic cash desk - 4,000 times monthly calculated indicator per month;

5) Totalizator's electronic cash desk - 4,000 times monthly calculated indicator per month;

6) Bookmaker's electronic cash desk - 3,000 times the monthly calculation indicator per month.

Section 16 of the Tax Code of the Republic of Kazakhstan

Legal entities engaged in the provision of services:

1) casino;

2) slot machine hall;

3) sweepstakes;

4) bookmaker office.

Objects and rate Base* Payers
Objects and rate Base* Payers

Objects:

Land plot (with total share ownership of the land plot - land share)

Rates:

Basic tax rates for plots are set depending on the category of land.

 

The basic tax rates for agricultural land, as well as the land of settlements provided to individuals for maintaining personal household (auxiliary) farming, gardening, and country house construction, including land occupied by the respective buildings, are set in the following amounts:

1) with an area of up to 0.50 hectares inclusive - 20 tenge per 0.01 hectare;

2) on the area exceeding 0.50 hectares - 100 tenge per 0.01 hectare.

Articles 498, 500, 503-510 of the Tax Code of the Republic of Kazakhstan

1. Payers of land tax are persons having objects of taxation.:

1) on the right of ownership;

2) on the right of permanent land use;

3) on the right of primary free temporary land use.

2. A legal entity is entitled by its decision to recognize its structural division as an independent payer of land tax

Other mandatory payments to the budget:
I. National tax;
II. Fees:
  1. Fees for issuing and (or) renewing a permit for attracting foreign labor to the Republic of Kazakhstan;
  2. Registration fees;
  3. The charge for the passage of vehicles on the territory of the Republic of Kazakhstan;
  4. Auction collection;
  5. License fee for the right to engage in certain types of activities;
  6. Fee for issuing a permit for use of the radio frequency spectrum to television and radio broadcasting organizations;
  7. Civil Aviation Certification Fee.
III. Pay:
  1. for use of land;
  2. for the use of water resources of surface sources;
  3. for emissions to the environment;
  4. for the use of wildlife;
  5. for forest use;
  6. for the use of specially protected natural areas;
  7. for using the radio spectrum;
  8. for the provision of long-distance and (or) international telephone communication, as well as cellular communication;
  9. for using navigable waterways;
  10. for placing outdoor (visual) advertising.
FOR INFORMATION:
Article 8 of the Law of the Republic of Kazakhstan “On the republican budget for 2018-2020”
  Install from January 1, 2018:
  1. the minimum wage is 28,284 tenge;
  2. the minimum size of the state basic pension payment is 15,274 tenge;
  3. the minimum pension is 33,745 tenge;
  4. a monthly calculation indicator for calculating benefits and other social benefits, as well as the application of penalties, taxes and other payments in accordance with the legislation of the Republic of Kazakhstan -2,405 tenge;
  5. the size of the subsistence minimum for calculating the amount of basic social benefits - 28,284 tenge.

Tax regimes for individual entrepreneurs in Kazakhstan

The choice of a suitable tax regime should be made when registering as an individual entrepreneur when filing a tax statement.

At the same time, failure to select a special tax regime in a tax declaration will be considered as consent of the newly created IP to the generally established taxation procedure (a subsequent transition to a special tax regime is possible no earlier than after one calendar year of applying the generally established procedure).

If a special tax regime is selected in a tax statement without being submitted on paper or in electronic form, including through the “electronic government” web portal, patent calculation, for an IP, from the date of state registration as an IP in tax authorities, apply a special tax regime based on a simplified declaration.

In Kazakhstan for the PI there are the following tax regimes
1. Generally established procedure;
  2. Special tax regimes:
  2.1 Patent
  2.2 Simplified Declaration;
  2.3 Special tax treatment for agricultural holdings and agricultural holdings;

 Special tax regime may not apply:
  1) PI carrying out the following activities:
  • production of excisable goods;
  • storage and wholesale of excisable goods;
  • sales of certain types of petroleum products - gasoline, diesel fuel and fuel oil;
  • organization and conduct of lotteries (except state (national);
  • subsoil use;
  • collecting and receiving glassware;
  • collection (harvesting), storage, processing and sale of scrap and waste of non-ferrous and ferrous metals;
  • consulting services;
  • activities in the field of accounting or auditing;
  • financial, insurance and brokerage activities of an insurance broker and an insurance agent;
  • Activities in the field of law, right and right.
2) Taxpayers who have other separate structural units and / or objects of taxation in different locations;
3) Taxpayers providing services on the basis of agency contracts (agreements).


Conditions for applying the tax regime

Under a special tax regime on the basis of a patent, an individual entrepreneur should not use the labor of workers, carries out activities in the form of personal entrepreneurship and the maximum income for the tax period should not exceed 300-fold minimum wage (6857700 tenge). Article 429 of the Tax Code of the Republic of Kazakhstan Deadline for tax reporting: calendar year (Article 430 of the Tax Code of the Republic of Kazakhstan.

With a special simplified declaration, the limiting average number of employees for a tax period is 25 people, including the individual entrepreneur himself and the marginal income for a tax period is 1,400 times the minimum wage. (32 002 600 tenge). pp 1) Article 433 of the Tax Code of the Republic of Kazakhstan . The deadline for submitting reports to SONO for the first half of the year is August 15 of the current year, and for the second half of the year the period for reporting to SONO is before February 15 of the next year.

General Procedure Calendar Year from January 1 to December 31 ( Article 148 of the Tax Code of the Republic of Kazakhstan.

The features of a special regime based on a patent are the simultaneous payment of all taxes at the time the patent is filed, there is no need to issue fiscal checks, there is no need in the cash register and there is practically no tax reporting. And in a special mode on the basis of a simplified declaration, taxes are paid upon receipt of income, and not on prepayment, as under the patent.

For information taxpayers taxes in different modes:
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