Kazakhstan Reshapes Simplified Taxation: New Rules Exclude Large Sectors, Benefit Small Businesses
Kazakhstan's Ministry of National Economy has unveiled draft government resolutions for the new Tax Code, reshaping the Simplified Taxation Procedure (STP). The changes aim to exclude certain sectors and entities while retaining benefits for many small businesses.
The STP, previously accessible to around 70% of taxpayers, will now be restricted to about 30% due to exclusions in sectors related to large businesses, affecting 795 types of activities (70% of OKED).
Non-profit organizations, participants of SEZ 'Astana Hub', and taxpayers working under joint activity agreements are among those excluded. Additionally, entities with an annual income exceeding 600,000 MCI (2,359 billion tenge) or a participation share of over 25% in other companies are prohibited from using the STP.
However, taxpayers with an annual turnover up to 40 million tenge will not be subject to VAT upon transitioning to the general regime. Furthermore, a separate resolution proposes a list of 46 activities accessible to the self-employed without registration as an individual entrepreneur, without employees, and with income up to 300 MCI per month.
The STP will remain available for approximately 300 types of activities oriented towards the population, preserving about 70% of all taxpayers.
The new Tax Code drafts outline a more targeted approach to the STP, aiming to balance the needs of small businesses with the requirements of larger enterprises. The changes are expected to impact various sectors and taxpayer groups, with some gaining and others losing access to the simplified regime.
