The Ministry of National Economy of the Republic of Kazakhstan has submitted for public discussion the draft Law “On Amendments and Additions to the Tax Code”.
The draft law provides for the expansion of digital tax administration, new functions for participants of the financial and digital infrastructure, simplification of certain procedures, as well as adjustments to tax incentives and investment mechanisms.
Key Changes
It is proposed to expand the use of data from banks, payment organizations, marketplaces and digital asset service providers, and to transfer certain tax procedures into an automated and proactive format.
The concept of a tax agent is also being expanded: in certain cases, taxpayers may be assigned obligations not only to withhold and remit taxes, but also to make social payments, submit reports and perform other tax obligations. The relevant provision is proposed to take effect from 1 January 2027.
Payment organizations will be required to provide tax authorities with information on total amounts of payments and transfers, including transfers to certain categories of foreign companies operating through online platforms in Kazakhstan.
Digital asset service providers will also provide information on transactions of residents and non-residents and remuneration paid.
Local marketplaces are proposed to be granted tax agent functions in relation to foreign sellers.
A separate VAT taxation mechanism is proposed for relevant transactions. The new provisions are planned to enter into force on 1 January 2027.
In addition, in case of failure to comply with tax authority notifications, it is proposed to allow suspension of sales of goods on an internet resource or online platform.
It is proposed that banks automatically withhold and remit social payments when a self-employed person makes payments through a banking application.
The scope of persons eligible to apply the special tax regime for self-employed persons is also being clarified.
It is proposed to abolish the separate tax application for termination of activities by individual entrepreneurs and persons engaged in private practice.
Information on termination of activities will be reflected in liquidation tax reporting, which must be submitted no later than 30 calendar days from the date of the decision to terminate activities.
It is proposed to transfer the refund of state duty into a proactive format. The authorized state body will independently submit an electronic application to the state revenue authorities, so the taxpayer will not need to apply separately for the refund.
It is proposed to suspend the issuance of electronic invoices if tax debt exceeds the established threshold and has not been repaid for more than six months from the date of its occurrence.
Additional grounds may include failure to comply with a desk audit notification.
It is proposed to recognize certain business expenses related to mandatory marking in an increased amount.
In particular, the initial cost of equipment for applying and scanning identification means may be determined using a coefficient of 1.5.
The draft law provides for VAT exemption for factoring and forfaiting transactions of second-tier banks.
It is proposed to restore certain investment project support mechanisms, including investment incentives for priority projects and investment agreements.
Subject to established conditions, investors will be able to deduct actual expenses for construction of public infrastructure facilities financed from their own funds.
Investment agreements will provide for tax incentives, including a reduction of CIT on income from the implementation of investment projects in priority types of activities, as well as zero rates of land tax and property tax.
A separate taxation procedure is also proposed for holders of the “Altyn Visa” and their family members.
It is proposed to clarify the rules for recognizing obligations under received advance payments as income of a non-resident if obligations are not fulfilled within the established period.
The draft also provides special rules regarding income of non-resident legal entities from financial loans.
The possibility of using a Kazakhstan tax residency certificate in Kazakhstan is proposed to be restored, which should simplify confirmation of residency status before tax agents, including banks.
For individuals, a tax incentive is proposed for income from transactions with digital assets through Kazakhstan-based providers.
A tax amnesty mechanism is also proposed for previously acquired or received digital assets.
A unified procedure for applying social tax deductions is proposed, including cases where several tax agents are involved.
Changes are proposed for agricultural producers, common minerals taxation, and excise taxation of energy drinks.
What This Means for Business
The proposed amendments significantly expand digital interaction between tax authorities and banks, payment organizations, marketplaces and digital asset providers.
Businesses should pay particular attention to:
How REVERA Kazakhstan Can Help
REVERA Kazakhstan can assist companies in preparing for the proposed changes, including:
