Kazakhstan to cut tax rate for small business in 2018

taxes-92d

ASTANA (TCA) — As part of the Nation’s Plan “100 Concrete Steps”, it is proposed to reduce the tax rate for small businesses in Kazakhstan starting from 2018, the Deputy Minister of National Economy Ruslan Dalenov said at a briefing on August 2, the official website of the Prime Minister of Kazakhstan reported.

The Deputy Minister reported that now in Kazakhstan a small business can choose different options for paying taxes: general option (for companies) and a patent — when once in half a year 2% of turnover is paid. The draft new Tax Code proposes to reduce the tax rate from 2% to 1%, starting from 2018.

“If the turnover is large, then a small business can choose the ‘simplified declaration’ mode — when once in half-year 3% of turnover is paid. It replaces 2 taxes (income and social taxes). In the draft Tax Code, restrictions on turnover and numbers are equalized for legal entities and for individual entrepreneurs. This improvement, first of all, is for self-employed entrepreneurs,” Dalenov said.

He said that small business will be offered a new fixed deduction regime, which is beneficial for those who have high turnover but low profit.

“The tax base will be the difference between income and expenditure. Farmers will get the right to become goods and services tax payers without losing their preferential treatment. They will also be allowed to engage in other activities, and they also do not lose preferential treatment. There will be no restrictions on entering cooperatives and on being founders in several agricultural producers,” Dalenov said.

Sergey Kwan

TCA