Under current conditions, the Government of the Republic of Kazakhstan, on behalf of the Head of State, takes urgent measures to support SMEs. New initiatives include increasing the availability of business to financing, the implementation of additional tax incentives, and limiting business from inspections.

In accordance with the Decree of the Head of State “On Further Measures to Stabilize the Economy,” tax incentives were adopted to support business. They cover various sectors of the economy from trade to tourism.

Preferences for entrepreneurs or tax holidays for the state of emergency

Until June 1, 2020, micro, small or medium-sized enterprises have been granted a deferral of payment of all types of taxes and other obligatory payments, and social payments.

Also, until June 1,2020, the suspension of the adoption of penalties, suspension of expenditure operations, limitation of disposition of property and measures for the collection of tax and customs debt, social payments debt (except for taxpayers with a high degree of risk) were adopted.

A property tax exemption has been established before the end of the year for large shopping facilities, shopping centers, cinemas, theaters, exhibitions and sports facilities, as well as for taxpayers working in the catering, hotel and tourism sectors.

The taxpayer has the right to provide an additional calculation of the amounts of current payments on property tax and land tax for the next 3 terms (1 payment deadline for current payments passed in February), based on the fact that for 3 months (January, February, March) the rate is in accordance with the Tax Code, and for the next 9 months, the taxpayer has the right to cancel its current payments. At the end of the year, a declaration will be presented on the basis of such a tax calculation algorithm.

Individual entrepreneurs working in accordance with the generally established taxation procedure are also exempted from individual income tax by the end of the year. In order to support the agro-industrial complex, the import of biological assets of the agricultural sector, including cattle and breeding chickens, will not be subject to VAT.

Along with this, agricultural producers will not pay land tax on agricultural land.

At the same time, in order to level the price increase, the VAT rate was reduced from 12% to 8% for socially significant food products until Oct. 1, 2020.

This rule applies only to socially significant goods.

For reference: These are wheat flour of the first grade, wheat bread from flour of the first grade (shaped), horns (weighted), buckwheat (kernel, weighted), polished rice (round-grain, weighted), potatoes, table carrots, onions, white cabbage, white sugar – granulated sugar, sunflower oil, beef (scapular-thoracic part with bones), chicken meat (femur and tibia with adjacent pulp), pasteurized milk 2.5% fat in soft packaging, kefir 2.5% fat content in soft packaging, butter (unsalted, not less than 72.5% fat content , without fillers and vegetable fats), chicken egg (I category), edible salt (except for Extra), cottage cheese: 5-9% fat).

In terms of tax administration, until June 1, 2020, a delay has been introduced for SMEs on the payment of all taxes and obligatory payments to the budget and social contributions (PIT, social tax, social and medical insurance for an employee), as well as work on compulsory collection of tax and customs debt and social payments.

In order to reduce fiscal pressure on the business for the period of emergency, tax audits have been suspended.

At the same time, the Head of State instructed to exempt SMEs from paying taxes and obligatory payments from the payroll fund for the period from April 1 to Oct. 1, 2020. in the most affected sectors of the economy, including retail, catering, hospitality, transportation and consulting services, and IT.

For the above categories of taxpayers, until Aug. 15, 2020, accrual of interest on all unfulfilled tax obligations was suspended for all types of taxes and the tax reporting deadline was postponed to the third quarter.

The principle of VAT payment of on imports by the offset method is that the importer-payer of VAT has the right not to pay VAT when filing a customs declaration. But there are several conditions. The importer must be a VAT payer, the goods are not intended for further sale. The importer in the next tax return reflects VAT both in offset and in sales. In case of further sale before the expiration of five years, VAT on imports is payable from the date of import with interest.

Also, the deadlines for the execution of notifications based on the results of cameral control, sent from March 15 to April 15, 2020, have been extended. (with the exception of taxpayers with a high degree of risk).