The government has explained what changes await citizens with the introduction of the new Tax Code. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
As part of the reform, a progressive personal income tax rate – a tax on high incomes – has been introduced. Now, high-income citizens will pay tax at a rate of 15% only on income exceeding 8,500 MCI or 36.7 million tenge per year. For other citizens, the personal income tax rate remains unchanged.
In addition, pension payments from the UAPF are fully exempt from personal income tax. Also, the vehicle tax on passenger cars with a service life of more than 10 years has been reduced by 30%, and on cars older than 20 years – by 50%. Furthermore, the social tax deduction for persons with disabilities of groups I and II has been increased to 5,000 MCI, the statement said.
The tax administration system is transitioning to a service model: as a result, the total number of taxes and fees has been reduced by 20%, and the number of tax reporting forms – by 30%. Overall, the reform is already showing significant macroeconomic results. In the first half of this year, state budget revenues increased by approximately 16% compared to the same period last year. The strengthening of the country's revenue base was also significantly contributed by an approximately 1.5-fold increase in VAT receipts.
The basic corporate income tax rate remains at 20%, but for banking activities it has been raised to 25%. For the agricultural sector, a reduced rate of 3% has been set. The basic VAT rate is set at 16%. At the same time, reduced VAT rates have been introduced for medicines, educational literature, and printed products. The threshold for mandatory VAT registration is set at 10,000 MCI.