Entrepreneurs in Kazakhstan can choose a special tax regime depending on the type of activity in order to optimise taxation. This was stated by Deputy Prime Minister — Minister of National Economy Serik Zhumangarin, the government reported. This was reported by Qazaqyia.kz citing Kursiv Media.

According to the deputy prime minister, a special tax regime is provided for microbusiness for the self-employed with a payment of 4% for social purposes.

For businesses operating on the basis of a simplified declaration, the base rate is 4%. Local maslikhats can change it by two percentage points upwards or downwards. For farm and peasant households, a regime with an individual income tax rate of 0.5% is provided.

"In general, all conditions have been created in the country, depending on the type of activity, so that an entrepreneur can choose a convenient regime that would allow optimising their taxation scheme. With the exception of the scheme when work is carried out with corporate clients. Or if you yourself are a corporate client," Serik Zhumangarin emphasised.

Details of the exceptions related to working with corporate clients are not provided in the report.

The government noted that special regimes are provided within the framework of implementing the instructions of President Kassym-Jomart Tokayev, given in the Address, on improving tax administration and creating favourable conditions for entrepreneurship.

Earlier, Kursiv wrote that, according to Zhumangarin, over nine months state budget revenues grew by 3 trillion tenge compared to last year. The minister linked the growth to tax reform and reported that the number of legal entities — VAT payers increased by 37 thousand, whereas previously the annual increase was 4-6 thousand.

Rates of special tax regimes

According to Serik Zhumangarin, the following special tax regimes are available to entrepreneurs:

  • 01**Microbusiness regime for the self-employed** — a payment of 4% for social purposes.
  • 02**Businesses on a simplified declaration** — a base rate of 4%, which local maslikhats can change by two percentage points upwards or downwards.
  • 03**Farm and peasant households** — an individual income tax rate of 0.5%.

The deputy prime minister emphasised that all conditions have been created in the country, depending on the type of activity, so that an entrepreneur can choose a convenient regime that would allow optimising their taxation scheme. However, he singled out an exception — the scheme when work is carried out with corporate clients, or if the entrepreneur is themselves a corporate client. Details of these exceptions are not provided in the report.

Within the framework of implementing presidential instructions

The government noted that special regimes are provided within the framework of implementing the instructions of President Kassym-Jomart Tokayev, given in the Address, on improving tax administration and creating favourable conditions for entrepreneurship.

Earlier, Kursiv wrote that, according to Zhumangarin, over nine months state budget revenues grew by 3 trillion tenge compared to last year. The minister linked the growth to tax reform and reported that the number of legal entities — VAT payers increased by 37 thousand, whereas previously the annual increase was 4-6 thousand.