Legislation Alert - March 2016

Main amendments to the legislation

  1. Regarding record of registration for value added tax (further - the "VAT")

    From April 1, 2016 the following changes to the tax legislation of the Republic of Kazakhstan (further - the "RoK") regarding the order of record of registration for VAT will be introduced:

    tax application shall be presented by resident legal entities, non-residents operating in the RoK through a branch or representative office, individual entrepreneurs (further - "IE") to tax bodies at their location in person. Also, it shall be noted that while submitting such application chief executive officers of legal entity-resident of the RoK and IE will be photographed.

    VAT registration certificate is presented in the form of electronic document certified by digital stamp of the official of registering body. Also, it shall be noted that according to the changes such certificate is termless. Further, according to the Law of the RoK №432-V dated December 3, 2015 "On the Introduction of Amendments and Additions to Certain Legislative Acts regarding Taxation and Customs Administration" paragraph 3 article 568 is excluded from the Tax Code of the RoK (further - the "Tax Code"), according to which for the purposes of making record of registration for VAT, a taxpayer making budget settlements according to the special tax regime for farms or farm holdings, shall not include realisation turnover from activities subject to the special tax regime in turnover.

    The following norms become effective in a retrospective order - from January 1, 2015.

    Additionally, the article 569 is excluded from the Tax Code, which stipulates voluntary record of registration for VAT. From January 1, 2017 record of registration for VAT will be common shall the taxpayers exceed the minimum turnover in the amount of 3 234 times the monthly calculation index (further - "MCI") set by the Law on the State Budget and valid on 1 January of the relevant financial year. So, the limit set previously in the amount of 30 000 times MCI will be valid until January 1, 2017.

  2. Regarding cancellation of social tax in the RoK

    Currently, the tax legislation of the RoK sets fixed rate for social tax - 11% from salary fund, out of which 5% are social contributions.

    Also, employers besides social tax and social contributions pay obligatory professional pension contributions (further - "OPPC") in the amount of 5% from salary fund, and as it was already mentioned in the previous legislation...

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