Tax And Customs Laws Update

On 1 January 20171, the Law of the Republic of Kazakhstan ('the RK') No. 26-VI ЗРК 'On Amending Certain Legislative Acts of the Republic of Kazakhstan on Taxation and Tax Administration' ('the Law') came into force.

The Law introduced significant changes to Kazakhstan tax and customs laws, which we would like to draw your attention to.

Audit

The total annual income threshold has been increased from 60,000 MCI2 to 120,000 MCI for the Kazakhstan resident companies' pre-liquidation audit; Preliminary tax audit report has been introduced. The Law entitles the taxpayer to present a legitimate objection in writing to the preliminary results of tax audit report. Individual Income Tax (IIT)

Insurance benefits as compensation of harm, inflicted upon life and health of an employee during his employment duties, under annuity insurance contracts3 are not recognized as personal income The IIT and social tax declarations for the Kazakhstan citizens and foreigners have been consolidated; An individual's property income, received in a foreign currency, is recalculated in tenge at the market exchange rate established on the last business day preceding the date of the transaction. Individual Income Declaration

Due to the launch by Kazakhstan of a general income declaration (starting from 2017 - for civil servants, from 2020 - for the other persons), the Law provides for the following changes:

Cash, debit and credit indebtedness and other property threshold has been increased under general declaration from 160 Minimum Wages4 to 500 Minimum Wages; Administrative charges for untimely/incomplete/false declaration have been significantly reduced from 30 MCI to 3 MCI; Individuals in possession of immovable property, which is subject to the state or other registration in a competent body of another state; securities, the emitters of which are registered outside Kazakhstan; or a share in the charter capital of a foreign company, must file an IIT declaration with the tax authorities. Value Added Tax (VAT)

by all VAT payers - from 2019. by major taxpayers - from 2018; The e-Vat invoice must be issued: In order to adjust taxable turnover, apart from supplementary VAT invoice, a cash register machine receipt may be mandatorily required in the cases, stipulated by Kazakhstan Tax Code. The timescales for issuance of VAT invoices in case of customs export procedure have been increased from 2017: for hard copy - not later than 7 calendar days following the date of the sale...