Revised Tax Structures: Introduction of the Second Amendment Package in Majilis
Named After Money:
The Government's latest money move is a comprehensive overhaul of the Tax Code, with the second package of amendments already pending in the Majilis, as reported by Liter.kz, courtesy of the Ministry of National Economy of Kazakhstan.
Higher Earnings Mean Higher Taxes
The main novelty is that income tax (IPN) will now be tied to earnings. This means those earning less will end up paying less, while the richer folk will face a bump in their tax rates.
To simplify matters, tax deductions will get simplified as well. Previously, individuals were required to provide proof of expenses in areas such as healthcare and education. Now, a suggested monthly deduction of 30 MCI is on the table, making life easier for accountants and relieving Kazakhstanis of the chore of running around for certificates.
Extra Taxes on Energy Drinks and Government Bond Income
The new legislation proposes taxing energy drinks due to health-related concerns.
A tax will also be levied on income from government and quasi-government bonds, intended to help replenish the budget.
In the oil sector, a "tax maneuver" is planned: slightly tweaking the system to ensure steady budget payments and a more straightforward system.
Yes, VAT is Set to Increase
The VAT rate is proposed to be set at 16%, with a registration threshold of 40 million tenge. Despite the ensuing debates, petitions, and public discontent, it appears that the government considers tax hikes to be a necessity.
Changes on the Horizon for Businesses
There will also be modifications for businesses:
- The number of special tax regimes will be reduced from 7 to 3.
- The rules for opening an IP will be tightened for rule-breakers and "sleeping" IPs.
- The tax administration system will undergo a makeover.
Amendments are also being made to laws associated with housing and communal services, investments, social payments, and mandatory health insurance, with stricter penalties for violators.
In total, over 130 amendments are proposed in the two packages, with legislators still engaged in discussion.
More to Explore:
- The NDS Threshold is Proposed to Be Set at 40 Million Tenge Instead of 15 Million Tenge in Kazakhstan
- NDS Will Only Affect Paid Medical Services
- Socially Significant Goods Will Not Be Subject to NDS
- The Government has proposed levying taxes on energy drinks due to health concerns, aiming to safeguard the well-being of Kazakhstanis.
- Additionally, a tax will be imposed on income from government and quasi-government bonds, a move aimed at replenishing the national budget.
- For businesses, changes are on the horizon, including a reduction in the number of special tax regimes from 7 to 3, tighter rules for Income Payments (IP), an overhaul of the tax administration system, and stricter penalties for violators.
- The Value-Added Tax (VAT) is proposed to increase to 16%, a decision that has sparked debates, petitions, and public discontent, but the government seems to consider it a necessary step.
