The New Tax code of Kazakhstan – 2009

The new Tax code of Kazakhstan – 2009: Highlights The Present issue of news of the Kazakhstan legislation is devoted the new Tax code of Republic Kazakhstan which is installed since January, 1st, 2009 (further - «the Tax code»). The tax code was developed to decide following primary goals: i) decrease in the general tax load on not raw a sector of economic activity; ii) increase of economic return from an extracting sector of economic activity; iii) optimisation of fiscal incentives; iv) realisation of a principle of the law of direct action; v) system development of tax administration. By working out of the new Tax code attempt of the maximum reduction of number отсылочных norms and an establishment of fiscal regulation within the limits of one document has been undertaken. The significant amount of innovations has concerned the corporate profitable tax ("КПН"), basic of which are, first, stage-by-stage decrease in the rate with 30% to 15 %. In 2009 the rate is lowered to 20 %, in 2010 – to 17,5 %, in 2011 – to 15 %. Secondly, the list of deductions for taxable base definition under the corporate profitable tax is expanded that, for example, allows to deduct from tax base on КПН cost of buildings placed in operation, structures, cars and the equipment. It is necessary to note cancellation in the new Tax code of payment of advance payments on КПН for small and average business, and also increase in term of carrying over of losses for tax bearers till 10 years instead of 3th years in earlier operating legislation. Besides decrease in the rate of the VAT to 12 % from earlier operating 13 %, one of the important innovations connected with regulation of the tax to an added value is stage-by-stage introduction of compensation from the budget of a positive difference between the VAT, to payable suppliers, and the VAT, to the added buyers (debtor balance under the VAT). Thus the mechanism of return of debtor balance under the VAT is entered since January, 01st, 2012. The tax code also provides perfection of taxes paid of the wages fund – individual income and social taxes. The uniform rate of the individual profitable tax is saved in the order 10 %, the New Tax code provides "a flat" scale of the social tax with the rate of 11 % that, in comparison with earlier operating descending scale, considerably simplifies calculation of the social tax. Concerning the wealth tax definition of an object of taxation is changed: If earlier it there were «permanent assets and non-material assets», now – "real estate". The given innovation corresponds to practice of the majority of the countries and simplifies an order of calculation of the tax and reporting granting on it. It is necessary to note also such novation of the Tax code, as introduction of rates of excises in the text of the code (before the rate affirmed governmental orders РК) that corresponds to a principle of the law of direct action. The tax code enters concept «the tax report» which tax bearers will messages independently on the basis of tax registers. The tax register represents the document of the tax bearer containing data on objects of the taxation and (or) the objects connected with the taxation. Tax registers are led in the form of the special forms developed by tax bearers independently. In certain cases (information granting on application of clearing of the taxation, reduction of the taxable income under the corporate profitable tax, investment fiscal incentives, on derivative financial instruments, the invoices exhibited and received by payers of the tax to an added value, by definition of cost balances of groups of the fixed assets and the subsequent costs on them) the authorised taxing authority has the right to establish obligatory forms of tax registers.

The New Tax code of Kazakhstan – 2009 Tue, Mar 31, 2009