BAKU, Azerbaijan, Oct. 29
By Nargiz Sadikhova - Trend:
Kazakhstan’s Ministry of National Economy is developing norms for exemption of micro and small business from paying taxes related to main activities in cooperation with stakeholders, a representative of the ministry told Trend.
According to the representative, exemption of business from tax payments will allow to free additional funds, which will give an impulse to development of local business. The representative also noted that corresponding amendments to legislation will enter into force starting from 2020 and will be active for the next three years according to the mandate of the president.
The official also noted that in accordance with the country's Entrepreneurship code, subjects of micro business are considered to be individual entrepreneurs and legal entities, the number of employees of which does not exceed 15 people and annual revenue of which does not exceed 76 million tenge ($196,000), whereas subjects of small business are considered to be individual entrepreneurs and legal entities, the number of employees of which does not exceed 100 people and annual revenue of which does not exceed 757 million tenge ($1.9 million).
Thus, business subjects, which meet this description are to be exempted from paying taxes.
“At the same time subjects operating in area of gambling, production and wholesale of excisable products, will not be exempted from paying taxes,” the official added.
Commenting on the possible reductions of payments to the budget, following the new law, the official noted that the assessment of future budget losses is underway in Kazakhstan.
“Furthermore, additional payments thanks to other taxes are forecast due to increase of business activity and decrease of shadow economy,” the official noted.
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