BAKU, Azerbaijan, Jan. 13
By Nargiz Sadikhova - Trend:
Exemption of micro and small business from paying taxes on main activities will allow business to save up over 380 billion tenge (over $1 billion), Trend reports with reference to Kazakhstan’s Ministry of National Economy.
In the end of 2019, Kazakhstan’s President Kassym Jomart Tokayev signed a law, which exempts micro and small business from paying taxes since Jan. 1 2020 till Jan. 1 2023.
Furthermore, 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 ($209,500), 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 ($2.1 million).
Thus, the exemption will cover 1.2 million micro and small ventures.
According to the ministry, the exemption from paying main activity tax was introduced to ease the tax burden on small and micro ventures.
At the same time the exemption will not cover ventures operating in the following spheres:
1) activities related to the turnover of psychotropic substances and precursors
2) manufacturing and (or) wholesale of excisable goods;
3) grain storage activities at grain collection points;
4) holding lotteries;
5) gambling business;
6) activities related to turnover of radioactive materials;
7) banking activities and activities in the insurance market;
8) audit activities;
9) professional activities in the securities market;
10) credit bureau activities;
11) security activities;
12) activities related to the circulation of civil and service weapons and their ammunition;
13) activities in the field of subsoil use, including the activities of miners;
14) sales of minerals, including the activities of traders, activities for the sale of coal, oil;
15) retail sale of certain types of petroleum products of gasoline, diesel fuel and fuel oil;
16) foreign economic activity.
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