BAKU, Azerbaijan, Apr. 2
By Nargiz Sadikhova – Trend:
Small and medium business (SME) will be exempt from paying taxes in Kazakhstan till Oct. 1, 2020, Kazakhstan’s Minister of National Economy Ruslan Dalenov said, Trend reports with reference to the press office of Kazakhstan’s prime minister.
Dalenov made the statement during conference call of Kazakhstan’s government held on Apr. 2, during which he reported on the updated macroeconomic forecast for 2020 as part of the socio-economic development forecast for 2020-2024.
He said that based on the adjusted macroeconomic forecast, the forecast of the parameters of the republican budget for 2020 has been reconsidered.
Revenues of the republican budget excluding transfers in 2020 are estimated at 6.4 trillion tenge ($14.3 billion), which is 1.6 trillion tenge ($3.7 billion) less than the approved plan.
Dalenov added that the main decline is expected in terms of VAT, ETP for crude oil and revenues for the use of natural resources.
A property tax exemption has been established before the end of the year for large shopping facilities, shopping centers, cinemas, theaters, exhibitions and catering facilities, a hotel, hostels, and tourist activities. Individual entrepreneurs working in accordance with the generally established taxation procedure are exempted from individual income tax till the end of this year.
In order to support country’s agro-industrial complex, agricultural producers were exempt from paying land tax on agricultural land until the end of the year.
The import of agro-industrial goods is also exempted from VAT till the end of the year. At the same time, the VAT rate was reduced from 12 percent to 8 percent on socially significant food products for the period from Mar. 30 to Oct. 1, 2020.
Small and medium-sized businesses will be exempt from paying taxes and making social payments till Oct. 1, 2020 (individual income tax, social tax, compulsory pension contributions, contributions and deductions for compulsory health insurance and social contributions).
This measure covers sectors of tourism, catering, hotel business, as well as large retail facilities, shopping centers, cinemas, theaters, exhibitions and sports and fitness facilities, trade entities, with the exception of the food stores and drugstores, transportation services, consulting services and information technology.
A delay has been introduced for SMEs on the payment of all taxes and mandatory payments to the budget and social contributions till Jun. 1, 2020 (income tax, social tax, social and medical insurance for employees).
In addition, over the period of the state of emergency, tax audits and mandatory collection of tax, customs and social debt were suspended.
Dalenov also noted that in order to cover the expected shortfalls in budget revenues and to finance the anti-crisis package of measures, the guaranteed transfer from Kazakhstan’s National Fund will be increased by 2 trillion tenge ($4.6 billion) to 4.7 trillion tenge (10.4 trillion) in 2020.
Overall, the republican budget expenditures are projected at 14.2 trillion tenge ($31.8 billion) which is 1.3 trillion tenge ($3.02 billion) more compared to the previously approved amount.
The budget deficit is planned at 3.5 percent of GDP with an increase by 840.7 billion tenge ($1.8 billion). The level of non-oil deficit will be 10.8 percent of GDP.
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