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Kazakhstan to reduce VAT for new manufacturing companies

Kazakhstan Materials 25 February 2021 08:50
Kazakhstan to reduce VAT for new manufacturing companies

BAKU, Azerbaijan, Feb. 25

Trend:

Prime Minister of Kazakhstan Askar Mamin, spoke about the planned additional measures to support entrepreneurs, Trend reports referring to Kazakh media.

The Government of Kazakhstan has prepared urgent measures to ensure high-quality and sustainable economic growth, approved at the Supreme Council for Reforms on January 29, 2021, which include: reduction of VAT within 2 years for new manufacturing companies; exemption from CIT of part of the income allocated for reinvestment; expanding the list of priority activities for concluding investment agreements with the Government; regulation from scratch, reduction of requirements for business, Mamin wrote in his response to MPs’ request.

Mamin also stated that it is proposed to reduce all requirements for business by a third during 2021.

All requirements will be revised in 4 sectors (trade, agriculture, transport, accommodation and food services). The rate of retail tax regime for the catering sector is estimated at 6 percent, said the PM.

“The 6-percent turnover rate includes a 3-percent retail sales tax and 3-percent on simplified declaration income. The regime will be applied on a permanent basis from 2023 (after the end of the three-year exemption from income tax for SMEs),” Mamin further said.

“These support measures will apply to medium-sized businesses. Amendments aimed at the implementation of these measures will be submitted to Parliament for legislative consolidation by the end of the current session, as part of the execution of the order of the head of state given at the Supreme Council for Reforms on January 29, 2021,” the PM added.

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