Dear Readers,

The Ministry of National Economy published a Draft Concept of the proposed tax amendments for public discussions. The proposed amendments are aimed at attracting additional funds to the state budget and reducing the risk of the capital outflows from Kazakhstan.

To achieve the stated goals, the Draft Concept proposes to:

  • Increase the rates of mineral extraction tax for all solid minerals;
  • Exempt from mineral extraction tax new deposits depending on the profitability;
  • Limit income tax deductions on services provided by related parties (management, consulting, audit, design, legal and other services);
  • Increase the rate of payment for digital mining;
  • Cancel the exemption from taxation of dividends and establish a tax rate on dividends;
  • Cancel the CFC tax exemption granted to certain countries;
  • Ensure the taxation in Kazakhstan of CFCs with a low effective tax rate, regardless of the foreign tax rates;
  • Introduce a payment for satellite communications using non-geostationary systems;
  •  Provide the state revenue authorities with a power to stop vehicles transporting goods traded between the member states of the Eurasian Economic Union.

To improve the tax administration, the Draft Concept proposes to introduce separate taxation rules for:

  • operations related to the social fund Kazakhstan Halkyna;
  • compensation of damages during the state of emergency.

To stimulate the agricultural sector activities, the Draft Concept proposes to supplement the list of goods qualifying for the offset method of import VAT payment with chemical substances, breeding animals, equipment for artificial insemination and live cattle.

The Draft Concept will be under the public discussion until 9 March 2022.