Kazakhstan: Proposed tax amendments released for consultation

The Ministry of National Economy published a draft concept of the proposed tax amendments for public consultation.

Proposed tax amendments released for consultation

The Ministry of National Economy published a draft concept of the proposed tax amendments—aimed at providing revenue for the state budget and reducing the risk of the capital outflows from Kazakhstan—for public consultation.

The proposed tax amendments would:

  • 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
  • Repeal the exemption from taxation of dividends and establish a tax rate on dividends
  • Repeal the controlled foreign corporation (CFC) tax exemption granted to certain countries
  • Provide the taxation in Kazakhstan of CFCs with a low effective tax rate, regardless of the foreign tax rates
  • Introduce taxation for satellite communications using non-geostationary systems
  • Provide the state revenue authorities with authority to stop vehicles transporting goods traded between the member states of the Eurasian Economic Union

The draft concept proposes to introduce separate taxation rules to improve the tax administration.

  • Operations related to the social fund Kazakhstan Halkyna
  • Compensation of damages during the state of emergency

The draft concept also proposes to supplement the list of goods qualifying for the offset method of import value added tax (VAT) payment with chemical substances, breeding animals, equipment for artificial insemination and live cattle—to stimulate the agricultural sector activities.

Comments on the proposed tax amendments are due by 9 March 2022.


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