State Revenue Committee

of the Ministry of Finance of the Republic of Kazakhstan

Press Release

About 90 thousand business entities will be able to take advantage of the tax amnesty: changes in the Tax Code of the Republic of Kazakhstan were discussed at the “1C” Forum in Astana

On January 25, 2019, Astana hosted VIII Forum “1C”, dedicated to changes in tax legislation of the Republic of Kazakhstan. The forum participants were able to learn more about what changes occurred in tax and accounting legislation in 2019, discussed issues related to the issuance of electronic invoices and the new system of the MF RK “Virtual Warehouse”.

In his annual Address, the Head of State instructed to start granting of a tax amnesty for small and medium-sized businesses, which provides for writing-off penalties and fines, subject to the payment of the principal amount of the tax. The amnesty provides for writing-off penalties and fines to small and medium-sized businesses subject to the repayment by December 31, 2019 of the principal debt as of October 1, 2018. In this case, the amount of the fine as of October 1, 2018 and the amount of penalty, accrued until the date of payment of the principal debt will be written off.

According to preliminary estimates of the State Revenue Committee, 90,077 entities of small and medium-sized business (31,210 legal entities and 58,867 individuals) are included in the amnesty.

Pursuant to the changes made to the tax legislation of the Republic of Kazakhstan, the rules for calculating Personal Income Tax (PIT) have changed since 2019, as a result of which the tax burden on workers has decreased. In particular, on employees whose income does not exceed 25 MCI (for 2019 - KZT 63,125), the taxable income of such employees is subject to a 90% reduction when the PIT is deducted at the source of payment (subparagraph 49 of paragraph 1 of Article 341 of the Tax Code).

Another innovation of 2019 is the law on the Unified Cumulative Payment. This one-time payment is introduced to register the activities of self-employed persons and replaces 4 mandatory payments. For UCP payers the minimum rates for income tax and social payments are set at 1 MCI (2,525 tenge) for cities of republican significance, the capital and of regional significance, and two times lower at half the MCI (1,263 tenge) for residents of other settlements.

The report of the representatives of the State Revenue Committee on the new risk management system arouse the audience’s interest. Many taxpayers in Kazakhstan have already received information on their “Taxpayer’s Cabinet”, on how they are categorized in terms of risks (high, medium or low). Saule Baimagambetova, the Head of the Awareness-Raising Administration of the State Revenue Department for Astana, told in detail about what transparent criteria are used in the RMS and how they are calculated.

Also during the event, the issues related to the use of new digital services, such as “Electronic Agreements”, online cash registers and other innovations that taxpayers have faced since the beginning of this year were raised.

The Forum participants had an opportunity to listen to thematic reports on the program “1C: Enterprise” from the representatives of the company “1C Kazakhstan” and dealer companies.

We would like to remind that the Forum “1C” for accountants and heads is held by the Representative office of “1C” in Kazakhstan on an annual basis. This year it is dedicated to changes in the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code) from January 1, 2019 and current issues regarding the submission of annual reports for 2018.

Accountants, financial directors, auditors and other representatives of large companies, government organizations and businesses took part in the Forum’s work.

Director of “1C Kazakhstan” Dmitriy Godun emphasized the current situation and shared his plans for the development of the company “1C” in Kazakhstan in 2019: “The company “1C”, as one of the main suppliers in the market of software products for the financial sector, is seeking to respond in a timely manner to all changes made to the legislative acts of the Republic of Kazakhstan. And this year, many modules of our products have been adjusted, according to changes in the Tax Code. It is very important for us that our end users are aware of all these changes. Therefore, we created this unique dialogue platform, where all interested parties can directly ask each other questions and discuss problematic issues”, he noted.

For more information, please contact the Representative office of “1C” in Kazakhstan by: 8 (7172) 76 98 56, +77015263050, e-mail: media@askredpoint.com

Press Service

of the State Revenue Committee MF RK

(Zhenis Ave, 11)