The Ak Zhol party discussed approaches to the new Tax Code.
The meeting was attended by Minister of National Economy Alibek Kuantyrov, Vice-Minister of National Economy Azamat Amrin, deputies of Majilis, representatives of the Ministry of Finance, and entrepreneurs, DKNews.kz reports.
This comprehensive work is carried out as part of a Working Group created under the country's Government with public engagement, a wide range of experts, and representatives of the business community.
The meeting presented the main conceptual issues of the new Tax Code. At the moment, the basic approaches have been developed.
The first approach – encourage businesses to expand their tax base.
Tax incentives will be aimed at obtaining a real multiplier effect. For example, if a company has a preferential tax regime, it must create new jobs, make new investments, increase local content, etc.
The second approach–shift the burden to higher-income industries and enhance the return from the upper-income brackets. This will ensure a fair distribution of the tax burden.
The third approach - compliance with international practice. It is proposed to implement the international practice of income taxation, including non-residents, as well as the distribution of the burden by industry.
In addition, in order to improve the effectiveness of tax incentives, it is proposed to switch to differentiated tax rates in different sectors of the economy.
In particular, it is proposed to differentiate VAT rates only for certain industries or to provide point incentives to reduce the amount of tax, while maintaining the current tax rate.
In terms of CIT, an increase in the tax rate for the commodity and financial sectors is being considered.
Additionally, the head of state noted the need to introduce a mechanism of reduction or exemption from CIT on profits aimed at technological modernization and scientific development.
Current legislation provides an exemption from CIT on reinvestment of profits. This norm applies only to small businesses in the manufacturing industry. At the moment the expansion of this norm to medium-sized businesses is being discussed.
