World Monitor Magazine WM_5 | Page 18

DESTINATION KAZAKHSTAN activities and grant tax benefits, for land tax and property tax from the moment of registration. It is proposed to extend the extraterritoriality regime for the SEZ "PIT" members for a period up to 2028. Also, for SEZ "PIT" participants, the conditions for the social tax will be bound to the cost ratio of labor payment to general expenses. 11 Optimization of benefits and payments In order to modernize benefits, it is proposed to increase their effectiveness through particular changes. To specify, the collection of auction fees and payments for use of navigable waterways are abolished, since the state does not provide services and permits in these cases. It is proposed to abandon a number of benefits. These include the release of turnover on the services of slot machines, the implementation of lottery tickets, state postal payment signs, import of postage stamps. Also, privileges that contradict the requirements of the WTO are canceled, since according to the requirements of the WTO, equal conditions for taxation should be applied for goods of domestic production and import. 12 Social sphere In order to address the issue of increasing the financial burden on business, it is proposed to reduce the social tax rate from 11% to 9.5% by decreasing the rate of contributions to the state social insurance fund. 16 world monitor To support the socially vulnerable layers of the population, there are stipulations for land tax benefits, registration fees, and state duty for parents of disabled children. It is proposed to exempt from VAT the services of sports organizations provided at the expense of the budget. In order to reduce the financial burden on citizens, the state fee for registration of residence is excluded. There is also a provision for terminating the calculation of the tax on vehicles that have been stolen. 13 Administration It is proposed to practice a three-vector administration, the introduction of horizontal monitoring, a control account of VAT, reducing the number of reasons for inspections and other changes. Also, the norms related to ‘pseudo business’ have been revised, including the exclusion of norms that entail the addition of CIT and VAT to bona fide counterparties according to schemes similar to pseudo- enterprises. Due to the fact that some aspects of the new law come into effect at various stages, a draft law on the enactment of the Tax Code has been developed, providing for transitional necessary strategic norms. Also, a draft law with amendments and additions to some legislative acts has been drafted, since it is necessary to bring the norms of the new Code and other laws in line. These are the main tax amendments. A new ideology, new incentives and new methods of administration lay the foundation for qualitative improvements. With the adoption of tax innovations, tax disputes will decrease, the number of inspections will be reduced, and administration simplified. Processing raw materials will receive incentives, lending will be supported, agribusiness and SMEs will receive convenient regimes. The tax policy as a whole will become clear and predictable.