World Monitor Magazine WM_Energy 2017 - Page 14

DESTINATION KAZAKHSTAN draft for the new tax code of Kazakhstan In regards to the implementation of the instructions of the Head of State, given in Steps 44 and 45 of the Nation's Plan "100 concrete steps", messages to the people of Kazakhstan dated 30 November 2015 and as of 31 January 2017, as well as at the expanded government meeting of 3 January 2017, the Ministry of National Economy drafted a new Tax Code jointly with the line ministries and in close cooperation with the business community. In general, the draft Code provides for a change in ideology, the introduction of incentives and simplification of administration. Ideology will be aimed at protecting a bona fide taxpayer. Incentives will be given to various sectors of the economy. Administration will become simpler and will motivate self-payment of taxes. Timur Suleimenov, Minister of National Economy of the Republic of Kazakhstan 1 FIRST. Ideology Ideology will be aimed at protecting the interests of a bona fide taxpayer. First, all ambiguities and inaccuracies will be interpreted in favor of taxpayers. This principle will allow us to treat tax disputes fairly. Secondly, it is proposed to not apply fines and penalties if the taxpayer acted in ac- cordance with the explanation of the tax authority, which subsequently is a change to the position. Thirdly, stronger justifi- cation will be required to add additional charges; currently tax audits must demon- strate appropriate justification. Fourthly, business will be given more time to study legislative changes. The amend- ments are proposed to be accepted no later than 1 July 2018. Fifthly, there is protection from numer- ous amendments during the year. It is proposed that all amendments to be in- troduced should be consolidated into one draft law. This will enable businesses to be aware of all changes to the tax code. Also, the structure of the Tax Code will 12 world monitor change. Each section will be personalized, which means, each type of taxpayer will be classified within its own section. SECOND. Modes for SMEs and agribusiness 2 For the development of small and medium- sized businesses, it is envisaged to main- tain the existing special tax regimes. A new alternative regime is proposed, which is known as a fixed deduction mode. This is beneficial for those who have high turnover but low profit, meaning that half of the earnings can be deducted without confirmation. And if a record of expenses is maintained, there is an opportunity to receive bonuses (deductions) for confirma- tion of expenses. Taxpayers are given the right to choose a regime. For the ‘simplified declaration’ regime, the requirement for the amount of income will be the same, for individuals as for legal en- tities. The current version states that the number of employees should not exceed more than 25 people, with an income of