The Commissioner for the Protection of the Rights of Entrepreneurs of Kazakhstan, Mr. Rustam Zhursunov proposed to support large strategic enterprises during the state of emergency. He introduced this initiative to the Government of the Republic of Kazakhstan.
“We have proposed the possibility of revising tax standards, so that the Tax Code provisions related to a simplified refund of excess VAT could be extended to all large businesses, as well as increasing the refund limit up to 90%”, – Rustam Zhursunov informed.
In his Facebook account, Rustam Zhursunov shared his suggestions for supporting the large business during the state of emergency:
“We began to receive appeals from large business entities. They sound the alarm due to the great financial pressure on credit, tax and salary obligations and ask for help from the Government.
Formerly, all support measures were actually addressed to small and medium-sized enterprises. So it was they who were among the first victims of quarantine restrictions.
A significant part of large business is export-oriented. And now it is under pressure from global economic trends, such as lower world prices and lower consumption. A significant barrier to the development of the export potential is the problem of refunding the excess VAT to export-oriented enterprises.
Supporting large businesses will provide an opportunity not only to keep enterprises afloat at the moment, but also to save the economy after the end of the crisis period.
We came up with an initiative to the Government that support measures should be launched for large backbone enterprises.
We have proposed the possibility of revising tax norms, so that the Tax Code provisions related to a simplified refund of excess VAT could be extended to all large businesses, as well as increasing the refund limit up to 90%.
It was also proposed to provide for measures to support large businesses in terms of suspending restrictive measures (except for checks on excess VAT refunds) and checks on transfer pricing, performed by state revenue authorities, as well as postponing deadlines for transfer pricing reports.
It would be reasonable to reduce the tax burden on the wage fund depending on a decrease in the size of income and/or a drop in amounts of VAT turnovers. For example, a correlation between the decline in VAT turnovers in the gradation of 30% – 50% – 80% and the corresponding reduction of tax burden on the wage fund.
In addition, to reduce the administrative burden on entrepreneurs, the following support measures were proposed to be considered:
– postponement, until 31 December 2020, of the deadlines for the submission of residency certificates issued for the 2019 tax period by non-residents to tax agents and, accordingly, by tax agents to the tax authorities, for the lawful application of the international double tax treaties;
– introducing, till the end of the year, the procedure for an independent automatic application of the reduced tax rates on minerals extraction for low-profitable deposits;
– postponement of the country-wide introduction of consignment notes for goods from 1 July 2020 to 1 January 2022;
– granting a deferment and/or installment plan for the payment of taxes without requiring a bank guarantee due to the difficulty of obtaining it.
For my part, I believe that the adoption of the proposed measures will enable entrepreneurs to feel state support, which will allow them to overcome the existing financial circumstances and save jobs.
I want to note that entrepreneurs will not be left face to face with problems. In case of questions, any entrepreneur can contact the office of the business ombudsman.”