According to the State of the Nation Address of the President Kasym-Jomart Tokayev dated 2 September 2019 “Constructive Public Dialogue – The Basis of Stability and Prosperity of Kazakhstan”, the state and society are expected to face important socio-economic changes.
In particular, the President’s Address proclaims important changes in the sphere of support of micro- and small business of Kazakhstan as follows:
“I instruct the Government to develop a legislative framework to exempt micro and small business companies from paying income tax for a period of three years.
Corresponding amendments to the legislation should enter into force from 2020.
My decision for a three-year ban on inspections of micro and small business entities will come into force from January 2020”.
We believe that, in the near future, appropriate amendments will be made to the legislation, taking into account the instructions that the President of the Republic of Kazakhstan gave to the Government.
Further, in his Address, the President noted that “The Government should also pay attention to the growing volume of social contributions.
On the one hand, they ensure the stability of social and pension systems.
However, there are risks that employers will lose incentives to creating jobs and increasing wages. Businesses will go into the shadow.
Therefore, I instruct the Government to postpone the introduction of additional pension contributions in the amount of 5% until 2023. We will then return to this question”.
As it is known, along with obligatory pension contributions, the regulations concerning the payment of obligatory pension contributions of the employer were supposed to be enacted in the Republic of Kazakhstan from 1 January 2020. We believe that, in connection with the aforementioned order of the Head of State, appropriate amendments will be made to the legislation regarding the postponement of obligatory pension contributions of the employer until 2023.
This material was prepared on the basis of information from the Official Site of the President of the Republic of Kazakhstan: