Dear Taxpayers of the Republic of Kazakhstan,
Please be reminded that the deadlines for payment of the below taxes and payments expire in May 2020 on the following dates:
5 May 2020:
- Personal Income Tax (PIT) on income of persons engaged in private practice (private notaries, private bailiffs, lawyers, professional mediators) received in April 2020.
20 May 2020:
- Value Added Tax (VAT) in the Eurasian Economic Union for April 2020;
- Excise for the legal entity itself and its structural units for April 2020;
- Levy for discharges to the environment, redemption of the standard limit for total annual payment up to 100 MRI[1] (if the permit was issued in April 2020);
25 May 2020:
- Corporate Income Tax (CIT), advance payments for May 2020;
- CIT withheld at source from income paid in April 2020;
- CIT withheld at the source of payment on income accrued in April 2020: income of non-resident legal entities – paid and within amounts of advances paid, non-residents’ income from RoK[2] sources from capital gains;
- PIT on income of non-resident individuals, foreigners or stateless persons.
- PIT withheld at source from income paid in April 2020;
- PIT withheld at source from capital gain income of non-resident individuals from sources in the RoK;
- VAT for 1 Quarter 2020;
- Rental Tax on Export for 1 Quarter of 2020;
- Payment to recover historical costs if the amount of the payment exceeds 10,000 MRI for 1 quarter of 2020;
- Minerals Extraction Tax for 1 quarter of 2020;
- Royalty, mining bonus, share of the RoK on production sharing arrangement, additional payment of a subsurface user performing operations under a production sharing contract for 1 quarter of 2020;
- Current payments towards payment of taxes in kind for 1 quarter of 2020;
- Social tax for April 2020;
- Land Tax, current payment due not later than 25 May 2020;
- Property Tax, current payment due not later than 25 May 2020;
- Tax on gaming business for 1 quarter of 2020;
- Levy for the use of radio-frequency spectrum
- paid by foreigners, stateless persons and non-resident legal entities that do not carry out any activities in the RoK and not registered as taxpayers of the RoK, if a permission was obtained in April 2020;
- Levy for the Use of Land Plots:
- current payment due not later than 25 May 2020;
- by an individual for land plots received for paid land use and not used in entrepreneurial activities, in the event that a temporary paid land use contract was concluded in April 2020;
- if the temporary paid land use contract expires or is terminated in April 2020;
- the amount of subsurface users’ fee for the actual effective period of the license for exploration or extraction of solid minerals if its period expired in the 1st quarter of 2020 and after the 1st of February;
- Levy for the placement of outdoor advertising for May 2020;
- Levy for the use of surface water resources, current payment for 1 quarter of 2020;
- Levy for discharges to the environment, current payment on pollution objects for payers with the total annual amount of payments equal to or exceeding 100 MRI, on movable pollution sources for 1 quarter of 2020
- Obligatory Pension Charges:
- withheld from income paid to employees and to individuals under civil-legal contracts for work, services in April 2020;
- paid in their own favour by IEs[3] working under the generally established regime and under the special tax regime on the basis of a simplified declaration, by peasant farms, private notaries, private bailiffs, advocates and professional mediators on income received in April 2020;
- paid by an insurance company if an insurance payment was made in April 2020;
- Obligatory occupational pension charges assessed on income paid to employees in April 2020;
- Social assessments for April 2020;
- Obligatory social medical insurance charges and contributions on income paid in April 2020.
Notes: Please note that for the implementation of instructions of the Head of State in terms of securing the social and economic stability (RoK President Edict #287 dated 16 March 2020), the RoK Government provided for a number of measures to support entrepreneurs.
In particular: According to the Decree of the RoK Government #126 dated 20 March 2020, a “0” correction factor has been introduced for a period until 31 December 2020 inclusive, to the rates of:
1) Tax on property of legal entities and individual entrepreneurs in large retail facilities, shopping and entertainment centres, cinemas, theatres, exhibitions, sports and fitness facilities;
2) Land tax on agricultural lands of agricultural producers;
3) PIT from IEs working under the generally established tax regime.
When the “0” correction factor is applied to the tax rates, the tax base, taxable items, tax period and the fulfilment of tax liabilities shall be determined in the manner established by the RoK Code “On Taxes and Other Obligatory Payments to the Budget” (Tax Code) #120-VI ZRK dated 25 December 2017.
According to the RoK Government Decree #141 dated 27 March 2020.
- For the period until 1 October 2020, a VAT rate of 8% applies when committing turnovers for the sale and import of goods included in the list of socially significant food products, approved by the RoK Government Decree #145 dated 1 March 2010.
- For the period until 31 December 2020, producers of excisable goods on the territory of the RoK are exempted from payment of excise taxes in respect of petrol (except for aviation petrol), diesel fuel to be sold for export.
- For year 2020, the “0” coefficient is set to be applied to the rates of tax on property of legal entities and IEs for taxable items used in entrepreneurial activities in the sphere of tourism, public catering and hotel services.
- The taxpayers classified as micro, small or medium-sized enterprises in accordance with the Entrepreneurial Code of the RoK are granted a deferment for the payment of all taxes and other obligatory payments to the budget, as well as social payments until 1 June 2020;
Please keep in mind that the category of micro, small or medium-sized enterprises in accordance with the Entrepreneurial Code of the RoK includes taxpayers, whose average annual number of employees is no more than 250 people and the average annual income for the last 3 years does not exceed KZT 7,953,000,000.
According to the RoK Government Decree #224 dated 20 April 2020:
- The ‘0’ correction coefficient was established to be applied to the rates of the following taxes and social payments:
- PIT withheld at the source of payment;
- PIT paid independently by a person engaged in private practice;
- social tax, obligatory pension charges, obligatory professional pension charges, social assessments, charges and contributions for obligatory social medical insurance, with the exception of those paid by IEs in their own favour.
The provisions of this paragraph shall apply to the following taxpayers and their employees:
- private practitioners and micro, small or medium-sized business entities carrying out activities specified in the list of activities in accordance with Appendix 1 to the Decree, with respect to obligations for which the payment (transfer) deadline occurs within the period from 1 April to 1 October 2020;
- large-scale business entities carrying out activities specified in the list of activities in accordance with Appendix 2 to the Decree, with respect to obligations for which the payment (transfer) deadline occurs within the period from 1 April to 1 July 2020.
- For the period from 1 April 2020 to 1 October 2020, the ‘0’ correction coefficient was set to be applied to the rates of Property tax:
- on runways at aerodromes and airport terminals;
- for persons engaged in private practice.
- The taxpayers-residents of the RoK engaged in the activity of air passenger transport are granted a deferment until 1 January 2021 on the payment of the assessed VAT for non-residents for the technical maintenance and legal support of aircraft leasing transactions.
[1] Minimum Reference Index. In 2020 one MRI comprises KZT 2,778.
[2] Republic of Kazakhstan.
[3] Individual entrepreneur.
