Kazakh minister warns AIFC risks becoming domestic offshore zone, causing tax losses (Part 2)Kazakhstan’s Astana International Financial Centre (AIFC) risks turning into a domestic offshore zone, leading to significant tax losses, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin said Monday."The government is in talks with AIFC leadership over the issue, as some companies have relocated their headquarters to the AIFC via holding structures, allowing them to avoid paying corporate income tax and VAT," Zhumangarin said at a Senate plenary session. He cited one case where the budget lost more than 200 billion tenge.“This is becoming an alarming trend that we need to stop,” he said, adding that while companies may operate within the AIFC, the country should not lose tax revenue as a result.Later, speaking to reporters, he said that the government plans to prohibit companies that are registered in special economic zones (SEZs) from receiving additional tax benefits from the AIFC."If a legal entity is already registered in an SEZ in Kazakhstan and enjoys tax incentives, it should not be able to get registered with the AIFC and receive further benefits. We will discuss this matter with the National Bank and regulators," he said.The Astana International Financial Center (AIFC) was organized to attract investment into Kazakhstan. The AIFC enjoys special taxation, currency and visa regimes and headquartered in the capital of Kazakhstan. The AIFC started registration of companies in January 2018. (ICE ALMATY)

Fonte notizia: INTERFAX