Tokayev orders review of business concerns over new Tax CodePresident Kassym-Jomart Tokayev has instructed the government to closely examine business complaints about the implementation of several provisions in the new Tax Code, the presidential press service said.“I am receiving appeals from businesses regarding the implementation of certain provisions of the new Tax Code. Their substance is well known and has been covered in the media. The government will conduct a thorough review and, I believe, will find a reasonable balance. In fact, there is no alternative. This is a matter of national importance,” the press service quoted Tokayev as saying at the award ceremony for the Altyn Sapa and Paryz laureates and winners of the national Best Product of Kazakhstan competition.The president said particular attention must be given to improving tax administration. “Using digital tools to address this issue will resolve many of the concerns troubling entrepreneurs,” he said.Tokayev also stressed the importance of the planned launch next year of a register of Kazakhstani producers and a national goods catalog. “These innovations should help eliminate problems, including cases where some enterprises receive unjustified advantages in public procurement tenders,” he said.He instructed the government, together with the Atameken Chamber, to ensure that “the new provisions are implemented without harming the business community” by the end of this year.In July of this year, President Tokayev signed the new Tax Code, which provides for a large-scale simplification of tax administration: tax reporting will be reduced by 30%, the number of taxes will be cut by 20%, and benefits and fees will be optimized. Significant changes affect all key areas - from corporate and individual income taxes to investment incentives and the redistribution of the tax burden.The base value-added tax (VAT) rate was increased to 16%, up from the previous 12%. However, a reduced VAT rate of 5% (starting in 2026) and 10% (from 2027) was set for medicines and medical services.VAT exemptions will apply to services under the guaranteed volume of free healthcare and mandatory health insurance, treatment of orphan and widespread diseases included in the government-composed list, as well as paper-based publishing services and archaeological work.A reduced VAT rate of 10% will apply to periodical printed publications. The mandatory VAT registration threshold was lowered to 10,000 monthly calculation indexes (MCI), down from 20,000 MCI.Progressive rates for individual income tax (IIT) were introduced. The base IIT rate remains at 10%. A higher rate of 15% will apply to citizens' aggregate annual income exceeding 8,500 MCIs. A similar rate will apply to dividends and entrepreneurs' income exceeding 230,000 MCI per year. For farmers, while maintaining a 70% tax benefit, the rate on income above this threshold will be 4.5%.The number of taxes was reduced: the land tax was abolished, and the number of rates and fees for certain payments was cut.Special tax regimes were optimized to amount to only three vs. previous six: for self-employed, based on a simplified declaration procedure, and for farming enterprises.The corporate income tax (CIT) remains at 20%, but differentiated rates were introduced: 25% for banks (except for business lending) and the gambling industry, 5% for social sector organizations in 2026 (increasing to 10% in 2027). For agricultural producers, the preferential rate of 3% was maintained.To stimulate the stock market, tax benefits on dividends from exchange-traded securities were retained. Income from securities issued by the Baiterek Holding will be exempt from CIT until 2031.Additional preferences are now provided for mineral processing and geological exploration, including a zero mineral extraction tax (MET) rate for five years for new low-profit deposits.Significant changes were made to tax administration. In-house tax audits will take on a preventive nature. Procedures for tax debt collection, deferrals and installment plans were simplified. For minor debt amounts, business accounts will not be blocked. Notifications and measures will be applied gradually, depending on the debt amount.The new Tax Code will come into force on January 1, 2026.In 2025, one MCI is set at 3,932 tenge. (ICE ALMATY)

Fonte notizia: INTERFAX