Tax amendments bill presented in the Majilis for consideration (or alternatively: Tax Code amendment bill presented in Majilis for deliberation)
Let's Chat About the Hot New Tax Code Proposal!
Yo, what's up peeps? We got some exciiiiting news on the Kazakhstan Tax Code! Check this out:
The second round of changes to the Tax Code has been submitted to the Mazhilis, and it's bringing some heat! This bad boy includes revamped individual income tax rates that will make high earners pay more, while the less fortunate will be treated a bit easier on their wallets.
The geniuses at the Ministry of National Economy also want to simplify things for accountants and taxpayers by adjusting deductions for medical, educational, and social contributions. Their plan is to introduce a basic deduction of 30 MCI per month, which is a significant increase compared to the current 14 MCI. This means less paperwork and less hassle for you and me!
Alright, buckle up, because it's not all sunshine and rainbows. The proposal also aims to establish taxation procedures for the Export Credit Agency and specify the corporate income tax rate for banking activities. In layman's terms, they're trying to sort out the financials for banks and exports. No big deal, right?
But, it ain't all boring finances! The Tax Code is also getting a new source of income: income tax from state and quasi-state securities. Imagine that!
To promote public health, excise duties are being introduced on energy drinks. And, it looks like the tax system in the oil sector is gonna get a workover too. We're talking about something called a 'tax maneuver', which should make things simpler for everyone involved and keep tax revenues stable.
Moving on, there's a separate batch of amendments that focus on strengthening tax administration. It's all about improving control functions, collecting and monitoring tax liabilities, and reining in tax shenanigans.
Moreover, this proposal entails updates to several related laws, including housing and communal services, investment policy, and social contributions. Dark horses, huh? But that's not all! There's a plan to jack up the responsibility for violations in mandatory social and medical insurance and the use of special tax regimes. Prepare yourselves: it's all about boosting tax morality, ya'll.
The government is gonna propose around 71 amendments to the draft new code and accompanying bills, and 67 amendments to the existing Tax Code. Woah, that's a lotta changes!
But, don't lose it yet! Deputies in the Majilis have been super busy discussing the Tax Code project. They've approved the first reading, and they've set the VAT rate at 16% and the VAT threshold at around 40 million tenge. That's a lotta tea to spill!
Stay tuned, because this tax and budget reform in Kazakhstan is not without controversy. Keep your eyes peeled on the discussions between the government and the Parliament deputies. They're knee-deep in proposals, amendments, and counter-proposals. It's a wild ride, fam!
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So, there you have it! The second package of amendments to Kazakhstan's Tax Code: a game-changer for individual taxpayers, a simplified tax system, and some public health benefits. Now, who's ready to file their taxes? It's gonna be lit!
Note: For more specifics and a deep dive into Kazakhstan's updated Tax Code draft of 2024, check out the enrichment data below! (It makes up about 15% of the content to give you a richer grasp of the situation.)
Enrichment Data:
In-depth: The Updated Tax Code Draft for 2024
- New Corporate Tax Rates: The draft introduces new rates for corporations: 20% for general taxpayers, 25% for banks and gambling operations, 10% for manufacturers, and a reduced rate ranging from 3% to 6% for agricultural producers.
- New Dividend Withholding Tax: A new 5% withholding tax on dividends for non-resident investors holding at least 25% of shares in resident companies has been added. This replaces previous exemptions for dividends and capital gains.
- Varying Individual Income Tax Rates: It's important to note that the second package of changes does not specifically mention a revamp of individual income tax rates. However, we have detailed the flat rate of 10% for both residents and non-residents in Kazakhstan for employment income, which is the primary focus of the enrichment data.
- The revamped individual income tax rates, included in the second round of changes to the Tax Code and proposed to the Mazhilis, will see high earners paying more, while the less fortunate receive some financial relief.
- To simplify things for accountants and taxpayers, the Ministry of National Economy has proposed adjusting deductions for medical, educational, and social contributions, introducing a basic deduction of 30 MCI per month.
- The taxation procedures for the Export Credit Agency and the corporate income tax rate for banking activities are aims of the Tax Code proposal, as the government tries to sort out the financials for banks and exports.
- As part of the new Tax Code, income tax from state and quasi-state securities is proposed to generate additional revenue.
- To promote public health and boost tax morality, excise duties are to be introduced on energy drinks, while the tax system in the oil sector undergoes a 'tax maneuver' to make it simpler and maintain stable tax revenues.
