New tax code to be ideologically different - Dalenov

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ASTANA. KAZINFORM The new tax code of Kazakhstan will have a different ideology, the First Deputy Minister of National Economy Ruslan Dalenov said during the "round table" discussing "Prospects of tax and customs administration" in the Majilis, Kazinform correspondent reports.  

"The new Tax Code will have a completely different structure, new ideology, and its presentation will be easy. It will also contain measures on shadow economy. Thus, a number of benefits will be systematized, and subsoil use will receive incentives. In addition, a number of requirements for small and medium-sized businesses and agro-industrial complex subjects are eased, and an additional regime is proposed on an alternative basis. Thus, administrating will become simple and motivation will become a priority. These are the main distinguishing features of the draft of the new Tax Code," said Ruslan Dalenov.

According to him, the ideology of the new Tax Code stipulates that all ambiguities and inaccuracies will be interpreted in favor of the taxpayer, and fines and penalties will no longer be imposed, in cases when the tax authorities incorrectly explain the Tax Code. He also noted that there will be stronger requirements for justification of additional charges. In addition, business will be given more time to study the changes in the Tax Code. The amendments will be accepted no later than July 1. There will also be a ban on amending it with accompanying laws.

With regard to measures to combat shadow economy, the Minister noted that it is planned to reduce the tax burden on specific industries and in individual cases. Electronic invoices will be introduced, tax regimes and universal declarations will be interlinked, BEPS recommendations will be implemented, "double tax exemption" will be eliminated, when a taxpayer moving profits from one country to another does not pay taxes in any of them.

As for tax benefits, according to Ruslan Dalenov, ineffective VAT benefits will be abolished. And for subsoil users, for example, working in new offshore and super-deep fields, a number of taxes will be replaced by a single payment of heir choice.

Action Plan on Base Erosion and Profit Shifting (BEPS) was approved on June 25, 2013, at a meeting of the OECD Committee on Tax Matters.

 

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