Integrites has the honor to bring to your attention the following information, which we hope may be useful in your company activities.
Currently the law of the Republic of Kazakhstan «On the introduction of Amendments to Certain Legislative acts of the Republic of Kazakhstan on taxation issues” is being drafted.
Most of the proposed amendments to the Tax Code intend to establish compatibility with the international obligations arising from the Treaty on the Eurasian Economic Union (EEU Treaty). Herewith the introduction of some amendments is mandatory, and some amendments may be introduced at the discretion of the member – states of the EЕU according to the EEU Treaty. For example, in order to eliminate contradictions between the Tax Code and the EEU Treaty, it is necessary to introduce amendments to the Tax Code regarding the section stating that indirect taxes are not levied during the import into the territory of the Republic of Kazakhstan of goods imported by individuals for purposes other than entrepreneurial activities, and goods imported from the territory of a member - state of the Customs Union in connection with their transfer within the same legal entity (the proposed new paragraph 5 of Article 276-4 of the Tax Code). Also, the Draft law contains an additional norm, not obligatory within the framework of the EEU Treaty, namely, it proposes an obligation of the taxpayer to notify the tax authorities on the import and export of the related goods.
The non-residents should pay attention on the expected amendments providing that the income of non – residents from rendering engineering and marketing services is recognized as taxable income (Art. 192 of the Tax Code). Such amendments are planned to be brought into force from January 1, 2017. At present time, the services provided outside the territory of Kazakhstan, are not subject to CIT (corporate income tax) withholding tax as not being included into the list of income of non – residents from the resources in Kazakhstan.
Annual rates for mobile communication are expected to be increased. Currently, due to the fact that 3G technology equipment allows to work also with 2G, it is more profitable for communications service providers to re – issue license on radio –frequency spectrum in conformity with third generation mobile communications (3G). In the case of the re - issuance of the radio frequency spectrum with 3G the payment is made at a rate of 2200 MCI (monthly calculation index) per 2 MHz (2000 kHz) decreasing by 5 times. In this regard, in order to prevent the reduction of tax revenues to the budget the Draft Law determines the annual fee for the use of the radio -frequency spectrum for the type of communication, called: "cellular communication" 2800 MCI.
We hope that the above information will be useful for you.
For additional information, please contact our firm.
We will be happy to assist.