On taxes and other obligatory payments to the budget (Tax Code)

Article 678. Types of special tax regimes

1. In cases established by this Section, a taxpayer has the right to choose one of the following special tax regimes:

1) special tax regimes for small business entities, which include:

a special tax regime on the basis of the patent;

a special tax regime on the basis of the simplified declaration;

a special tax regime with a fixed deduction;

special tax regime using a special mobile application;

1-1) special tax regime of retail tax;

2) special tax regimes for producers of agricultural products:

a special tax regime for peasant or farm enterprises;

a special tax regime for producers of agricultural products and agricultural cooperatives.

2. Peasant or private farms shall have the right to apply two special tax regimes simultaneously in the case specified in paragraph 4 of Article 703 of this Code.

3. A patent is an electronic document confirming the fact of payment of individual income tax (except for individual income tax withheld at source of payment), social payments.

Footnote. Article 678 as amended and Laws of the Republic of Kazakhstan dated December 10, 2020, No. 382-VI (shall come into effect from 01.01.2021); dated 24.06. 2021 No. 53-VII (shall come into effect from 01.01.2022).



Article 679. The order for the choice of a special tax regime and termination of its application

1. In case of observance of conditions of its application, established for each such regime by this Section, a special tax regime is chosen:

1) by individuals - in a notification about registration as an individual entrepreneur, sent in accordance with Article 79 of this Code;

2) by newly established legal entities - in a notification about the applied tax regime in the form established by the authorized agency, which is submitted to the tax authority within five working days of their state registration with registering authority;

3) when switching to:

a special tax regime on the basis of the patent from the generally established procedure for taxation - in the calculation of the patent value;

other special tax regimes - in a notification about the applied tax regime in the form established by the authorized body.

If a newly established taxpayer has not chosen a special tax regime in the manner specified in part one of this paragraph, by default, such a taxpayer is recognized as that having chosen the generally established procedure for taxation, until he/she/it submits a notification about the applied tax regime.

2. A taxpayer, except for a newly established one, has the right, in case of observance of conditions of its application, to switch to a special tax regime:

1) on the basis of the patent - from the generally established procedure for taxation or a special tax regime for peasant or farm enterprises;

1-1) using a special mobile application - from the generally established taxation procedure, special tax regimes based on a patent, for peasant or farm enterprises;

2) on the basis of a simplified declaration - from the generally established taxation procedure, special tax regimes based on a patent or using a special mobile application, for peasant or farm enterprises;

3) with a fixed deduction - from the generally established procedure for taxation, other special tax regimes for small business entities, and also from special tax regimes for producers of agricultural products;

4) for producers of agricultural products and agricultural cooperatives - from the generally established procedure for taxation or another special tax regime;

5) for peasant or farm enterprises - from the generally established procedure for taxation or another special tax regime;

6) retail tax - from the generally established procedure for taxation or another special tax regime.

In the case established by paragraph 4 of Article 703 of this Code, peasant or farm enterprises indicate all the applied tax regimes in a notification about the applied tax regime.

3. The chosen special tax regimefor agricultural producers may not be changed within a calendar year, unless cases of inconsistency with the conditions of application of the special tax regime, established by this Section for such a tax regime, occur.

4. When transmitting (transferring) from a special tax regime for small businesses to a generally established taxation procedure, a subsequent transition to a special tax regime for small businesses is possible no earlier than one calendar year after applying the generally established procedure.

5. In case of occurrence of conditions preventing the application of a special tax regime, in order to switch to the generally established taxation procedure or another special tax regime, a taxpayer must submit a notification about the applied tax regime within five business days of occurrence of such conditions.

6. A notification about the applied tax regime shall be submitted by taxpayers to the tax authority at the place of their location in paper or electronic form, and also through the “e-government” web portal.

7. A tax authority shall transfer taxpayers to the generally established procedure in case of establishing the fact of taxpayers’ mismatching the conditions established for the application of a relevant special tax regime by this Section.

If such facts are established in the course of an in-house audit, before the transfer to the generally established procedure, tax authorities shall send a taxpayer a notice of elimination of violations found as a result of the in-house audit, or a notification about violations found as a result of the in-house audit in accordance with Chapter 10 of this Code, within the time limits and in accordance with the procedure established by Articles 114 and 115 of this Code.

8. The effective date for the application of a chosen special tax regime is:

1) the date of registration as an individual entrepreneur with tax authorities - for newly formed individual entrepreneurs that indicated the chosen special tax regime in their notification about the commencement of activity as an individual entrepreneur;

2) for newly formed legal entities that have submitted a notification of the applicable taxation regime within the time period established by this Article, - the date of state registration with the registering authority;

2-1) for persons making the transition to a special tax regime using a special mobile application – the date of the choice of a special tax regime using a special mobile application in the notification of the applicable tax regime;

3) the 1^st day of a month following the month of submission of a notification about the applied tax regime - in other cases.

9. In case of switching to a special tax regime in accordance with paragraph 8 of this article, the application of a special tax regime or the generally established procedure for taxation shall be terminated on the last day of the month of submission of a relevant notification about the applied tax regime.

10. When a taxpayer switches (is transferred) from a special tax regime to the generally established taxation procedure in case of occurrence of conditions preventing the application of a special tax regime, the generally established procedure for taxation is deemed to begin to apply on the 1^st day of the month of occurrence of such conditions.

Footnote. Article 679 as amended by the Law of the Republic Kazakhstan №156-VI as of 24.05.2018 (takes effect on 01.01.2018); dated 02.04.2019 No. 241-VI (enforcement see Article 2); dated 10.12.2020 No. 382-VI (shall come into effect from 01.01.2021); dated 24.06. 2021 No. 53-VII (shall come into effect from 01.01.2022); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).

Chapter 77. GENERAL PROVISIONS ON SPECIAL TAX REGIMES FOR SMALL BUSINESS ENTITIES Clause 1. General provisions