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

Article 683. Conditions for the application of a special tax regime

1. For the purposes of this Code, individual entrepreneurs and resident legal entities of the Republic of Kazakhstan, applying a special tax regime for small business entities, are recognized as small business entities.

2. A special tax regime for small business entities may be applied by taxpayers that meet the following conditions:

1) the average number of employees in a taxable period does not exceed for a special tax regime:

on the basis of the simplified declaration - 30 people;

with a fixed deduction - 50 people;

2) income for a taxable period shall not exceed for a special tax regime:

based on a patent or using a special mobile application - 3,528 times the monthly calculation index established by the law on the republican budget and effective as of January 1 of the corresponding financial year;

on the basis of the simplified declaration – 24 038 times the monthly calculation indexes established by the law on the republican budget and effective as of January 1 of a relevant financial year;

with a fixed deduction – 144 184 times the monthly calculation indexes established by the law on the republican budget and effective as of January 1 of a relevant financial year;

In this case, the income indicated in the Sub-paragraph tree of part one of Paragraph shall not include income within 70 048 times the monthly calculation indexes established by the law on the republican budget and effective as of January 1 of the relevant financial year, received by an individual entrepreneur by bank transfer with mandatory using a three-component integrated system.

3) not carrying out the following activities:

production of excisable goods;

storage and wholesale of excisable goods;

sale of certain types of petroleum products - gasoline, diesel fuel and fuel oil;

conducting lotteries;

Note!

Paragraph six of subparagraph 3) of paragraph 2 shall be suspended until 01.01.2026 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI and during the period of suspension this paragraph shall be valid in the following edition.




subsoil use (with the exception of subsoil use activities carried out under a mining license);

collection and reception of glassware;

collection (procurement), storage, processing and sale of scrap and waste of non-ferrous and ferrous metals;

consulting and (or) marketing services;

activities in accounting or auditing;

financial, insurance activities and intermediary activities of an insurance broker and an insurance agent;

activities in the field of law, justice and judicature;

rent and operation of the trading market;

sublease of trade facilities related to trade markets, stationary trade facilities of category 1, 2 and 3 in accordance with the legislation of the Republic of Kazakhstan on the regulation of trade activities, as well as trade places, trade facilities and public catering facilities located on their territory;

activities of two or more taxpayers in the provision of hotel services on the territory of one hotel or a separate non-residential building in which such services are provided;

activities under financial leasing.

3. Individual entrepreneurs and legal entities providing services based on agency contracts (agreements) shall not be entitled to apply a special tax regime based on a patent, a simplified declaration or using a special mobile application.

For the purposes of this paragraph, agency agreements (contracts) are understood to mean civil-law agreements (contracts) concluded in accordance with the legislation of the Republic of Kazakhstan, under which one party (agent) undertakes, on a fee basis, to perform certain actions on its own behalf on the instructions of the other party, but for the money of the other party, or on behalf and for the money of the other party.

4. Not entitled to apply a special tax regime for small business entities are:

1) legal entities with structural units;

2) structural units of legal entities;

3) taxpayers with other separate structural units and (or) taxable items in different populated localities.

For the purposes of taxation of persons applying special tax regimes, another separate structural unit of the taxpayer is recognized to be a territorially separate unit with stationary workplaces performing part of its functions. A workplace is considered to be stationary if it is created for at least one month.

The provision of this subparagraph does not apply to taxpayers engaged only in leasing out (renting) property;

4) legal entities with more than 25 percent of participatory interest of other legal entities;

5) legal entities, whose founder or participant is at the same time a founder of or a participant in another legal entity applying a special tax regime or tax treatment;

6) non-commercial organizations;

7) payers of the gambling business tax.

5. For the purposes of this article, the marginal income of an individual entrepreneur shall consist of:

1) a taxable item identified in accordance with Article 681 of this Code;

2) income in the form of increase in value, specified in Article 330 of this Code, arising in connection with the sale and transfer to the authorized capital of property that is fixed assets of the individual entrepreneur;

3) income determined in accordance with Article 366 of this Code.

6. For the purposes of this article, the marginal income of a legal entity shall consist of:

1) a taxable item identified in accordance with Article 681 of this Code;

2) total annual income with account of the adjustments provided for in Article 241 of this Code, determined in accordance with Section 7 of this Code.

7. An individual entrepreneur that is a small business entity in accordance with this article, when applying a special tax regime for small business entities is entitled to maintain tax accounting in a simplified manner provided for by this Section.

Footnote. Article 683 as amended by the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI (shall be enforced from 01.01.2019); dated 02.04.2019 No. 241-VI (shall be enforced from 01.01.2019); dated 24.06. 2021 No. 53-VII (shall come into effect from 01.01.2022); dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2023); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).