Further tax measures due to COVID 19

Special edition №47

In detail:

The following categories of taxpayers are exempt from payroll taxes social
payments due from 1 April until 1 October 2020 (for micro, small, med ium sized businesses) and from 1 April until 1 July 2020 (for large businesses)
(Government Decree No. 224*, 20 April 2020 (the “Decree")):

Taxes and social payments	Until 01 April 2020	From 01 April to 01 July and 01 October 2020	Who is eligible for the exemption?
Individual Income Tax (IIT)	10,0%	0,0%	Individuals engaged in private practice Micro, small, medium sized businesses carrying out activities according to the list of activities approved by the Governmet Appendix No. 1 to Government Decree No. 224); Large businesses carrying out activities according to the list of activities approved by the Government Appendix No. 2 to Government Decree No. 224).
Obligatory Pension Contributions (OPC)	10,0%	0,0%
Employee Contributions to Obligatory Social Medical Insurance	1,0%	0,0%
Social Tax	9,5%	0,0%
SocialContributions	3,5%	0,0%
Employer Contributions to Obligatory Social Medical Insurance	2,0%	0,0%

A full list of activities exempt from payroll taxes / social payments is available at: https://primeminister.kz/ru/decisions/20042020 224

In addition, the Decree provides the following:

zero coefficients of property tax rates for the period of 1 April 2020 1 October 2020 for:
- flight strips at aerodromes and airport terminals;
- entities engaged into private practice.
extension of RC VAT payment on ( i ) technical maintenance services and (ii) legal support of aircrafts leasing for Kazakhstan tax residents engaged into air passenger transport activities. Such RC VAT should be paid before 1 January 2021 and, if paid, could be taken for offset in a period when purchase of respective services is recognized as VATable turnover;
extensions of the deadline for submitting tax reports for 2019 tax obligations from 31 March 2020 to 31 May 2020.