Kazakh PM discusses tax reform with experts and business representatives

Kazakh PM discusses tax reform with experts and business representatives

A big data analysis system will be introduced in Kazakhstan. Currently, 55 state databases have been uploaded, and their number is expected to increase to 100 by yearend. According to the Finance Ministry, digital profiles of taxpayers have already been created for 569,000 legal entities and over 1.8 million individual entrepreneurs. Digital solutions allow access to comprehensive data on taxpayers, including salary funds, the number of temporary workers, and taxable objects. As part of the tax reform, there are proposals to strengthen control over business registration. Measures for identifying entrepreneurs through Face ID are being considered. Plans include verifying information to minimize risks associated with registering businesses with front individuals. Work is also underway on biometric identification in the electronic invoicing system for high-risk taxpayers. Online trading platforms are also being registered for tax purposes—101 have already been registered, including Temu, Pinduoduo, and Alibaba Group.

«At the Prime Minister’s meeting with business representatives, I presented digital solutions and projects of the Finance Ministry, particularly in the area of tax administration. As an example, the e-Tamga project was showcased, which provides for VAT administration. This project allows for the blocking of the issuance of electronic invoices (ESF) for high-risk taxpayers or companies with unverified legitimate expenses or negative balances. With the new Tax Code, the Ministry is ready to take all necessary actions regarding digital solutions to support all required projects, including VAT administration,» noted Kazakh Vice Minister of Finance Asset Turyssov.

According to Prime Minister Olzhas Bektenov, as part of the implementation of President Kassym-Jomart Tokayev’s instructions, the proposed measures are being actively discussed with the public, businesses, and experts. Working groups, led by vice ministers of the Ministry of National Economy and the Ministry of Finance, met with entrepreneurs from nearly all regions, collecting proposals for analysis and processing. Experts also noted that the differentiated VAT and the reduction of the registration threshold would decrease dependence on the National Fund and direct additional funds towards infrastructure development. It is also proposed to reduce the number of special tax regimes from 364 types of activities to 40.