NEWSFLASH

2022 STATE GENERAL BUDGET

 

2022 STATE GENERAL BUDGET

Through Law 32/21, of December 30th, was approved the 2022 State General Budget (OGE 2022). Besides approving the OGE 2022, such Law introduced some tax changes, being the main ones:

i. Reduction of the VAT rate to 7% on hotel and restaurant services, if certain conditions are met by the service provider

ii. Reduction of the VAT rate to 5% and 7% on the importation and transmission of some goods, as per Table annex to the above referred Law

iii. International air transportation services and real estate rents are excluded of the application of the 7% stamp duty on the receivables of VAT exempt operations

iv. Manufacturing Industry taxpayers are mandatorily liable to the rules of the VAT general regime

v. The cost with the VAT not deducted under the rules of the VAT Code is also not deductible for Corporate Income Tax purposes

vi. Social Gambling prizes equal or lower to Kz 250,000.00 are exempt of the Special Gambling Tax. The remaining are taxed at a 20% rate

vii. Gaming and betting prizes are taxed at a fixed rate of 15%

viii. Granting of economic benefits to Authorized Economic Operators on importation, and possibility of paying certain customs debts in installments

ix. During 2022, the Corporate Income Tax rate for services provided by non-resident entities to resident ones is of 6.5% (withholding tax)