NEWSFLASH

Recent Legislation

 

2023 State General Budget

By Law 2/23, of March 13th, it was approved the 2023 State General Budget (OGE 2023). Besides approving the OGE 2023, such Law introduced some tax changes, being the main ones:

i. Are included in the VAT Simplified Regime the taxpayers that in the last tax year (before, last 12 months), obtained a turnover or made importations higher than Kz 10 000 000,00 and lower than Kz 350 000 000,00 (clarification rule)

ii. Taxpayers included in the General and Simplified Regime that perform VAT exempt operations, are liable, for such operations, to pay Stamp Duty on receivables, at a rate of 7%. Before, for the taxpayers on the General Regime, such obligation was only applicable if those taxpayers performed exclusively exempted operations, that did not allow the deduction of the VAT supported on the acquisitions made to perform such operations

iii. For air international transportation services and rental of real estate, the above stamp duty rate is of 1%

iv. Manufacturing Industry taxpayers are mandatorily liable to the rules of the VAT General Regime, except if in the last tax year had a turnover or made importations with a value lower than Kz 10 000 000,00

v. It is Clarified that the cost with the VAT not deducted under the rules of the VAT Code, and that is also not deductible for Corporate Income Tax purposes, corresponds to the VAT that was not deducted during the period provided for such on the VAT Code

vi. It is revoked the rule that provided for the withholding of VAT, at a rate of 2.5%, on the values paid through Automatic Payment Terminals, due to the fact that the same, in practice, was never in force

vii. Social Gambling prizes equal or lower to Kz 2o0,000.00 are exempt of the Special Gambling Tax. Further, several changes are introduced to the Special Gambling Tax

The above changes come into force with the publication of the Law that approves the same, March 13th, 2023