Kazakh Ministry of Culture proposes reduced VAT rate for creative industriesKazakh Minister of Culture and Information Aida Balayeva has proposed introducing a special tax regime for the creative industries in the new Tax Code.“As the draft of the new Tax Code is under discussion at the moment, we suggest that is should provide for tax incentives for the creative industries. Such incentives may include a special tax regime, which could be a retail tax, or a reduced VAT rate or a corporate income tax,” Balayeva said at a government meeting on Tuesday.She added that creative entrepreneurs were included in the special retail tax regime starting February 2024, which has already led to a 15% increase in the number of creative businesses and employed personnel in the sector over the past year.The proposal comes amid broader debates about tax reforms in Kazakhstan, including plans to raise the VAT rate from the current 12%. Initial proposals in 2023 suggested increasing VAT to 16%, with a further hike to 20% in early 2025, alongside reductions in payroll taxes. However, these plans have sparked concerns among businesses.On February 7, President Kassym-Jomart Tokayev criticized the proposed 20% VAT rate as overestimated and suggested introducing a differentiated VAT system. In response, the government proposed a base VAT rate of 16%, with a reduced rate of 10% for certain sectors, and a zero rate or full exemption for specific industries, such as agriculture. Businesses operating under the retail tax regime with a 4% income tax rate will not be subject to VAT. (ICE ALMATY)

Fonte notizia: INTERFAX