Kazakhstan proposes 40 million tenge VAT threshold in tax reformKazakhstan will introduce a 40 million tenge VAT registration threshold under its new Tax Code, Deputy Prime Minister Serik Zhumangarin announced Wednesday in the Majilis, the country's lower parliamentary chamber."We have reached consensus on key parameters. The VAT rate will be established at 16%, with a registration threshold set at 40 million tenge. This threshold represents a carefully negotiated compromise," Zhumangarin said.He added that this decision would result in the budget losing 160,000 new taxpayers and missing out on an additional 400 billion tenge in revenue."Why is this important? To demonstrate to our business community that both government and parliament are committed to finding balanced solutions. As part of this compromise, we will implement stricter requirements for sole proprietorship registration. New regulations will impose additional scrutiny on applicants with prior violations or inactive business registrations," Zhumangarin stated.As previously reported, Kazakhstan has long debated raising the VAT rate from the current 12%. In 2023, there were plans to increase it to 16%, and then to 20% in early 2025, while reducing payroll tax burdens – a move that sparked concerns among Kazakh businesses.On 7 February, Kazakh President Kassym-Jomart Tokaev suggested introducing a differentiated VAT rate, stating that the government’s proposed 20% rate "was too high." Later, the government proposed a main VAT rate of 16%, a reduced 10% rate for certain sectors, as well as zero rates and full exemptions – particularly for agricultural producers. Businesses currently operating under a 4% retail income tax regime will not be switched to VAT. (ICE ALMATY)

Fonte notizia: INTERFAX