What economy activities the retail tax is applied for?
There have been changes regarding the introduction of the special tax regime (STR) to the Tax Code as for the retail tax for entrepreneurs working in the sectors most affected by the pandemic.
So, on the January 1, 2021, the Tax Code was amended with Chapter 77-1 "Special tax regime for retail tax". The regulation will have been effective from January 1, 2021 to January 1, 2023.
A list of the economic activities for which the retail tax regime is applied
The retail tax regime has been designed for a 2 years period as an anti-crisis measure to reduce the tax burden on SMEs and optimize the tax payment and budget payments procedure.
The list of activities is established by the decree of the Government of the Republic of Kazakhstan.
The list includes those activities for which restrictive quarantine measures were applied during the pandemic.
A total of 114 economic activity types have been identified.
In particular, the list includes the following:
- maintenance and repair of cars
- retail sale in non-specialized stores that are commercial facilities
- retail sale of furniture in specialized stores that are commercial facilities
- retail sale of books in specialized stores that are commercial facilities,
- retail sale of audio and video recordings in specialized stores
- retail sale of sports equipment in specialized stores
- retail trade in clothing and footwear
- retail trade in cosmetics and toiletries
- retail sale of flowers in specialized stores
- retail sale of used goods in stores
- transportation by buses, trams, trolleybuses
- activities of car parks
- provision of hotel services with restaurants
- activities of tour operators and agencies
- preschool education
- theatrical and concert activities, circuses, museums
- repair of furniture and interior items, shoes
- provision of services by hairdressers and beauty salons.
The complete list can be found here.
What is the procedure for applying a special tax regime for retail tax
The taxpayers have the right to apply a special tax regime for retail tax, provided that they:
- are recognized as small and medium-sized businesses in accordance with the Entrepreneurial Code of the Republic of Kazakhstan;
- carry out one or several types of activities determined by the Government of the Republic of Kazakhstan for the purposes of applying this regime.
The special retail tax regime provides for a special procedure for calculating a corporate or individual income tax, with the exception of withholding taxes.
In applying special retail tax regime for calculation of the corporate or individual income tax with the exception of taxes withheld at the source of payment the taxpayer pays the tax by himself at the rate of 3 percent to the taxable object for the reporting tax period.
The taxable object for a taxpayer applying a special retail tax regime is income received (to be received) during the tax period in the Republic of Kazakhstan and abroad, determined in accordance with the generally established procedure:
• of a legal entity - in accordance with section 7 of the Tax Code;
• of an individual entrepreneur - in accordance with Section 8 of the Tax Code.
What is the retail tax-reporting deadline?
The tax period for the application of the special retail tax regime is a calendar quarter.
The small and medium-sized businesses applying the STR of the retail tax shall submit the TRF 913.00.
The declarations for the taxpayers applying a special retail tax regime shall be submitted to the tax authority at the location of a taxpayer no later than the 15th day of the second month following the reporting tax period.
The taxes specified in the declaration for taxpayers applying a special retail tax regime shall be paid to the budget no later than the 25th day of the second month following the reporting tax period.
Last update: 07.06.2021