New tax support measures in response to Covid-19

On 20 April 2020, the Government of Kazakhstan announced the following additional measures to support local businesses due to COVID-19 outbreak:

1. Extension of the tax filing deadline from 31 March 2020 to 31 May 2020 for individual and business filers in relation to tax obligations for 2019.

2. 0% tax rate for the following taxes and social payments:

➢ Personal income tax withholding at the source of payment

➢ Personal income tax paid by private practitioners

➢ Social tax; obligatory pension, professional pension and social contributions; obligatory employer and employee medical contributions (except for medical contributions paid by individual entrepreneurs for themselves)

These exemptions apply to the following taxpayers and their employees:

➢ Private practitioners and micro, small and medium-sized businesses engaged in the approved list of business activities (e.g. airport, hotel, restaurant, rent, tourism, educational services, air passenger transport activity, car dealership, etc.) with respect to tax obligations, payments of which are due from 1 April to 1 October 2020.

➢ Large-sized businesses engaged in the approved list of business activities (e.g. air passenger transport activity, car dealership, hotel, restaurant, rent services, etc.) with respect to tax obligations, payment of which are due from 1 April to 1 July 2020.

3. 0% property tax rate during a period from1 April 2020 to 1 October 2020 - on airport runways and terminals; for private practitioners.

4. Extension of reverse charge VAT payment deadline until 1 January 2020 for taxpayers engaged in air passenger transport activity in relation to technical support services and legal support services of aircraft leasing transactions.

5. Allowances for employees engaged in anti-epidemic activities paid starting from 1 March 2020 are not subject to payroll taxes.