The anti-crisis package (around 9 percent of GDP) announced in 2020 included cash payments to the unemployed and self-employed, an increase in pension and social benefits, additional health spending, and support for employment and businesses. Subsidized lending equivalent to 1½ percent of GDP is being provided under the State Program “Economy of Simple Things”, along with actions to help SMEs finance working capital (1.1 percent of GDP). About 2½ percent of GDP is being allocated to support employment under an “Employment Roadmap” program, including large-scale infrastructure projects. Selected enterprises and individual entrepreneurs are also eligible for tax incentives. Further measures to restore economic growth include: a subsidized mortgage program for households with a segment targeting youth specifically, tax incentives to agriculture and hard-hit sectors (civil aviation, tourism), credit support to SMEs and manufacturing enterprises (the latter via a newly created industry development fund), and infrastructure development. In the summer of 2020, the authorities provided additional cash transfers to individuals who lost their jobs due to the quarantine, lowered subsidized interest rates for SME loans (to 6 percent), and extended tax concessions for vulnerable individuals and businesses. Given the ongoing second wave of the pandemic, measures such as “Employment Roadmap“ and support for SMEs (credit support, tax and loan payment deferrals) are expected to continue in 2021. The revised 2021 budget also includes additional COVID-related spending (0.6 percent of GDP) for the vaccines, testing and personal protective equipment, medical services and personnel, and construction of new health facilities. In addition, salary increase for doctors over 2021-23 have been announced with the estimated overall fiscal cost at 0.7 percent of 2021 GDP. The overall fiscal stimulus package in 2021 amounts to about 1.6 percent of GDP.

 

 

 

Personal income tax will be levied at 0% for 2020 for individual entrepreneurs subject to the general taxation regime

 

 

The Ministry of National Economy will include cattle and pedigree chickens in the list of imported goods for which VAT is paid by the offset method. Until 1 October 2020, the VAT rate is set at 8% (instead of 12%) on sales and imports of goods included in the list of socially important food products. 

 

 

Property tax is set at 0% for 2020 for legal entities and individual entrepreneurs with respect to: large retail facilities, shopping and entertainment centers, cinemas, theaters, exhibitions, fitness and sports facilities; taxable objects used for income generating activities in the fields of tourism, foodservice and hotel services. 

 

Land tax is set at 0% for 2020 on agricultural lands for manufacturers of agricultural products. 

 

With respect to all taxes for taxpayers mentioned above (except for those involved in the fields of tourism, foodservice and hotel services), relief is provided in the form of: suspension until 15 August 2020 of interest accrual for late payment of taxes; extension of tax return deadlines to the 3rd quarter of 2020. 

 

Exemption from excise duties on exported gasoline (except for aviation gasoline) and diesel fuel is provided for producers of excisable goods until 31 December 2020. 

 

There are also some other tax administration relief measures (e.g., extension of deadlines for tax returns, deferral of tax payments and suspension of tax audits) for some taxpayers.

 

 

Tax rate adjustment coefficient “0” has been established for the following taxes: Social Tax; Obligatory Pension Fund Contributions; Obligatory Professional Pension Fund Contributions; Obligatory Social Insurance Contributions; Employees and Employers Obligatory Social Medical Insurance Contributions.

 

Kazakhstan introduced green corridors for much needed medical goods and food products, lowering the risk management level from red to yellow, as well as introducing a range of tariff and tax deferrals.

 

(Updated: May 2022)