Kazakhstan's State Revenue Committee has announced the publication of Government Decree No. 393 on 31 May 2023, which approves a list of 190 qualifying activities for the new special retail tax regime. This includes various retail activities, various transport activities including freight transport, hotel and accommodation services, restaurant and catering services, property leasing, vehicle rental services, medical and dental services, various repair services, and others.
As previously reported, the new regime was approved in March 2023, providing for a general retail tax rate is 4% on all income received in Kazakhstan or from abroad, which may be reduced by 50%, from 4% to 2%, by local authorities. However, the retail tax rate is 8% in case of income from the sale of goods, performance of works, and provision of services to business entities requiring documentary confirmation of the amount for such expenses. Further, taxpayers under the special retail tax regime are not subject to VAT. To qualify a taxpayer must be engaged in one or more qualifying activities. The taxpayer must also have no more than 200 employees during the tax period (average) and their annual income must not exceed 600,000 MCI (Monthly Calculated Index).