The document discusses taxation policies for small and medium enterprises (SMEs) in Kazakhstan. It notes that SMEs make up 95-99% of businesses and are important for economic growth and job creation. The tax code establishes three tax regimes for SMEs: 1) the general procedure, 2) a special patent-based regime for micro businesses, and 3) a simplified declaration regime for small businesses. The simplified declaration regime allows businesses to self-assess taxes at a 3% rate on income up to certain thresholds based on employee numbers and income levels.

1. Taxation of SMEs

2. importance
DYNAMISM
JOB CREATION
SME 
ECONOMIC
GROWTH

3. SME = 95 % to
99 %

4. various criteria of size…
TURNOVER
# OF EMPLOYESS
CAPITAL BASE
PROFITS
IMPORT/EXPORT

5. employee numbers are
not the sole defining
criterion

6. …non-subsidiary, independent firms
which employ less than a given number
of employees.

7. The World Bank and the European Commission define:
EU (Commission
World Bank (2004) Recommendation
2003/361/EC)
10 or fewer employees, assets 10 or fewer employees and
Micro no more than USD100,000 balance sheet total of no more
than EUR 2m
10 to 50 employees, turnover 10 to 50 employees, and annual
and assets between US$100, turnover and/or balance sheet
Small
000 and US$ 3 m total of less than EUR 10m
50 to 300 employees; 20-250 employees and turnover
turnover and assets between and/or annual balance sheet of
Medium
US$3 to 15 m. EUR 10-50m

8. Characteristics of Micro, Small, and Medium Enterprises
Characteristics MICRO SMALL MEDIUM
Number of taxpayers Very numerous Many Moderate
Family owned business
Legal entities with
Individuals, family with some employees;
Type of taxpayers several employees,
owned businesses highly specialized self-
partnerships
employers
Owner, employee(s)
Owner(s) are generally Owner is usually
Ownership structure and manager are one
the manager different from managers
and the same
Mainly cash; high Cash/bank; some Bank; much more
Type of transactions
informality informality formality
Fixed (but may be
Place of business Frequently non-fixed Fixed
volatile)
Business Non-professional Some professional Regular professional
administration (family-run) assistance advice
Some records, limited to Partial to good
No or few records; very
Accounting Standards partial compliance; compliance and record
limited understanding
limited understanding keeping
Market reach Local Local/regional National/International
Dynamic; may disappear, More stable
Very dynamic; rapid
Life-span of business stay (consolidated) business
creation and dissolution
small of grow activities

9. THE CODE No. 99-IV OF 10TH DECEMBER 2008
OF THE REPUBLIC OF KAZAKHSTAN
CONCERNING TAXES AND OTHER OBLIGATORY
PAYMENTS TO THE BUDGET as of Jan, 01, 2012

10. THE SPECIAL TAX REGIME FOR SMALL BUSINESS ENTITIES
TAX CODE
Chapter 61 SME Taxation
standard §1 General provision
The Special Tax Regime on
§2 the Basis of a Patent
The Special Tax Regime on
§3 the Basis of a Simplified
Declaration

11. simplified procedure for the
Article 427: assessment and payment of..
C orpor Social Individual
a te income
in c o m e

12. 1. the general established procedure;
2. the special tax regime on the basis of a
patent;
3. the special tax regime on the basis of a
simplified declaration.

13. Article 428, p. 3
legal entities having affiliates, representations
affiliates, representations of legal persons
taxpayers having other separate structural units and
standard
(or) taxable items in different populated areas
legal persons in which the share participation of other legal
persons is more than 25 percent
legal persons whose foundation party is also a foundation
party of another legal person, using a special tax regime

14. Article 428, p. 4
5scom
components 1 Excisable good
2 Oil products
Glass container
Accounting
3 Lotteries
Excisable good 4 Subsurface use
Subsurface use 5 Glass container
Legal
6 Ferrous metals
Financial
7 Consulting
Lotteries
Ferrous metals 8 Accounting
Oil products 9 Financial
Consulting
10 Legal
14

15. § 2 The Special Tax Regime on
the Basis of a Patent
do not use employed manpower;
carry on business in the form of
personal entrepreneurship;
income of which for the tax period
does not exceed the 200-times
minimal amount of wages
established by the law concerning
the republic's budget and that is in
effect on the 1st January of the
appropriate financial year

16. Computation of the Price of a Patent
Tax Formula
Individual income in an amount of ½ of the patent price
in amount of ½ of the patent price, less social
assessments computed in accordance with the law
Social
of the Republic of Kazakhstan “Concerning
Obligatory Social Insurance”.
Computation of the price of a patent shall be carried out
by way of applying a rate of 2 per cent to taxable item.
The price of a patent shall be paid to the budget as follows:

17. § 3. The Special Tax Regime on the
Basis of a Simplified Declaration
in the case of individual entrepreneurs: maximum
average payroll number of employees for a tax period
is twenty-five persons, including the individual
entrepreneur himself; maximum income for a tax
period is 10 000,0 thousand tenge;
in the case of legal persons: maximum average payroll
number of employees for a tax period is fifty persons;
maximum income for a tax period is 25 000,0 thousand
tenge.
Calendar quarter shall be recognised as tax period.

18. Assessment of Taxes in Accordance
with the Simplified Declaration
Assessment of taxes on the basis of a simplified
declaration shall be carried out by the taxpayer
independently by way of applying to a taxable item of the
rate in amount of 3 percent for the reporting tax period.
Total taxes assessed for a tax period in accordance with
paragraph 1 of this Article shall be subject to adjustment
towards reduction by amount of 1.5 per cent of total tax
per each employee, based upon the average payroll
number of employees, where the average monthly
wages of employees upon the results of the reporting
period reached not less than 2-times for individual
entrepreneurs, not less than 2.5-times for legal persons,
minimum wage

19. Tax payment allocation
1. Delivery
In that respect, personal (corporate) income tax
shall be subject to payment in an amount of ½ of the
assessed amount of tax on the basis of a simplified
declaration, social tax in an amount of ½ of the
amount of tax assessed on the basis of a simplified
declaration, less total social assessments to the
State Fund for Social Insurance.
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