Kazakhstan: Program allowing deferral and installment payments of corporate income tax and property tax

The rules under an “investment tax loan” program are effective in April 2021.

The rules under an “investment tax loan” program are effective in April 2021.

The rules under an “investment tax loan” program—an arrangement that allows taxpayers to defer corporate income tax or property tax payments for a period of up to three years and then to repay the “tax loan” in equal installments—are effective in April 2021.

There are procedures for taxpayers to apply for the investment tax loan program, and if approved, an agreement will set out:

  • The terms of the loan
  • The tax payment schedule
  • A prohibition on the sale or transfer of investment property that secures the investment tax loan
  • Liability of the parties

If an investor violates the terms of the investment tax loan agreement, the agreement will be terminated. If a taxpayer violates the ban on a sale or a transfer of the investment property, the taxpayer will be obligated to pay all the outstanding taxes and interest and penalties for the period of the agreement (at an amount that is 1.25 times the base rate).

Investment tax loans are not available for all taxpayers such as those:

  • Operating under special tax regimes
  • Producing or selling alcohol, alcoholic or tobacco products
  • Operating in special economic zones
  • Implementing investment priority projects or operating under priority investment agreements
  • Operating under subsoil use agreements

Read a May 2021 report [PDF 289 KB] prepared by the KPMG member firm in Kazakhstan

 

 

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