As part of a comprehensive package of tax benefits submitted to the Jogorku Kenesh, the changes to the Tax Code exempt the sale of cars from the status of entrepreneurial activity until January 1, 2029.
The President also instructed the Cabinet of Ministers to prepare this draft law for consideration in the Jogorku Kenesh within a month.
Let’s examine what changes will be introduced and how they will affect taxpayers.
Changes to Article 4 of the Tax Code (definitions):
| Activity on a permanent basis — including the sale of identical goods more than twice a year | This rule does not apply to the sale of cars — until January 1, 2029 |
Other important changes:
| Article 49 (taxpayer rights) | Mention of activities outside the KR | This provision is transferred to Article 51 (obligations) |
| Article 51 (obligations) | Absence of direct indication | An obligation to pay taxes for activities outside the KR is introduced |
| Article 53 (tax agent) | Banks act as tax agents for foreign organizations | Branches and representative offices of foreign organizations are added |
| Article 91 (deferral/installment) | Accrual of interest | Interest will not be accrued on deferred or installment tax debts |
| Article 111 (tax registration) | Foreign organizations without a permanent establishment are required to register | This provision is repealed |
| Article 169 (complaints) | Complaints about tax decisions may be subject to consideration in arbitration court | Repeal (complaints will only be considered in administrative courts) |
Benefits for citizens:
- The sale of a car (even several times a year) until 2029 will not be considered as conducting business, which eliminates the need for registration as an individual entrepreneur and the payment of taxes as a business entity.
- No interest will be accrued for the deferral or installment of taxes.
- Complaints against the actions of tax authorities will only be accepted in administrative courts.
