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President proposed to reduce total individual tax burden from 34% to 25% for small businesses - P4H Network

President proposed to reduce total individual tax burden from 34% to 25% for small businesses

President of Kazakhstan Kassym-Jomart Tokayev in his annual address to the people of Kazakhstan has traditionally devoted his speach to social protection and human capital development, as well as education and health sectors.

Among new ideas, he mentioned: “Total digitalization has led to new forms of employment based on Internet platforms. Striking examples of this are taxi drivers, couriers and others. This area needs government assistance in terms of social and health insurance, pensions, taxation.”

Another task given was about reducing the burden on the payroll, especially for micro- and small businesses.

For small businesses, Head of State proposed to introduce a single payment from the wage bill with a reduction in the total rate from 34% to 25%. “This will stimulate the business to “bring thousands of employees out of the shadows” (who were unoficially paid in cash without paying the social and health protection contributions); “these employees then can become full-fledged participants in the pension system, social and health insurance systems”.

“Appropriate payment systems need to be prepared to avoid disruptions and business costs and the system should be operational from January 1, 2023”, – said the President.

 

Source: Presidential Administration, https://www.akorda.kz/ru/poslanie-glavy-gosudarstva-kasym-zhomarta-tokaeva-narodu-kazahstana-183048 

Picture: Akorda, Government of Kazakhstan

Reference
01 Sep 2021