The Government of Kazakhstan has introduced tax incentives for civil aviation industry entities

Created on 22.04.2020 16:53

The Government of the Republic of Kazakhstan adopted a regulation on establishing the scaling factor "0" to the rates of certain taxes and social payments, which, in particular, affects the country's air transport. This is stated in the press service of the government of Kazakhstan.

The Cabinet of Ministers of the Republic of Kazakhstan introduced a scaling factor “0” to the rates of: individual income tax withheld at the source of payment; individual income tax paid independently by a private practitioner; social tax, compulsory pension contributions, compulsory professional pension contributions, social contributions, contributions and deductions for compulsory social health insurance, except for those paid by an individual entrepreneur for themselves. The annex to the regulation states that, in particular, the country's air transport activities fall under these tax exemptions.

According to the Government of Kazakhstan, the provisions apply to obligations for which payment (transfer) is due from April 1 to July 1, 2020. At the same time for the period from April 1, 2020 to October 1, 2020, a scaling factor of "0" to the property tax rates for runways at aerodromes and airport terminals was set.

In addition, for resident taxpayers of the Republic of Kazakhstan engaged in the activity of air passenger transport, to grant until January 1, 2021 a deferment in payment of the calculated value added tax for non-residents on maintenance and legal support of aircraft leasing transactions. “At the same time, the indicated taxpayers shall credit the amount of the calculated value added tax for a non-resident in the tax period in which such acquisition of works, services from a non-resident is recognized as taxable turnover, provided that the amount of the calculated value-added tax has been paid to the budget before January 1 2021, "- says the regulation.