Kazakhstan exempts businesses from paying income tax on state monetary compensation

rcpp.kz

Kazakh entrepreneurs who received compensation from the state will be exempt from income tax. These are the business owners who suffered losses during the January events, the State Revenue Committee announced. That means that SME representatives have the right to exclude from their total annual income the amount of money they received from the state treasury as compensation for damage caused during the state of emergency. However, an adjustment can be made only in case the subject is included in the commission’s register established by the mayor’s office, and there is a corresponding decision to it. In turn, entrepreneurs are obliged to reflect all compensation payments in the tax return.

“In addition, if, by the commission’s decision, an SME entity received money for compensation of property damage due to loss or damage of goods during the state of emergency, the recipient of the money needs to adjust the amount of VAT previously applied to such goods. Such an adjustment by the taxpayer should necessarily be reflected in the VAT declaration,” said Ainur Sartayeva, a spokesperson of the State Revenue Committee of the Kazakh Finance Ministry.