Kazakh government wants to lower corporate income tax

energy

Kazakh government wants to lower corporate income tax

By SRI ⋅ July 31, 2008 ⋅

(SRI) - Kazakhstan government suggested lowering the corporate income tax within the planned tax code, Prime Minister Karim Masimov said on Wednesday, Interfax reported.

“We propose to reduce corporate income tax to 15-20 percent. We may distribute this reduction across years,” Masimov said at a meeting of tax agencies in Astana. Currently the rate is 30 percent.

The government also suggested introducing a flat rate social tax within the new tax code.

“Similar to what we said before at the first presentation of the draft Tax Code, we are mulling a flat social tax. Earlier we had a progressive individual income tax, then we introduced a flat income tax. Now we want to introduce a flat social tax at 11%,” Masimov said.

Furthermore, the government also proposed a luxury tax on real estate.

“We consider it necessary to increase tax rates on property of physical entities, on luxury real estate costing from more than KZT 30 million and tax rate on real estate of legal entities of 1-2 percent,” Masimov said.

“I think that it is fair, is a universal practice - if you are rich and if you have an opportunity to pay for it, you pay the appropriate tax,” the Prime Minister emphasized.