ASTANA, Kazakhstan, April 9. Serik Zhumangarin, Deputy Prime Minister - Minister of National Economy, presented the draft Tax Code and related legislative amendments on taxation, which include investments in exploration, during the plenary session of the Majilis of the Parliament of Kazakhstan today, Trend reports.
The proposed changes aim to overhaul the tax structure, redistribute the tax burden, and enhance control over the allocation of benefits.
Zhumangarin explained that the tax reform includes additional incentives for investors, particularly in the area of geological exploration. The government is proposing 100 percent deductions for expenses related to construction, equipment, software, and their reconstruction and modernization.
"Moreover, it is planned to allow deductions for exploration expenses, both within existing contracts and outside of them. There is also a proposal to introduce a zero tax rate on mineral extraction for up to 5 years for the development of new, low-profit sections of deposits," the Ministry of National Economy of Kazakhstan stated.
Tax incentives will also be introduced for the processing of solid minerals.
"For mature oil fields, an alternative tax on subsoil use is being proposed. The savings from these tax benefits will not remain with the subsoil users — a ban on dividend payments will be introduced. All saved funds will be redirected towards investments in extraction and regional development, including infrastructure improvements, local workforce training, and supporting scientific research," the ministry added.
Today, at the plenary session of the Majilis of the Parliament
of Kazakhstan, the Deputy Prime Minister - Minister of National
Economy, Serik Zhumangarin, is presenting to the deputies the first
reading of the Tax Code draft and the accompanying legislative
amendments on taxation issues. The document proposes to update the
structure of taxes, redistribute the tax burden, and strengthen
control over the provision of benefits.
