BAKU, Azerbaijan, August 26. Kazakhstan’s Ministry of Finance is introducing a unified digital Register of Tax Incentives to make information on government support measures more transparent and improve the assessment of their economic effectiveness, the ministry said.
The register will systematize information on tax incentives provided to businesses in the form of foregone budget revenues. It will be maintained through the dedicated baqylauda.Qoldau.kz web portal.
The ministry said the digital system is expected to improve the basis for decisions on granting tax incentives. Justifications submitted by government agencies for introducing tax incentives will be transferred into digital format, while established performance criteria will be used by tax authorities to assess their effectiveness.
The criteria include budget efficiency, measured by the ratio of taxes received to the value of the tax incentive, as well as the creation and preservation of permanent jobs, growth in production and exports, the ratio of investment to tax incentives, and innovation and technological development.
To assess the actual impact of each incentive, the authorities will use not only official government statistics but also primary data from state and private digital systems. The baqylauda.Qoldau.kz portal has been integrated with more than 70 accounting, fiscal and other digital databases.
The ministry said this will allow the authorities to monitor and evaluate tax incentives more systematically.
"For businesses, this establishes clear rules. If companies in the relevant sectors pay taxes, expand production, invest funds and introduce innovations and technologies, tax incentives will be considered effective. Otherwise, the issue of their further provision will be reviewed," the Ministry of Finance said.
At the same time, the register will have an information and accounting function only and will not create additional barriers for businesses seeking tax incentives.
The collection of the necessary information will be fully digital and proactive, meaning businesses will not have to collect and submit certificates, extracts or other reports. The tax authorities will collect and process the required data themselves.
The Ministry of Finance emphasized that the new system is aimed at ensuring that tax incentives contribute to economic development. According to the ministry, foregone budget revenues resulting from tax incentives should translate into higher investment, job creation, increased production and exports, and greater competitiveness of Kazakh businesses amid intensifying global competition.
The new rules will take effect 10 days after their official publication.
