05 Apr 2022, 08:24
Prime Minister of the Republic of Kazakhstan Alikhan Smailov held a meeting to discuss proposals to stimulate the return of capital to the country from abroad and strengthen measures aimed at countering the outflow of funds from the country.
Thus, by order of the Prime Minister of the Republic of Kazakhstan, a Commission was created, within the framework of which five Working Groups were formed. These Working Groups analyze the outflow of funds, develop appropriate proposals to stimulate the return of capital to the country from abroad, introduce restrictive measures, and take measures to return the withdrawn capital.
In particular, proposals were discussed to empower the State Revenue Committee of the Ministry of Finance with certain functions of currency control.
One of the incentive measures is the offer of a simplified refund of VAT amounts claimed for refund, subject to 80% conversion of the received foreign exchange earnings.
It also proposes such restrictive measures as the abolition of tax incentives for the payment of dividends to non-residents, the introduction of a limitation on deductions for intangible services provided by related non-resident persons. The norms aimed at improving the Law of the Republic of Kazakhstan “On transfer pricing” have been developed.
In addition, other measures are being worked out both to stimulate the return of capital to the country and to strengthen the tax administration of the withdrawal of capital from the country.
Based on the results of the work of the Commission, the relevant proposals will be sent to the Head of State.