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Kazakhstan: Updates on Governmental actions regarding COVID-19 situation

10 April 2020 – This brief note relates to further updates regarding governmental actions to support businesses in Kazakhstan due to Covid-19 situation. Our note is intended to be a helpful guide – it is not comprehensive and does not constitute legal advice.

Suspension of arrests on bank accounts

6 April for the period of the state of emergency, arrests on bank accounts of individuals registered as individual entrepreneurs and private practitioners, with the exception of those classified as having a high risk (determined by the Tax Code), are cancelled according to a press release of the State Revenue Committee (the "Committee").

It is also stated that the Committee sent a letter to the Ministry of Justice and the Republic's Chamber of Private Court Enforcement Officers requesting to temporarily suspend the effect of arrests on any accounts of citizens under previously awarded court orders and decisions, as well as issued tax orders, and to suspend the imposition of arrests on pending tax orders to collect the individuals' debts.

Increase of calculation coefficients

8 April amendments were made to increase calculation coefficients in accordance with Decree No. 299 of the President of the Republic of Kazakhstan "On the amended republic's budget for 2020", dated 8 April 2020. Below is a comparative table with the revised coefficients established from 1 April 2020, as well as the coefficients that were valid from 1 January 2020 to 1 April 2020:

Coefficient

From 1 April 2020

From 1 January 2020 to 1 April 2020

Monthly calculation index

2,778 tenge

2,651 tenge

Minimum pension

40,441 tenge

38,636 tenge

Minimum subsistence level

32,668 tenge

31,183 tenge

Minimum basic pension payment

17,641 tenge

16,839 tenge

Minimum wage

42,500 tenge

42,500 tenge

Application of 8% VAT rate for socially significant products

8 April the Information System of Electronic Invoices implemented a mechanism for applying the value added tax (VAT) at the rate of 8% when importing and exporting socially significant food products in accordance with the press release of the State Revenue Committee. The list of socially significant products consists of the following products:

  • wheat flour of the first grade;
  • wheat bread from flour of the first grade (tinned);
  • elbow macaroni (sold by weight);
  • buckwheat (unground, sold by weight);
  • polished rice (short-grain, sold by weight);
  • potatoes;
  • and other products.

This note was prepared by members of Kinstellar’s Kazakhstan team: Joel Benjamin (Managing Partner), Kuanysh Shekerbekov (Senior Associate) and Alfiya Sharipova (Legal Assistant).

For further information, please contact Joel Benjamin, the Managing Partner of Kinstellar's Central Asia practice at

e-mail

, and Kuanysh Shekerbekov, Senior Associate, at .