Types of taxes and

Jurisdiction that use

them

Madina Zimanova ID#20070567Madina Zimanova ID#20070567Zhazira Aralbayeva ID#20073699Khamzina Nazym ID# 20062166

ContentsContents

• What is TAX? Its 5 purposes– The process of development of

new 2009 Tax Code– Jurisdiction– Basic Terminology– 9 types of Taxes and their

classificationl• Conclusion

?What is ?- necessary payment to the budget ratified by the g ystate through legislation in a one-sided process in a one sided process and with some cases exceptions with exceptions with irrevocable and non-

f d bl f drefundable findings

PurposesPurposes

Supporting Gov-t operationspp g p

Functioning as Gov-tg

Managing macroeconomic g gperformance of economy

Redistributing resources

Modifying patterns of consumption or employment within an economywithin an economy

Process of development of new

ax CoTax Code

1991 On Taxes from Enterprises, Associations and 1991 Organizations

1995 On Taxes and Other Obligatory Payments to 1995 g y ythe Budget

2002 2002 Tax Code2002 2002 Tax Code2009 1 Jan

Tax Code1 Jan

JurisdictionJurisdiction

Sources of Tax Law:

Statutory

Administrative

Judicial

Allocation of State revenues

The Tax CodeThe Tax Code

Tax Code

Basic Terminology

• On the basis of a T '

• Taxable Item Taxpayer's liability the taxpayer i i d b h

and (or) Item Related to

is registered by the tax authority and pays taxes

Taxation are assets and actions,

taxes. as the base for the arising of a t ’ t taxpayer’s tax liability.

Basic Terminology

Tax agentTaxpayer's (tax agent) official account

Electronic taxpayerElectronic taxpayer

electronic document of the ttaxpayer

electronic digital signature of the g gtaxpayer

*All procedures established by the Tax Code

Basic Terminology

Other bli tobligatory

Payments are not taxesnot taxes

They are payments for

immediate services

for using environment

or resources

Types of taxation:Types of taxation:

Types of Taxation Definitions

Proportionalimposes the same relative burden on all

taxpayers—i.e., where tax liability and i i l iincome grow in equal proportion

is characterized by a less than proportional rise Regressive

y p pin the tax liability relative to the increase in income

Progressiveis characterized by a more than proportional rise

in the tax liability relative to the increase in iincome

Classes of taxes:Classes of taxes:

Classes of Taxes Definitions of Tax Types

Transaction (event) based Is imposed when event occurs or a transaction takes placebased

Activity based Is imposed on the cumulative result of an ongoing activity

B d th t ’ bilit t d b iDirect Based on the taxpayer’s ability to pay as measured by income, consumption, or net wealth

I di are levied on the production or consumption of goods and servicesIndirect are levied on the production or consumption of goods and services or on transactions

State Taxes that are considered as a main income source of the stateState Taxes that are considered as a main income source of the state

Local Taxes that are considered as a main income source of the local governmentgovernment.

State taxes

StateState

CIT PIT VAT Excise duty

Social taxduty tax

Local taxes

Local

Transport GamblingLand Property Transport vehicles

Gambling business

Types of taxes:Types of taxes:

Taxes Tax RatesTaxes Tax Rates

Corporate income tax2009 – 20%2010 – 17.5%Corporate income tax 0 0 7.5%2011 – 15%

VAT 12%VAT %

Individual income tax 10%

Rent tax 3-33%Rent tax 3-33%

Property tax (individuals)the amount of tax depends on the cost of property. The minimal rate is 0.05% Property tax (individuals) p p yof the cost.

P (l l i i )0,1 – 1,5% of the average annual value

Property tax (legal entities), , g

of the property

Types of taxes:Types of taxes:

Taxes Tax RatesTaxes Tax Rates

Land tax (to be paid by individuals depends on the area of a land plot, its quality and purpose

and legal entities)quality and purpose

Rates are established in percentage to

Excise taxthe cost of goods or in a fixed sum per unit of measurement

Vehicle tax (cars)From 2 to 117 MCR depending on engine capacity and type of a vehicleVehicle tax (cars) engine capacity and type of a vehicle

Social Tax11%

Social Tax

DifferencesDifferences

Social Tax Social Social Tax ContributionsRate 11% 4%Rate 11% 4%

Payments: Payments to the budget of Payments to State R l d F dPayments: government Regulated Fund

Secure your future inPurpose: Allocation of this fund for

social needs.

Secure your future in case of subjectivity to risk factors

SummarySummary

• Taxation in Kazakhstan before becoming as it is in modern life, went through historical development

• Republic of Kazakhstan’s Tax Code is a new tax legislation came into effect in January 1, 2009

• The varieties of taxes are very wide, and theThe varieties of taxes are very wide, and the• purpose of introduction new Tax Code was to

decrease rates of taxes for supporting and attracting– decrease rates of taxes for supporting and attracting businesses operating in RK, and to

– simplify tax administrationsimplify tax administration.

ConclusionConclusionConclusionConclusion

• For Kazakhstan Government to be a Government it is very crucial to Government it is very crucial to establish effective tax system

g{tÇ~ çÉâ yÉÜ çÉâÜ tààxÇà|ÉÇ444g{tÇ~ çÉâ yÉÜ çÉâÜ tààxÇà|ÉÇ444