The Minister of Finance has issued an order amending the rules and deadlines for implementing a pilot project for the application of a different tax administration procedure for individuals providing services using online platforms. The pilot project involves the registration and administration of individuals offering services through the use of internet platforms.
According to the new regulations, the tax agent responsible for withholding and transferring individual income tax, mandatory pension contributions, employer mandatory pension contributions, social contributions, and contributions to mandatory social health insurance is the operator. The individual income tax is calculated at a rate of 1% of the income received by the service provider (excluding expenses).
To register as a service provider, individuals must undergo an online registration procedure on the internet platform. During the online registration process, individuals undergo biometric identification through Digital ID, provide consent for the collection and processing of personal data through a government service for accessing personal data from state databases, and agree to participate in the pilot project.
Furthermore, operators are responsible for withholding and transferring the calculated amounts of individual income tax and social payments from the service providers' income. They must make the payment no later than the 25th of the month following the month in which the income from services was received.
The integration of databases and information systems of state bodies with the internet platform is used to generate service providers' personal data. Service providers applying special tax regimes and conducting approved activities can choose to apply the special tax regime through a mobile application. The application of the special tax regime via the mobile application begins when the service provider becomes a participant in the pilot project.
In conclusion, the new regulations aim to streamline tax administration for online service providers in Kazakhstan, ensuring transparency and compliance with tax laws while simplifying the process for service providers and operators.
