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.
