One of the most straightforward, easy, and convenient ways to run a business for an individual entrepreneur is an IE under the simplified taxation system (STS). Simply put, in this case, the business operates on a simplified tax regime. This mode minimizes the number of administrative procedures and simplifies the preparation of reporting documentation. Importantly, the entrepreneur can manage the business independently without hiring an accountant. Let's take a closer look at the nuances of the simplified taxation system.
Entrepreneurs can use the simplified system if their business simultaneously meets the following criteria:
The total number of employees must not exceed 30 people, including the entrepreneur.
The company must not have branches located in other settlements.
The specific turnover of an individual entrepreneur who plans to operate under the simplified system depends on whether the entrepreneur uses the TIS (three-component integrated system). The TIS includes working with a POS terminal, an online cash register, and the ERP system for inventory accounting.
If the entrepreneur does not use TIS, the IE’s six-month turnover should be less than 24,038 MCIs to run a business under the simplified taxation system. Thus, the maximum income for six months should not exceed KZT 88,748,296 (as of 1 January 2024, the monthly calculation index reached KZT 3,692).
If the entrepreneur uses TIS, the six-month turnover should be below 94,086 MCIs (24,038 MCIs + 70,048 MCIs). In monetary terms, this amounts to KZT 347,365,512.
Регистрация ИП онлайн
Начните бизнес легко
The IE under the simplified taxation system in 2024 can engage in any activity. However, there are several exceptions where STS is not possible. These include:
Please note that to work under the simplified taxation system, you must meet all the listed criteria simultaneously. If the entrepreneur does not meet at least one of the criteria, such entrepreneur switches to the general taxation regime.
To understand what taxes an individual entrepreneur will pay under the simplified taxation system in Kazakhstan in 2024, it is necessary to know if they have hired employees. Let's consider both situations in detail: when the entrepreneur works alone or hires employees.
A businessman who does not hire additional staff makes tax payments to the budget and mandatory contributions for himself/herself.
Budget payments include individual income tax (IIT) and social tax. Each tax accounts for 1.5% of profit. In total - 3% of income. Payments to the budget are made twice a year, i.e. every six months: by August 25 of the current year and by February 25 of the following year.
The entrepreneur pays for himself/herself:
Note that the entrepreneur can set his/her own salary under the simplified taxation system in 2024. The legislation regulates the salary cap only. For mandatory pension contributions, it ranges from 1 to 50 Minimum Wages per month (as of 1 January 2024, the Minimum Wage is KZT 85,000), and for social contributions – from 1 to 7 Minimum Wages per month.
These payments are made monthly. Contributions must be made by the 25th day of the month following the reporting month.
Moreover, it is important to remember a few nuances:
Онлайн-открытие счёта для бизнеса
Используйте доступные возможности
в несколько кликов
If the entrepreneur hires specialists, the entrepreneur also makes the aforementioned payments (in his/her favor and to the budget). Additionally, the entrepreneur must make contributions for each of his/her employees:
The percentages are calculated from the salary of hired specialists. The status of the employee (pensioner, disabled, foreigner, etc.) should also be taken into account.
For information, entrepreneurs working under the simplified tax system are exempt from social tax for employees. As in the first case, payments for specialists are made every month (by the 25th day of the month following the reporting month).
Additionally, as an employer, the entrepreneur must pay employees their sick leaves, vacation or compensation if the employee does not use his/her vacation.
Whether an entrepreneur should pay VAT is determined by the entrepreneur’s annual income. Thus, an entrepreneur must register for VAT under the simplified system in 2024 if the taxable turnover from the sale of goods, works, or services per year exceeds:
If the turnover is exceeded, the entrepreneur must independently submit a tax application (electronically or on paper) within 10 business days from the end of the month in which the excess occurred.
If the entrepreneur registers for VAT, he/she is issued a VAT payer certificate. From this moment, the entrepreneur must submit a VAT declaration on a quarterly basis and pay tax at a rate of 12%.
This can be done in any convenient way: independently, with the help of an outsourced accountant, or an in-house accountant. Each option has its pros and cons. For example, hiring an in-house accountant is not always economically feasible (especially for small businesses). Therefore, small businesses often use outsourced accounting services.
Independent accounting involves thoroughly studying all aspects and considering many nuances. For example, let's consider how an entrepreneur can receive income and what documents they need to prepare:
Is an IE under the simplified taxation system obliged to issue E-Invoices in 2024? From 1 April 2021, this document must be issued if the amount per contract with legal entities or IEs (except those using the simplified taxation system, patent) exceeds 1,000 MCIs, i.e. KZT 3,692,000.
But that’s not all. Entrepreneurs must issue E-invoices if:
Please note that entrepreneurs from the above categories must issue E-invoices even if the contract value does not reach 1,000 MCIs.
IEs operating under the simplified taxation system must complete Form 910.00 once every six months:
The form is submitted online, which saves time.
The Tax Code of Kazakhstan provides benefits for entrepreneurs working under the simplified taxation system. However, these benefits apply only to those who hire specialists.
An individual entrepreneur can reduce the tax he/she pays for each employee by 1.5%. This is possible only if the employee’s salary is 25 MCIs (KZT 92,300) or exceeds this amount.
The benefit can be applied when filling out Form 910.00. The amount payable will be calculated automatically.
Note that the entrepreneur can not only rely on benefits but must also remember their obligations, including timely tax payment. Various violations are penalized with a warning (for the first time). For the second and subsequent violations, the entrepreneur faces a fine. And the amount is significant – from 15 to 50 MCIs.
The simplified tax system attracts entrepreneurs with its simplicity and clarity, allowing them to manage their accounting independently and avoid costly third-party services. However, it is crucial to be aware of all the nuances and understand the legal norms even under the simplified system. This will enable transparent and efficient business operations, taking advantage of benefits and avoiding warnings and fines.
So, you have registered as an individual entrepreneur. The next step is to open a settlement account with a bank. This is necessary for conducting legal business activities in Kazakhstan.
What benefits do cash and settlement services provide to entrepreneurs?
What type of settlement account can an individual entrepreneur choose, and which account is the best to open?
Let's answer these questions.
Individual entrepreneurs in Kazakhstan can operate without a bank account. However, this is often not very convenient.
For instance, if an entrepreneur receives payments on a personal bank card, they may later face the problem of distinguishing between business transactions and personal payments. Furthermore, during a tax audit, an inspector may consider personal transactions as business-related transactions, which increases the reported income and, consequently, the amount of taxes due. To address this, it will be necessary to prove the source of funds and demonstrate that they have nothing to do with business.
There are two ways out of this situation. The first is to use the card exclusively for business receipts. The second is to open a separate settlement account for IE. Moreover, it is not possible to connect acquiring (a service that allows accepting card payments) to a personal account.
Please note that having a settlement account is mandatory for individual entrepreneurs who:
But even if the above points do not apply to you, there are many advantages to opening a settlement account.
Additionally, cash and settlement services for individual entrepreneurs often offer favorable terms for currency exchange and conversion. This is important for entrepreneurs working with foreign suppliers and investors.
Therefore, an IE account opening is necessary for convenience and peace of mind.
You can open a settlement account for an individual entrepreneur online on the Bank's website. The procedure takes a minimum of time.
So, what is needed to open an account for an individual entrepreneur?
Please note that a settlement account can be opened not only in KZT, but also in RUB, USD, or EUR.
You will receive the settlement account details within a few minutes by email. They can be immediately used for drafting contracts and preparing other documentation.
Banks offer bonuses to entrepreneurs who use cash and settlement services. For instance, at Bank CenterCredit, you will receive a #business card linked to your account. It can also be used to withdraw personal funds. The card easily connects to all e-wallets – Apple Pay, Samsung Pay, Google Pay. Additionally, Bank CenterCredit offers up to KZT 250 million credit limit on the account. Such lending does not require collateral. It is a good safeguard to ensure the smooth business operation. Access to the FX Platform allows for foreign exchange transactions with maximum benefit.
It is convenient to operate the settlement account via the BCC Business mobile app, which connects in a minute and does not require special software.
At the same time, the cost of opening a settlement account for start-up individual entrepreneurs is KZT 0. These are optimal conditions to get on your feet and adapt to business realities.
There are two types of settlement accounts – current and savings. The current account services the Company's key business processes, including money transfers. The primary purpose of a savings account is to accumulate funds. Essentially, it is a deposit: the entrepreneur deposits a certain amount, which accrues interest, and at maturity specified in the Contract, the money with interest earned is returned to the depositor.
Which account is needed for an individual entrepreneur? The entrepreneur can open both accounts. But when it comes to a settlement account, the current account is primarily implied, which allows:
You can also control your funds 24/7 – through a mobile application or internet banking for businesses.
When it comes to which account is more beneficial to open for an individual entrepreneur, the current account "wins" here too: many banks offer tariffs with free account opening and servicing for start-up entrepreneurs.
Opening a settlement account is accompanied by many questions – we’ll answer the most common ones.
After opening the settlement account, you do not need to notify the tax authorities yourself – the Bank will do this within one day from the opening.
The legislation does not limit the entrepreneur in the number of current accounts – there can be several accounts (including in different banks).
Yes, such a transfer is possible. Entrepreneurs often use this option to replenish working capital. Moreover, such a transfer will not be considered income derived from business activities. In other words, this amount is not included in the calculation of taxes.
Personal income is withdrawn using a cash withdrawal order. Please note that this amount is not an expense. That is, the entrepreneur calculates the tax on the entire amount earned, regardless of the amount withdrawn for personal use.
To sum up. So, is a bank account needed for an individual entrepreneur? Even if the business activity allows to conduct business without cash and settlement services, opening a bank account will provide the IE with transparent financial reporting for regulatory authorities and facilitate many tasks, such as paying taxes or withdrawing personal income through remote channels without visiting the bank.
Opening a business account for an individual entrepreneur in Kazakhstan can be done online directly on the Bank's website – it takes a few minutes.
Please note that the entrepreneur can work with both a savings and a current settlement account.
Author - Broslavskaya Natalia Alexandrovna
Чтобы вести бизнес легально, потребуется открытие ИП в Казахстане. Однако законность – не единственное преимущество. Во-первых, у вас будет идти официальный рабочий стаж. Во-вторых, бизнесмены делают пенсионные отчисления. В-третьих, для индивидуальных предпринимателей в РК созданы все условия для развития бизнеса, его масштабирования.
You can open an IE in Kazakhstan in two ways: online or offline by personally visiting the Public Service Center (PSC). The first method is attractive due to its simplicity and efficiency: you can become an individual entrepreneur in just a few minutes without having to spend your time for travelling to the PSC. The second method will not save time but will allow you to ask the PSC staff all your questions and get comprehensive information. Let's consider both options in more detail.
Online IE registration is possible in three ways:
Let's look at a specific example of how to open an IE through the Egov portal:
Please note that the EDS must be obtained in advance. This can also be done remotely on the Egov.kz website.
The registration procedure is free.
This process is just as simple as using the Egov.kz platform. Bank CenterCredit has launched its own service: you can register through the app or on a special web resource. The service will require identity verification: identification can be done through the Egov.kz portal or via video. The user then fills out information about their business (nature of business, address, tax regime). Done! The entire procedure takes no more than 5 minutes.
One significant advantage of registering through a bank is that you can immediately open an account, issue a corporate card, connect internet banking for business, and even gain access to online accounting services.
To register a business in the classic “paper” format, you need to visit the local Public Service Center or the tax authority at the location of your primary business activity or your residence registration. For example, if you are opening a store, you need to approach to the tax office at your store's location. As with online registration, the documents will be ready within a day.
Please note that in some cases, a lease certificate for the premises where the IE will operate may be required.
To start an IE in Kazakhstan, you need to receive an electronic registration notification. Today, business owners no longer need to obtain an IE registration certificate – it is enough to fill out a special form and download the registration notification from the Personal Area on the Elicense.kz electronic licensing portal. The document specifies the address and name of the enterprise, the type of activity according to the Common Classifier of Economic Activity (OKED), and the chosen tax regime.
Let's answer the most common questions that future entrepreneurs have.
Yes, it is possible to engage in entrepreneurial activities without IE status. However, there is a reservation: in this case, entrepreneurs shall not use hired labor, and the annual profit of the enterprise from the sale of goods, works, and services to individuals shall not exceed 12 minimum wages.
The IE registration process in Kazakhstan seems to be very simple and straightforward. However, there are some hidden pitfalls. In certain cases, the authorized body may refuse to open a business. You will be denied if:
Individuals who have reached the age of majority can open an IE. However, in some cases, it is possible not to wait until the age of 18 and become a full-fledged entrepreneur even at the age of 14. To do this, you need to prepare. So, you will need to attach the consent of legal representatives to the list of documents required for business registration. If there is no consent, you need to provide other documents. This may be a copy of the marriage certificate (if the minor is married) or a court decision declaring that the minor is fully capable (this process is called emancipation). However, emancipation is possible only for individuals who have reached the age of 16.
Individual entrepreneurs may choose one of four regimes:
Suitable for IEs who work independently only, i.e. without hiring employees. It provides the most favorable conditions. The tax rate is the same for all entrepreneurs and is 1% of income.
However, there is a condition: the maximum annual income should not exceed 3,528 MCIs (Monthly Calculation Index). In 2024, 1 MCI equals KZT 3,692.
This regime allows a maximum of 30 employees (including the business owner). But it also comes with more obligations.
What taxes does an IE pay under the simplified regime in Kazakhstan in 2024? 3% of income, with 1.5% being income tax and another 1.5% being social tax. Additionally, the individual entrepreneur pays for themselves: 10% for pensions, 3.5% for social security, and 5% of 1.4 Minimum Wage for health insurance.
The simplified regime is suitable for IEs whose maximum income for six months does not exceed 24,038 MCIs. There is also an additional condition: when using the TIS (three-component integrated system), the income threshold increases.
If an IE's income exceeds 20,000 MCIs during the calendar year (20,000 * 3,692 = 73,840,000), the entrepreneur must obtain a VAT certificate (VAT is 12%).
This taxation system is suitable for companies where, besides the entrepreneur, 49 other people are employed. The tax rate in this case is 10% of income.
But the regime is relevant only when the maximum income for six months does not exceed 144,184 MCIs.
What if your business does not meet the conditions of any of the three systems? In this case, the fourth option - the generally established regime - is optimal. It provides a 10% tax rate on income, while there are no any income limits. Please note that in this situation, tax reports are submitted to the tax authority quarterly and according to the results of the year. The generally established regime is suitable for businesses with large turnovers. Moreover, this system is mandatory for alcohol and tobacco producers, professionals providing financial and accounting services, companies selling petroleum products, or working with natural resources.
In all tax regimes, except for the patent-based regime, it is possible to employ workers. Therefore, their income must be subject to the following taxes and payments to be withheld and paid monthly:
Additionally, the following is paid at the expense of the IE:
Individual entrepreneurs on this regime are exempt from the social tax for employees.
In this case, the entrepreneur will receive a fine. If a businessman is late with payments, a penalty will be charged for each day of delay.
If any data submitted by the entrepreneur during registration changes, the tax authority must be notified thereof. You have 10 days to do this.
Changes are made through the Elicense.kz portal. In the Personal Area, you will see a list of available services – select the Service section (Notification Procedure subsection). Then follow this path: Notification of Commencement of Activities as an IE – Change of IE Registration Data. The next step is to click on the Order Service Online button.
Then, you should select the tax authority at the place of registration – the application for changing registration details will be automatically sent to the tax authority.
A form with all the information about your IE will open – you can edit the necessary details here. The final step is to sign the notification of change with your electronic signature. Here you can also download the new (with changes) notification and the IE certificate.
To sum up, we have learned what is needed to open an IE in Kazakhstan. The procedure is as simple and quick as possible, requiring a minimal package of documents. This is why Kazakhstan is considered one of the countries with a favorable business environment. As we can see, most procedures (obtaining an EDS, changing details) can be done online and save time. However, despite the simplicity of the process, it is essential to remember the individual entrepreneur obligations – including timely tax payments and other payments.
A Limited Liability Partnership (LLP) is a type of business activity that allows to carry out legal business operations in the territory of the Republic of Kazakhstan. LLP is suitable for businesses of various scales, from small companies with up to 15 employees to large organizations employing up to 250 employees.
To successfully open an LLP in Almaty or other cities in Kazakhstan, you need to be aware of many nuances, which we will discuss in this article.