December 19, 2022

What laws will come into force in Kazakhstan from 2023

A number of laws will be put into effect in Kazakhstan in 2023. What major changes will take place in the legislative sphere of Kazakhstan next year, as the correspondent of MIA Kazinform reports.

From January 1, 2023, the Constitutional Court will work

This year, the Head of State signed a number of important laws adopted following the results of the republican referendum on amendments and additions to the Constitution held in June 2022.

In particular, as part of the Constitutional Reform in Kazakhstan, the Constitutional Court will start functioning from January 1, 2023.

Now Kazakhstanis will be able to apply directly to the Constitutional Court. Namely, every citizen will be able to directly defend their constitutional rights and freedoms in this body. At the same time, on an equal basis with citizens, the same right is granted to the Prosecutor General and the Commissioner for Human Rights. The human rights function of the Prosecutor General has been strengthened. Kassym-Jomart Tokayev stressed that previously these subjects had no right to appeal to the Constitutional Council.

Approved the size of the MCI and the minimum wage for 2023

On December 1– the Head of State signed the Law of the Republic of Kazakhstan “On the republican budget for 2023-2025”. The document defines the main calculation indicators.

According to the Law of December 1 , 2022 , it is planned to establish from January 1 , 2023:

The minimum wage (minimum wage) for 2023 is 70 thousand tenge;

The monthly calculation index (MCI) in the amount of 3,450 tenge.

At the same time, the minimum amount of the state basic pension payment will be 21,907 tenge, and the minimum pension amount will be 53,076 tenge.

The amount of the subsistence minimum for calculating the amount of basic social benefits is determined in the amount of 40,567 tenge.

The Law on Bankruptcy of Individuals

During an expanded Government meeting on December 12, the President of Kazakhstan said that from January 1, 2023, the Law “On Rehabilitation and Bankruptcy of Individuals” should work, while noting that today the volume of problem loans has reached half a trillion tenge.

In Kazakhstan, more than a million people are unable to pay their obligations.

In general, according to the draft law, three types of bankruptcy procedures for individuals will be applied in Kazakhstan: out-of-court, judicial bankruptcy, and the procedure for restoring solvency.

After declaring “bankrupt” citizens:

– will not be able to get loans and credits for five years;

– they will be able to re-apply bankruptcy only after seven years.

It is also planned to monitor the financial condition of the bankrupt for three years after bankruptcy.

As of October 1, 2022, 7.8 million people in the amount of more than 14.3 trillion tenge have debts to second-tier banks, microfinance organizations and collection agencies.

The Social Code is planned to be adopted in July 2023

The Ministry of Labor and Social Protection of the Population has completed the development of a draft Social Code, which provides for a set of measures aimed at improving social support for Kazakhstanis.

The Social Code will accompany citizens throughout their lives, providing assistance from the state in the event of social risks.

As part of the implementation of the instructions of the Head of State, the Social Code project provides for the formation of a system for anticipating social risks of families through the provision of established social state guarantees in a proactive format through a Digital Family Card.

A new employment policy is being built, which provides for strengthening the professional skills of the workforce, legislative consolidation and regulation of all types of flexible employment, attracting qualified personnel for technology and knowledge transfer, regulating internal migration, transforming employment centers into career centers and large-scale digitalization of services.

Within the framework of the document, the pension provision of citizens is being improved by increasing the size of pension payments from the budget, creating a multi-level pension system with the participation of the state, the employer and the employee.

The draft Social Code provides for the expansion of State support for families with children. On behalf of the Head of State, additional support for families is being introduced in the form of start-up capital for children under 18, formed by redistributing 50% of the investment income of the National Fund. The period of child care payments and the amount of benefits for mothers with many children is increasing, a new status will also be introduced – mothers awarded with the “Altyn Alka” and “Kumis alka” pendant.

In addition, from 2025, the poverty line for the purpose of targeted social assistance will be determined by the median income instead of the subsistence minimum.

Amendments to the Tax Code of the Republic of Kazakhstan

Earlier, the country’s Parliament adopted the draft law of the Republic of Kazakhstan “On Amendments and Additions to the Code of the Republic of Kazakhstan “On Taxes and Other mandatory Payments to the Budget” (Tax Code) and the Law of the Republic of Kazakhstan “On the introduction of the Code of the Republic of Kazakhstan “On Taxes and Other Mandatory Payments to the Budget”.

From 2023, they will not be allowed to apply a single aggregate payment (ESP) for certain types of activities.

Earlier, the Ministry of National Economy explained that, according to the instruction of the Head of State, it is planned to introduce a single payment from the wage fund for micro and small businesses with a reduction in the total load. Currently, several payments with different rates and calculation bases are paid from the payroll fund. It is proposed to combine these payments into one payment. It is envisaged to reduce the burden due to individual income tax, since the amount of social payments affects future payments to employees.

Starting from 2023, Kazakhstan will begin a gradual increase in excise rates on tobacco products.

Thus, amendments have been made to lines 14, 15, 16, 18, 21 and 22 of the table of subparagraph 1) of paragraph 4 of Article 463 of the Tax Code.

Cigarettes with a filter:

– in 2023 – 14,100 tenge/1,000 pieces;

– in 2024 – 15,900 tenge/1,000 pieces;

– in 2025 – 15,900 tenge/1000 pieces.

The rates of excise duty on cigarillos are also equated to the rates of cigarettes. For products with heated tobacco, the excise tax rate is determined at the level of 70 percent of the excise tax rates for cigarettes with a change in the unit of measurement from a kilogram to pieces:

– in 2023 – 9,870 tenge / 1000 pieces;

– in 2024 – 11 130 tenge / 1000 pieces;

– in 2025 – 11 130 tenge / 1000 pieces.

According to the changes, the rate on nicotine-containing liquid in cartridges, tanks and other containers for use in electronic cigarettes has been increased, which will be:

– in 2023 – 53 tenge/milliliter of liquid;

– in 2024 – 55 tenge/milliliter of liquid;

– in 2025 – 55 tenge / milliliter of liquid.

In addition, jewelry manufacturers will receive VAT exemption from 2023.

It should be noted that according to the document, a norm is proposed to reduce VAT by 70% when processing fish by fishing enterprises. Now such a privilege is used by fish farms. In order to stimulate sugar production, it is proposed to exempt raw cane sugar imports from VAT, as well as extend the validity of VAT benefits for sugar producers.

From January 1, 2023, the mining fee rates will change.

Starting from January 1, 2023, a progressive scale of the digital mining fee rate will be applied in Kazakhstan.

When using cheap electricity, a high fee rate will be applied, the upper scale of which reaches 25 tenge. In the case of using expensive electricity, the cost per 1 kilowatt-hour from 24 tenge and above, the minimum fee rate of 1 tenge will be applied.