«Subnational Doing Business Ranking» in Kazakhstan

10.12.2018

On November 30, 2018, the Almaty City Development Center hosted a meeting of World Bank experts with government agencies and local executive bodies to discuss the results of data collection for the «Subnational Doing Business Rating» study in Kazakhstan.

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During the meeting, representatives of the Ministry of National Economy explained the methodology and advantages of the rating at the sub-national level, allowing the regions to share their experience.

The introduction of a regional ranking creates the prerequisites for competition and stimulates the participation of local authorities to promote reforms.

During the meeting of World Bank experts with representatives of the Department of Justice in Almaty, the Department of State Revenue for Almaty and the Almaty branch of the National Bank, reforms were discussed to improve the position of the «Opening of Enterprises» rating indicator.

The «Opening of Enterprises» indicator takes into account the timing, cost, minimum paid share capital and the number of procedures required for the formation of the company.

According to the World Bank's «Doing Business 2019» report, Kazakhstan has improved its position by 5 points compared to last year (41st place in 2018, 36th place in 2019).

One of the components that has influenced the improvement of the indicator's position is the simplification from May 1, 2017, registration procedure as a VAT payer.

According to the amendments to the tax law, persons who declare at registration of a legal entity through e-gov about the need to register as a VAT payer become registered from the day of state registration. At the same time, it is excluded the requirement to photograph the first manager of a legal entity, as well as to provide a document confirming the location of the legal entity.

In 2017, 603 VAT payers were registered at the state registration of a legal entity. In the first 11 months of 2018, 1,683 VAT payers registered electronically through the e-gov portal, representing 32% of the total number of registered taxpayers.

In addition, experts have been informed of ongoing measures to improve the quality of service to taxpayers with the support of the Almaty Mayor's Office.

 

Since November 2018, The City of Almaty has introduced Mobile Tax Offices, which will allow prompt and accessible provision of public services in remote places of mass gathering of people (e.g. markets).

According to Georgia's experience, three vehicles have been purchased and converted into mobile offices. The office is provided with heating, air conditioning systems and CCTV cameras.

The mobile office combines the functionality of the Service Delivery Center, the Self-Service Terminal and the function of receiving payments at the bank's cash register.

The office is divided into two service areas: the service area by employee and the armored area of the bank's cashier.

Receiving payments is made by the cashier of «Kazpost» And preference is given to this institution of the bank in view of the acceptance of individual taxes without commission.

The tax zone provides for an employee's workplace equipped with a computer, a printer with a scanner and a taxpayer's waiting area.

The machine has internet coverage, which allows you to use the office as a «self-service terminal» for taxpayers wishing to fulfill their tax obligations.

The office has samples of tax statements and tax reporting forms.

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The CCTV system allows you to monitor the work of mobile workers through the Situation Center created.

It is planned to install in the «Mobile Offices on Wheels» Integrated Tax Information System and Tax reporting system. (at present, the NIT is working with cellular operators on the installation of a communication channel).

Prior to the installation of the communication channel, the office is used as a consulting point and receiving tax applications for registration of cash registers with FAD, removing old models.

Once the IS has been installed in the Mobile Centre, it will be possible to issue EDS, register individuals as sole proprietors and issue/renew patents and accept other tax reporting.

In connection with the introduction of the obligation to use cash registers trading in the markets with FPD from 01.10.2018, it is planned to place mobile points in the markets of two districts - Alatau and Zhetysu, where the largest number of traders, respectively, 43% and 27% of the total number of the city.

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Source: http://almaty.kgd.gov.kz/en/news/sostoyalas-vstrecha-ekspertov-vsemirnogo-banka-s-gosudarstvennym-organami-i-mestnymi