Returning to the matter on a respite in paying VAT on operations with securities in Kazakhstan - IRBIS

/IRBIS, Feb.15, 00/ - As it is well know, in accordance with the law of Kazakhstan "On making changes and amendments into the law of Kazakhstan "On taxes and other mandatory budgetary payments" of December 10, 1999, operations with securities were removed from the list of tax exempt financial services (clause 46 article 5). Based on new regulations, operations with securities are taxed with VAT, which, in professional participants' opinion, incurs significant losses to the investors for current level of returns. On Monday the agency IBRIS published the resolution of the government of Kazakhstan #207 "On measures of stabilizing the stock market of Kazakhstan", dated February 11, 2000, which gives a respite to participants of the stock market in paying VAT on operations with securities. The agency IRBIS has the information that changes were made in the draft law "On making changes and amendments into some legislative acts of Kazakhstan concerning the banking secrets" regarding the restoration of operations with securities in the list of financial services exempt from VAT and that corrected rules of collecting VAT is introduced from January 1, 2000. This law was presented to the Parliament on February 11. Today it is believed the president of the country would declare this draft law as the law of the highest importance, that is to be adopted within a month. And this, in turn, leaves a hope for a legal settlement of the matter on VAT collection from the securities by the mid March and introduction of the new rules from January 1, 2000.