Step-by-Step Guide for Closing an IE Online in Kazakhstan

Importance of Preparationм

Before submitting an application to terminate the IE business, it is crucial to get affairs in order. Failure to prepare may result in rejection: the enterprise simply will not be closed.

Before submitting the application, it is important to:

• Check for outstanding taxes and other liabilities. This can be done through the State Revenue Committee's website. If there are any debts, they must be settled.
• Pay taxes and make all social contributions for the period during which the cessation of business is planned. Please note that from the moment the liquidation report is submitted to the tax authority, you have 10 days to make the payments.
• Terminate employees if you had any.
• Deregister the enterprise from VAT registration if you were working with Value Added Tax. This can be done through the taxpayer's personal area: fill out the appropriate form and submit an application for deregistration.
• Close the bank account.
• Deregister the online cash register if you were using one.

Online opening of a current account for business

After completing these preparatory steps, you can proceed with the closure of the non-operating IE.

Closing an IE in Kazakhstan

In most cases, the IE closing procedure in Kazakhstan is greatly simplified (this system is referred to as simplified). This means that the IE can be closed remotely, i.e. online. In this case, the entrepreneur can avoid such time-consuming and troublesome stages as tax audit and desk control.

Online lending for IEs

However, to close an IE online in 2024 in Kazakhstan, certain conditions must be met. Specifically, the entrepreneur must not:

• Be registered for VAT.
• Do business in a joint entrepreneurship (i.e., with a partner).
• Have any outstanding liabilities: This includes not only tax debts, but also social contributions.
• Be on the tax audit schedule. Of course, the entrepreneur cannot control the schedule of tax procedures, but can check whether an audit is scheduled for them. This can be done on the General Prosecutor's Office website in the Documents section.
• Have a high risk according to the risk management system. According to the risk matrix, high risk means a score of 6 or higher.
• Engage in activities that refer to the list of certain types of activities. Thus, online IE closure does not apply to entrepreneurs who produce and sell fuel, alcohol, cigarettes, conduct lotteries, provide casino services, etc.

Tax Application for Termination of Operations

This application serves as the basis for terminating the Company operations. It is submitted to the tax authorities, with three submission methods available:

1. Electronically: This is the most advanced and convenient option.
2. In person: This involves writing an application at the Public Service Center.
3. By mail: The application is made on paper and sent by registered mail. This option is suitable for entrepreneurs who, for example, are temporarily not at their place of registration.

Online IE Closure in Kazakhstan: Step-by-Step Instructions

You can close IE under the simplified procedure in Kazakhstan through the taxpayer's personal area:

1. Log in using an Electronic Digital Signature (EDS).
2. Click on the Tax Reporting Forms tab, then go to the "Fill Out a New Form" section.
3. Fill out the liquidation report and submit it to the State Revenue Authorities (SRA). Don't forget to check the box in item 5 next to the “Liquidation” field.
4. Go to the Tax Application tab, then to the Termination of Operations section.
5. Specify the reason for liquidation. Entrepreneurs often refer to Article 67 of the Tax Code. The reason for termination can be lack of demand, shortage of working capital, temporary hardships. By the way, you can close IE simply at your own discretion – without any serious reasons.
6. Indicate the budget classification codes for taxes.
7. Click the Submit button.

What to Do When the Simplified Procedure is Not Suitable

Besides the simplified procedure, you can terminate operations in an automatic or general mode.

Automatic Mode: Introduced in the summer of 2020, it is convenient as it does not require any action from the business owner. If the entrepreneur does not submit a patent to the tax office or does not resume operations after suspension within 60 days, the State Revenue Department (SRD) will deregister the IE automatically. Of course, automatic deregistration is possible under certain conditions – specifically, the absence of tax debts and fulfillment of other contributions.

General Mode: This mode is relevant for IEs that do not meet the simplified procedure requirements. In this case, the entrepreneur will be subject to a tax audit, which is conducted no later than 20 days after the entrepreneur submits the application. The audit is usually completed within 30 days, but in some cases, it may extend to 180 days. If the entrepreneur successfully passes the audit, agrees with its results, and pays all taxes, the IE is deregistered within 3 days.

Online opening of a current account for business

Please note that to close IE, even those who has not conducted a full-fledged business, for example, has not been operating at all after the opening of the enterprise and is forced to stop the activity, will have to choose one of the three modes.

Grounds for Refusal to Close IEGrounds for Refusal to Close IE

Government authorities do not always close an enterprise. An individual entrepreneur will not be deregistered if:

• The conditions mandatory for the simplified procedure are not met (if the simplified procedure was chosen).
• The reporting has not been submitted, the account has not been closed, the stamp has not been liquidated. All this must be done within 3 days from the date of submitting the application for termination of operations.
• There are outstanding tax or social payment debts.

How to Check If the IE is Closed

After completing all the stages, it is important to find out whether your IE is actually closed. If it is not closed, you will still have to pay taxes.

You can check the status of your enterprise online in three ways:

1. Through the taxpayer's personal area
2. Through the e-Salyq Azamat mobile app developed by the State Revenue Committee as an electronic tax wallet.
3. On the State Revenue Committee's website at Kgd.gov.kz through the Electronic Services tab, where you need to select "Taxpayer Search," enter IIN and other information in the proposed form.

The procedure for closing a business only seems complicated: to liquidate officially, you need to choose the correct mode and follow a clear algorithm. Most entrepreneurs can use the simplified closure system, which significantly eases the task: liquidation can be carried out online with minimal time costs. However, it is important to thoroughly prepare for this process to minimize the risk of refusal.