Kazakhstan (Updated March 2023)

Kakahsan

Report Topics:

  1. General Information: the direct selling industry in Kazakhstan is regulated by the Law

Rules of trade outside retail outlets through network marketing, public distributors, mail order and other means.

  1. Cooling-Off Period:

Consumer protection law. Article 14. Consumers’ right to exchange or return goods of adequate quality

“1. The buyer has the right, within fourteen days from the moment of delivery of nonfoods, unless a longer period is not announced by the seller (manufacturer), to exchange the purchased goods at the place of purchase or other places announced by the seller (manufacturer) for similar goods of different size, shape, dimension, style, colour, configuration and the like or for other goods upon agreement of the parties, making in case of price difference the necessary recalculation with the seller”

III. Pyramid Schemes,

There are two articles in the Criminal Code:

Article 217. Establishment and management of a financial (investment) pyramid scheme;

Article 217-1. Advertising a financial (investment) pyramid scheme.

A pyramid scheme is an activity aimed at deriving income (property benefit) from raising money or other property or the right to it from natural and/or legal persons without using the raised funds for entrepreneurial activities ensuring the assumed obligations, by redistributing these assets and enriching some participants at the expense of the contributions of others.

  1. Multi-Level Marketing: non
  2. Prohibition on Products (restrictions):

Tax Code Article 683

Entrepreneurs rendering marketing services cannot use the simplified tax regime.

Regulations on the circulation of nutritions.

 

  1. Retail sale of dietary supplements shall be carried out through pharmacies, pharmacy sale points, specialized shops and retail network that comply with requirements of Order of the Minister of Health of the Republic of Kazakhstan dated July 7, 2021 № KP DSM-58 “On approval of sanitary rules “Sanitary and epidemiological requirements for facilities in the field of drug circulation and medical devices” (registered in the Register of Legal Acts state registration under № 23416) and Order of the Minister of Health of the Republic of Kazakhstan dated August 4, 2021 № KP

Nutritions – components of natural or identical to natural substances intended for separate use or introduction into the composition of food products to enrich them or for prevention of diseases, except for parapharmaceuticals;

Nutritional supplements may only be circulated after state registration for compliance with the requirements of technical regulations of the Customs Union.

  1. Credit Restrictions Country: non

VII. Money Collections: Mandatory use of cash machines

VIII. Licenses: Non

  1. Status of Direct Sellers: Independent partners of companies are self-employed;
  2. Earnings Claims: Non
  3. Taxes and Fees: According to taxation mode.

3% of turnover for an entrepreneur on a simplified tax regime.

For companies on general tax regime:

Complicated business accounting (might even say confusing)

12% VAT

20% Income tax

XII. Social Security and

Development of a new social code that incorporates the concept of ‘platform employment’. At this stage, it is a vague concept and discussions on the text are ongoing.

XIII. Others:

2023 is the year of the new tax code creation.

 

 

 

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