The deposit from the LLP is in a simplified mode: do I need to submit the 100.00 form and pay the CPN

The Department of State Revenue for Kostanay region explains. Limited liability partnerships (LLP) that apply a special tax regime based on a simplified declaration often place free funds on deposits with banks. In this regard, the question arises: is it necessary to reflect the income on the deposit and pay corporate income tax (CIT)?

According to the provisions of Article 681 of the Tax Code of the Republic of Kazakhstan, income in the form of interest on deposits does not relate to income taxed under a special tax regime. This means that such income is subject to taxation in a generally prescribed manner.

Thus, an LLP that has received income on a deposit is required to submit a declaration on the form 100.00 based on the results of the reporting year and reflect the amount of remuneration received as part of its total annual income. The specified income is included in line 100.00.014 as the taxpayer's other income.

The income on the deposit is subject to corporate income tax at a rate of 20 percent. At the same time, the bank paying the remuneration acts as a tax agent and withholds tax at the source of payment at a rate of 15 percent in accordance with tax legislation.

In accordance with Article 302 of the Tax Code, the amount of CIT payable to the budget is reduced by the amount of tax withheld at the source of payment. In other words, the taxpayer has the right to set off the tax withheld by the bank when calculating his tax obligations.

For example, if the amount of interest on the deposit was 100,000 tenge, then the total CPI at the rate of 20 percent will be 20,000 tenge. At the same time, the bank will retain 15 percent, or 15,000 tenge. As a result, a difference of 5,000 tenge will remain for the additional payment to the budget.

It should be noted that the correct reflection of income on deposits and timely reporting make it possible to avoid tax risks and ensure compliance with legal requirements.

Thus, if there is a deposit income, an LLP applying the simplified regime is required to report on form 100.00 and pay corporate income tax, taking into account the tax deducted by the bank.

Source : https://www.gov.kz/memleket/entities/kgd-kostanay/press/news/details/1191040?lang=kk