Fiscal Strategy 2027–2029: tax incentives to be reviewed, VAT exemptions cut, oversight to go digital
The Ministry of Economy and Finance has drafted a Fiscal Strategy for 2027–2029. It plans to review incentives under corporate profit tax, personal income tax and VAT, cut VAT exemptions, raise excise, property and resource tax rates step by step in line with inflation, and further digitalize tax and customs administration.
The Ministry of Economy and Finance has drafted a Fiscal Strategy for 2027–2029. The document sets out macroeconomic forecasts, an assessment of fiscal risks, and the revenues and expenditures of the consolidated budget.
Important: this is a strategy, that is, a plan of directions. For each change to take effect, separate amendments must be made to the Tax Code or other documents. So for now, keep working under the current rules.
Main changes in tax policy
- Incentives under corporate profit tax, personal income tax and VAT will be reviewed.
- To keep the VAT chain unbroken, VAT exemptions will be reduced.
- The VAT refund mechanism will be improved.
- The rules for deducting certain expenses and accounting for losses under corporate profit tax will be changed.
- The taxation of loan transactions between legal entities and individuals will be brought under a single set of rules.
- Excise, property and resource tax rates will be raised step by step in line with inflation.
- "Green taxation" principles will be introduced.
- The system of taxing real estate based on market value will be improved.
- The effectiveness of tax incentives will be assessed and the conditions for applying them will be set.
What is expected in tax administration?
- Tax and customs administration will be further digitalized.
- Control over artificial splitting of businesses, concealment of turnover and informal employment will be tightened.
- E-invoices, online cash registers, digital labeling and data analytics will be expanded.
- Risk-based tax control will be developed.
- Cashless payments and e-commerce will be encouraged further.
What can an accountant prepare for now?
The tips below were compiled by the author:
| Strategy direction | Useful step to take now |
|---|---|
| Incentives will be reviewed and reduced | Put into one table which incentives the company uses, under which document and for what amount: if an incentive is abolished, you will be able to calculate in advance how much the tax burden will grow |
| Rules for deducting expenses and accounting for losses will change | Keep documents supporting the reasons for large expenses and losses in good order |
| Loan transactions will be brought under single rules | List the loan agreements with the founder, employees or other individuals |
| Excise, property and resource tax rates will rise | Allow for a possible rise in these taxes when drawing up next year's budget |
| E-invoices, online cash registers, labeling and data analytics will expand | Check every month that sales, e-invoice and cash register data match |
Example (compiled by the author, hypothetical situation). The accountant of "Bog'ishamol" LLC listed the three incentives the company uses in a table and calculated how much tax each saves per year. Now, if the law changes, they can show the director its effect within a day.
The final rules will be set by amendments to the Tax Code. We will report on them on the site as soon as they are published.
Official source
For information only; check the official text at the source.